Document:

Unassociated Document

    AMENDMENT
      TO LOAN AGREEMENT

    

    This
      Amendment to Loan Agreement is made and entered as of the 4th day of June,
      2004,
      by and among Wintegra
      Inc. (the “Company”),
      Wintegra Ltd. ("Wintegra
      Israel")
      and
      the lenders listed in Schedule
      1
      attached
      hereto (the “Lenders”).

    

    WHEREAS,
      the
      parties hereto are parties to a certain Loan Agreement, dated June 4th,
      2002, a
      copy of which is attached hereto as Exhibit
      A
      (the
“Loan
      Agreement”);
      and

    

    WHEREAS, the
      parties wish to amend the Loan Agreement, as set forth below;

    

    NOW
      THEREFORE,
      the
      parties hereby agree as follows:

    

    1. Capitalized
      terms used but not defined, directly or by reference, herein shall have the
      meaning ascribed thereto in the Loan Agreement. Notwithstanding, any reference
      to "Lenders" herein and in the Loan Agreement after the execution of this
      Amendment, shall refer to Plenus Technologies Ltd. Only.

    

    2. Section
      1.2 of the Loan Agreement shall be deleted in its entirety and the section
      marked "Reserved".

    

    

    3. Section
      1.8 of
      the Loan Agreement shall be amended by deleting the word, "second", in the
      third
      line, and inserting the word, "fourth", in place thereof.

    

    4. Section
      2
      of the Loan Agreement shall be amended by inserting the following paragraph
      after the last line: "The
      Company shall pay to the Lenders, on each of the third and fourth anniversary
      of
      the Effective Date, a fee equal to 1% of the Credit Line Amount which was not
      utilized in the contract year ending on such anniversary date, plus VAT if
      applicable. For the purpose of such fee, any Principal Amount repaid during
      such
      year shall be taken into account as partially utilized, based on the number
      of
      days it was outstanding.". 

    

    5. Section
      2.2 of
      the Loan Agreement shall be amended by deleting the words, "twenty four (24)",
      in the third line, and inserting the word, "forty eight (48)", in place thereof.
      

    

    6. Section
      2.4 of the Loan
      Agreement shall be amended by deleting the words, "twenty four (24)", in the
      eighth line, and inserting the words, "forty eight (48)", in place
      thereof.

    

    7. Paragraph
      (iii) of Section 3 of the Loan Agreement shall be amended by (a) inserting
      the
      words, "including, but not limited to, monies borrowed, or to be borrowed,
      from
      United Mizrachi Bank Ltd.", after the words, "Wintegra Israel", in the first
      line, and in the third line, and (b) inserting the words, "including, without
      limitation, by United Mizrachi Bank Ltd.", after the words "commitment to lend",
      in the sixth line thereof. 

     

    
      
        
        

      

      
        -
          1 -

        
          

        

      

      
        
        

      

    

     

    8. Paragraph
      (vi) of Section 3 of the Loan Agreement shall be amended by inserting the words,
      "including, but not limited to, the financial covenants set forth in
Exhibit
      G
      attached
      hereto", after the words, "schedules hereto", in the third line.

    

    9. Paragraph
      (xi) of Section 3 of the Loan Agreement shall be marked as (ix) instead.

    

    10. Paragraph
      (ix) of Section 4 of the Loan Agreement shall be amended by inserting the words,
      "the Series C Preferred Stock,", after the words, "stock of the Company", in
      the
      third line.

    

    11. Section
      9.7 of the Loan Agreement shall be amended by (a) replacing the first sentence
      thereof with the following sentence: "The Company shall pay to Plenus, for
      legal
      fees: (a) Twenty Thousand United States dollars (US$ 20,000), plus applicable
      value added tax, on or immediately after the date which this Agreement and
      all
      schedules and exhibits hereto are executed by the parties, (b) Twelve Thousand
      United States dollars (US$ 12,000) ), plus applicable value added tax, on the
      second anniversary of the Effective Date, (c) all out of pocket expenses
      incurred by Plenus’ legal advisors.", and (b) replacing the word, "amount", in
      the sixth line, with the word, "amounts". 

     

    12. Section
      9.8 of the Loan Agreement shall be amended in its entirety to state that:
"Any
      term
      of this Agreement may be amended and the observance of any term hereof may
      be
      waived (either prospectively or retroactively and either generally or in a
      particular instance) only with the written consent of the Company and Plenus."
      

    

    13. Schedule
      1 to the Loan Agreement shall be replaced by Schedule
      1
      attached
      hereto.

    

    14. Exhibit
      G
      attached
      hereto shall be attached to the Loan Agreement as Exhibit G.

     

    15. Except
      as
      herein expressly agreed, the Loan Agreement, as amended, is hereby confirmed
      and
      ratified and shall remain in full force and effect according
      to its
      terms.

     

    16. The
      parties acknowledge that Wintegra Israel is executing a first ranking floating
      charge and fixed charge in favor of Mizrahi Bank.

    

    17. Concurrently
      with the
      execution and delivery of this Amendment Agreement, the Warrant shall be
      surrendered by Plenus against the issuance of a new warrant, in the form of
      Exhibit
      B attached
      hereto (the "New
      Warrant"),
      and
      all of the provisions of the Loan Agreement with respect to the Warrant and
      the
      Warrant Shares shall apply from the date hereof to the New Warrant and warrant
      shares issuable pursuant thereto.

    

    18. This
      Amendment shall be contingent upon and subject to the fulfillment, on or before
      sixty days of the second anniversary of the Effective Date, of each of the
      following conditions: (1) the issuance of the New Warrant; (2) the execution
      of
      an amended Floating Charge Agreement by and between the Lenders and Wintegra
      Israel (the
      “Amended
      Floating Charge Agreement”)
      in the
      form attached hereto as Exhibit
      C1
      (3)
the
      execution of a collateral agent letter agreement
      by and among the parties hereto, Bank Leumi, and the Co-Lender (the
“Collateral
      Agent Letter Agreement”)
      in the
      form attached hereto as Exhibit
      C2
      ; and
(4)
      the
      board of directors and shareholders of the Company and Wintegra Israel shall
      have authorized the execution and delivery of this Amendment, the Amended
      Floating Charge Agreement, the Collateral Agent Agreement and the New Warrant.
      

    

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF,
      the
      parties have caused this Amendment to be duly executed and delivered on the
      day
      and year first above written.

     

     

    

     

    WINTEGRA
      INC.

    

    By: /s/
      Kobi Ben
      Zvi                          

    

    Its: ________________________

    

    WINTEGRA
      LTD.

    

    By: /s/
      Kobi Ben
      Zvi                          

    

    Its: ________________________

    

    PLENUS
      TECHNOLOGIES LTD. on
      its own
      behalf and on behalf of the Beneficiaries listed in Schedule 1.

    

    By: /s/
      Moti Weiss     /s/ Shlomo
      Karako

    

    Its: Managing
      Parter        
CFO

    

     

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

       

    

    SCHEDULE
      1

    

     

    

      
        	
                THE
                  LENDERS

              
	
                Name
                  and Address

              	 	
                Amount

              	 	
                Currency

              
	
                 

              	 	 	 	 
	
                Plenus
                  Technologies Ltd.

              	 	
                1,787,600

              	 	
                US$

              
	
                On
                  behalf of the Beneficiaries

              	 	 	 	 
	
                Listed
                  below

              	 	 	 	 
	
                16
                  Hagalim Avenue 

              	 	 	 	 
	
                Herzliya
                  Pituach

              	 	 	 	 
	
                Israel

              	 	 	 	 
	
                Attn:
                  Ruthi Simcha and Gadi Moshe

              	 	 	 	 
	
                Facsimile:
                  (972-9) 957-8770

              	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                THE
                  CO-LENDERS

              
	
                Name
                  and Address

              	 	
                Amount

              	 	
                 Currency

              
	 	 	 	 	 
	 	 	 	 	 
	
                Golden
                  Gate Bridge Fund L.P 

              	 	
                212,400

              	 	
                US$

              

      

    

    

    THE
      BENEFICIARIES

     

    
      
        	
                1.

              	
                The
                  Investment Corporation of United Mizrachi Bank Ltd.

              
	
                2.

              	
                Union
                  Bank of Israel Ltd.

              
	
                3.

              	
                Citibank
                  N.A.

              
	
                4.

              	
                Industrial
                  Development Bank of Israel Ltd.

              
	
                5.

              	
                D.
                  Partners (BVI)

              
	
                6.

              	
                CMA
                  Technology Venture Partner Limited

              
	
                7.

              	
                D.
                  Partners (ISR)

              
	
                8.

              	
                Israel
                  Continental Bank Ltd.

              
	
                9.

              	
                Nessuah
                  Zannex Ltd.

              
	
                10.

              	
                Mercantile
                  Discount Bank Ltd.

              
	
                11.

              	
                Benleumi
                  Provident Funds

              
	
                12.

              	
                Bank
                  Leumi Le-Israel B.M.

              
	
                13.

              	
                Kahal
                  Ltd.

              

      

    

    

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G

    

    Financial
      Covenants

    

    The
      Company's revenues during the period commencing on January 1, 2004 end ending
      on
      December 31, 2004 will not be less than Eight Million United States dollar
      (US$8,000,000).

     

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

     

    

      
[Plenus
        Letterhead]

      August
        _____, 2004

      

      Citibank,
        N.A. 

      Bank
        Leumi Le-Israel B.M.

      Golden
        Gate Bridge Fund L.P.

      

      Ladies
        and Gentlemen: 

      

      Reference
        is hereby made to (i) that certain Loan Agreement (the "Loan
        Agreement")
        made
        as of June 4, 2002, by and among Wintegra Inc. (the "Company"),
        Wintegra Ltd. and the lenders listed in Schedule
        1
        attached
        thereto (such Lenders, other than Plenus Technologies Ltd., the "Old
        Lenders"),
        (ii)
        that certain Pledge and Security Agreement (the "Security
        Agreement") dated
        as
        of June 4, 2002, by and between the Company and Plenus Technologies Ltd.,
        as
        Collateral Agent ("Plenus"),
        (iii)
        that certain Amendment to Loan Agreement by and between the Company and Wintegra
        Ltd., and the lenders listed in Schedule
        1
        attached
        thereto, made as of June 4th
        2004,
        and (iv) the discharge in full of all rights and interests of the Old Lenders
        under the Loan Agreement and the Security Agreement. All capitalized terms
        used
        and not defined herein shall have the respective meanings assigned to such
        terms
        in the Loan Agreement, as amended.

      

      This
        letter agreement (the "Letter Agreement") sets forth our agreement with respect
        the following: 

      

      1.    Discharge
        of Interests by Old Lenders.

      

      Each
        of
        the Old Lenders hereby confirms and acknowledges the discharge of all of
        its
        rights and interests under the Loan Agreement and the Security Agreement
        and
        releases, waives, and forever relinquishes all claims, demands, obligations,
        liabilities and causes of actions of whatever kind or nature with respect
        thereto .

      

      Notwithstanding
        the foregoing and for the avoidance of doubt, it is hereby stated that all
        the
        Citibank's and Bank Leumi's rights under the Warrant (as such term is defined
        in
        the Loan Agreement) remain in full force and effect in accordance with the
        terms of the Warrant and such rights are unchanged in any way by this Letter
        Agreement.

      

      Citibank
        N.A. ("Citibank")
        confirms that it is no longer a party to the Loan Agreement, the Floating
        Charge
        Agreement (as defined in the Loan Agreement) and/or the Security Agreement
        (the
        "Transaction
        Documents")
        and
        thus the Transaction Documents may be amended from time to time by the other
        parties thereto without requiring Citibank's consent.

      

      
        	 	
                2.

              	
                Confirmation
                  of Plenus as Collateral Agent; Security Agreement.  

              

      

      

      The
        Co-Lender specified in Schedule 1 to the Amended Loan Agreement hereby confirms
        Plenus' appointment as Collateral Agent on its behalf with all of the rights
        and
        powers granted to Plenus pursuant to the Security Agreement and the Loan
        Agreement. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      This
        Letter Agreement may be executed in any number of counterparts, each of which
        shall constitute an original and all of which, taken together, shall constitute
        one and the same instrument.

      

      

      By
        your
        signature below, you hereby acknowledge and accept the terms set forth in
        this
        Letter Agreement.

      

      Sincerely,

      

      Plenus'
        Technologies Ltd.

      

      /s/
        Moti Weiss /s/ Shlomo Karako

      [name,
        title]

      

      

      ACKNOWLEDGED
        AND ACCEPTED:

      

      Citibank,
        N.A., Tel-Aviv Branch

      

      

      By:
        _______________________________

      Name:
        

      Title:
        

      

      Bank
        Leumi Le-Israel B.M.

      

      

      By:
        _______________________________

      Name:
        

      Title:
        

      

      Golden
        Gate Bridge Fund L.P.

      

      

      By:
        /s/ Shlomo Karako

      Name:
        

      Title:
        

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      ACKNOWLEDGED:

      

      WINTEGRA
        INC.

      

      

      By:
        /s/ Kobi Ben Zvi

      Name:
        

      Title:
        

      

      

      WINTEGRA
        LTD.

      

      

      By:
        /s/ Kobi Ben Zvi

      Name:
        

      Title:
        

    

    
      
        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

      SCHEDULE
        1

      

      THE
        LENDERS

      

        
          	
                  Name
                    and Address

                	
                   Amount

                	
                  Currency

                
	
                   

                	 	 
	
                  Plenus
                    Technologies Ltd.

                	
                   1,787,600

                	
                  US$

                
	
                  On
                    behalf of the Beneficiaries

                	 	 
	
                  Listed
                    below

                	 	 
	
                  16
                    Hagalim Avenue 

                	 	 
	
                  Herzliya
                    Pituach

                	 	 
	
                  Israel

                	 	 
	
                  Attn:
                    Ruthi Simcha and Gadi Moshe

                	 	 
	
                  Facsimile:
                    (972-9) 957-8770

                	 	 

        

      

       

      

      THE
        CO-LENDERS

      

        
          	
                  Name
                    and Address

                	
                  Amount

                	
                   Currency 

                
	 	
                   

                	
                   

                
	
                  Golden
                    Gate Bridge Fund L.P

                	
                  212,400

                	
                  US$

                

        

      

      
 

      THE
        BENEFICIARIES

      

      
        	
                1.
                  The Investment Corporation of United Mizrachi Bank Ltd.

              
	
                2.
                  Union Bank of Israel Ltd.

              
	
                3.
                  Citibank N.A.

              
	
                4.
                  Industrial Development Bank of Israel Ltd.

              
	
                5.
                  D. Partners (BVI)

              
	
                6.
                  CMA Technology Venture Partner Limited

              
	
                7.
                  D. Partners (ISR)

              
	
                8.
                  Israel Continental Bank Ltd.

              
	
                9.
                  Nessuah Zannex Ltd.

              
	
                10.
                  Mercantile Discount Bank Ltd.

              
	
                11.
                  Benleumi Provident Funds

              
	
                12.
                  Bank Leumi Le-Israel B.M.

              
	
                13.
                  Kahal Ltd.

              

      

    

    
      

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

      

      AMENDMENT
        TO FLOATING CHARGE AGREEMENT

      

      This
        Amendment is made and entered as of the 4th
        day of
        June 2004, by and between Wintegra
        Ltd. (the "Pledgor") and Plenus Technologies Ltd. (“Plenus” or (the
“Lenders”).

      

      WHEREAS,
        the
        parties hereto are parties to a certain Floating Charge Agreement, dated
        June
        4th,
        2002
        (the " Floating Charge Agreement"); and

      

      WHEREAS, the
        parties wish to amend the Floating Charge Agreement, as set forth below;
        

      

      NOW
        THEREFORE,
        the
        parties hereby agree as follows:

      

      1. Capitalized
        terms used but not defined, directly or by reference, herein shall have the
        meaning ascribed thereto in the Floating Charge Agreement. Notwithstanding,
        any
        reference to "Lenders" in the Floating Charge Agreement after the execution
        of
        this Amendment, shall refer to Plenus Technologies Ltd. Only.

      

      2. Section
        1
        to the Floating Charge Agreement shall be amended by inserting the words
        "as it
        may be amended, restated, supplemented or otherwise modified from time to
        time"
        after the words "June 4th,
        2002"
        in the last line thereof.

      

      3. Schedule
        1 to the Floating Charge Agreement shall be replaced by Schedule
        1
        attached
        hereto. 

      

      4. Section
        12 of the Floating Charge Agreement shall be amended by deleting the word
        "Citibank" in the sixteen line.

      

      5. Section
        13 to the Floating Charge Agreement shall be deleted.

      

      6.  Except
        as
        herein expressly agreed, the Floating Charge Agreement, is hereby confirmed
        and
        ratified and shall remain in full force and effect according
        to its
        terms.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        the
        parties have caused this Amendment Agreement to be duly executed and delivered
        on the day and year first above written.

       

       

      
        
          

        

         

        
          WINTEGRA
            LTD.

        

        By:
          /s/
          Kobi Ben Zvi

        
          
            

          

        

        Its:
          CEO

        
          

        

         

         

        
          
             

            
              

            

          

        

         

        PLENUS
          TECHNOLOGIES LTD. On
          its
own behalf and on behalf of the
Beneficiaries listed in Schedule
          1.

        
          
            By: 
              /s/
              Moti Weiss /s/ Shlomo Karako

            
              
                

              

            

            Its: 
Moti
              Weiss, Managing Partner Shlomo Karako, CFO

            
              

            

          

        

        

        Agreed
          and accepted:

        

         

        
          
            

          

        

         

        GOLDEN GATE BRIDGE FUND L.P

        
           

          
            
              By: 
                /s/
                Shlomo Karako

              
                
                  

                

              

              Its: 
Shlomo
                Karako, CFO

              
                

              

            

          
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    THIS
      WARRANT HAS BEEN, AND THE WARRANT SHARES (AS DEFINED HEREIN) WHICH MAY BE
      PURCHASED UPON THE EXERCISE OF THIS WARRANT MAY BE, ACQUIRED SOLELY FOR
      INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE "ACT"), OR ANY APPLICABLE STATE OR COMPARABLE SECURITIES LAW OF
      A
      U.S. OR NON-U.S. JURISDICTION. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR
      SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION
      OF COUNSEL SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH SALE,
      OFFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
      DELIVERY REQUIREMENTS OF THE ACT AND OF ANY APPLICABLE STATE OR COMPARABLE
      SECURITIES LAW OF A U.S. OR NON-U.S. JURISDICTION.

    
       

      WINTEGRA
        INC. (the "CORPORATION")

       

      NO.
        ____;
        VOID AFTER JUNE 3rd,
        2013.

       

      WARRANT

       

      THIS
        CERTIFIES THAT,
        for
        value received, Plenus Technologies Ltd. ("Plenus"),
        or
        any other Holder (as defined in Section 1 hereof) is entitled to purchase,
        at
        the Exercise Price (as such term is defined in Section 2 below) for the Exercise
        Amount (as such term is defined in Section 1 below), at its election, fully
        paid
        shares of the Corporation’s Series C Preferred Stock or New Shares (as such
        terms are defined in Section 1 below), having all rights, privileges and
        preferences, contractual, economic or otherwise, attached to such class of
        shares or otherwise granted to any holder of such class of shares (the
“Warrant Shares”),
        subject
        to the provisions and upon the terms and conditions hereinafter set forth
        in
        this Warrant.

       

      1. Definitions.

       

      As
        used
        herein the following defined terms shall have the meaning ascribed to them
        in
        this Section as follows:

       

      "Convertible
        Securities" shall
        mean options or warrants to purchase, or rights to subscribe for, shares
        of the
        Corporation, or securities that by their terms are convertible into or
        exchangeable for equity securities of the Corporation, or options or warrants
        to
        purchase, or rights to subscribe for, such convertible or exchangeable
        securities.

       

      "Exercise
        Amount" shall
        mean six hundred thousand dollars ($600,000).

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      "Holder"
        shall
        mean Plenus, any Permitted Transferee and any such other third party to which
        this Warrant is assigned or transferred with the Corporation's consent (which
        consent shall not be unreasonably withheld or delayed).

       

      "IPO"
        shall
        mean the consummation of an initial public offering of the Corporation's
        securities.

       

      "Issuance
        of Additional Shares"
        shall
        mean the issuance of shares or Convertible Securities of the Corporation,
        other
        than:

       

      (A) Common
        Stock issued pursuant to a transaction described in subsection 3(iv)(iii)
        of the
        Fifth Restated and Amended Certificate of Incorporation of the Corporation
        (the
        "5th
        Restated Certificate");
        or

      

      (B) Shares
        of
        Common Stock (excluding shares repurchased at cost by the Corporation in
        connection with the termination of service) issuable or issued to employees,
        consultants, directors or vendors of the Corporation in transactions with
        non-financing purposes) pursuant to a stock option plan or restricted stock
        plan
        approved by the Board of Directors of the Corporation; or

      

      (C) Shares
        of
        Common Stock issued upon conversion of the Series A Preferred Stock, Series
        B
        Preferred Stock or Series C Stock, in accordance with the provisions of Section
        3 of the 5th
        Restated
        Certificate;

      

      (D) Shares
        of
        the Corporation issued pursuant to the exercise of warrants to purchase shares
        of Series B Preferred Stock which are outstanding as of the date hereof and
        which are listed in the disclosure schedule to the Series C Stock Purchase
        Agreement (as defined in the 5th
        Restated
        Certificate);

      

      (E) Shares
        of
        the Corporation issued pursuant to the exercise of warrants to purchase shares
        of Series C Preferred Stock which have been granted pursuant to the Series
        C
        Stock Purchase Agreement and are outstanding on the date hereof.

       

      “Last
        Round of Financing” shall
        mean the round of financing consummated in accordance with the Series C
        Preferred Stock Agreement, dated March 25, 2003, by and among the Corporation
        and Purchasers (as defined in that Series C Preferred Stock Purchase Agreement).
        

       

      “M&A
        Transaction”
        shall
        mean the consummation of (a) a transaction or a series of transactions for
        the
        sale or other disposition of all, or substantially all, of the assets or
        business of the Corporation, or (b) a transaction or a series of transactions,
        including, without limitation, a merger or consolidation, whereby, or as
        a
        result thereof, the Corporation's shareholders immediately prior thereto
        hold
        50% or less of the voting power of the Corporation, the surviving entity
        or the
        new entity (as the case may be) or no longer have the power or the right
        to
        appoint more than fifty (50%) percent of the members of the board of directors
        of such entity.

       

      "New
        Shares" shall
        mean any class of shares issued or issuable in connection with the Next round
        of
        Financing. 

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “Next
        Round of Financing”
        shall
        mean the first equity investment (including in Convertible Securities), or
        a
        series of equity investments, in the Corporation of fifteen million dollars
        ($15,000,000) or more occurring after the date hereof.

       

      “Permitted
        Transferee” shall
        mean, (i)
        the
        Co-Lender and each Beneficiary, (ii) any entity which controls, is controlled
        by
        or is under common control with the Holder, and (iii) if the Holder is a
        trustee
for,
        or
        acts on behalf of other person -
        such
        other person. 

       

      “Series
        C Preferred Stock”
        shall
        mean shares of the Corporation's share capital of the same class and par
        value,
        and having the same rights, privileges and preferences, contractual, economic
        or
        otherwise, as the shares purchased by the investors in the Last Round of
        Financing. 

       

      “Realization
        Event”
        shall
        mean an IPO or M&A Transaction. 

       

      Capitalized
        terms not otherwise defined herein shall have the meaning ascribed to them
        in
        the Loan Agreement, dated as of June 4th,
        2002,
        among the Corporation, Wintegra Ltd., Plenus and Citibank N.A., as it may
        be
        amended from time to time (the "Loan Agreement").

       

      2.Number
        and Class of Warrant Shares; Exercise Price.

       

      (a) Number
        of Warrant Shares.
        The
        Holder shall be entitled to purchase such number of Warrant Shares that is
        equal
        to the Exercise Amount divided by the Exercise Price (as defined below).
        

       

      (b) Class
        of Warrant Shares.
        The
        class of share to be issued upon the exercise of this Warrant shall be, at
        the
        Holder's election, Common Stock, Series C Preferred Stock or, if applicable
        at
        the time of exercise, the New Shares.

       

       

      (c) Exercise
        Price.
        The
        Exercise Price for each Warrant Share, subject to adjustments pursuant to
        the
        provisions of this Section 2 and of Section 5 and hereof (the "Exercise
        Price"),
        shall
        be: (i) in case of Series C Preferred Stock -$1.65005 , (ii) in case of New
        Shares - the lowest price per share paid by a purchaser in consideration
        of a
        New Share in the Next Round of Financing, (iii) in case of an IPO - 100%
        of the
        public offering price (before deduction of discounts, commissions or expenses)
        of a Common Stock in the IPO, and (iv) in case of an M&A Transaction - 100%
        of the price per share determined in such transaction. 

       

      

      (d)  Full
        Ratchet Protection.
        Notwithstanding anything herein to the contrary, upon each Issuance of
        Additional Shares at a price per share which is lower than the applicable
        Exercise Price then in effect, the Exercise Price will be automatically reduced
        to such lower price. For the removal of doubts: No adjustment of an Exercise
        Price shall be made if it has the effect of increasing the Exercise Price
        beyond
        the applicable Exercise Price in effect immediately prior to such Issuance
        of
        Additional Shares.

       

      Should
        the Exercise Price indeed be so reduced and the Warrant exercised at such
        lower
        price, the following provisions shall apply:

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (i) For
        the
        purpose of the provisions contained in Article IV of the 5th
        Restated
        Certificate, as such certificate may be amended and/or restated from time
        to
        time, in respect of dividends (Section II-1), liquidation preference (Section
        II-2) and conversion (Section II-3), including, for the avoidance of doubt,
        Conversion Rate (Subsection (i)), automatic conversion (Subsection (ii) and
        conversion price adjustments (Subsection (iv)), the "Original Series C Issue
        Price" of each Series C Preferred Stock held by the Holder shall be deemed
        to be
        such reduced Exercise Price and not as defined in subsection (i) of Section
        II-2
        thereof. 

       

      (ii) Should
        the event described in the beginning of the second to last sentence of Article
        IV, Section II-2, subsection (i) of the 5th
        Restated
        Certificate occur ("the assets and funds thus distributed among the holders
        of
        the Series C Preferred Stock shall be insufficient to permit the payment to
        such holders of the full aforesaid C Preference Amount"), then for the purpose
        of the last part of that sentence ("distributed ratably among the holders
        of the
        Series C Preferred Stock in proportion to the amount of such stock owned
        by each
        such holder"), "the amount of such stock owned by" the Holder relative to
        all of
        the issued and outstanding shares of such stock, shall be deemed to be equal
        to
        the fraction obtained by dividing
        (x) the
        aggregate Exercise Price actually paid by the Holder to the Corporation for
        the
        Series C Preferred Stock it owns, by (y) the aggregate amount actually paid
        to
        the Corporation by all
        holders
        of Series C Preferred Stock for such stock ("Holder's
        Pro Rata Share").

       

      (iii) With
        respect to any vote, consent or waiver within the class of Series C Preferred
        Stock, which is not
        based on
        an "as converted basis", the Holder shall be deemed to hold an amount of
        shares
        of Series C Preferred Stock which, when divided by the entire number of issued
        and outstanding shares of such stock, will be equal to Holder's Pro Rata
        Share.

       

      3. Method
        of Exercise; Payment.

       

      (a) Cash
        Exercise.
        The
        purchase rights represented by this Warrant may be exercised by the Holder,
        in
        whole or in part, by the surrender of this Warrant (with the Notice of Exercise
        form attached hereto as Exhibit A duly
        executed) at the principal office of the Corporation, and by the payment
        to the
        Corporation, by cash, certified, cashier's or other check or method acceptable
        to the Corporation, of an amount equal to the applicable Exercise Price
        multiplied by the number of the Warrant Shares being purchased.

       

      (b)
         Net
        Exercise.
        In lieu
        of the payment method set forth in Section 3(a) above, the Holder may elect
        to
        exchange the Warrant for a number of the applicable class of Warrant Shares
        equal to the number of Warrant Shares computed using the following
        formula:

       

      X
        =
Y(A-B)

                 
        A

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	 	 	
                Where
                  X
                  =
                  the number of Warrant Shares to be issued to the
                  Holder.

              

      

       

      
        	 	 	 	
                Y
                  =
                  the number of Warrant Shares purchasable under the Warrant (adjusted
                  to
                  the date of such calculation, but excluding Warrant Shares already
                  issued
                  under this Warrant).

              

      

       

      
        	 	 	 	
                A
                  =
                  the Fair Market Value (as defined below) of one Warrant
                  Share.

              

      

       

      B
        =
        Exercise Price (as adjusted to the date of such calculation). 

       

      “Fair
        Market Value”
        of a
        Warrant Share shall mean:

       

      
        	
                (i)  
                  

              	
                In
                  the event of an M&A Transaction - the price per Warrant Share
                  (assuming conversion of the Warrant Shares, adjusted to the date
                  of such
                  calculation, but excluding those shares already issued under this
                  Warrant)
                  as determined in such transaction. 

              

      

       

      	(ii)  	
              In
                the event of an IPO - the public offering price (before deduction
                of
                discounts, commissions or expenses) in such offering.

            

       

      	(iii)  	
              If
                the Corporation's Common Stock are publicly traded on a national
                securities exchange, NASDAQ/NMS, over-the-counter or the like - the
                last
                closing trade price of the Common Stock. 

            

       

      	(iv)  	
              If
                the Fair Market Value for a Warrant Share cannot be determined in
                the
                manner set forth above in items (i)- (iii), then the Fair Market
                Value of
                a Warrant Share shall be as determined in good faith by the Corporation
                and the Holder or, if they fail to so determine, by the Corporation's
                auditor.

            

       

      (c) Conditional
        Exercise.
        In the
        event that the Holder intends to exercise this Warrant upon a Realization
        Event,
        the Holder shall be entitled to condition such exercise on the consummation
        of a
        Realization Event and shall indicate same on the Notice of Exercise and,
        having
        done so, the Holder will only be required to pay the applicable aggregate
        Exercise Price if, and at such time as, the Realization Event is
        consummated.

       

      (d) Share
        Certificates; Partial Exercise.
        In the
        event of any exercise of the rights represented by this Warrant, certificates
        for the applicable class and amount of Warrant Shares so purchased shall
        be
        delivered to the Holder promptly and, unless this Warrant has been fully
        exercised in accordance with Sections 3(a) or 3(b) hereof, a new Warrant
        representing the balance of the Warrant Shares with respect to which this
        Warrant shall not have been exercised shall also be issued to the Holder
        within
        such time.

       

      (e) Redemption.
        In the
        event of an IPO or a M&A Transaction, the Holder may elect to redeem the
        Warrant for $258,000, paid in cash (the "Redemption Price"),
        by
        the delivery of a Redemption Notice (a form of which is attached hereto as
        Exhibit B), duly
        executed, at the principal office of the Corporation. The redemption price
        shall
        be paid to the Holder within 7 days from the date such redemption notice
        is
        given against surrendering of the Warrant.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      4. Share
        Fully Paid; Reservation of Shares.
        All of
        the Warrant Shares issuable upon the exercise of the rights represented by
        this
        Warrant will, upon issuance and receipt of the Exercise Price therefor, be
        fully
        paid and non-assessable, and free from allliens and charges. At all times
        when
        this Warrant may be exercised, to the extent technically possible, the
        Corporation shall have authorized and reserved for issuance sufficient shares,
        free from pre-emptive rights, of its Warrant Shares to provide for the exercise
        of the rights represented by this Warrant, so that this Warrant may be exercised
        without additional authorization of share capital, after giving effect to
        all
        other Convertible Securities.

       

      5. Adjustments.
        The
        number and kind of securities purchasable upon the exercise of this Warrant
        and
        the Exercise Price therefor shall be subject to adjustment from time to time
        upon the occurrence of certain events, as follows:

       

      (a) Reclassification.
        In case
        of any reclassification or change of the applicable class of Warrant Shares
        issuable at such time (other than a change in par value, or as a result of
        a
        subdivision or combination), the Corporation shall execute and issue a new
        Warrant, providing that the Holder shall have the right to exercise such
        new
        Warrant, and procure upon such exercise and payment of the same aggregate
        Exercise Price, in lieu of such applicable class of Warrant Shares theretofore
        issuable upon exercise of this Warrant, the kind and amount of shares, other
        securities, money and property receivable upon such reclassification or change,
        by a holder of an equivalent number of such applicable class of Warrant Shares.
        Such new warrant shall provide for adjustments that shall be as nearly
        equivalent as may be practicable to the adjustments provided for in this
        Section
        5 or as shall be necessary in order to ensure the integrity of the Holder’s
        economic rights. The provisions of this subsection (a) shall similarly apply
        to
        successive reclassifications or changes.

       

      (b) Share
        Splits, Dividends, Combinations and Reorganizations.
        In the
        event that the Corporation shall at any time subdivide the outstanding
        applicable class of Warrant Shares or shall issue a share dividend on its
        outstanding applicable class of Warrant Shares, the number of Warrant Shares
        issuable upon exercise of this Warrant immediately prior to such subdivision
        or
        to the issuance of such share dividend shall be proportionately increased,
        and
        the Exercise Price shall be proportionately decreased. In the event that
        the
        Corporation shall at any time combine the outstanding shares of the applicable
        class of Warrant Shares, the number of shares of the applicable class of
        Warrant
        Shares issuable upon exercise of this Warrant immediately prior to such
        combination shall be proportionately decreased, and the Exercise Price shall
        be
        proportionately increased. Similar equitable adjustments will be made in
        the
        event of an M&A Transaction as well as any spin-off, split-off or other
        capital change transaction by the Corporation.

       

      (c) General
        Protection.
        The
        Corporation will not by amendment of its Certificate of Incorporation or
        By-laws
        or through any reorganization, transfer of assets, consolidation, merger,
        dissolution, issuance or sale of its securities or any other voluntary action,
        avoid, or seek to avoid, the observance or performance of any of the terms
        to be
        observed or performed hereunder, but will at all times in good faith assist
        in
        the carrying out of all provisions hereof and in taking of all such actions
        and
        making all such adjustments as may be necessary or appropriate in order to
        protect the rights of the Holder against any impairment.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      6. Notice
        of Adjustments.
        Whenever the number of shares of the applicable class of Warrant Shares
        purchasable hereunder or the Exercise Price thereof shall be adjusted pursuant
        to Sections 2 or 5 hereof, the Corporation shall provide written notice to
        the
        Holder setting forth, in reasonable detail, the event requiring the adjustment,
        the amount of the adjustment, the method by which such adjustment was
        calculated, and the number and class of shares of the applicable class of
        Warrant Shares which may be purchased and the Exercise Price therefor after
        giving effect to such adjustment.

       

      7. Fractional
        Shares.
        This
        Warrant may not be exercised for fractional shares. In the event of fractional
        shares, the Corporation shall round the number of Warrant Shares issuable
        upon
        such exercise down to the nearest whole share and shall pay an amount in
        cash to
        the Holder equal to any such fractional share. 

       

      8. Representations
        and Covenants of the Corporation.
        The
        Corporation represents and covenants to the Holder as follows:

       

      (a) All
        corporate actions on the part of the Corporation, its officers, directors
        and
        shareholders necessary for the sale and issuance of the Warrant and the Warrant
        Shares and the performance of the Corporation's obligations hereunder have
        been
        taken and are effective as of the Effective Date. The Corporation undertakes
        that all additional corporate actions on the part of the Corporation, its
        officers, directors and shareholders as may be required in connection with
        an
        adjustment pursuant hereto and/or the creation, sale and issuance of the
        New
        Shares, will be taken as promptly as practicable.

       

      (b) As
        of the
        date of exercise of this Warrant, the Corporation shall record the Holder
        in the
        Corporation’s internal share register in accordance with the applicable law and
        practice, as the owners, direct or beneficial, of the Warrant Shares pursuant
        to
        the names provided by the Holder in the Notice of Exercise (Exhibit A) to
        this
        Warrant.

       

      9. Restrictions
        Upon Transfer.

       

      (a) Without
        derogating from any other restriction that may be contained in the Certificate
        of Incorporation or By-laws of the Corporation or herein, the Corporation
        need
        not register a transfer of this Warrant or the Warrant Shares unless the
        proposed transferee agrees to be bound by the terms and conditions of this
        Warrant and the proposed transferee provides the Corporation with written
        representations required pursuant to the Act. 

       

      (b) 
        All
        transfers of this Warrant shall be accompanied by an executed warrant transfer
        deed, under which the transferee undertakes to be bound by all obligations
        of
        the Holder under this Warrant. The form of the deed of transfer and is attached
        hereto as Exhibit
        C.
        Any
        proposed transferee shall execute an irrevocable proxy to the Holder, in
        the
        same form attached to the Loan Agreement.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (c) Subject
        to the foregoing, the Holder shall have the right to assign and transfer
        its
        rights and obligations under this Warrant and the Warrant Shares to a Permitted
        Transferee. A transfer of the rights and obligations under this Warrant to
        any
        other person shall require the Corporation's prior written consent, which
        shall
        not be unreasonably withheld or delayed.
        Plenus
        acknowledges and agrees that the Corporation shall not be deemed to unreasonably
        withhold its consent, if due to a right of first refusal conferred upon certain
        shareholders
        of the
        Corporation,
        the
        Corporation is contractually bound to withhold its consent.

       

      10. No
        Rights of Shareholders.
        The
        Holder shall not be entitled, as a Warrant holder, to vote or receive dividends
        or be deemed the holder of the shares of the applicable class of Warrant
        Shares
        or any other securities of the Corporation which may at any time be issuable
        on
        the exercise of this Warrant for any purpose, nor shall anything contained
        herein be construed to confer upon the Holder, as such, any of the rights
        of a
        shareholder of the Corporation or any right to vote for the election of
        directors or upon any matter submitted to shareholders at any meeting thereof,
        or to give or withhold consent to any corporate action (whether upon any
        recapitalization, issuance of shares, reclassification of shares, change
        of par
        value, consolidation, merger, conveyance, or other-wise) or to receive notice
        of
        meetings, or to receive dividends or subscription rights or otherwise until
        the
        Warrant shall have been exercised and the shares of the applicable class
        of
        Warrant Shares purchasable upon the exercise hereof shall have become
        deliverable, as provided herein. Upon the exercise of this Warrant the Holder
        shall be entitled to receive the same anti dilution or price protection rights
        on the Warrant Shares as currently granted, or in the future may be granted,
        to
        the holders of such class of shares of the Corporation (whichever is
        superior).

       

      11. Notices.
        All
        notices and other communications required or permitted hereunder shall be
        in
        writing
        and
        shall be mailed by registered mail, postage prepaid, telecopied (faxed) or
        electronically mailed or delivered by hand to the following
        addresses:

      

      If
        to the
        Corporation:          Wintegra
        Inc.

      6850
        Austin Center Blvd.

      Suite
        215

      Austin
        Texas 78731

      USA

       

      Attention:
        Dr. Ayal Shenhav, Adv. 

      Facsimile:
        972-9-9511187

      E-mail:
        ayal@shenhavlaw.co.il

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      If
        to the
        Plenus:                   
Plenus
        Technologies, Ltd.
            

      16
        Abba
        Eben Avenues 

      Herzliya
        Pituach 

      Israel

       

      Attention:
        Shlomo Karako 

      Facsimile:
        972-9-957-8770

      E-mail:
        momik@plenus.co.il

       

      

      or
        to
        such other address with respect to a party as such party shall notify each
        other
        party in writing as above provided. Any notice sent in accordance with this
        Section 11 shall be effective (i) if mailed by registered mail, three (3)
        business days after mailing, (ii) if sent via telecopier (fax) or electronic
        mail, upon transmission and electronic confirmation of receipt or - if
        transmitted and received on a non-business day - on the first business day
        following transmission and electronic confirmation of receipt, and (iii)
        if
        delivered by hand, upon delivery. 

       

      12. Registration
        Rights.
        Upon
        the
        exercise of the Warrant,
        the
        Holder will be entitled to all registration rights with respect to the Warrant
        Shares to be issued, as have been granted to a “Holder” under the Third Amended
Investors’
        Rights Agreement, dated as of March 25, 2003, and as may further be amended
        from
        time to time (the “Registration
        Rights Agreement”),
        and
        the Holder, including
        any Permitted Transferee and/or Co-lender thereof, shall become a party to
        the
        Registration
        Rights
        Agreement
        by
        signing a joinder agreement. 

       

      The
        Registration Rights Agreement shall be incorporated herein by reference and
        shall be deemed an integral part of this Warrant. Furthermore, upon any exercise
        of the Warrant by the Holder, the Holder, including any Permitted Transferee
        and/or Co-lender, shall be deemed to be a “Holder” or “Initiating Holders”, as
        applicable (as defined in the Registration Rights Agreement) and the Warrant
        Shares shall be deemed “Preferred Registrable Securities” (as defined in the
        Registration Rights Agreement) and the Holder, including any Permitted
        Transferee and/or Co-lender thereof, shall become entitled to all the rights
        and
        privileges set forth in the Registration Rights Agreement as if the Holder
        was
        an original signatory thereto. 

       

      Furthermore,
        for the purposes of the Registration Rights Agreement, upon
        the
        exercise of the Warrant,
        and so
        long as it complies with the “Major Holder” definition or “Major Investor”
definition therein, the Holder shall be deemed as such.

       

      Upon
        the
        exercise of the Warrant,
        the
        holder shall be deemed as a “Holder”, as defined in the Third
        Amended and Restated Right of First Refusal and Co-Sale Agreement
        dated
        March 25, 2003 (“RFR
        Agreement”).
        Furthermore, for the purposes of the RFR Agreement it shall be deemed as
“Major
        Holder” for as long as it complies with such definitions contemplated in the RFR
        Agreement.

       

      In
        addition, the Holder shall also be entitled to any additional or more favorable
        registration rights which may be granted to any investor in the Next Round
        of
        Financing, and the foregoing provisions of this Section 12 shall apply,
mutatis
        mutandis,
        to any
        registration rights agreement entered into by the Corporation in connection
        with
        the Next Round of Financing. 

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      The
        rights
        and obligations of the Corporation and the Holder set forth in this Section
        12
        shall survive the exercise, conversion and expiration of this
        Warrant.

       

      13. Governing
        Law.
        Since
        the Holder is based in Israel, this Warrant and all actions arising out of
        or in
        connection with this Agreement shall be exclusively governed by and construed
        in
        accordance with the laws of the State of Israel. However, corporate law matters
        will be governed by and construed in accordance with the laws of the State
        of
        Delaware.

       

      14. Partial
        Invalidity.
        If any
        provision of this Warrant is held by a court of competent jurisdiction to
        be
        invalid or unenforceable under applicable law, then such provision shall
        be
        excluded from this Warrant and the remainder of this Warrant shall be
        interpreted as if such provision were so excluded and shall be enforceable
        in
        accordance with its terms; provided,
        however,
        that in
        such event this Warrant shall be interpreted so as to give effect, to the
        greatest extent consistent with and permitted by applicable law, to the meaning
        and intention of the excluded provision as determined by such court of competent
        jurisdiction.

       

      15. Currency.
        The
        term "dollars" or the symbol "$" appearing in this Warrant shall mean the
        legal
        currency of the United States of America, and all payments hereunder shall
        be
        made in such currency, unless otherwise agreed in writing by the Holder and
        the
        Corporation. 

       

      16.  Expiration
        of Warrant.
        This
        Warrant shall expire and shall no longer be exercisable upon the earlier
        to
        occur of:

       

      (a) 1:00 p.m.,
        Israel local time, on June 3rd
        , 2013,
        or;

       

      	(b)  	
              a
                Realization Event, provided however, that this provision shall not
                affect
                the right of the Holder to exercise this Warrant pursuant to Sections
                3(b)
                and 3(c) hereof.

            

       

      The
        Company shall provide the Holder with written notice of the expiration of
        the
        Warrant at least fifteen (15) days prior to the anticipated consummation
        of a
        Realization Event (the “Expiration
        Notice”).
        If
        such Expiration Notice is not provided to the Holder prior to the consummation
        of a Realization Event, then the Warrant shall not expire until fifteen (15)
        days after written notice of the expiration of the Warrant due to a Realization
        Event is provided to the Holder.

       

      Issued
        this 4th
        day of
        June, 2004. 

       

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      WINTEGRA
        INC.

       

      By:
        _______________________, 

       

      Title:
        ______________________

       

       

      Agreed
        and accepted:

       

      PLENUS
        TECHNOLOGIES, LTD.

      By:
        ________________________

       

      Title:
        _______________________

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      EXHIBIT A

       

      NOTICE
        OF EXERCISE

       

      Wintegra
        Inc._____

      6850
        Austin Center Blvd.

      Suite
        215

      Austin
        Texas TX7831 

      USA

      

      Attn:
        ____________, 

       

      

       

      1.
        [ ] [____]
        (Check
        and initial here if the undersigned elects this alternative)
        The
        undersigned hereby elects to purchase [FILL
        IN NUMBER OF SHARES]
        ____________ shares of ______________ of the share capital of ____________,
        Ltd.
        pursuant to the terms of the attached Warrant (the "Warrant"),
        and
        tenders herewith payment in full for the purchase price of the shares being
        purchased. [Such purchase is contingent upon _______________ in accordance
        with
        Section 3(c) of the Warrant.]

       

      1.
        [ ] [____]
        (Check
        and initial here if the undersigned elects this alternative In
        lieu
        of exercising the Warrant for cash or a check, the undersigned hereby elects
        to
        effect the net exercise provision of Section 3(b) of the Warrant and receive
        [FILL
        IN NUMBER OF SHARES]
        _________ shares of the share capital of _______________, Ltd. pursuant to
        the
        terms of the Warrant according to the following calculation (Initial here
        if the
        undersigned elects this alternative ________): 

       

      X
        =
Y
        (A-B)  (
        ) =
(____)
        [(_____) - (_____)]

       

      A    
        (_____)

       

      Where
        X =
        the number of shares of Warrant Shares to be issued to Holder.

       

      Y
        = the
        number of shares of Warrant Shares purchasable under the amount of the Warrant
        being exchanged (as adjusted to the date of such calculation).

       

      A
        = the
        Fair Market Value of one share of the Corporation’s Warrant Shares.

       

      B
        =
        Purchase Price (as adjusted to the date of such calculation).

       

      2. Please
        issue a certificate or certificates representing said Warrant Shares in the
        name
        of the below list of entities, and record same in the Corporation’s internal
        share registry, as follows:

       

      

       

      Very
        truly yours,

       

      ______________

       

      By:
        ___________ 

       

      Title:
        __________

       

      Date:
        ___________

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      EXHIBIT B

       

      REDEMPTION
        NOTICE

       

      Wintegra
        Inc.

      6850
        Austin Center Blvd.

      Suite
        215

      Austin
        TX
        78731

      USA

      

      Attn:
        ____________, 

       

       

      1.
        The
        undersigned hereby elects to redeem ____________ shares of ______________
        of the
        share capital of ____________, Ltd. pursuant to the terms of the attached
        Warrant (the "Warrant"),
        and
        in accordance with Section 3 (e) thereto. 

       

      2. Please
        transfer the Redemption Price to account no. 14552/59 at Bank Leumi Ltd.,
        Branch
        No. 864, located in Herzliya. 

       

       

      Very
        truly yours,

       

      ______________

       

      By:
        ___________ 

       

      Title:
        __________

       

      Date:
        __________

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

         

        EXHIBIT C

      

       

      FORM
        OF TRANSFER

       

      (To
        be
        signed only upon transfer of Warrant)

       

      FOR
        VALUE
        RECEIVED, the undersigned (the "Transferor")
        hereby
        assigns and transfers unto ______________________________________________
        (the
        "Transferee")
        the
        right represented by the attached Warrant No. _ (the “Warrant”)
        to
        purchase Warrant Shares of the share capital of _______________, Ltd. in
        an
        amount of $ _________ out of the total Exercise Amount to which the Warrant
        relates, and appoints ______________, Attorney, to transfer such right on
        the
        books of ______________, Ltd., with full power of substitution in the premises.
        The Transferor further represents that the transfer is made in accordance
        with
        the terms of the Warrant, including, without limitation, with respect to
        the
        Transferee being a Permitted Transferee or with respect to which consent
        to
        transfer has been given by ________________, Ltd.

       

      Dated:
        __________________

       

      

       

      By:
        _________________    

       

      Name:
        _____________

       

      

       

      Signed
        in
        the presence of:

       

      

       

      By:
        ________________ 

       

      Name: ______________

       

      

       

      And
        the
        undersigned Transferee hereby agrees to the transfer of said rights to which
        the
        Warrant relates, and agrees to be bound by the terms and conditions of the
        Warrant. The undersigned further represents that the transfer is made in
        accordance with the terms of the Warrant. 

       

      Dated:
        __________________

       

      

       

      By:
            

       

      Name:     

       

      Signed
        in
        the presence of:

       

      By:     

       

      Name:     

       

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    LOAN
      AGREEMENT

    

    THIS
      LOAN
      AGREEMENT (this “Agreement”)
      made
      as of the 4th day of June, 2002, by and between Wintegra Inc., a corporation
      duly incorporated under the laws of Delaware, USA having its principal place
      of
      business at 7000 North MoPac Expwy Suite 200 Austin, Texas TX78731 USA (the
      “Company”),
      Wintegra Ltd., a company duly incorporated under the laws of the State of
      Israel, having its principal place of business at Taya Center, 6 Hamasger St.,
      43653 Ra’anana, Israel ("Wintegra
      Israel")
      and
      the lenders listed in Schedule
      1
      (each a
“Lender”
      and
      collectively the “Lenders”)
      and
      effective as of the Effective Date (as defined below), subject to the Closing
      (as defined below).

    

    W
      I T N E S S E T H :

    

    WHEREAS,
      the Company wishes to obtain a lending facility from the Lenders;
      and

    

    WHEREAS,
      the Lenders are willing to make available a lending facility to the Company
      on
      the terms and conditions set forth in this Agreement.

    

    NOW
      THEREFORE, the parties hereto hereby agree as follows:

    

    1. Loan,
      Security and Warrant.
      

    

    1.1 Loan. The
      Lenders will lend to the Company a revolving credit facility of an aggregate
      amount of up to Two Million United States dollars (US$2,000,000) (the
“Initial
      Credit Amount”).
      

    

    1.2 The
      Initial Credit Amount may be increased by up to an additional One Million and
      Five Hundred United States dollars (US$1,500,000) (the “First
      Additional Credit Amount”)
      upon
      the Company’s achieving the First Milestone, and up to an additional One Million
      and Five Hundred United States dollars (US$1,500,000) (the “Second
      Additional Credit Amount”)
      upon
      the Company’s achieving the Second Milestone (the Initial Credit Amount, the
      First Additional Credit Amount (if applicable) and the Second Additional Credit
      Amount (if applicable) shall be referred to hereinafter collectively as the
      “Principal
      Amount”).
      

    

    The
      First
      Milestone and the Second Milestone by the Company are as set forth in
Annex
      A attached
      hereto, and their achievement shall be determined solely by the Lenders as
      specified in Annex
      A.
      

    

    1.3 All
      or any
      part of the Principal
      Amount
      shall be
      provided in installments (the “Installment(s)”)
      of not
      less than Two
      Hundred and Fifty Thousand United States dollars
      (US$250,000) per Installment, upon the later of: (i) seven (7) business days
      following the date on which the Lenders receive a written disbursement request
      from the Company, which request shall state the exact amount the Company wishes
      to receive from the Lenders (the “Disbursement
      Request”),
      or
      (ii) the date specified in the Disbursement Request. The Company shall be
      entitled to furnish the Lenders with Disbursement Request(s) and to be provided
      with Installment(s) until the Repayment Date, or the New Repayment Date, if
      applicable (as such terms are defined herein), subject to the terms of this
      Agreement. Each
      Installment shall be transferred to the Company by the Lenders, in United States
      dollars, by means of wire transfer in accordance with wire instructions provided
      hereunder or as will be provided in writing by the Company in each Disbursement
      Request. Each Installment requested by the Company will be divided between
      the
      Lenders in amounts which reflect the pro rata portion of the Principal Amount
      which each Lender has committed to lend the Company as set forth in Schedule
      1
      attached
      hereto. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.4 Upon
      achievement by the Company of the First Milestone and entitlement to the First
      Additional Credit Amount, the Company shall have sixty (60) days to notify
      the
      Lenders whether the Company will be drawing any amounts from the First
      Additional Credit Amount. Upon achievement by the Company of the Second
      Milestone and entitlement to the Second Additional Credit Amount, the Company
      shall have sixty (60) days to notify the Lenders whether the Company will be
      drawing any amounts from the Second Additional Credit Amount.

    

    1.5 The
      obligations of the Lenders pursuant to this Agreement are subject to the
receipt
      by the Lenders of: (i) a warrant in the name of Plenus Technologies Ltd.
      (“Plenus”)
      for
      the purchase of Warrant Shares (as defined in the Warrant), as applicable,
      of
      the Company in accordance with the terms of the Warrant (the “Warrant
      Shares”),
      in
      the form attached hereto as Exhibit
      A
      (the
“Warrant”)
      duly
      executed by the Company; (ii) an executed Floating Charge Agreement by and
      between the Lenders and Wintegra Israel (the “Floating Charge
      Agreement”)
      and an
      executed Pledge Agreement by and between the Lenders and the Company (the
“Pledge
      Agreement”)
      in the
      forms attached hereto as Exhibit
      B1
      and
Exhibit
      B2
      respectively; (iii) form(s) for creating a Floating Charge (as defined below)
      prepared for filing with the Israeli Registrar of Companies in the form attached
      hereto as Exhibit
      C1
      and a
      certificate of registration of the Floating Charge, and form(s) for creating
      a
      UCC pledge in the form attached to the Pledge Agreement; (iv) true and correct
      copies of resolutions of the Company's Board of Directors issuing the Warrant
      to
      Plenus and authorizing the issuance of
      the
      Warrant Shares upon exercise of the Warrant and payment of the exercise price;
      and reserving a sufficient number of Warrant Shares to be issued upon exercise
      of the Warrant and authorizing the Company to enter into this Agreement and
      the
      Pledge Agreement, and authorizing an officer of the Company to enter into such
      documents and their respective exhibits, annexes and schedules, all in the
      form
      attached hereto as Exhibit
      D1
      and a
      true and correct copies of resolutions of Wintegra Israel's Board of Directors
      authorizing this Agreement and authorizing Wintegra Israel to enter into the
      Floating Charge Agreement and authorizing an officer of Wintegra Israel to
      enter
      into such documents and their respective exhibits, annexes and schedules, all
      in
      the form attached hereto as Exhibit
      D2;
      (v)
      waivers, consents and approvals regarding pre-emptive rights and/or other
      rights, including, but not limited to, registration rights and waivers, consents
      and approvals from third parties ,including, but not limited to, government
      entities in respect of the transactions contemplated herein, all in the form(s)
      attached hereto as Exhibit
      E;
      (vi)
      confirmation in writing by counsel to the Company and Wintegra Israel,
      respectively, that all relevant corporate actions were duly taken and that
      this
      Agreement and all other related ancillary documentation described herein have
      been executed by an authorized signatory, in the form attached hereto as
Exhibit
      F;
      and
      (vii) true
      and
      correct copies of resolutions of the Company's shareholders by which the prior
      Third Restated and Amended Certificate of Incorporation of the Company were
      replaced with the Fourth Restated and Amended Certificate of Incorporation
      attached hereto on Schedule
      4(i)A by
      which
      among other things: the authorized share capital of the Company was increased
      in
      order to reserve a sufficient number of
      Warrant
      Shares for issuance under the terms of the Warrant.
      The date
      on which all of the above documentation shall be executed and delivered to
      the
      reasonable satisfaction of the Lenders shall be referred to herein as the
“Closing”.
      For
      the purposes of this Agreement including all of its schedules, exhibits and
      annexes, the “Effective
      Date”
shall
      be deemed the earlier of: (a) the date of the Closing or (b) July 1,
      2002.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.6 Security.
      In
      order to secure the repayment of the Principal Amount and any accrued and unpaid
      Interest (as defined below), the Company agrees to create in accordance with
      the
      terms and the conditions of the Pledge Agreement a first priority UCC secured
      pledge on the Company’s present and future tangible and intangible assets and
      rights of any kind whether contingent or absolute, including the execution
      of an
      Account Control Agreement solely with bank Leumi of New York, provided,
      however,
      that
      the Company shall not
      maintain
      funds through Company's current accounts in other banks than in Bank Leumi
      USA,
      accounts’ numbers: 2200474202, 2200474218 and 0200474225 (such accounts referred
      to as “Other
      Accounts” and
      “Leumi
      Accounts”,
      respectively, and together “Current
      Accounts”.
      Other
      Accounts are listed in Schedule
      1.6),
      in
      excess of the aggregate amount of US$ 1,500,000 in all Other Accounts; and
      Wintegra Israel agrees to create, in accordance with the terms and the
      conditions of the Floating Charge Agreement, a first ranking floating charge
      on
      its present and future tangible and intangible assets and rights of any kind
      whether contingent or absolute (together, the “Floating
      Charge”)
      for
      the benefit of the Lenders and for the benefit of the entities listed as
      co-lenders in Schedule
      1
      hereto
      (the “Co-lenders”).
      The
      Floating Charge will rank senior to any other form of security interest on
      the
      assets of the Company and of Wintegra Israel. From time to time Plenus may
      demand, and the Company or Wintegra Israel, or any of their respective
      subsidiaries in case there shall be such), shall execute, such additional
      documents as may be reasonably necessary to maintain the Lenders’ Floating
      Charge. 

    

    It
      is
      expressly provided that the Company shall not maintain funds, securities or
      deposits through any new accounts opened by the Company as of the date hereof
      (“New
      Accounts”),
      without the prior written consent of Plenus. Plenus may require the execution
      and deliverance of an Account Control Agreement or any other reasonable
      requirement or arrangement with respect to such New Accounts as a condition
      for
      such consent.

    

    The
      co-lenders, lenders and beneficiaries listed in Schedule 1 hereby appoint Plenus
      as their agent with respect to the security interest granted to the secured
      parties hereunder under the Security and Pledge Agreement.

    

    1.7 Seniority.
      The
      indebtedness evidenced by this Agreement is hereby expressly senior in right
      of
      payment to any indebtedness currently owing by the Company and/or Wintegra
      Israel to any bank, financial or lending institution or other non-affiliated
      entity, other than with respect to operating expenses of the Company and/or
      Wintegra Israel which are incurred in the Company’s and/or Wintegra Israel’s
      ordinary course of business (the “Debt”).
      A
      list of the Debts of more than 50,000US$ each including the identity of the
      creditor and amount owed as of the date hereof, is attached hereto as
Schedule
      1.7.
      It is
      hereby unequivocally agreed that the Company and Wintegra Israel shall not
      pay,
      or cause to be paid, the Debt until all amounts due under the terms of this
      Agreement are repaid in full to the Lenders. It is acknowledged by the parties
      hereto that Wintegra Israel currently has an undertaking to record a first
      priority lien by Bank Leumi of Israel against certain assets to be purchased
      as
      collateral for bill of sale of those assets, in the amount of up to$200,000
      (including the security of $200,000 of the insurance for the benefit of Bank
      Leumi of Israel), and that the Company has an undertaking to record a first
      priority lien by Bank Leumi of New York against certain assets to be purchased
      as collateral for bill of sale of those assets, in the amount of up to $50,000.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.8 Term.
      The
      term of the grant of credit line by the Lenders to the Company according with
      this Agreement shall commence on the Effective Date, and terminate on the second
      anniversary of the Effective Date unless otherwise terminated or accelerated
      earlier in accordance with this Agreement. 

    

    2. Payment.
      The
      Company undertakes to pay to the Lenders the Principal Amount, together with
      interest thereon (denominated in United States dollars) at a rate of interest
      which shall be LIBOR
      (360
      day
      rate, as determined by Bloomberg and as published by Bank Mizrachi in
      Israel)
      plus 4%
      per annum (the
      “Interest
      Rate”),
      calculated as of the disbursement date of each Installment and compounded
      annually, plus any value added tax in Israel “Value
      Added Tax”,
      if
      applicable, in accordance with Israeli law (together the “Interest”).
      The
      accrued Interest shall be payable on the first day of each financial
      quarter.

    

    2.1 Any
      amount of Principal and/or Interest, which is not paid by the Company within
      fourteen (14) days of its due date (the “Due
      Date”),
      shall
      bear an additional 5% interest (the “Additional
      Interest”)
      per
      annum on such amount from the Due Date. The Additional Interest shall be
      compounded daily.

    

     

    2.2 The
      unpaid and outstanding Principal Amount and accrued and unpaid Interest, shall
      be due and payable in one installment, in United States Dollars, twenty-four
      (24) months following the Effective Date (the "Repayment Date").

     

     

    2.3 All
      payments to be made by the Company to the Lenders shall be made to the following
      accounts: (a) account number 156013 at United Mizrachi Bank Ltd., branch number
      522 at Herzalia being a trust account for Plenus and for the benefit of the
      Co-lenders, (b) account number 9195000015 at Citibank, N.A. - Tel Aviv Branch
      number 001, for payments to Citibank, N.A., and (c) account number 206199 at
      United Mizrachi Bank Ltd., branch number 461 at Tel-Aviv, for the Investment
      Corporation of United Mizrachi Bank Ltd. being one of the Beneficiaries as
      listed in Schedule 1. The parties agree that all amounts repaid by the Company
      will be divided between the Lenders in amounts which reflect the pro rata
      portion of the Principal Amount which each Lender has committed to lend the
      Company as set forth in Schedule
      1
      attached
      hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.4 Notwithstanding
      anything to the contrary, the Company may
      prepay any amounts owed to the Lenders, at any time, subject to the Company
      providing the Lenders with fifteen (15) days prior written notice informing
      the
      Lenders of such intention to prepay, and further provided that each such
      prepayment is in an amount of not less than the lesser of (a) Two
      Hundred and Fifty Thousand United States dollars
      (US$250,000), or (b) the sum of the Principal Amount and any unpaid accrued
      Interest.
      In
      addition, the Company may terminate this Agreement at any time during the
      twenty-four (24) month period following the Effective Date by providing the
      Lenders with a notice in writing indicating its intention to terminate this
      Agreement (the “Termination
      Letter”)
      in the
      form attached hereto as Schedule
      2.4,
      provided
      that
      upon or immediately after the delivery of the Termination Letter to the Lenders,
      (i) the Company shall have satisfied all of its obligations under this Agreement
      (including all exhibits, schedules and annexes thereto) and (ii) the Company
      shall not have any outstanding debts to the Lenders pursuant to this Agreement
      and further provided that upon such delivery any and all amounts due from the
      Company pursuant to this Agreement on account of the Principal Amount and the
      Interest, shall have been paid in full to the reasonable satisfaction of the
      Lenders ("Initiated Termination").
      Upon
      said Initiated Termination, the following shall occur: (i) all of the following
      annexed agreements will be immediately and automatically terminated, without
      any
      further action from neither of the parties hereto: (a) the Floating Charge
      Agreement, (b) the Pledge Agreement, and (c) the Account Control Agreement
      (attached to the Pledge Agreement), and (ii) The Floating Charge on Wintegra
      Israel shall be cancelled and released, the Pledge on Wintegra Inc. shall be
      cancelled and released, and the Lenders shall within twenty-one (21) business
      days as of the Initiated Termination, provide the Company and Wintegra Israel
      with all documents necessary to release the Floating Charge, the Pledge and
      any
      other consent, form, instrument or action required to release any of the
      charges, and discharging the Collateral Agent from its position and
      power.

     

    2.5 The
      Lenders may set-off any obligation owed by the Company under this Agreement
      against any obligation owed by the Lenders to the Company, regardless of the
      place of payment, booking branch or currency of either obligation, upon giving
      the Company a seven (7) days prior written notice. If an obligation is not
      liquidated or is unascertained, the Lenders may set-off in an amount estimated
      by any of them in good faith to be the amount of that obligation. If obligations
      are in different currencies, the Lenders may convert either obligation at a
      market rate of exchange in its usual course of business for the purpose of
      the
      set-off. The Lenders shall not be obliged to exercise any right given to it
      under this right of set-off. In the event that the foregoing set-off is made
      by
      the Lenders any amounts set-off will be deemed to be payment as described in
      Section 2 above.

    

    3. Acceleration.
      Notwithstanding anything herein to the contrary, (i) the entire unpaid Principal
      Amount, together with accrued and unpaid Interest to date, shall be due and
      payable at any time without any further demand, and (ii) the
      term
      of the grant of credit line by the Lenders to the Company according with this
      Agreement shall terminate, immediately upon the occurrence of an Event of
      Acceleration unless otherwise provided for below. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    For
      the
      purposes of this Section 3, an “Event
      of Acceleration”
shall
      be deemed to exist upon the occurrence of any of the following:

    

    
      	(i)	
              the
                Company fails to pay any sum due from it hereunder at the time, in
                the
                currency and in the manner specified herein, or otherwise is in breach
                of
                this Agreement or the Pledge Agreement, or Wintegra Israel is in
                breach of
                this Agreement or the Floating Charge Agreement, and the same is
                not
                remedied within fourteen (14) days after Plenus has notified the
                Company
                in writing of said non-payment or breach;
                or

            

    

    

    
      	(ii)	
              the
                Company or Wintegra Israel is unable to pay its debts as they fall
                due,
                fourteen (14) days after the Company or Wintegra Israel commences
                negotiations with one or more of its creditors with a view to the
                general
                readjustment or rescheduling or entering into arrangement regarding
                its
                indebtedness or makes a general assignment for the benefit of or
                a
                composition with its creditors; or

            

    

    

    
      	(iii)	
              any
                indebtedness for borrowed money of the Company or Wintegra Israel
                is not
                paid when due or any indebtedness for borrowed money of the Company
                or
                Wintegra Israel becomes capable of being declared to be or is declared
                to
                be due and payable prior to its specified maturity by reason of the
                occurrence of a default or a mandatory prepayment event (howsoever
                described) or any commitment to lend under any facility available
                to the
                Company or Wintegra Israel is cancelled by reason of the occurrence
                of any
                such default (or mandatory prepayment event (howsoever described));
                or

            

    

    

    
      	(iv)	
              the
                filing against the Company or Wintegra Israel of any petition in
                liquidation or any petition for relief under the provisions of applicable
                law for the relief of debtors; or the appointment of a special manager,
                temporary liquidator, temporary receiver or trustee to take possession
                of
                the material property or assets of the Company or Wintegra Israel;
                or an
                attachment is placed on any of the material assets of the Company
                or
                Wintegra Israel; or execution
                by the Company or
                Wintegra Israel
                of
                a general assignment for the benefit of its creditors;
                or the Company or Wintegra Israel resolves to voluntarily liquidate;
                or
                the appointment of a permanent liquidator or permanent receiver to
                take
                possession of the material property or assets of the Company or Wintegra
                Israel; or

            

    

    

    
      	(v)	
              any
                representation or statement made or deemed to be made by the Company
                or
                Wintegra Israel in this Agreement or in any notice or other document,
                certificate or statement delivered by it pursuant hereto or in connection
                herewith is or proves to have been materially incorrect or misleading
                when
                made or deemed to have been made;
                or

            

    

    

    
      	(vi)	
              the
                Company or Wintegra Israel fails duly to perform or comply with any
                covenant or other obligation expressed to be assumed by it in this
                Agreement or any of the exhibits or schedules hereto and such failure
                is
                not remedied within fourteen (14) days after Plenus has given notice
                thereof to the Company or Wintegra Israel as the case may be;
                or

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	(vii)	
              the
                Company (a) executes a binding letter of intent or enters into any
                other
                form of commitment with respect to an issuance of the Company’s securities
                or a consolidation or merger of the Company with or into a third
                party,
                pursuant to which the Company’s then current shareholders own less than
                fifty-one (51%) percent of the voting securities of the surviving
                entity
                or the Company’s then current shareholders no longer will have the right
                to appoint fifty-one (51%) percent or more of the members to the
                Company’s
                Board of Directors, (b) execute a binding letter of intent or enters
                into
                any other form of commitment with respect to sale of all or substantially
                all of the Company’s outstanding shares (on an as-converted basis) to
                third parties other than the Company's current shareholders or a
                sale of
                the Company’s material assets, or (c) consummates an initial public
                offering of any of the Company’s securities, or (d) commencement of a
                qualified investment, or series of investments, in the Company’s capital
                stock after the Effective Date in exchange for stock resulting in
                proceeds
                to the Company of an aggregate of at least US$15,000,000 (fifteen
                million
                United States dollars); or

            

    

    

    
      	(viii)	
              any
                event or series of events occur(s), which, in the reasonable opinion
                of
                Plenus, may have a material adverse effect on the business, condition
                (financial or otherwise), or results of operations of the Company
                or
                Wintegra Israel or on the ability of the Company or Wintegra Israel
                to
                comply with any of its obligations hereunder or under the Floating
                Charge
                Agreement or the Pledge Agreement
                respectively.

            

    

    

    
      	(xi)	
              any
                event in which that
                the Company has maintain funds through Company's Current Accounts
                in other
                banks than Bank Leumi of New York, in excess of the aggregate amount
                of
                US$ 1,500,000 in all Current
                Accounts.

            

    

    

    Notwithstanding
      anything herein to the contrary in this clause 3, with respect to the
      occurrences stipulated in clauses 3(vii)(a) and 3(vii)(b), the entire unpaid
      Principal Amount, together with accrued and unpaid Interest to date, shall
      be
      payable only upon the consummation of the transaction the subject-matter of
      the
      letter of intent or agreement mentioned therein. It is agreed that in the event
      that eventually, such letter of intent or agreement mentioned therein shall
      not
      consummate, upon a written notice delivered to Plenus, the said letter of intent
      or agreement mentioned therein shall be not deemed as an Event of Acceleration
      for the purposes of this section 3. .

    

    The
      Company and Wintegra Israel shall promptly inform the Lenders of the occurrence
      of any Event of Acceleration or potential Event of Acceleration and, upon
      receipt of a written request to that effect from Plenus, confirm to the Lenders
      that, except as previously notified to the Lenders or as notified in such
      confirmation, no Event of Acceleration or potential Event of Acceleration has
      occurred.

    

    4.   Representations
      and Warranties of the Company and Wintegra Israel. 

    

    4.1 The
      Company and Wintegra Israel hereby represent and warrant to each of the Lenders,
      as of the Closing and as of each date on which a Disbursement Request is made
      by
      the Company, each of the below representations and warranties: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (i)  the
      Company is a corporation duly formed, validly existing and in good standing
      under the laws of Delaware, USA, and the Company’s By-Laws and Third Restated
      and Amended Certificate of Incorporation are attached hereto as Schedule
      4(i)A;
      Wintegra Israel is a corporation duly formed, validly existing and in good
      standing under the laws of the State of Israel, and Wintegra Israel’s Memorandum
      of Association and Articles of Association are attached hereto as Schedule
      4(i)B;
      each
      of the
      Company and Wintegra Israel has full corporate power and authority to enter
      into
      and perform its obligations under this Agreement
      and this
      Agreement constitutes a legally binding obligation of the Company
      and Wintegra Israel, and
      is
      enforceable against the Company
      and Wintegra Israel in
      accordance with its respective terms;
      

    

    (ii) there
      has
      been no material change in the assets, liabilities, condition (financial or
      otherwise) or business of the Company or Wintegra Israel, as represented by
      the
      Company’s audited financial statements (consolidated) as of 31.12.2001, attached
      hereto as Schedule
      4(ii)A,
      and the
      reviewed interim quarterly financial statements as of 31.3.2002, attached hereto
      as Schedule
      4(ii)B.
      

     

    The Financial
      Statements are true and correct in all material respects, and are in accordance
      with the books and records of the Company and have been prepared in accordance
      with United States generally accepted accounting principals (“GAAP”)
      consistently applied, and accurately present in all material respects the
      financial position of the Company as of such date and the results of its
      operations for the period then ended;

    

    

    (iii)  the
      execution and delivery of this Agreement (including all exhibits, schedules
      and
      annexes) by the Company and Wintegra Israel, and performance of the Company’s
      and Wintegra Israel’s obligations hereunder, have been duly and validly
      authorized by all necessary corporate action; 

    

    (iv)  each
      of
      the Company and Wintegra Israel has taken all actions, corporate or otherwise,
      and has procured all necessary consents and approvals to issue the Warrant
      and
      the Warrant Shares (as defined in the Warrant) issuable pursuant thereto to
      Plenus and the Warrant and the Warrant Shares when issued, and with respect
      to
      the Warrant Shares when the Exercise Price (as defined in the Warrant) is paid,
      shall be duly authorized, validly issued, fully paid, nonassessable and shall
      not trigger any rights of anti-dilution protection or price protection of the
      Company’s shareholders; 

    

    (v)  the
      execution or the delivery of this Agreement, the
      Pledge Agreement or the Floating Charge Agreement and the consummation of the
      transactions contemplated hereby,
      will
      not contravene any agreement or negative pledge, or
      any
law,
      rule, restriction or decree to which the Company or Wintegra Israel is subject,
      except as stated in Schedule
      4(v)
      or in
      Section 1.7 above, and will not result in any such violation or be in conflict
      with or constitute, with or without the passage of time and giving of notice,
      either a default under any such provision, instrument, judgment, order, writ,
      decree or contract or an event that results in the creation of any lien, charge
      or encumbrance upon any assets of the Company or
      Wintegra Israel or
      to the
      knowledge of the Company and Wintegra Israel, the suspension, revocation,
      impairment, forfeiture, or non-renewal of any material permit, license,
      authorization, or approval applicable to the Company
      or
      Wintegra Israel,
      its
      business or operations or any of its assets or properties. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (vi)  there
      is
      no order, writ, injunction or decree of any court, government or governmental
      agency affecting, or to the knowledge of Company and Wintegra Israel may affect,
      the Company or Wintegra Israel or respectively, any of its businesses, assets
      or
      interests, in a material adverse manner; Furthermore,
      there is no action, suit, proceeding or investigation pending or, to the
      Company’s knowledge, currently threatened against the Company or Wintegra
      Israel, that questions the validity of this Agreement, the Pledge Agreement,
      the
      Floating Charge Agreement, or the right of the Company to enter into such
      agreements, or to consummate the transactions contemplated hereby or thereby,
      or
      that might result, either individually or in the aggregate, in any material
      adverse changes in the assets, condition, affairs or prospects of the Company,
      financially or otherwise, nor is the Company aware that there is any basis
      for
      the foregoing. 

    

    (vii)  except
      to
      the extent disclosed on Schedule
      4(vii)
      hereto
      and Section 1.7 above, there are no claims, guarantees, royalty payments,
      payments to government entities or regulatory bodies, security interests,
      options, rights or other privileges outstanding with respect to any of the
      Company's or Wintegra Israel’s assets or securities and the Company or Wintegra
      Israel has no outstanding loans
      or
      debts or financial obligations to any third parties including but not limited
      to
      any of the Company’s or
      Wintegra Israel’s banking
      obligations and any liens on the Company’s or
      Wintegra Israel’s bank
      accounts or other assets of the Company or
      Wintegra Israel
      whether
      registered or not;

    

    (viii) the
      Company or
      Wintegra Israel owns
      and
      has developed, or has obtained the right to use, free and clear of all liens
      (other than the liens created hereunder or by operation of law) and claims,
      all
      patents, trademarks, domain names and copyrights, and applications, licenses
      and
      rights with respect to the foregoing, and all trade secrets, including know-how,
      inventions, designs, processes, works of authorship, computer programs and
      technical data and information (collectively herein "Intellectual
      Property")
      used
      and sufficient for use in the conduct of its business as now conducted , and,
      to
      the
      best of the Company’s knowledge, without
      infringing upon or violating any right, lien, or claim of others, and the
      Company or
      Wintegra Israel has
      taken
      security measures to protect the secrecy, confidentiality and value of all
      the
      Intellectual Property. A complete list of all patents, trademarks and domain
      names registered by the Company or
      Wintegra Israel in
      any
      jurisdiction as of the Effective Date is set forth in Schedule
      4(viii)
      attached
      hereto;

    

    (ix)  the
      Company’s capitalization on a fully diluted basis, as of the Closing and
      including the Warrant, is as set forth in Schedule
      4(ix)
      attached
      hereto. The
      outstanding shares of common stock of the Company, the Series B Preferred Stock
      and the Series A Preferred Stock of the Company (the “Preferred
      Stock”)
      are
      all duly and validly authorized and issued, fully paid and nonassessable, and
      were issued in accordance with the registration or qualification provisions
      of
      the Securities Act of 1933, as amended (the “Act”)
      and
      any relevant state securities laws, or pursuant to valid exemptions therefrom.
      Except as provided in Schedule
      4(ix),
      there
      are no outstanding options, warrants, rights (including conversion or
      pre-emptive rights with respect to the Warrant Shares) or agreements for the
      purchase or acquisition from the Company of any shares of its capital stock.
      The
      Company is not a party or subject to any agreement or understanding, and, to
      the
      best of the Company’s knowledge, there is no agreement or understanding between
      any persons and/or entities, which affects or relates to the voting rights
      or to
      the giving of written consents with respect to (1) any of the Company’s
      securities (excluding options granted under the employee stock option plan
      of
      the Company), or (2) a director of the Company. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (x)  to
      the
      Company's best knowledge, there
      are
      no investigations or actions or administrative proceedings of or before any
      court or agency which (a) could be reasonably likely to have a material adverse
      effect on the business, condition (financial or otherwise) or results of
      operations of the Company or
      Wintegra Israel or
      the
      ability of the Company or
      Wintegra Israel to
      perform its obligations hereunder, or (b) purports to affect the legality,
      validity or enforceability of this Agreement, the Pledge Agreement or the
      Floating Charge Agreement; 

    

    (xi)  there
      has
      not occurred, nor is the Company aware of any facts (other than general economic
      and business trends) showing that it is likely to occur, any event or series
      of
      events, which may have a material adverse effect on the business, condition
      (financial or otherwise), or results of operations of the Company or
or
      Wintegra Israel on
      the
      ability of the Company or
      Wintegra Israel to
      comply
      with any of its obligations hereunder or under the Floating Charge Agreement;
      and 

    

    (xii)  the
      Company has one (1) wholly owned subsidiary - Wintegra Israel. Wintegra Israel
      has two (2) subsidiaries, as follows: Wintegra (UK) Ltd., which is duly
      incorporated and in good standing under the laws of the United Kingdom, and
      Wintegra (Canada) Ltd., which is duly incorporated and in good standing under
      the laws of Canada (collectively, the “Subsidiaries”).
      

    

    For
      the
      purposes of clauses (v)-(viii), (x) and (xi) in this Section 4, shall mean
      the
      Company, Wintegra Israel and the Subsidiaries. Other than Wintegra Israel,
      the
      Company does not presently own or control, directly or indirectly, any interest
      in any other corporation, association, or other business entity. The Company
      or
      Wintegra Israel is
      not a
      participant in any partnership.

    

    (xiii)
      No
      consent, approval, order or authorization of, or registration, qualification,
      designation, declaration or filing with, any federal, state or local
      governmental authority on the part of the Company is required in connection
      with
      the consummation of the transactions contemplated by this Agreement, the Pledge
      Agreement or the Floating Charge Agreement, except the filing of the Restated
      Certificate of Incorporation with the Secretary of State of the State of
      Delaware, filing the required registration forms of the Floating Charge and
      the
      Pledge and compliance with the requirements of State Blue Sky laws, if
      any.

    

    (xiv) Each
      Material Agreement is in full force and effect, and none is subject to recession
      and to the best knowledge of the Company, there are not existing any
      circumstances which would reasonably be expected to materially modify the terms
      of any Material Agreement. No third party is in default under any Material
      Agreement. True and correct copies of each Material Agreement has been delivered
      to Plenus or its counsel. The Company or Wintegra Israel is not in breach of
      any
      obligation under any Material Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    For
      the
      purposes of this Agreement, the term “Material
      Agreement”
shall
      mean any agreements, understandings, instruments, contracts, proposed
      transactions, judgments, orders, writs or decrees to which the Company or
      Wintegra Israel is a party or by which it is bound that may involve
      (i) obligations (contingent or otherwise) of, or payments to the Company,
      exceeding $50,000 each, or (ii) intellectual property rights of the Company
      and/or the intellectual property rights of any third party (other than the
      license of the Company's software and products in the ordinary course of its
      business), or (iii) distribution rights, or (iv) confidentiality and/or non
      disclosure undertakings (other than with employees or consultants of the
      Company), (v) provisions restricting or affecting the development, manufacture
      or distribution of the Company's or Wintegra Israel’s products or services, or
      (vi) restrictions or limitations on the Company's or Wintegra Israel’s right to
      do business or compete in any area or any field with any person, firm or
      company, or (vii) indemnification by the Company Wintegra Israel with
      respect to infringements of proprietary rights, or (viii) loans, extend or
      guarantee credit made by or provided to an officer or director of the Company
      or
      Wintegra Israel or any of their immediate family, or personal interest of such
      in a Material Agreement of the Company or Wintegra Israel.

    

    4.2  Without
      derogating from any right the Lenders may have, the Company and Wintegra Israel
      shall indemnify, defend and hold harmless each of the Lenders and all their
      respective officers, employees and agents against all damages and liabilities
      stemming from a misrepresentation of the Company or Wintegra Israel under this
      Section 4 of the Agreement.

    

    5. Reporting
      and Notice Rights; Attendance at Board Meetings.
      

    

    5.1 Until
      the
      termination of this Agreement, and following the termination of this Agreement
      upon the reasonable request of the Lenders and so long as the Warrant is
      outstanding, the Company shall provide the Lenders with the following:
(i) audited
      financial statements within one hundred twenty (120) days after the end of
      each
      fiscal year (including an audited annual balance sheet of the Company as of
      the
      end of the fiscal year and the statement of income and cash flow of the Company
      for the fiscal year then ended), (ii) un-audited, reviewed quarterly
      financial statements within sixty (60) days after the end of each quarter,
      (iii)
      such other data and information as the Lenders may reasonably request provided
      such data is reasonably available, (iv) advanced written notice of impending
      offerings of New Securities of the Company (as such term is defined in the
      Company’s By-Laws) by the Company in which the Company offers more than five
      percent (5%) of the Company’s fully diluted share capital as of such date, at
      least five (5) business days prior to the closing of such transaction or
      offering, (v) advanced written notice of a merger or consolidation of the
      Company, a sale of all or substantially all of the assets or shares of the
      Company or any other reorganization or restructuring of the Company having
      similar effects or a distribution of dividends, at least five (5) business
      days
      prior to the anticipated closing of such transaction or offering or distribution
      and (vi) advanced written notice of a firmly underwritten initial public
      offering of the Company’s shares pursuant to a registration statement filed with
      the Securities and Exchange Commission pursuant to the Securities Act or
      pursuant to a registration statement filed with a similar law under any foreign
      jurisdiction. Furthermore, the Lenders shall have, subject to customary
      non-disclosure obligations, at reasonable times and upon reasonable notice,
      full
      access to all books and records of the Company and shall be entitled to inspect
      the properties of the Company and consult with management of the Company
      regarding the same, to the extent necessary and reasonable for the purpose
      of
      monitoring observance by the Company of its obligations under this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.2 During
      the term of this Agreement, at any time that the outstanding Principal Amount
      disbursed and accrued Interest thereon, is due and outstanding exceeds
      US$3,000,000 (three million United States dollars), Plenus shall be entitled
      to
      nominate one (1) person on its behalf, the identity of which is acceptable
      to
      the Company (the “Observer”),
      who
      shall be entitled to attend all meetings of the Company’s Board of Directors
      (whether in person, telephonic or other) in a non-voting observer capacity,
      concurrently with the members of the Company's Board of Directors, and in the
      same manner and shall be entitled to receive notice of such meeting and a copy
      of all materials provided to such members. The Company agrees that neither
      Plenus nor the Observer will have a fiduciary duty. Notwithstanding the
      previously mentioned, both Plenus and the Observer shall abide by the
      confidentiality undertakings imposed on the other directors of the Company,
      in
      their capacity as such. 

     

    5.3 Furthermore,
      the Company acknowledges that Plenus will likely have, from time to time,
      information that may be of interest to the Company ("Information")
      regarding a wide variety of matters. The Company recognizes that a portion
      of
      such Information may be of interest to the Company. Such Information may or
      may
      not be known by the Observer. The Company, as a material part of the
      consideration for this Agreement, agrees that Plenus and its Observer shall
      have
      no duty to disclose any Information to the Company or permit the Company to
      participate in any projects or investments based on any Information, or to
      otherwise take advantage of any opportunity that may be of interest to the
      Company if it were aware of such Information, and hereby waives, to the extent
      permitted by law, any claim based on the corporate opportunity doctrine or
      otherwise that could limit Plenus’ ability to pursue opportunities based on such
      Information or that would require Plenus or its Observer to disclose any such
      Information to the Company or offer any opportunity relating thereto to the
      Company. 

    

    5.4 The
      Lenders acknowledge that the data and the information regarding or relating
      the
      Company or Wintegra Israel, obtained pursuant to the provisions of this Section
      5 or by the operation of any applicable law are confidential, and agree and
      undertake that such data and information will not be disclosed to any third
      party, nor exploited for other projects, investments or the like, without the
      prior written consent of the Company; provided that, in connection with reports
      to their investors and/or Co-lenders, the Lenders may, without first obtaining
      such written consent, make general statements regarding the nature and progress
      of the Company's business and information to its investors and/or Co-lenders.
      The Lenders may disclose the data and information mentioned above to their
      officers and employees on a need to know basis, and such officers and employees
      shall undertake the same obligations as the Lenders undertake with respect
      to
      such data and information.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    This
      section 5 (except for subsection 5.2) shall apply mutatis
      mutandis
      to
      Wintegra Israel.

     

    6. Authority.
      Notwithstanding anything herein to the contrary, (i) Citibank N.A.
      (“Citibank”)
      agrees
      that Plenus at its sole discretion shall determine whether to realize any
      charges and/or pledges over the assets of the Company created for the benefit
      of
      the Lenders; (ii) Citibank agrees that Plenus at its sole discretion shall
      determine whether repayment of any amounts hereunder owed to the Lenders are
      to
      be accelerated or whether an event of a default pursuant to the Floating Charge
      Agreement or the Pledge Agreement has occurred, and Plenus is hereby appointed
      the attorney-in-fact on behalf of Citibank in connection with all of the
      foregoing and Citibank agrees not to take any action to the contrary, and (iii)
      Citibank agrees that in the case that the Lenders should give their consent
      under this Agreement, Plenus’ consent shall bind Citibank as well. Furthermore,
      the parties agree that the portion of the Warrant allocated to Citibank shall
      be
      held by Plenus in trust for the benefit of Citibank.

    

    7. Syndication.
      Notwithstanding
      any of the provisions set forth herein, the Company understands and agrees
      that
      Plenus has syndicated the loan granted hereunder to the Co-lenders and to the
      Beneficiaries listed in Schedule
      1,
      provided,
      however,
      that
      Plenus shall act as the lead manager of such syndication on behalf of the
      Co-lenders and on behalf of the Beneficiaries. Notwithstanding the above, each
      Co-Lender and/or Permitted Transferee and/or Beneficiaries shall be entitled
      to
      receive, upon the exercise of the Warrant by Plenus (in its capacity as lead
      manager) a proportional amount of the Warrant Shares issuable upon such
      exercise, as may be notified in writing to the Company by Plenus upon such
      exercise, so long as such Co-lender and Permitted Transferee and Beneficiaries
      (or their respective officers, directors, shareholders or members) is not a
      competitor of the Company, and provided further that prior to a Realization
      Event (as defined in the Warrant) the Warrant Shares so disbursed shall be
      held
      in trust by Plenus for the benefit of Citibank, the Co-lenders and/or Permitted
      Transferees and/or Beneficiaries. Citibank, such Co-lenders and/or Permitted
      Transferees shall give Plenus an irrevocable proxy (including with respect
      to
      any voting rights upon exercise of the Warrant, and the voting rights with
      respect to the release the Floating Charge), in the form attached hereto as
      Schedule
      7,
      irrevocable until the earlier of: (i) the termination of any of Plenus’
formation agreements, or (ii) immediately after the consummation of a
      Realization Event (as defined in the Warrant) in relation to the Warrant Shares,
      authorizing Plenus to sign and execute this Agreement and any Exhibits and
      Schedules attached hereto or other documents related to the transaction
      contemplated hereunder, on behalf of all Co-lenders, Beneficiaries and Citibank,
      which signing will obligate each said party as if it was originally signed
      by
      such party ("Proxy").
      Plenus represents to the Company that pursuant to its formation agreements,
      Plenus holds a Proxy for its Beneficiaries. Nothing in this Section will
      derogate from the obligations and undertakings of the Lenders and Co-lenders
      under this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    It
      is
      agreed that Plenus may further syndicate the Loan to other co-lenders or
      beneficiaries, and in such case, Clause 7 shall apply mutatis
      mutandis
      to any
      such co-lenders or beneficiaries. Plenus shall notify the Company in writing
      by
      fourteen (14) days from the consummation of such future syndication.

    

    8. Covenant.
      Each
      of
      the Company and Wintegra Israel shall comply with the terms of and do all that
      is necessary to maintain in full force and effect all authorizations, approvals,
      licenses and consents required in or by the laws and regulations of Delaware
      and/or Israel (as the case may be), and any other applicable jurisdiction to
      enable it lawfully to enter into and perform its obligations under this
      Agreement, the Pledge Agreement and the Floating Charge Agreement and to ensure
      the legality, validity, enforceability or admissibility in evidence of this
      Agreement.

    

    9. Miscellaneous.
      

    

    9.1 The
      obligations of the Lenders hereunder are several and not joint. 

    

    9.2 Each
      of
      the parties hereto shall perform such further acts and execute such further
      documents as may reasonably be necessary to carry out and give full effect
      to
      the provisions of this Agreement and the intentions of the parties as reflected
      hereby.

    

    9.3 This
      Agreement shall be governed by and construed according to the laws of the State
      of Israel, without regard to the conflict of laws provisions thereof.

    

    9.4 Except
      as
      otherwise expressly limited herein, the provisions hereof shall inure to the
      benefit of, and be binding upon, the successors, assigns, heirs, executors,
      and
      administrators of the parties hereto. 

     

    9.5 None
      of
      the rights, privileges, or obligations set forth in, arising under, or created
      by this Agreement may be assigned or transferred by any party hereto without
      the
      prior consent in writing of the other parties which consent shall not be
      unreasonably withheld. Anything herein to the contrary notwithstanding and
      without derogating from the requirement and limitations set forth in Section
      6
      above, each Lender shall have the right to assign or transfer their rights,
      privileges and obligations under this Agreement as long as such transfer is
      not
      to a competitor of the Company to: (i) any other entity which controls, is
      controlled by or is under common control with any Lender, (ii) if the Lender
      is
      a trustee or
      is
      appointed to act on behalf of others then
      to
      its beneficiaries being investors or affiliates of investors of the Lender,
      or
      (iii) if the Lender is a general or limited partnership, assignments and
      transfers to its partners and to partnerships managed by the same management
      company or managing general partner or by an entity which controls, is
      controlled by, or is under common control with, such management company or
      managing general partner (each a “Permitted
      Transferee”),
      provided that each such transfer will be subject to the provisions of Section
      6
      above, and that each such Permitted Transferee shall have executed (i) an
      irrevocable Proxy to Plenus; and (ii) an undertaking of any and all obligations
      of the transferor under this Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.6 This
      Agreement, its Exhibits, Schedules and Annexes hereto constitute the full and
      entire understanding and agreement among the parties with regard to the subject
      matters hereof and thereof. The preamble, Schedules, Exhibits and Annexes hereto
      constitute an integral part hereof. 

    

    9.7 The
      Company shall pay the Plenus Twenty Thousand United States dollars (US$ 20,000)
      plus applicable value added tax for legal fees, on or immediately after the
      date
      which this Agreement and all schedules and exhibits hereto are executed by
      the
      parties plus all out of pocket expenses incurred by the Plenus’ legal advisors.
      The above-stated amount shall include amounts that the Company shall pay for
      any
      other reasonable expenses and applicable value added tax incurred during the
      negotiation of this Agreement including any stamp duty that may be payable
      in
      connection with this Agreement. 

    

    9.8 Any
      term
      of this Agreement may be amended and the observance of any term hereof may
      be
      waived (either prospectively or retroactively and either generally or in a
      particular instance) only with the written consent of all of the parties to
      this
      Agreement. 

    

    9.9 The
      obligations of the Company to indemnify the Lenders in Section 4 hereof and
      the
      obligations under Section 5 hereof, will survive this Agreement until all
      statutes of limitations for actions that may be brought against the Lenders
      have
      expired. 

    

    9.10 All
      notices and other communications required or permitted hereunder to be given
      to
      a party to this Agreement shall be in writing and shall be telecopied (faxed)
      or
      mailed by registered or certified mail, postage prepaid, or by electronic mail,
      or otherwise delivered by hand or by messenger, if to the Company then to the
      Company's address set forth above to the attention of the Chief Executive
      Officer and the Chief Financial Officer with a copy to Dr. Ayal Shenhav, Adv.,
      ,
      at 91 Medinat Hayehudim St., POB 4121, Herzeliya 46140, Israel, fax number
      09-9511187, and if to the Lenders then to the addresses set forth in
Schedule
      1
      with a
      copy to Joseph Mayer, Adv., Yossi Avraham and Co., at 3 Daniel Frisch Tel Aviv,
      Israel, fax number 03-6963801, or such other address with respect to a party
      as
      such party shall notify each other party in writing as above provided. Any
      notice sent in accordance with this Section 9.11 shall be effective (i) if
      mailed, seven (7) business days after mailing, (ii) if sent by messenger, upon
      delivery, and (iii) if sent via telecopier (fax) or electronic mail, upon
      transmission and electronic confirmation of receipt or (if transmitted and
      received on a non-business day) on the first business day following transmission
      and electronic confirmation of receipt. 

    

    9.11 No
      delay
      or omission to exercise any right, power, or remedy accruing to any party upon
      any breach or default under this Agreement, shall be deemed a waiver of any
      other breach or default theretofore or thereafter occurring. All remedies,
      either under this Agreement or by law or otherwise afforded to any of the
      parties, shall be cumulative and not alternative.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.12 If
      any
      provision of this Agreement is held by a court of competent jurisdiction to
      be
      unenforceable under applicable law, then such provision shall be excluded from
      this Agreement and the remainder of this Agreement shall be interpreted as
      if
      such provision were so excluded and shall be enforceable in accordance with
      its
      terms; provided, however, that in such event this Agreement shall be interpreted
      so as to give effect, to the greatest extent consistent with and permitted
      by
      applicable law, to the meaning and intention of the excluded provision as
      determined by such court of competent jurisdiction.

    

    

    [Remainder
      of page intentionally left blank.]

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    IN
      WITNESS WHEREOF, the parties have signed this Loan Agreement in one or
      more counterparts as of the date first appearing above set forth.

    

                                            WINTEGRA
      INC.

    

                                           
    By: /s/
      Kobi BenZvi

    

                                               Its:
CEO        

    

                                            WINTEGRA
      LTD.

    
       

                                              
   By: /s/
        Kobi BenZvi

      

                                             
    Its:
CEO        

    PLENUS
      TECHNOLOGIES LTD. On
      its
      own behalf and on behalf of the Beneficiaries listed in Schedule 1.

    

                                               By:
 Ruth
      Simha Shlomo Karako__

    

                                               Its:
 Managing
      Partner CFO______

    

     

                                            CITIBANK,
      N.A., TEL
      AVIV BRANCH

     

                                               By:
/s/
      Thomas A.
      Mulvihill

    

                                               Its:
Country
      Risk
      Manager

     

    
 

    [Signature
      Page of Loan Agreement]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1

     

    
      
        	
                  THE
                  LENDERS

              
	 Name and Address	
                 Amount

              	
                 Currency

              
	 	 	 
	
                Plenus Technologies Ltd.

                On behalf of the Beneficiaries

                Listed below

                16 Hagalim Avenue

                Herzliya Pituach

                Israel

                Attn: Ruthi Simcha and Gadi Moshe

                Facsimile: (972-9) 957-8770

              	
                3,311,828

              	
                US$

              
	 	 	 
	
                Citibank, N.A., Tel Aviv
                  Branch

                Platinum Building

                21 Ha’arba’ah Street

                Tel Aviv 64739

                Israel

                Attention: Tom
                  Mulvihill, Country Risk Manager

                with a copy to: Nandan Mer, CEO

                Facsimile: (972-3) 684-2404

              	
                688,172

              	
                US$

              

      

    

     

    
      
        
          	
                    THE
                    CO-LENDERS

                
	 Name and Address	
                   Amount

                	
                   Currency

                
	 	 	 
	
                  Bank Leumi Le-Israel B.M.

                   

                  33 Yehuda Hlevy Street

                  Tel-Aviv

                  Attention: Iris Rosenberg

                  Facsimile: ________________

                	
                  1,000,000

                	
                  US$

                
	
                	 	 

        

      

       

    

    THE
      BENEFICIARIES

    

    
      	
              1.
                The Investment Corporation of United Mizrachi Bank Ltd.

            
	
              2.
                Union Bank of Israel Ltd.

            
	
              3.
                Citibank N.A.

            
	
              4.
                Industrial Development Bank of Israel Ltd.

            
	
              5.
                D. Partners (BVI)

            
	
              6.
                CMA Technology Venture Partner Limited

            
	
              7.
                D. Partners (ISR)

            
	
              8.
                Israel Continental Bank Ltd.

            
	
              9.
                Nessuah Zannex Ltd.

            
	
              10.
                Mercantile Discount Bank Ltd.

            
	
              11.
                Benleumi Provident Funds

            
	
              12.
                Bank Leumi Le-Israel B.M.

            
	
              13.
                Kahal Ltd.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
Annex
        A

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Annex
        A

      Wintegra
        Inc. - Milestones

      

      First
        Milestone:

      The
        occurrence of both by Wintegra Inc.:

      (1) the
        aggregate amount of sales and purchase orders without any rights for
        cancellation upon six (6) consecutive months shall be at least $600,000US.
        The
        Company shall furnish Plenus with its’ auditors authorization of accomplishment
        of this conditions, and;

      (2) at
        least
        thirty (30) design wins shall be active upon the consummation of the first
        milestone, of which five (5) shall be according with a signed and executed
        agreement with any of the Companies listed in Group A herein.

      

      Second
        Milestone:

      The
        occurrence of both by Wintegra Inc.:

      (1) the
        aggregate amount of sales and purchase orders without any rights for
        cancellation upon three (3) consecutive months shall be at least $1,000,000US.
        The Company shall furnish Plenus with its’ auditors authorization of
        accomplishment of this conditions, and;

      (2) at
        least
        forty (40) design wins shall be active upon the consummation of the second
        milestone, of which five (5) shall be according with a signed and executed
        agreement with any of the Companies listed in Group A herein.

      

      General

      For
        the
        avoidance of doubt, all of the above milestones are cumulative and each of
        the
        above milestones must be met. In addition, it is hereby clarified that the
        above
        milestones shall be deemed accomplished upon the occurrence of the above
        jointly
        or separately by Wintegra Inc. and/or Wintegra Ltd.. 

      

      Group
        A

      Alcatel

      Cisco

      3COM

      Ericsson

      Fujitsu

      Huwawei

      Hyundai

      Juniper
        Networks

      Marconi/GEC

      NEC

      Nortel

      Nokia

      Lucent

      Motorola

      Samsung

      Siemens

      LG
        Korea

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Exhibit
        A

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      THIS
        WARRANT AND THE WARRANT SHARES (AS DEFINED HEREIN) WHICH MAY BE PURCHASED
        UPON
        THE EXERCISE OF THIS WARRANT, HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT AND
        HAVE
        NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),
        OR
        ANY APPLICABLE STATE OR COMPARABLE SECURITIES LAW OF A U.S. OR NON-U.S.
        JURISDICTION. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
        OR
        HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL
        SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH SALE, OFFER, PLEDGE
        OR
        HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
        REQUIREMENTS OF THE ACT AND OF ANY APPLICABLE STATE OR COMPARABLE SECURITIES
        LAW
        OF A U.S. OR NON-U.S. JURISDICTION.

       

      WINTEGRA
        INC.

       

      
        	NO. __ 	 	
                VOID
                  AFTER June 3rd,
                  2010.

              

      

       

      WARRANT

       

       

      THIS
        CERTIFIES THAT,
        for
        value received, Plenus Technologies Ltd. (the "Holder")
        is
        immediately entitled to subscribe for and purchase from Wintegra Inc.,
a
        company
        duly incorporated under the laws of Delaware, USA
        (the
“Company”),
        at the
        Exercise Price (as such term is defined below and as may be adjusted pursuant
        to
        Section 5 hereof) for an aggregate value of up to One Million Five Hundred
        United States dollars (US $1,500,000) (or such lower value as set forth below)
        (the “Exercise
        Amount”),
        of
        the Company’s fully paid and non-assessable Series B Preferred Shares (as
        defined below) (as
        adjusted
        in accordance with Section 2 and Section 5 hereof) or whichever class may
        be
        applicable in the circumstances as determined below, having all rights,
        privileges and preferences, contractual, economic or otherwise, attached
        to such
        class of shares or granted to any holder of such class of shares (the
“Warrant Shares”),
        subject
        to the provisions and upon the terms and conditions hereinafter set forth
        in
        this Warrant.

       

      1. Definitions.

       

      As
        used
        herein the following defined terms shall have the meaning ascribed to them
        in
        this Section as follows:

       

      "Issuance
        of Additional Stock"
        shall
        mean the issuance of shares and Convertible Securities of the Company, other
        than shares of the Company issued or issuable:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	(A)	
                  upon
                    conversion of shares of Preferred
                    Stock;

                

        

      

       

      
        
          	 	(B) 	
                  upon
                    grant of, and/or exercise of any and all of the warrants and
                    options
                    granted to any of the Company's stockholders under the Last Round
                    of
                    Financing (as defined below)and the TI Warrants attached to the
                    Series B
                    Preferred Stock Purchase Agreement dated April 5, 2001 (the “Series
                    B Preferred Stock Purchase Agreement”)
                    as Exhibits G1, G2, G3 and G4 and the rights provided in the
                    Bridge Loan
                    Agreement dated January 25, 2001 attached as Exhibit E to the
                    Series B
                    Preferred Stock Purchase Agreement;

                

          	 	 	 

          	
                	(C)	
                  up
                    to 5,000,000 shares of Common Stock reserved for issuance to,
                    and/or
                    options thereto sold or issued to, employees, directors or consultants
                    of
                    the Company pursuant to the Company’s stock option plan as adopted by the
                    Company; 

                

        

      

       

      "Convertible
        Securities" shall
        mean options or warrants to purchase or rights to subscribe for shares of
        the
        Company, or securities by their terms convertible into or exchangeable for
        equity securities of the Company or options or warrants to purchase or rights
        to
        subscribe for such convertible or exchangeable securities

       

      “Deemed
        Issuance”
        shall
        mean the issuance of Convertible Securities.

       

      “Last
        Round of Financing” shall
        mean the round of financing consummated in accordance with the Series B
        Preferred Share Purchase Agreement dated April 5, 2001, by and among the
        Company
        and the Purchasers (as defined in that Share Purchase Agreement), the Joinder
        thereto dated April 9, 2001 and the Amendment thereto dated July 15, 2001.
        

       

      “M&A
        Transaction”
        shall
        mean either: (x) the consummation of any consolidation or merger of the Company
        with or into a third party, pursuant to which the Company's shareholders
        immediately prior to such transaction own less than fifty-one percent (51%)
        of
        the voting securities of the surviving entity immediately after the consummation
        of such transaction, or (y) the consummation of a sale of all or substantially
        all of the Company’s shares or assets to any third party.

       

      “Next
        Qualified Financing”
        shall
        mean the first investment, or series of investments in the Company’s share
        capital after the date hereof in which the Company issues shares
        provided that the aggregate gross proceeds to the Company in such financing
        exceeds Fifteen Million United States dollars (US$15,000,000).

       

      “Permitted
        Transferee” shall
        mean (i)
        any
        other entity which controls, is controlled by or is under common control
        with
        the Holder, (ii) if the Holder is a trustee or
        is
        appointed to act on behalf of others then
        to
        its beneficiaries being investors of the Holder, or (iii) if the Holder is
        a
        general or limited partnership,
        assignments and transfers to its partners and/or to partnerships managed
        by the
        same management company or managing general partner or by an entity which
        controls, is controlled by, or is under common control with, such management
        company or managing general partner.

       

      "Preferred
        Stock"
        or
“Preferred
        Shares”
shall
        mean shares of Series A Preferred Stock and shares of Series B Preferred
        Stock
        of the Company.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      “Realization
        Event”
        shall
        mean either (x) the closing of a firmly underwritten initial public offering
        of
        the Company’s shares (an “IPO”)
        pursuant to a registration statement filed with the Securities and Exchange
        Commission pursuant to the Act or pursuant to a registration statement filed
        with a similar law under any foreign jurisdiction; or (y) the closing of
        an
        M&A Transaction.

       

      “Series
        B Preferred Shares”
        shall
        mean the preferred shares purchased by the investors in the Last Round of
        Financing, each with a nominal value of US$0.001, having all rights privileges
        and preferences, contractual, economic or otherwise, attached to such class
        of
        preferred share or granted to any holder of such class of share.

       

      Capitalized
        terms not otherwise defined herein shall have the meaning ascribed to them
        in
        the loan agreement between the Company, the Holder and others dated, as of
        June
        4, 2002 (the “Loan
        Agreement”).

       

      2.Number
        and Class of Warrant Shares; Exercise Price.

       

      (a) Number
        of Warrant Shares.
        The
        Holder shall be entitled to purchase such number of Warrant Shares that is
        equal
        to the Exercise Amount (as defined below) divided by the Exercise Price (as
        defined below). The Exercise Amount shall be as follows:

       

      (i) Four
        Hundred Thousand United States dollars (US$400,000) as of the date hereof;
        or

       

      (ii) the
        Exercise Amount shall be adjusted up to Six Hundred Thousand United States
        dollars (US$600,000) in the event that the Company shall receive funds in
        accordance with a Disbursement Request pursuant to Section 1.1 of the Loan
        Agreement at any time during the term of the Loan Agreement; or

       

      (iii) the
        Exercise Amount shall be further adjusted up to Seven Hundred Thousand United
        States dollars (US$700,000) in the event that (a) the Company shall have
        the
        right to draw any amount from the First Additional Credit Amount and shall
        notify the Holder of its intention to exercise its right pursuant to Section
        1.4
        of the Loan Agreement, and (b) the Company has not received any funds from
        the
        Initial Credit Amount pursuant to Section 1.3 of the Loan Agreement;
        or

       

      (iv) the
        Exercise Amount shall be further adjusted up to Nine Hundred Thousand United
        States dollars (US$900,000) in the event that (a) the Company shall have
        the
        right to draw any amount from the First Additional Credit Amount and shall
        notify the Holder of its intention to exercise its right pursuant to Section
        1.4
        of the Loan Agreement, and (b) the Company received any funds from the Initial
        Credit Amount pursuant to Section 1.3 of the Loan Agreement; or

       

      (v) the
        Exercise Amount shall be further adjusted up to One Million and Fifty Thousand
        United States dollars (US$1,050,000) in the event that the
        Company shall draw any amount from the First Additional Credit Amount
pursuant
        to Section 1.3 of the Loan Agreement; or

       

      (vi) the
        Exercise Amount shall be further adjusted up to One Million United States
        dollars (US$1,000,000) in the event that (a) the
        Company shall have the right to draw the Second Additional Credit Amount
        or any
        portion thereto and shall notify the Holder of its intention to exercise
        its
        right pursuant
        to Section 1.4 of the Loan Agreement, and (b) the Company has not received
        any
        funds from the Initial Credit Amount pursuant to Section 1.3 of the Loan
        Agreement; or 

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      (vii) the
        Exercise Amount shall be further adjusted up to [One Million and Two Hundred
        Thousand United States dollars (US$1,200,000)] in the event that (a)
the
        Company shall have the right to draw the Second Additional Credit Amount
        or any
        portion thereto and shall notify the Holder of its intention to exercise
        its
        right pursuant
        to Section 1.4 of the Loan Agreement, and (b) the Company has received any
        funds
        from the Initial Credit Amount pursuant to Section 1.3 of the Loan Agreement,
        and (b) the Company has not received any funds from the First Additional
        Credit
        Amount pursuant to Section 1.3 of the Loan Agreement; or 

       

      (viii) the
        Exercise Amount shall be further adjusted up to [One Million and Three Hundred
        Thousand and Fifty United States dollars (US$1,350,000)] in the event that
        (a)
the
        Company shall have the right to draw the Second Additional Credit Amount
        or any
        portion thereto and shall notify the Holder of its intention to exercise
        its
        right pursuant
        to Section 1.4 of the Loan Agreement, and (b) the Company has received any
        funds
        from the Initial Credit Amount pursuant to Section 1.3 of the Loan Agreement,
        and (b) the Company has received any funds from the First Additional Credit
        Amount pursuant to Section 1.3 of the Loan Agreement; or 

       

      (ix) the
        Exercise Amount shall be further adjusted up to One Million and Five Hundred
        Thousand United States dollars (US$1,500,000) in the event that the
        Company shall draw any amount from the Second Additional Credit Amount
pursuant
        to Section 1.3 of the Loan Agreement.

       

      (b) Class
        of Warrant Shares.
        The
        class of share to be issued upon the exercise of this Warrant shall be Series
        B
        Preferred Shares.

       

      (c) Exercise
        Price.
        The
        Exercise Price for each Warrant Share, subject to adjustments pursuant to
        the
        provisions of this Section 2 and Section 5 herein, shall be US$2.75656.

       

      Notwithstanding
        anything herein to the contrary, upon each Issuance of Additional Stock or
        deemed issuance of shares at a price per share less than the applicable Exercise
        Price then in effect (the "New
        Exercise Price"),
        the
        Exercise Price will be automatically reduced to the New Exercise Price. No
        adjustment of an Exercise Price shall be made if it has the effect of increasing
        the Exercise Price beyond the applicable Exercise Price in effect immediately
        prior to such issuance or Deemed Issuance. 

       

      3. Method
        of Exercise; Payment.

       

      (a) Cash
        Exercise.
        The
        purchase rights represented by this Warrant may be exercised by the Holder,
        in
        whole or in part, by the surrender of this Warrant (with the Notice of Exercise
        form attached hereto as Exhibit A duly
        executed) at the principal office of the Company, and by the payment to the
        Company, by cash, certified, cashier's or other check acceptable to the Company,
        of an amount equal to the applicable aggregate Exercise Price of the applicable
        class of Warrant Shares being purchased.

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      (b)
         Net
        Exercise.
        In the
        event of a Realization Event and in lieu of the payment method set forth
        in
        Section 3(a) above, the Holder may elect to exchange the Warrant for a number
        of
        the applicable class of Warrant Shares equal to the number of Warrant Shares
        computed using the following formula:

       

      X
        =
Y
        (A-B)

                 
A

       

      
        	 	
                Where
                  X = the number of Warrant Shares (adjusted to the date of such
                  calculation, but excluding those shares already issued under this
                  Warrant)
                  to be issued to the Holder.

              

      

       

      
        	 	
                Y
                  =
                  the number of Warrant Shares purchasable under the Warrant (adjusted
                  to
                  the date of such calculation, but excluding those shares already
                  issued
                  under this Warrant).

              

      

       

      
        	 	
                A
                  =
                  the Fair Market Value (as defined below) of one Warrant
                  Share.

              

      

       

      
        	 	 	
                B
                  =
                  Exercise Price (as adjusted to the date of such calculation).
                  

              

      

       

      
        	 	 	
                “Fair
                  Market Value”
                  of
                  a Warrant Share shall mean:

              

      

       

      
        	 	 	
                (i)

              	
                In
                  the event of an M&A Transaction the price per Warrant Share (assuming
                  conversion of the Warrant Shares, adjusted to the date of such
                  calculation, but excluding those shares already issued under this
                  Warrant)
                  as determined in such transaction. 

              

        	 	 	 	 

        	 	 	(ii) 	
                If
                  the exercise date is the date of closing of an IPO, then the public
                  offering price (before deduction of discounts, commissions or expenses)
                  in
                  such offering.

              

      

       

      
        	 	
                (iii)

              	
                In
                  the event that the Fair Market Value for a Warrant Share cannot
                  be
                  determined in the manner set forth above in items (i) and (ii),
                  then the
                  Fair Market Value of a Warrant Share shall be as determined by
                  the
                  Company’s Board of Directors in good
                  faith.

              

      

       

      In
        the
        event of a cashless exercise under this Section 3(b), this Warrant must be
        exercised for all the Warrant Shares and must be surrendered to the Company
        along with the Notice of Exercise. After such exercise and receipt by the
        Holder
        of the appropriate amount of Warrant Shares, this Warrant shall be null and
        void. 

       

      (c) Conditional
        Exercise.
        In the
        event that the Holder intends to exercise this Warrant with respect to a
        Realization Event, the Holder shall be entitled to condition such exercise
        on
        the consummation of a Realization Event and shall indicate as such on the
        Notice
        of Exercise form attached hereto as Exhibit A
        and the
        Holder will only be required to pay the applicable aggregate Exercise Price
        at
        such time as the Realization Event is consummated.

       

      (d) Share
        Certificates.
        In the
        event of any exercise of the rights represented by this Warrant, certificates
        for the applicable class and amount of Warrant Shares so purchased shall
        be
        delivered to the Holder promptly and, unless this Warrant has been fully
        exercised in accordance with Sections 3(a) or 3(b) hereof, a new Warrant
        representing the balance of the Warrant Shares with respect to which this
        Warrant shall not have been exercised shall also be issued to the Holder
        within
        such time.

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      4. Share
        Fully Paid; Reservation of Shares.
        All of
        the Warrant Shares issuable upon the exercise of the rights represented by
        this
        Warrant will, upon issuance and receipt of the Exercise Price therefore,
        be
        fully paid and non-assessable, and free from all taxes, liens and charges
        with
        respect to the issue thereof. At all times when this Warrant may be exercised,
        the Company shall have authorized and reserved for issuance sufficient shares,
        free from pre-emptive rights, of its Warrant Shares to provide for the exercise
        of the rights represented by this Warrant, so that this Warrant may be exercised
        without additional authorization of Preferred Shares after giving effect
        to all
        other warrants, options, convertible securities and other rights to acquire
        shares of the Company.

       

      5. Adjustments.
        The
        number and kind of securities purchasable upon the exercise of this Warrant
        and
        the Exercise Price therefore shall be subject to adjustment from time to
        time
        upon the occurrence of certain events, as follows:

       

      (a) Reclassification.
        In case
        of any reclassification or change of the applicable class of Warrant Shares
        issuable at such time (other than a change in par value, or as a result of
        a
        subdivision or combination), the Company shall execute a new Warrant, providing
        that the Holder shall have the right to exercise such new Warrant, and procure
        upon such exercise and payment of the same aggregate Exercise Price, in lieu
        of
        such applicable class of Warrant Shares theretofore issuable upon exercise
        of
        this Warrant, the kind and amount of shares, other securities, money and
        property receivable upon such reclassification or change, by a holder of
        an
        equivalent number of such applicable class of Warrant Shares. Such new warrant
        shall provide for adjustments that shall be as nearly equivalent as may be
        practicable to the adjustments provided for in this Section 5 or as shall
        be
        necessary in order to ensure the integrity of the Holder’s economic rights. The
        provisions of this subsection (a), shall similarly apply to successive
        reclassifications or changes.

       

      (b) Share
        Splits, Dividends, Combinations and Reorganizations.
        In the
        event that the Company shall at any time subdivide the outstanding applicable
        class of Warrant Shares or shall issue a share dividend on its outstanding
        applicable class of Warrant Shares the number of Warrant Shares issuable
        upon
        exercise of this Warrant immediately prior to such subdivision or to the
        issuance of such share dividend shall be proportionately increased, and the
        Exercise Price shall be proportionately decreased. In the event that the
        Company
        shall at any time combine the outstanding shares of the applicable class
        of
        Warrant Shares the number of shares of the applicable class of Warrant Shares
        issuable upon exercise of this Warrant immediately prior to such combination
        shall be proportionately decreased, and the Exercise Price shall be
        proportionately increased, effective at the close of business on the date
        of
        such subdivision, share dividend or combination, as the case may be. Similar
        equitable adjustments will be made in the event of a consolidation, merger
        or
        reorganization of the Company with or into, or a sale of all or substantially
        all of the Company's assets, or substantially all of the Company's issued
        and
        outstanding share capital, to, any other company, or any other entity or
        person,
        other than a wholly-owned subsidiary of the Company as well as any spin-off
        or
        split-off transaction by the Company.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      (c) General
        Protection.
        The
        Company will not by amendment of its By-Laws and/or the its Certificate of
        Incorporation or through any reorganization, transfer of assets, consolidation,
        merger, dissolution, issuance or sale of its securities or any other voluntary
        action, avoid or seek to avoid the observance or performance of any of the
        terms
        to be oberserved or performed hereunder, but will at all times in good faith
        assist in the carrying out of all provisions hereof and in taking of all
        such
        actions and making all such adjustments as may be necessary or appropriate
        in
        order to protect the rights of the Holder against any impairment.

       

      6. Notice
        of Adjustments.
        Whenever the number of shares of the applicable class of Warrant Shares
        purchasable hereunder or the Exercise Price thereof shall be adjusted pursuant
        to Section(s) 2 and 5 hereof, the Company shall provide written notice to
        the
        Holder setting forth, in reasonable detail, the event requiring the adjustment,
        the amount of the adjustment, the method by which such adjustment was
        calculated, and the number and class of shares of the applicable class of
        Warrant Shares which may be purchased and the Exercise Price therefore after
        giving effect to such adjustment.

       

      7. Fractional
        Shares.
        This
        Warrant may not be exercised for fractional shares. In the event of fractional
        shares, the Company shall round the number of Warrant Shares issuable upon
        such
        exercise down to the nearest whole share and shall pay an amount in cash
        to the
        Holder equal to any such fractional share. 

       

      8. Representations
        and Covenants of the Company.
        The
        Company represents and covenants to the Holder as follows:

       

      (a) that
        all
        corporate actions on the part of the Company, its officers, directors and
        shareholders necessary for the sale and issuance of the Warrant and the Warrant
        Shares and the performance of the Company's obligations hereunder have been
        taken and are effective as of the Effective Date. The Company undertakes
        that
        all corporate actions on the part of the Company, its officers, directors
        and
        shareholders will be taken as necessary for the creation, sale and issuance
        of
        the Series B Preferred Shares, such actions will be taken as promptly as
        practicable following an adjustment to the Exercise Price pursuant to Sections
        2(c) and 5 above which results in an insufficient amount of Series B Preferred
        Shares being held in reserve by the Company.

       

      (b) that
        as
        of the date of exercise of this Warrant, the Company shall record the Holder,
        any Permitted Transferees of the Holder and any Co-lender of the Holder,
        in the
        Company’s internal share register in accordance with the applicable law, as the
        owners, direct or beneficial, of the Warrant Shares pursuant to the names
        provided by the Holder in Section 4 on the Notice of Exercise (Exhibit A)
        to
        this Warrant.

       

      9. Representations
        and Warranties by the Holder.
        The
        Holder represents and warrants to the Company as follows:

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

      (a) The
        Holder is acquiring the Warrant for investment for its own account, not as
        a
        nominee or agent, and not with the current view to, or for resale in connection
        with, any distribution thereof, except with respect to its Co-lenders and/or
        Permitted Transferees in accordance with Section 11(b) below. 

       

      (b) The
        Holder understands that the Warrant and the Warrant Shares have not been
        registered under the Act, or another comparable law, by reason of their issuance
        in a transaction exempt from registration under the Act pursuant to
        Section 4(2) thereof, and that they must be held by the Holder
        indefinitely, and that the Holder must therefore bear the economic risk of
        such
        investment indefinitely, unless the Warrant Shares have been registered for
        resale under the Act or such resale is exempted from such registration. The
        Holder is aware of the provisions of Rule 144 promulgated under the Act and
        its requirements for the resale of the Warrant Shares which permits limited
        resale of shares purchased in a private placement subject to the satisfaction
        of
        certain conditions, including, among other things, the existence of a public
        market for the shares, the availability of certain current public information
        about the Company, the resale occurring not less than one year after a party
        has
        purchased and paid for the security to be sold, the sale being effected through
        a “broker’s transaction” or in transactions directly with a “market maker” and
        the number of shares being sold during any three-month period not exceeding
        specified limitations. The Holder further understands that the Warrant Shares
        have not been qualified under any state or non-U.S. securities law. The Holder
        understands that no public market now exists for any of the Warrant Shares
        and/or the Warrant and that the Company has made no assurances that a public
        market will ever exist for the Company’s shares.

       

      (c) The
        Holder has such knowledge and experience in financial and business matters
        that
        it is capable of evaluating the merits and risks of the purchase of this
        Warrant
        and the shares of the applicable class of Warrant Shares purchasable pursuant
        to
        the terms of this Warrant and of protecting its interests in connection
        therewith.

       

      (d) The
        Holder is able to bear the economic risk of the purchase of the shares of
        the
        applicable class of Warrant Shares pursuant to the terms of this Warrant
        including an entire loss of the value of such investment.

       

      (e)
        The
        Holder understands that the Warrant and the Warrant Shares have not been
        registered under the Act, in part, by reason of a specific exemption from
        the
        registration provisions of the Act, the availability of which depends upon,
        among other things, the bona fide nature of the investment intent and the
        accuracy of the Holder’s representations as expressed herein. If
        Holder, any
        Permitted Transferee of the Holder and any Co-lender of the Holder, is
        a
        resident or citizen of the United States or the offer of the Warrant Shares
        was
        made to the Holder, any
        Permitted Transferee of the Holder and any Co-lender of the Holder, while
        such person or entity was in the United States, then the Holder,
        any
        Permitted Transferee of the Holder and any Co-lender of the Holder, is
        an
“accredited investor” within the meaning of Rule 501(a) promulgated under the
        United States Securities Act of 1933, as amended (the “Securities
        Act”).

       

      (f) If
        the
        Holder,
        any
        Permitted Transferee of the Holder and any Co-lender of the Holder
        is not a
        resident or citizen of the United States and the offer of the Warrant Shares
        was
        not made to the Holder, any
        Permitted Transferee of the Holder and any Co-lender of the Holder
        while
        the Holder,
        any
        Permitted Transferee of the Holder and any Co-lender of the Holder
        was in
        the United States, then the Holder,
        any
        Permitted Transferee of the Holder and any Co-lender of the Holder
        acknowledge and agree that the offer and sale of the Warrant Shares is being
        made in reliance upon Regulation S promulgated under the Securities Act and
        that
        the offer and sale of the Warrant Shares constitutes an “offshore transaction”
within the meaning of Regulation S, as amended from time to time.

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      10. Restrictive
        Legend.

       

      The
        shares of the applicable class of Warrant Shares shall be stamped or imprinted
        with the following legend:

       

      THE
        SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
        AND
        HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED
        (THE
“ACT”). SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
        REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH
        ACT UNLESS
        THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO IT STATING
        THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
        DELIVERY REQUIRED OF THE SAID ACT AND IS IN ACCORDANCE WITH THE BY LAWS AND
        THE
        CERTIFICATE OF INCORPORATION OF THE COMPANY AS MAY BE AMENDED FROM TIME TO
        TIME.

       

      11. Restrictions
        Upon Transfer and Removal of Legend.

       

      (a) The
        Company need not register a transfer of this Warrant or the Warrant Shares
        bearing the restrictive legend set forth in Section 10 hereof, unless the
        conditions specified in such legend are satisfied and the transferees provide
        the Company with written representations required pursuant to the Act for
        such
        transfer and such transferees agree to be bound by the terms and conditions
        of
        this Warrant. The Company may also instruct its transfer agent not to register
        the transfer of the shares of Warrant Shares unless the conditions set forth
        in
        the previous sentence are satisfied. In no event shall the Holder, its Permitted
        Transferees or any of its Co-lenders transfer this Warrant to a competitor
        of
        the Company that operates in the same field of business as the Company. Any
        transfer of the Warrant Shares is subject to the Company's Certificate of
        Incorporation.

       

      (b) Notwithstanding
        the provisions of paragraph (a) above and subject to the Certificate of
        Incorporation of the Company then in effect with respect to the Warrant Shares,
        no opinion of counsel or "no-action" letter or approval of the Company or
        its
        shareholders or requirement or approval from any other third party shall
        be
        necessary for a transfer of this Warrant, or any part thereof, or of the
        Warrant
        Shares, without consideration to: (i) any Permitted Transferee of the Holder,
        or
        (ii) any other Co-lender, provided
        that any
        such Permitted Transferee or Co-lender shall have executed an irrevocable
        proxy
        to the Holder, in the same form attached to that certain Loan Agreement between
        the Company, the Holder and other, dated June 4, 2002

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

      (c)
        All
        transfers of this Warrant shall be accompanied by an executed warrant transfer
        deed in the form of transfer, under which the transferee undertakes to be
        bound
        by all obligations of the Holder under this Warrant. The form of the deed
        of
        transfer and the Proxy attached hereto as Exhibit
        B.

       

      12. Rights
        of Shareholders.
        No
        holder of this Warrant shall be entitled, as a Warrant holder, to vote or
        receive dividends or be deemed the holder of the shares of the applicable
        class
        of Warrant Shares or any other securities of the Company which may at any
        time
        be issuable on the exercise of this Warrant for any purpose, nor shall anything
        contained herein be construed to confer upon the holder of this Warrant,
        as
        such, any of the rights of a shareholder of the Company or any right to vote
        for
        the election of directors or upon any matter submitted to shareholders at
        any
        meeting thereof, or to give or withhold consent to any corporate action (whether
        upon any recapitalization, issuance of share, reclassification of share,
        change
        of par value, consolidation, merger, conveyance, or other-wise) or to receive
        notice of meetings, or to receive dividends or subscription rights or otherwise
        until the Warrant shall have been exercised and the shares of the applicable
        class of Warrant Shares purchasable upon the exercise hereof shall have become
        deliverable, as provided herein. Notwithstanding the foregoing, upon the
        exercise of this Warrant, in the event that the rights of anti-dilution or
        price-protection attached to the Warrant Shares shall be inferior to the
        rights
        of anti-dilution or price protection currently granted to the holders of
        the
        Series B Preferred Shares as set forth in the Certificate of Incorporation
        of
        the Company currently in effect on the date hereof, then the Holder shall
        be
        entitled to receive the same anti-dilution or price protection rights on
        the
        Warrant Shares as currently granted to the holders of the Series B Preferred
        Shares on the date hereof.

       

      13. Expiration
        of Warrant.
        This
        Warrant shall expire and shall no longer be exercisable upon the earlier
        to
        occur of:

       

      
        	(a)  	1:00 p.m., Israel local time, on June 3rd, 2010,
                or;

      

      
        	 	 

      

      
        	(b)  	
                a
                  Realization Event, provided however, that this provision shall
                  not affect
                  the right of the Holder to exercise this Warrant pursuant to Sections
                  3(b)
                  and 3(c) hereof.

              

      

       

      
        	(c)  	
                the
                  cancellation of the Warrant pursuant to the terms of Section 18
                  hereof.
                  

              

      

       

      The
        Company shall provide the Holder with written notice of the expiration of
        the
        Warrant at least fifteen (15) days prior to the anticipated consummation
        of a
        Realization Event (the “Expiration
        Notice”).
        If
        such Expiration Notice is not provided to the Holder prior to the consummation
        of a Realization Event, then the Warrant shall not expire until fifteen (15)
        days after written notice of the expiration of the Warrant due to a Realization
        Event is provided to the Holder.

       

      14. Notices.
        All
        notices and other communications required or permitted hereunder shall be
        in
        writing, shall in
        writing and shall be telecopied (faxed) or mailed by registered or certified
        mail, postage prepaid, or by electronic mail, or otherwise delivered by hand
        or
        by messenger, if to the Company then to the Company's address set forth above
        to
        the attention of the Chief Executive Officer and the Chief Financial Officer
        with a copy to Dr. Ayal Shenhav, Adv., Ayal Shenhav & Co., 91 Medinat
        Hayehudim Street, P.O.Box 4121, Herzlia 46140, Israel, and if to the Holder
        then
        to the addresses set forth in Schedule
        1
        of the
        Loan Agreement with
        a
        copy to Joseph
        Mayer, Adv., Yossi Avraham and Co., at 3 Daniel Frisch St. Tel Aviv, 64731,
        Israel, fax number 03-6963801, or such other address with respect to a party
        as
        such party shall notify each other party in writing as above provided. Any
        notice sent in accordance with this Section 14 shall be effective (i) if
        mailed,
        seven (7) business days after mailing, (ii) if sent by messenger, upon delivery,
        and (iii) if sent via telecopier (fax) or electronic mail, upon transmission
        and
        electronic confirmation of receipt or (if transmitted and received on a
        non-business day) on the first business day following transmission and
        electronic confirmation of receipt. 

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      15. Registration
        Rights.
        Upon
        the
        exercise of the Warrant,
        the
        Holder, including any Permitted Transferee and/or Co-lender thereof, will
        be
        entitled to all registration rights with respect to the Warrant Shares to
        be
        issued, as have been granted to a “Holder” under the Second Amended Investors’
        Rights Agreement, dated as of July 19, 2001, and as may further be amended
        from
        time to time (the “Registration
        Rights Agreement”),
        and
        the Holder, including
        any Permitted Transferee and/or Co-lender thereof, shall become a party to
        the
Registration
        Rights Agreement
        by
        signing a joinder agreement. 

       

      The
        Registration Rights Agreement shall be incorporated herein by reference and
        shall be deemed an integral part of this Warrant. Furthermore, upon any exercise
        of the Warrant by the Holder, the Holder, including any Permitted Transferee
        and/or Co-lender, shall be deemed to be a “Holder” or “Initiating Holders”, as
        applicable (as defined in the Registration Rights Agreement) and the Warrant
        Shares shall be deemed “Preferred Registrable Securities” (as defined in the
        Registration Rights Agreement) and the Holder, including any Permitted
        Transferee and/or Co-lender thereof, shall become entitled to all the rights
        and
        privileges set forth in the Registration Rights Agreement as if the Holder
        was
        an original signatory thereto. Furthermore,
        for the purposes of the Registration Rights Agreement, upon
        the
        exercise of the Warrant,
        the
        holder shall be deemed as a “Holder”, and so long as it complies with “Major
        Holder” definition or “Major Investor” definition therein, shall be deemed as
        such as the case may be.

       

      Upon
        the
        exercise of the Warrant,
        the
        holder shall be deemed as a “Holder”, as defined in the Second
        Amended and Restated Right of First Refusal and Co-Sale Agreement
        dated
        July 19, 2001 (“RFR
        Agreement”).
        Furthermore, for the purposes of the RFR Agreement it shall be deemed as
“Major
        Holder” for as long as it complies with such definitions contemplated in the RFR
        Agreement.

       

      The
        rights
        and obligations of the Company and the Holder set forth in this Section 15
        shall
        survive the exercise, conversion and expiration of this Warrant. 

       

      16. Governing
        Law.
        Since
        the Holder is based in Israel, this Warrant and all actions arising out of
        or in
        connection with this Agreement shall be exclusively governed by and construed
        in
        accordance with the laws of the State of Israel. However, corporate law matters
        will be governed by and construed in accordance with the laws of the State
        of
        Delaware. 

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      17. Power
        of Warrant.
        This
        Warrant and the Exhibits hereto constitute the full and entire understanding
        and
        agreement between the Company and the Holder and is independent of, and
        supersedes, any other agreement or instrument with regard to the subject
        matters
        hereof and thereof. 

       

       

      Issued
        this [__]th day of May, 2002.

       

      WINTEGRA
        INC.

       

      By:
        /s/ Jacob Ben-Zvi, President and CEO

       

      

       

      Agreed
        and accepted:

      PLENUS
        TECHNOLOGIES LTD.

       

      By:
        /s/ Ruth Simha /s/ Shlomo Karako

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

      
EXHIBIT A

       

      NOTICE
        OF EXERCISE

       

       

      
        	
                TO:

              	 	Wintegra Inc.	 
	 	 	[____________]	 
	 	 	Attn: ____________, VP and CFO	 

      

       

      1. The
        undersigned hereby elects to purchase [FILL
        IN NUMBER OF SHARES]
        ____________ shares of Series B Preferred Shares of Wintegra Inc. pursuant
        to
        the terms of the attached Warrant and tenders herewith payment in full for
        the
        purchase price of the shares being purchased, together with all applicable
        transfer taxes, if any (Initial here if the undersigned elects this alternative
        _______).[Such purchase is contingent upon _______________ in accordance
        with
        Section 3(c) of this Warrant.]

       

      2. In
        lieu
        of exercising the attached Warrant for cash or a check, the undersigned hereby
        elects to effect the net exercise provision of Section 3(b) of this Warrant
        and
        receive [FILL
        IN NUMBEROF SHARES]
        _________ shares of Series B Preferred Shares of Wintegra Inc. pursuant to
        the
        terms of this Warrant according to the following calculation (Initial here
        if
        the undersigned elects this alternative ________): 

       

      X
        =
Y
        (A-B)  (
        ) =
(____)
        [(_____) - (_____)]

                   A    
        (_____)

       

      Where
        X =
        the number of shares of Warrant Shares to be issued to Holder.

       

      Y
        = the
        number of shares of Warrant Shares purchasable under the amount of the Warrant
        being exchanged (as adjusted to the date of such calculation).

       

      A
        = the
        Fair Market Value of one share of the Company’s Warrant Shares.

       

      B
        =
        Purchase Price (as adjusted to the date of such calculation).

       

      3. Please
        issue a certificate or certificates representing said Series B Preferred
        Shares
        in the name of the undersigned or in such other name as is specified below
        and
        as a trustee on behalf of the beneficiaries of the undersigned:

       

      _________________________________

      (Name)

       

      _________________________________

       

      _________________________________

      (Address)

       

      

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      4. The
        undersigned hereby represents and warrants that the aforesaid shares of Series
        B
        Preferred Shares are being acquired for the account of the undersigned for
        investment and not with a view to, or for resale, in connection with the
        distribution thereof, and that the undersigned has no present intention of
        distributing or reselling such shares and all representations and warranties
        of
        the undersigned set forth in Section 9 of the attached Warrant are true and
        correct as of the date hereof.

       

      5. Please
        record in the Company’s internal share register, the below list of entities
        representing the owners, direct and beneficial, of the said Series B Preferred
        Shares, as follows:

       

      _________________________________

      (Name)

       

      _________________________________

      (Amount)

       

      _________________________________

      (Address)

       

       

      6. [For
        a
        non-Israeli entity] Attached are the documents and details required in order
        to
        record a new issuance of shares in the offices of Companies Registrar.

       

       

      _____________________________

      (Signature)

       

      Title:_________________________

       

       

      ____________________________

      (Date)

       

      

       

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

      EXHIBIT B

       

      FORM
        OF TRANSFER

       

      (To
        be
        signed only upon transfer of Warrant)

       

      FOR
        VALUE
        RECEIVED, the undersigned (the "Transferor")
        hereby
        sells, assigns and transfers unto
        _______________________________________________(the "Transferee")
        the
        right represented by the attached Warrant No. 1 to purchase ____________
        shares
        of Series B Preferred Shares of Wintegra Inc. (the “Warrant”)
        to
        which the attached Warrant relates, and appoints ______________ Attorney
        to
        transfer such right on the books of Wintegra Inc., with full power of
        substitution in the premises. The Transferor further represents that the
        transfer is made in accordance with the terms of the Warrant, including,
        without
        limitation, with respect to the Transferee being a Permitted Transferee or
        a
        Co-lender, and that said transferee has executed the Proxy.

       

      Dated:
        ____________________

       

      
        	 	 	By:
                _________________________________
	 	 	 
	 	 	Name:
                _______________________________

      

           

       

      
        	 	
                (Signature
                  must conform in all respects to name of Holder as specified on
                  the face of
                  the Warrant)

              	 
	 	 	 
	 	
                Address:              [                
                     
 ]

              	 
	 	 	 
	 	
                
                                        
                           [                
                       
 ]

                

              	 

      

       

       

      Signed
        in
        the presence of:

       

      By: _____________________________    

       

      Name: ___________________________

       

       

      And
        we,
        the Transferee, agree to the transfer of said rights to which the Warrant
        relates, and agree to be bound by the terms and conditions of the Warrant.
        The
        undersigned further represent that the transfer is made in accordance with
        the
        terms of the Warrant. 

       

      
         

        
          	 	 	 
	 	
                  Address: [______________________________]

                	 
	 	 	 
	 	
                  [______________________________]

                	 
	 	
                  [fax:___________________________]

                	 
	 	
                  [e-mail:_________________________]

                	 

        

         

        
          
            
            

          

          
            -15-

            
              

            

          

          
            
            

          

        

      

    

     

    Exhibit
      B1

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      FLOATING
        CHARGE AGREEMENT

      

      THIS
        FLOATING CHARGE AGREEMENT (this “Agreement”)
        made
        as of the 4th day of June 2002, by and between Wintegra Ltd., a company duly
        incorporated under the laws of the State of Israel, having its principal
        place
        of business at Taya Center, 6 Hamasger St., 43653 Ra’anana, Israel (the
“Pledgor”),
        Plenus Technologies Ltd. of Delta House, 16 Hagalim Avenue, Herzylia 46725,
        Israel (“Plenus”)
        and
        Citibank, N.A., Tel Aviv Branch of Platinum Building, 21 Ha’arba’ah Street, Tel
        Aviv 64739, Israel (“Citibank”,
        and
        together with Plenus, the “Lenders”).

      

      
        	
                WHEREAS

              	 	
                the
                  Pledgor has agreed to enter into this Agreement in order to secure
                  certain
                  obligations of the Pledgor and of Wintegra Inc., a Delaware corporation
                  (“Wintegra
                  Inc.”),
                  to the Lenders and to the entities listed as co-lenders in Schedule
                  1
                  hereto (the “Co-lenders”),
                  pursuant to the Loan Agreement (as defined
                  below).

              

      

      

      NOW,
        THEREFORE, IT IS AGREED AS FOLLOWS:

      

      1. The
        Preamble to this Agreement constitutes an integral part hereof. All capitalized
        terms used herein and not defined herein shall have the meaning assigned
        to such
        terms in the Loan Agreement by and among Wintegra Inc., the Pledgor and the
        Lenders, dated as of June 4th, 2002 (the “Loan Agreement”).

      

      2.
        To
        secure
        the performance of the Pledgor’s and
        Wintegra Inc.’s obligations
        pursuant to this Agreement and the Loan Agreement, the Pledgor hereby pledges
        and grants to the Lenders and to the Co-Lenders, a first priority floating
        charge on all of its right, title and interest (the “Floating Charge”)
        in all
        its present and future tangible and intangible assets and rights of any kind
        whether contingent or absolute as well as any amounts payable pursuant to
        the
        Pledgor’s insurance policy(ies) (except for any amounts payable pursuant to the
        insurance of certain assets for the benefit of Bank Leumi of Israel according
        with a specific pledge in favour of Bank Leumi as stipulated herein), all
        as
        more fully described in Exhibit
        A
        attached
        hereto (the "Collateral"),
        for
        as long as the Floating Charge is in effect. 

      

      3. The
        Pledgor will not without prior written consent of Plenus: (a) materially
        change
        the general nature of its business; (b) make any loan or other extension
        of
        credit to its distributors, customers, subsidiaries, or employees other than
        loans and advances granted in the ordinary course of business and for an
        aggregate amount of not more than $100,000, provided, however, that this
        subsection (b) shall not apply to transactions between Pledgor and any of
        its
        current or future subsidiaries, conducted in the ordinary course of business,
        including, without limitation, transfer of funds for the coverage of salaries,
        leases and all other reasonable administrative expenses, each of such
        transactions shall not exceed the amount of US$ 300,000; (c) receive any
        loan or
        advance from a third party or incur any debt other than debt incurred in
        the
        ordinary course of business consistent with past business practices of the
        Pledgor and up to an aggregate amount of US$100,000; (d)
        issue
        any guarantee or otherwise incur any contingent liability other than in the
        ordinary course of business and up to an aggregate amount of US$100,000;
        (e)
        sell, pledge, transfer, assign or grant a security interest in any of the
        Collateral or any of the Pledgor's other assets other than with respect to
        the
        creation of a fixed charge on assets of the Pledgor which are acquired by
        the
        Pledgor following the Effective Date, and further provided however, that
        the
        value of such pledged assets does not exceed $100,000 in the aggregate and
        provided that such fixed charge shall only be recorded on behalf of the actual
        seller of such assets or a commercial bank specifically financing such an
        acquisition of assets; (f) repay any existing or future loans or debts in
        the
        aggregate amount of more than US$100,000 or financial obligations,
        including, without limitation, with respect to shareholders’ loans, excluding
        operating expenses of the Pledgor which are incurred in the Pledgor’s ordinary
        course of business, provided,
        however,
        that
        this subsection (f) shall not apply to (i) a loan in the amount of US$ 200,000
        and any accrued interest thereon payable with respect to such loan provided
        to
        the Pledgor by Bank Leumi of Israel for the financing of purchasing certain
        assets as collateral for bill of sale of those assets; and (ii) any amounts
        payable to suppliers of Pledgor, which suppliers provide Pledgor CAD software,
        IP licensing, chips manufacturing services and any other services or parts
        required by Pledgor in the ordinary course of business as currently conducted;
        (g)
        transfer ownership of its assets to a third party other than in the ordinary
        course of business, (h) create
        or
        permit to exist any encumbrance over all or any of its present or future
        revenues or assets; and (i) distribute any dividends.
        The
        above covenants shall also apply to any existing subsidiary of the Pledgor
        or
        any subsidiary to be created by the Pledgor after the date hereof. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      This
        Section 3 shall not apply to any transaction conducted between Pledgor and
        Wintegra Inc., including, without limitation, all of the above mentioned
        transactions.

      

      4. The
        Pledgor shall use its best efforts to preserve the Collateral, without
        interfering with the use of the Collateral in the ordinary course of business,
        and shall either procure the economically reasonable necessary insurance
        to do
        so or shall maintain existing insurance which is reasonable for a company
        of the
        size, at the stage of development and in the industry which Pledgor operates.
        The Pledgor shall permit the Lenders to inspect the Collateral and its records
        at all reasonable times and upon reasonable notice, subject to customary
        non-disclosure restrictions as reasonably determined by the Pledgor or Wintegra
        Inc. 

      

      5. The
        Pledgor hereby makes those representations and warranties appearing in Section
        4
        of the Loan Agreement to the Lenders and such representations and warranties
        are
        incorporated by reference herein.

      

      6. The
        Lenders shall be entitled to enforce the Floating Charge against the Pledgor
        and
        the Collateral shall
        become due and payable or subject to immediate foreclosure at any time without
        any further demand, immediately
        upon the occurrence of a Default Event unless otherwise provided for
        below.

      

      For
        the
        purposes of this Section 6, a “Default
        Event”
shall
        be deemed to exist upon the occurrence of any of the following: 

      

      (i) Wintegra
        Inc. fails to pay any sum due from it pursuant to the Loan Agreement at the
        time, in the currency and in the manner specified in the Loan Agreement,
        or
        otherwise is in breach of this Agreement or the Loan Agreement, and the same
        is
        not remedied within fourteen (14) days after Plenus has notified Wintegra
        Inc.
        in writing of said nonpayment or breach; or

      

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      (ii) the
        Pledgor is unable to pay its debts as they fall due, fourteen (14) days after
        the Company or Wintegra Israel commences negotiations with one or more of
        its
        creditors with a view to the general readjustment or rescheduling or entering
        into arrangement regarding its indebtedness, or upon the consummation of
        a
        general assignment for the benefit of or a composition with its creditors;
        or

      

      (iii) any
        indebtedness for borrowed money of the Pledgor is not paid when due or any
        indebtedness for borrowed money of the Pledgor becomes capable of being declared
        to be or is declared to be due and payable prior to its specified maturity
        by
        reason of the occurrence of a default or a mandatory prepayment event (howsoever
        described) or any commitment to lend under any facility available to the
        Pledgor
        is cancelled by reason of the occurrence of any such default (or mandatory
        prepayment event (howsoever described)); or

      

      (iv) the
        filing against the Pledgor of any petition in liquidation or any petition
        for
        relief under the provisions of applicable law for the relief of debtors;
        or the
        appointment of a special manager, temporary liquidator, temporary receiver
        or
        trustee to take possession of the material property or assets of the Pledgor;
        or
        an attachment is placed on any of the material assets of the Pledgor; or
        execution
        by the Pledgor of a general assignment for the benefit of its
        creditors;
        or the
        Pledgor resolves to voluntarily liquidate; or the appointment of a permanent
        liquidator or permanent receiver to take possession of the material property
        or
        assets of the Pledgor; or

      

      (v) notwithstanding
        Clause (i), any representation or statement made by the Pledgor in this
        Agreement or in the Loan Agreement or in any notice or other document,
        certificate or statement delivered by it pursuant hereto or in connection
        herewith is or proves to have been incorrect or misleading when made or deemed
        to have been made; or

      

      (vi) the
        Pledgor
fails
        duly to perform or comply with any covenant or other obligation expressed
        to be
        assumed by it in this Agreement, the Loan Agreement or any of the exhibits,
        schedules or annexes hereto and thereto (if capable of remedy) and such failure
        is not remedied within fourteen (14) days after Plenus has given a written
        notice thereof to the
        Pledgor;
        or

      

      (vii) any
        event
        or series of events occur(s), which, in the reasonable opinion of Plenus,
        may
        have a material adverse effect on the business, condition (financial or
        otherwise), or results of operations of the Pledgor or on the ability of
        the
        Pledgor to comply with any of its obligations hereunder or under the Loan
        Agreement.

      

      (viii) any
        occurrence of a Default Event under the Pledge Agreement by and among Wintegra
        Inc., Plenus and others dated June 4th, 2002.

      

      The
        Pledgor
        shall
        promptly inform the Lenders
        of the
        occurrence of any Default Event or potential Default Event and, upon receipt
        of
        a written request to that effect from Plenus, confirm to the Lenders
        that,
        except as previously notified to the Lenders
        or as
        notified in such confirmation, no Default Event or potential Default Event
        has
        occurred.

      

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      7. The
        Pledgor shall cooperate with the Lenders and execute all documents as may
        be
        reasonably necessary to register this Floating Charge with the Israeli Registrar
        of Companies and/or Registrar of Pledges and shall bear all stamp taxes with
        respect to such registrations. The Pledgor shall pay upon demand, all reasonable
        expenses, including reasonable attorney's fees, of enforcing the Lenders'
        rights
        and remedies hereunder in the event of a breach by the Pledgor.

      

      8. The
        amount being secured under the Floating Charge created by this Agreement
        is
        unlimited in amount and is created in accordance with the Loan Agreement.
        The
        payments to be made to the Lenders in the event of the foreclosure of the
        Floating Charge will be made in the following order: costs
        (pro rata among the Lenders), expenses
        and taxes, Interest and then Principal Amount. The Floating Charge and this
        Agreement shall be cancelled, and the Lenders shall within twenty-one (21)
        business days as of the repayment provide the Pledgor with all documents
        necessary to release the Floating Charge, upon repayment of all amounts owed
        to
        the Lenders and/or the termination of the Loan Agreement pursuant to its
        terms.

      

      9. This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Israel. 

      

      10. The
        Pledgor shall promptly notify the Lenders in writing of any event, which
        materially adversely affects the value of the Collateral. 

      

      11. The
        Pledgor will immediately notify the Lenders of any material change in its
        name
        or identity or corporate structure or in the location of its chief offices
        or
        where its books and records are kept as well as any change to its incorporation
        documents which might adversely affect the Lenders’ rights
        hereunder.

      

      12.
        None
        of
        the rights, privileges, or obligations set forth in, arising under, or created
        by this Agreement may be assigned or transferred by any party hereto without
        the
        prior consent in writing of the other parties;
        notwithstanding the foregoing and without derogating from the requirement
        and
        limitations set forth immediately below, each of the Lenders shall have the
        right to assign or transfer any of its rights, privileges and obligations
        under
        this Agreement to a Permitted Transferee, as such term is defined in the
        Loan
        Agreement, provided that such transfer is not to a competitor of the Pledgor,
        and further provided that the assignee undertakes, in writing, all of such
        Lender’s obligations hereunder. The Lenders shall notify the Pledgor in writing,
        of any such assignment no later than seven (7) days following its
        execution.
        Notwithstanding
        any of the provisions set forth herein, the Pledgor
        understands
        and agrees that Plenus has syndicated the loan granted hereunder to the
        Co-Lenders and
        to
        the Beneficiaries listed in Schedule
        1
        (the
“Beneficiaries”)
        of the
        Loan Agreement, provided,
        however,
        that
        Plenus shall act as the lead manager of such syndication on behalf of such
        entities and that the terms of Section 7 to the Loan Agreement are fully
        complied with by Citibank, the Co-lenders and the Beneficiaries. Notwithstanding
        anything in this Agreement, the Co-Lender(s) and/or the Beneficiaries shall
        not
        be entitled to foreclosure the Floating Charge.

      

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      13.  Notwithstanding
        anything herein to the contrary, (i) Citibank agrees that Plenus at its sole
        discretion shall determine whether to realize any charges and/or pledges
        over
        the assets of the Pledgor created for the benefit of the Lenders, and (ii)
        Citibank agrees that Plenus at its sole discretion shall determine whether
        a
        Default Event has occurred, and Plenus is hereby appointed the attorney-in-fact
        on behalf of Citibank in connection with all of the foregoing and Citibank
        agrees not to take any action to the contrary. 

       

      14. Any
        notices to be provided by one party to the others shall be done in accordance
        with the notice provisions set forth in the Loan Agreement.

      

      

      IN
        WITNESS WHEREOF this Floating Charge Agreement has been executed by the parties
        hereto as of the date first above written.

      

      

      
        	
                WINTEGRA
                  LTD.

              	 	
                PLENUS
                  TECHNOLOGIES LTD.

                On
                  its own behalf and in trust for 

                _________________________

                 

              
	
                By:

              	/s/
                Jacob Ben-Zvi	 	 	
                By:

              	/s/
                Ruth Simha /s/ Shlomo Karako	 
	
                Title:

              	CEO	 	 	
                Title:

              	Ruth
                Simha / Shlomo Karako	 
	
                Date:

              	5/29/02	 	 	
                Date:

              	Managing
                Partner	 
	 	 	 
	 	 	 
	
                CITIBANK,
                  N.A., TEL AVIV BRANCH

              	 	 
	 	 	 
	
                By:

              	/s/
                Thomas A. Mulvihill	 	 	 
	
                Title:

              	CRM	 	 	 
	
                Date:

              	 	 	 	 
	 	 	 

      

      
 

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

      

      The
        Collateral consists of all of Pledgor’s right, title and interest in and to all
        assets of the Pledgor, including but not limited to the following:

      

      All
        goods
        and equipment now owned or hereafter acquired, including, without limitation,
        all machinery, fixtures, vehicles (including motor vehicles and trailers),
        and
        any interest in any of the foregoing, and all attachments, accessories,
        accessions, replacements, substitutions, additions, and improvements to any
        of
        the foregoing, wherever located;

      

      All
        inventory, now owned or hereafter acquired, including, without limitation,
        all
        merchandise, raw materials, parts, supplies, packing and shipping materials,
        work in process and finished products including such inventory as is temporarily
        out of Pledgor's custody or possession or in transit and including any returns
        upon any accounts or other proceeds, including insurance proceeds, resulting
        from the sale or disposition of any of the foregoing and any documents of
        title
        representing any of the above;

      

      All
        contract rights and general intangibles now owned or hereafter acquired,
        including, without limitation, goodwill, trademarks, servicemarks, Internet
        domain names, trade dress, trade styles, trade names, patents, patent
        applications, leases, license agreements, franchise agreements, blueprints,
        drawings, purchase orders, customer lists, route lists, infringements, claims,
        computer programs, computer discs, computer tapes, literature, reports,
        catalogs, design rights, income tax refunds, payments of insurance; all claims
        for damages by way of any past, present and future infringement of any of
        the
        foregoing and rights to payment of any kind;

      

      All
        now
        existing and hereafter arising accounts, contract rights, royalties, license
        rights and all other forms of obligations owing to Pledgor arising out of
        the
        sale or lease of goods, the licensing of technology or the rendering of services
        by Pledgor, whether or not earned by performance, and any and all credit
        insurance, guaranties, and other security therefor, as well as all merchandise
        returned to or reclaimed by Pledgor;

      

      All
        documents, cash, deposit accounts, securities, securities entitlements,
        securities accounts, investment property, financial assets, letters of credit,
        certificates of deposit, instruments and chattel paper now owned or hereafter
        acquired and Pledgor's Books relating to the foregoing;

      

      All
        copyright rights, copyright applications, copyright registrations and like
        protections in each work of authorship and derivative work thereof, whether
        published or unpublished, now owned or hereafter acquired; all trade secret
        rights, including all rights to unpatented inventions, know-how, operating
        manuals, license rights and agreements and confidential information, now
        owned
        or hereafter acquired; all mask work or similar rights available for the
        protection of semiconductor chips, now owned or hereafter acquired; all claims
        for damages by way of any past, present and future infringement of any of
        the
        foregoing; and

      

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      All
        Pledgor's Books relating to the foregoing and any and all claims, rights
        and
        interests in any of the above and all substitutions for, additions and
        accessions to and proceeds thereof.

      

      The
        term
        "Pledgor's Books" as used herein shall mean all Pledgor's books and records
        including ledgers, records regarding Pledgor's assets or liabilities, the
        Collateral, business operations or financial condition and all computer programs
        or discs or any equipment containing the information.

      

      All
        insurance policies or the proceeds thereof in respect of the above described
        assets.

      

      

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

      
Exhibit
        B2

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
       

      PLEDGE
        AND SECURITY AGREEMENT

      
 

      dated
        as of June 4, 2002

       

       

      between

       

       

      Wintegra
        Inc.

       

       

      and

       

       

      Plenus
        Technologies Ltd.,

       

      as
        Collateral Agent

       

      

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      TABLE
        OF CONTENTS

       

      
        
          
            	 	 	 	
                    PAGE

                  
	 	 	 	 
	
                    SECTION
                      1.

                  	 	
                    DEFINITIONS

                  	
                    1

                  
	 	 	
                    General
                      Definitions

                  	
                    1

                  
	 	 	
                    Definitions;
                      Interpretation

                  	
                    10

                  
	
                    SECTION
                      2.

                  	 	
                    GRANT
                      OF SECURITY

                  	
                    10

                  
	 	 	
                    Grant
                      of Security

                  	
                    10

                  
	 	 	
                    Certain
                      Limited Exclusions

                  	
                    11

                  
	
                    SECTION
                      3.

                  	 	
                    SECURITY
                      FOR OBLIGATIONS

                  	
                    12

                  
	 	 	
                    Security
                      for Obligations

                  	
                    12

                  
	 	 	
                    Continuing
                      Liability under Collateral

                  	
                    12

                  
	
                    SECTION
                      4.

                  	 	
                    REPRESENTATIONS,
                      WARRANTIES, AGREEMENTS AND COVENANTS

                  	
                    13

                  
	 	 	
                    General
                      Representations and Warranties

                  	
                    13

                  
	 	 	
                    General
                      Agreements and Covenants

                  	
                    13

                  
	 	 	
                    Use
                      of Collateral

                  	
                    14

                  
	 	 	
                    Corporate
                      Name and Identity

                  	
                    14

                  
	 	 	
                    Value
                      of Collateral

                  	
                    15

                  
	 	 	
                    Intellectual
                      Property. Grantor hereby makes those representations and warranties
                      appearing in Section 4(viii) of the Credit Agreement to the
                      Lenders, and
                      such representations and warranties are incorporated by reference
                      herein.

                  	
                    15

                  
	
                    
                      4.7

                    

                  	 	
                    Intellectual
                      Property Covenants and Agreements. The Grantor hereby covenants
                      and agrees
                      as follows:

                  	
                    15

                  
	
                    SECTION
                      5.

                  	 	
                    COLLATERAL
                      AGENT APPOINTED ATTORNEY-IN-FACT

                  	
                    17

                  
	 	 	
                    Power
                      of Attorney

                  	
                    17

                  
	 	 	
                    No
                      Duty on the Part of Collateral Agent or Collateral Agents

                  	
                    18

                  

          

           

          
            
              
              

            

            
              ii

              
                

              

            

            
              
              

            

          

           

          
            	
                    SECTION
                      6.

                  	 	
                    REMEDIES

                  	
                    18

                  
	 	 	
                    Generally

                  	
                    18

                  
	 	 	
                    Application
                      of Proceeds

                  	
                    20

                  
	 	 	
                    Sales
                      on Credit

                  	
                    20

                  
	 	 	
                    Investment
                      Related Property

                  	
                    20

                  
	 	 	
                    Intellectual
                      Property

                  	
                    21

                  
	
                    SECTION
                      7.

                  	 	
                    COLLATERAL
                      AGENT

                  	
                    23

                  
	
                    SECTION
                      8.

                  	 	
                    TERM
                      OF SECURITY INTEREST; TRANSFER OF SECURED OBLIGATIONS

                  	
                    24

                  
	 	 	
                    STANDARD
                      OF CARE; COLLATERAL AGENT MAY PERFORM

                  	
                    24

                  
	
                    SECTION
                      10.

                  	 	
                    MISCELLANEOUS.

                  	
                    25

                  
	 	 	
                    Notices

                  	
                    25

                  
	 	 	
                    Amendments
                      and Waivers

                  	
                    25

                  
	 	 	
                    Successors
                      and Assigns

                  	
                    25

                  
	 	 	
                    Independence
                      of Covenants

                  	
                    25

                  
	 	 	
                    Survival
                      of Representations, Warranties and Agreements

                  	
                    26

                  
	 	 	
                    Severability

                  	
                    26

                  
	 	 	
                    Headings

                  	
                    26

                  
	 	 	
                    Applicable
                      Law

                  	
                    26

                  
	 	 	
                    Consent
                      To Jurisdiction

                  	
                    26

                  
	 	 	
                    WAIVER
                      OF JURY TRIAL

                  	
                    26

                  
	 	 	
                    Counterparts

                  	
                    27

                  
	 	 	
                    Effectiveness

                  	
                    27

                  
	 	 	
                    Entire
                      Agreement

                  	
                    27

                  
	 	 	 	 
	
                    [Annex
                      A - Control Agreement]

                  	 
	
                    [Annex
                      B - Pledge Supplement Agreement].

                  	 

          

        

      

      
 

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

      This
        PLEDGE
        AND SECURITY AGREEMENT,
        dated
        as of June 4th, 2002 (this "Agreement"),
        by and
        among Wintegra Inc., a Delaware corporation (the
        "Grantor"),
        and Plenus
        Technologies Ltd., as Collateral Agreement ("Plenus"
        or
        "Collateral
        Agent").
        

       

       

      RECITALS:

      
 

      WHEREAS,
        reference is made to that certain Loan Agreement, dated as of the date hereof
        (as it may be amended, restated, supplemented or otherwise modified from
        time to
        time, the "Credit
        Agreement"),
        by and
        among the Grantor, Wintegra Israel Ltd. ("Wintegra
        Israel"),
        Citibank N.A. ("Citibank",
        and
        together with Plenus the "Lenders")
        and the
        other entities listed and defined as Co-Lenders on Schedule 1 to the Credit
        Agreement (the
        "Co-lenders")
        and,

       

      WHEREAS,
        in
        consideration for providing credit as set forth in the Credit Agreement the
        Grantor has agreed to secure all obligations under the Credit
        Agreement.

       

      NOW,
        THEREFORE,
        in
        consideration of the premises and the agreements, provisions and covenants
        herein contained, the Grantor
        and the Collateral Agent agree as follows:

       

      
        	SECTION
                1.	
                DEFINITIONS

              

      

       

      1.1  General
        Definitions.
        In this
        Agreement, the following terms shall have the following meanings:

       

      "Account
        Debtor" shall
        mean each Person who is obligated on a Receivable or any Supporting Obligation
        related thereto.

       

      "Accounts"
        shall
        mean all "accounts" as defined in Article 9 of the UCC.

       

      "Agreement"
        shall
        have the meaning set forth in the preamble.

       

      "Authenticate"
        shall
        mean "authenticate" as defined in Article 9 of the UCC.

       

      "Bankruptcy
        Code"
        shall
        mean Title 11 of the United States Code entitled "Bankruptcy", as now and
        hereafter in effect, or any successor statute.

       

      "Chattel
        Paper" shall
        mean all "chattel paper" as defined in Article 9 of the UCC, including, without
        limitation, "electronic chattel paper" or "tangible chattel paper", as each
        term
        is defined in the UCC.

       

      "Closing
        Date" shall
        mean the date on which the Credit Agreement is made.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      "Collateral"
        shall
        have the meaning set forth in Section 2.1 hereof.

       

      "Collateral
        Agent" shall
        have the meaning set forth in the preamble.

       

      "Collateral
        Records" shall
        mean books, records, ledger cards, files, correspondence, customer lists,
        blueprints, technical specifications, manuals, computer software, computer
        printouts, tapes, disks and related data processing software and similar
        items
        that at any time evidence or contain information relating to any of the
        Collateral or are otherwise necessary or helpful in the collection thereof
        or
        realization thereupon.

       

      "Collateral
        Support" shall
        mean all property (real or personal)
        assigned, hypothecated or otherwise securing any Collateral and shall include
        any security agreement or other agreement granting a lien or security interest
        in such real or personal property. 

       

      "Commercial
        Tort Claims" shall
        mean all "commercial tort claims" as defined in the UCC, including, without
        limitation, all commercial tort claims listed and described with specification
        on Schedule III hereto (as such schedule may be amended or supplemented from
        time to time).

       

      "Commodities
        Accounts" (i)
        shall
        mean all "commodity accounts" as defined in Article 9 of the UCC and (ii)
        shall
        include, without limitation, all of the accounts listed on Schedule IV hereto
        under the heading "Commodities Accounts" (as such schedule may be amended
        or
        supplemented from time to time).

       

      "Copyright
        Licenses" shall
        mean any and all agreements providing for the granting of any right in or
        to
        Copyrights (whether such Grantor is licensee or licensor thereunder)
        including, without limitation, each agreement referred to in Schedule III(B)
        (as
        such schedule may be amended or supplemented from time to time).

       

      "Copyrights"
        shall
        mean all United States, state and foreign copyrights, all mask works fixed
        in
        semi-conductor chip products (as defined under 17 U.S.C. 901 of the U.S.
        Copyright Act),
        whether
        registered or unregistered, now or hereafter in force throughout the world,
        all
        registrations and applications therefore including, without limitation, the
        applications referred to in Schedule III(A) (as such schedule may be amended
        or
        supplemented from time to time),
        all
        rights corresponding thereto throughout the world, all extensions and renewals
        of any thereof, the right to sue for past, present and future infringements
        of
        any of the foregoing, and all proceeds of the foregoing, including, without
        limitation, licenses, royalties, income, payments, claims, damages, and proceeds
        of suit.

       

      "Credit
        Agreement" shall
        have the meaning set forth in the preamble.

       

      "Documents
        Evidencing Goods"
        shall
        mean all "documents" as defined in the UCC evidencing, representing or issued
        in
        connection with Goods.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      "Equipment"
        shall
        mean: (i) all "equipment" as defined in the UCC, (ii) all machinery,
        manufacturing equipment, data processing equipment, computers, office equipment,
        furnishings, furniture, appliances, and tools (in each case, regardless of
        whether characterized as equipment under the UCC),
        (iii)
        all Fixtures and (iv) all accessions or additions thereto, all parts thereof,
        whether or not at any time of determination incorporated or installed therein
        or
        attached thereto, and all replacements therefore, wherever located, now or
        hereafter existing, except for such equipment which was secured in favor
        of Bank
        Leumi USA under a specific pledge in connection with a loan in the amount
        of US$
        50,000 granted to Grantor for the purchase of such property.

       

      "Event
        of Default" shall
        mean the occurrence of any one or more of the following conditions:

       

      (i) The
        Grantor fails to pay any sum due from it pursuant to the Credit Agreement
        at the
        time, in the currency and in the manner specified in the Credit Agreement,
        or
        otherwise is in breach of this Agreement or the Credit Agreement, and the
        same
        is not remedied within fourteen (14) days after Plenus has notified the Grantor
        in writing of said nonpayment or breach; or

       

      (ii) the
        Grantor is unable to pay its debts as they fall due, fourteen (14) days after
        the Wintegra Israel or the Grantor commences negotiations with one or more
        of
        its creditors with a view to the general readjustment or rescheduling or
        entering into arrangement regarding its indebtedness, or upon the consummation
        of a general assignment for the benefit of or a composition with its creditors;
        or

       

      (iii) any
        indebtedness for borrowed money of the Grantor is not paid when due or any
        indebtedness for borrowed money of the Grantor becomes capable of being declared
        to be or is declared to be due and payable prior to its specified maturity
        by
        reason of the occurrence of a default or a mandatory prepayment event (howsoever
        described) or any commitment to lend under any facility available to the
        Grantor
        is cancelled by reason of the occurrence of any such default (or mandatory
        prepayment event (howsoever described)); or

       

      (iv) the
        filing against the Grantor of any petition in liquidation or any petition
        for
        relief under the provisions of applicable law including, without limitation,
        the
        Bankruptcy Code for the relief of debtors; or the appointment of a special
        manager, interim liquidator, interim receiver, trustee or other custodian
        to
        take possession of the material property or assets of the Grantor ; or an
        attachment is placed on any of the material assets of the Grantor; or execution
        by the Grantor of a general assignment for the benefit of its creditors;
        or the
        Grantor resolves to voluntarily liquidate; or the appointment of a liquidator,
        receiver, trustee or custodian to take possession of the material property
        or
        assets of the Grantor; or

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      (v) notwithstanding
        Clause (i), any representation or statement made by the Grantor in this
        Agreement or in the Credit Agreement or in any notice or other document,
        certificate or statement delivered by it pursuant hereto or in connection
        herewith is or proves to have been incorrect or misleading when made or deemed
        to have been made; or

       

      (vi) the
        Grantor fails duly to perform or comply with any covenant or other obligation
        expressed to be assumed by it in this Agreement, the Credit Agreement or
        any of
        the exhibits, schedules or annexes hereto and thereto (if capable of remedy)
        and
        such failure is not remedied within fourteen (14) days after Plenus has given
        a
        written notice thereof to the Pledge; or

       

      (vii) any
        event
        or series of events occur(s), which, in the reasonable opinion of Plenus,
        may
        have a material adverse effect on the business, condition (financial or
        otherwise), or results of operations of the Grantor or on the ability of
        the
        Grantor to comply with any of its obligations hereunder or under the Credit
        Agreement.

       

      (viii) any
        occurrence of a Default Event under the Floating Charge Agreement by and
        among
        Wintegra Israel, Plenus and others dated the date hereof.

       

      (ix) the
        Grantor maintains or has maintained funds in excess of an aggregate amount
        of
        US$ 1,500,000 in any account of other than the Grantor Accounts.

       

      "Fixtures"
        shall
        mean all "fixtures" as defined in Article 9 of the UCC.

       

      "General
        Intangibles" (i)
        shall
        mean all "general intangibles" as defined in Article 9 of the UCC and (ii)
        shall
        include, without limitation, all interest rate or currency protection or
        hedging
        arrangements, all tax refunds and all licenses, permits, concessions and
        authorizations, (in each case, regardless of whether characterized as general
        intangibles under the UCC).

       

      "Goods"
        (i)
        shall
        mean all "goods" as defined in Article 9 of the UCC and (ii) shall include,
        without limitation, all Inventory, Equipment, Documents Evidencing Goods
        and
        Software Embedded In Goods.

       

      "Grantor
        Accounts"
        shall
        mean accounts numbers: 2200474202, 2200474218 and 0200474228, maintained
        by Bank
        Leumi USA, 562 5th Avenue, New York, NY 10036, in favor of the
        Grantor.

       

      "Instruments"
        shall
        mean all "instruments" as defined in Article 9 of the UCC.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      "Insurance"
        shall
        mean all insurance policies covering any or all of the Collateral (regardless
        of
        whether is the loss payee thereof).

       

      "Intellectual
        Property" shall
        mean, collectively, the Copyrights, the Copyright Licenses, the Patents,
        the
        Patent Licenses, the Trademarks, the Trademark Licenses, the Trade Secrets,
        and
        the Trade Secret Licenses.

       

      "Inventory"
        shall
        mean: (i) all "inventory" as defined in the UCC and (ii) all goods held for
        sale
        or lease or to be furnished under contracts of service or so leased or
        furnished, all merchandise, raw materials, work in process, finished goods,
        and
        materials used or consumed in the manufacture, packing, shipping, advertising,
        selling, leasing, furnishing or production of such inventory or otherwise
        used
        or consumed in the Grantor's business; all goods in which the Grantor has
        an
        interest in mass or a joint or other interest or right of any kind; and all
        goods which are returned to or repossessed by the Grantor, and all accessions
        thereto and products thereof (in each case, regardless of whether characterized
        as inventory under the UCC).

       

      "Investment
        Accounts"
        shall
        mean the Securities Accounts, Commodities Accounts and deposit accounts (if
        any).

       

      "Investment
        Related Property" shall
        mean: (a) all "investment property" (as such term is defined in Article 9
        of the
        UCC)
        and (b)
        all of the following (regardless of whether classified as investment property
        under the UCC): all (i) Pledged Equity Interests, (ii) Pledged Debt, (iii)
        the
        Investment Accounts and (iv) Certificates of Deposit.

       

      "Letter
        of Credit Right" shall
        mean "letter-of-credit right" as defined in the UCC.

       

      "Lien"
        shall
        mean (i) any lien, mortgage, pledge, assignment, security interest, charge
        or
        encumbrance of any kind (including any agreement to give any of the foregoing,
        any conditional sale or other title retention agreement, and any lease in
        the
        nature thereof)
        and any
        option, trust or other preferential arrangement having the practical effect
        of
        any of the foregoing and (ii) in the case of Pledged Equity Interests, any
        purchase option, call or similar right of a third party with respect to such
        Pledged Equity Interests, except for the warrants of the Grantor issued in
        connection with the Credit Agreement.

       

      "Material
        Contract"
        shall
        mean any contract or other arrangement to which the Grantor is a party for
        which
        breach, nonperformance, cancellation or failure to renew would be determined
        by
        the Grantor's board of directors to have a material adverse effect on the
        business condition (financial or otherwise) or results of operations of the
        Grantor or Wintegra Israel or on the ability of the Grantor to comply with
        any
        of its obligations hereunder or under the Credit Agreement.

       

      "Money"
        shall
        mean "money" as defined in the UCC.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      "Non-Assignable
        Contract"
        shall
        mean any agreement, contract or license to which the Grantor is a party that
        by
        its terms purport to restrict or prevent the assignment or granting of a
        security interest therein (either by its terms or by any federal or state
        statutory prohibition or otherwise irrespective of whether such prohibition
        or
        restriction is enforceable under Section 9-406 through 409 of the
        UCC).

       

      "Non-payment
        Contract"
        means
        any contract or agreement to which the Grantor is a party other than any
        contract where the account debtor's principal obligation is a monetary
        obligation; provided,
        however
        that
        Non-payment Contracts shall not include any Receivables Contracts.

       

      "Patent
        Licenses" shall
        mean all agreements providing for the granting of any right in or to Patents
        (whether such Grantor is licensee or licensor thereunder) including, without
        limitation, each agreement referred to in Schedule III(D) hereto (as such
        schedule may be amended or supplemented from time to time).

       

      "Patents"
        shall
        mean all United States, state and foreign patents and applications for letters
        patent throughout the world, including, but not limited to each patent and
        patent application referred to in Schedule III(C) hereto (as such schedule
        may
        be amended or supplemented from time to time),
        all
        reissues, divisions, continuations, continuations-in-part, extensions, renewals,
        and reexaminations of any of the foregoing, all rights corresponding thereto
        throughout the world, and all proceeds of the foregoing including, without
        limitation, licenses, royalties, income, payments, claims, damages, and proceeds
        of suit and the right to sue for past, present and future infringements of
        any
        of the foregoing.

       

      "Payment
        Intangible" shall
        have the meaning specified in the UCC.

       

      "Permitted
        Transferees"
        shall
        have the meaning set forth in the Credit Agreement.

       

      "Person"
        shall
        mean and include natural persons, corporations, limited partnerships, general
        partnerships, limited liability companies, limited liability partnerships,
        joint
        stock companies, joint ventures, associations, companies, trusts, banks,
        trust
        companies, land trusts, business trusts or other organizations, whether or
        not
        legal entities, and governmental authorities.

       

      "Pledged
        Alternative Equity Interests"
        shall
        mean all participation or other interests in any equity or profits of any
        business entity and the certificates, if any, representing such interests
        all
        dividends, distributions, cash, warrants, rights, options, instruments,
        securities and other property or proceeds from time to time received, receivable
        or otherwise distributed in respect of or in exchange for any or all of such
        interests and any other warrant, right or option to acquire any of the
        foregoing; provided,
        however,
        that
        Pledged Alternative Equity Interests shall not include any Pledged Stock,
        Pledged Partnership Interests, Pledged LLC Interests and Pledged Trust
        Interests.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      "Pledged
        Debt" shall
        mean all indebtedness for borrowed money owed to Grantor, whether or not
        evidenced by any instrument or promissory note, and all interest, cash,
        instruments and other property or proceeds from time to time received,
        receivable or otherwise distributed in respect of or in exchange for any
        or all
        of the foregoing.

       

      "Pledged
        Equity Interests" shall
        mean all Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests,
        Pledged Trust Interests and Pledged Alternative Equity Interests.

       

      "Pledged
        LLC Interests" shall
        mean all interests in any limited liability company and the certificates,
        if
        any, representing such limited liability company interests and any interest
        of
        such Grantor on the books and records of such limited liability company or
        on
        the books and records of any securities intermediary pertaining to such interest
        and all dividends, distributions, cash, warrants, rights, options, instruments,
        securities and other property or proceeds from time to time received, receivable
        or otherwise distributed in respect of or in exchange for any or all of such
        limited liability company interests and any other warrant, right or option
        to
        acquire any of the foregoing.

       

      "Pledged
        Partnership Interests" shall
        mean all interests in any general partnership, limited partnership, limited
        liability partnership or other partnership and the certificates, if any,
        representing such partnership interests and any interest of such Grantor
        on the
        books and records of such partnership or on the books and records of any
        securities intermediary pertaining to such interest and all dividends,
        distributions, cash, warrants, rights, options, instruments, securities and
        other property or proceeds from time to time received, receivable or otherwise
        distributed in respect of or in exchange for any or all of such partnership
        interests and any other warrant, right or option to acquire any of the
        foregoing.

       

      "Pledged
        Stock" shall
        mean all shares of capital stock owned by such Grantor, including, without
        limitation, all shares of capital stock of Wintegra Israel, and the
        certificates, if any, representing such shares and any interest of such Grantor
        in the entries on the books of the issuer of such shares or on the books
        of any
        securities intermediary pertaining to such shares, and all dividends,
        distributions, cash, warrants, rights, options, instruments, securities and
        other property or proceeds from time to time received, receivable or otherwise
        distributed in respect of or in exchange for any or all of such shares and
        any
        other warrant, right or option to acquire any of the foregoing. 

       

      "Pledged
        Trust Interests" shall
        mean all interests in a Delaware business trust or other trust and the
        certificates, if any, representing such trust interests and any interest
        of such
        Grantor on the books and records of such trust or on the books and records
        of
        any securities intermediary pertaining to such interest and all dividends,
        distributions, cash, warrants, rights, options, instruments, securities and
        other property or proceeds from time to time received, receivable or otherwise
        distributed in respect of or in exchange for any or all of such trust interests
        and any other warrant, right or option to acquire any of the
        foregoing.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      "Proceeds"
        shall
        mean: (i) all "proceeds" as defined in Article 9 of the UCC, (ii) payments
        or
        distributions made with respect to any Investment Related Property and (iii)
        whatever is receivable or received when Collateral or proceeds are sold,
        leased,
        licensed, exchanged, collected or otherwise disposed of, whether such
        disposition is voluntary or involuntary.

       

      "Receivables
        Contracts" shall
        mean all (i) Accounts, (ii) Chattel Paper, (iii) Payment Intangibles, (iv)
        Instruments and (v) to the extent not otherwise covered above, all other
        rights
        to payment, whether or not earned by performance, for goods or other property
        sold, leased, licensed, assigned or otherwise disposed of, or services rendered
        or to be rendered, regardless of how classified under the UCC together with
        all
        of Grantor's rights, if any, in any goods or other property giving rise to
        such
        right to payment and all Collateral Support and Supporting Obligations related
        thereto and all Receivables Records; provided,
        however,
        that
        Receivables Contracts shall not include any Investment Related
        Property.

       

      "Receivables
        Records" shall
        mean (i) all original copies of all documents, instruments or other writings
        or
        electronic records or other Records evidencing the Receivables Contracts,
        (ii)
        all books, correspondence, credit or other files, Records, ledger sheets
        or
        cards, invoices, and other papers relating to Receivables Contracts, including,
        without limitation, all tapes, cards, computer tapes, computer discs, computer
        runs, record keeping systems and other papers and documents relating to the
        Receivables Contracts, whether in the possession or under the control of
        Grantor
        or any computer bureau or agent from time to time acting for Grantor or
        otherwise, (iii) all evidences of the filing of financing statements and
        the
        registration of other instruments in connection therewith, and amendments,
        supplements or other modifications thereto, notices to other creditors or
        agents
        thereof, and certificates, acknowledgments, or other writings, including,
        without limitation, lien search reports, from filing or other registration
        officers, (iv) all credit information, reports and memoranda relating thereto
        and (v) all other written or non-written forms of information related in
        any way
        to the foregoing or any Receivable.

       

      "Record"
        shall
        have the meaning specified in the UCC.

       

      "Secured
        Obligations"
        shall
        mean: all obligations of every nature of the Grantor from time to time owed
        to
        the Collateral Agent or any Secured Party hereunder or under the Transaction
        Documents whether for principal, interest (including interest which, but
        for the
        filing of a petition in bankruptcy with respect to such Grantor, would have
        accrued on any obligation, whether or not a claim is allowed against such
        Grantor for such interest in the related bankruptcy proceeding) or reimbursement
        of amounts drawn under letters of credit.

       

      "Secured
        Party"
        shall
        mean any of the Lenders or the Co-lenders.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      "Securities"
        shall
        mean any stock, shares, partnership interests, voting trust certificates,
        certificates of interest or participation in any profit-sharing agreement
        or
        arrangement, options, warrants, bonds, debentures, notes, or other evidences
        of
        indebtedness, secured or unsecured, convertible, subordinated or otherwise,
        or
        in general any instruments commonly known as "securities" or any certificates
        of
        interest, shares or participations in temporary or interim certificates for
        the
        purchase or acquisition of, or any right to subscribe to, purchase or acquire,
        any of the foregoing. 

       

      "Securities
        Accounts" (i)
        shall
        mean all "securities accounts" as defined in Article 8 of the UCC and (ii)
        shall
        include, without limitation, all of the accounts listed on Schedule I hereto
        under the heading "Securities Accounts" (as such schedule may be amended
        or
        supplemented from time to time).

       

      "Software
        Embedded in Goods"
        means,
        with respect to any Goods, any computer program embedded in Goods and any
        supporting information provided in connection with a transaction relating
        to the
        program if (i) the program is associated with the Goods in such a manner
        that it
        customarily is considered part of the Goods or (ii) by becoming the owner
        of the
        Goods a person acquires a right to use the program in connection with the
        Goods.

       

      "State"
        shall
        mean a State of the United States, the District of Columbia, Puerto Rico,
        the
        United States Virgin Islands, or any territory or insular possession subject
        to
        the jurisdiction of the United States.

       

      "Supporting
        Obligation" shall
        mean all "supporting obligations" as defined in the UCC.

       

      "Trade
        Secret Licenses" shall
        mean any and all agreements providing for the granting of any right in or
        to
        Trade Secrets (whether such Grantor is licensee or licensor
        thereunder).
        

       

      "Trade
        Secrets" shall
        mean all trade secrets and all other confidential or proprietary information
        and
        know-how now or hereafter owned or used in, or contemplated at any time for
        use
        in, the business of such Grantor (all of the foregoing being collectively
        called
        a "Trade Secret"),
        whether
        or not such Trade Secret has been reduced to a writing or other tangible
        form,
        including all documents and things embodying, incorporating, or referring
        in any
        way to such Trade Secret, the right to sue for past, present and future
        infringement of any Trade Secret, and all proceeds of the foregoing, including,
        without limitation, licenses, royalties, income, payments, claims, damages,
        and
        proceeds of suit.

       

      "Trademark
        Licenses" shall
        mean any and all agreements providing for the granting of any right in or
        to
        Trademarks (whether such Grantor is licensee or licensor thereunder).

       

      "Trademarks"
        shall
        mean all United States, state and foreign trademarks, trade names, corporate
        names, company names, business names, fictitious business names, internet
        domain
        names, trade styles, service marks, certification marks, collective marks,
        logos, other source or business identifiers, designs and general intangibles
        of
        a like nature, all registrations and applications for any of the foregoing
        including, but not limited to the registrations and applications referred
        to in
        Schedule III(E) hereto (as such schedule may be amended or supplemented from
        time to time),
        all
        extensions or renewals of any of the foregoing, all of the goodwill of the
        business connected with the use of and symbolized by the foregoing, the right
        to
        sue for past, present and future infringement or dilution of any of the
        foregoing or for any injury to goodwill, and all proceeds of the foregoing,
        including, without limitation, licenses, royalties, income, payments, claims,
        damages, and proceeds of suit.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      "Transaction
        Documents"
        shall
        mean the Credit Agreement, this Agreement, the Floating Charge Agreement
        between
        Wintegra Israel and the Lenders.

       

      "UCC"
        shall
        mean the Uniform Commercial Code as in effect from time to time in the State
        of
        New York.

       

      1.2  Definitions;
        Interpretation.
        All
        capitalized terms used herein (including the preamble and recitals hereto)
        and
        not otherwise defined herein shall have the meanings ascribed thereto in
        the
        Credit Agreement or, if not defined therein, in the UCC. References to
        "Sections," "Annexes" and "Schedules" shall be to Sections, Annexes and
        Schedules, as the case may be, of this Agreement unless otherwise specifically
        provided. Section headings in this Agreement are included herein for convenience
        of reference only and shall not constitute a part of this Agreement for any
        other purpose or be given any substantive effect. Any of the terms defined
        herein may, unless the context otherwise requires, be used in the singular
        or
        the plural, depending on the reference. The use herein of the word "include"
        or
        "including", when following any general statement, term or matter, shall
        not be
        construed to limit such statement, term or matter to the specific items or
        matters set forth immediately following such word or to similar items or
        matters, whether or not nonlimiting language (such as "without limitation"
        or
        "but not limited to" or words of similar import) is used with reference thereto,
        but rather shall be deemed to refer to all other items or matters that fall
        within the broadest possible scope of such general statement, term or matter.
        If
        any conflict or inconsistency exists between this Agreement and the Credit
        Agreement, the Credit Agreement shall govern. All references herein to
        provisions of the UCC shall include all successor provisions under any
        subsequent version or amendment to any Article of the UCC.

       

      
        	SECTION
                2. 	
                GRANT
                  OF SECURITY

              

      

       

      2.1  Grant
        of Security.
        The
        Grantor hereby grants to the Collateral Agent a security interest and continuing
        lien on all of such Grantor's right, title and interest in, to and under
        all
        personal property of such Grantor including, but not limited to the following,
        in each case whether now owned or existing or hereafter acquired or arising
        and
        wherever located except for any property secured in favor of Bank Leumi USA
        under a specific pledge agreement in connection with a loan in the aggregate
        amount of up to US $50,000 provided to Grantor for the purchase of such property
        (all of which being hereinafter collectively referred to as the "Collateral",
        as
        defined in Section 1.1):

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (i)  Documents;

       

      (ii)  Goods
        (including Documents Representing Goods
        and
        Software Embedded in Goods);

       

      (iii)  Insurance;

       

      (iv)  Intellectual
        Property;

       

      (v)  Investment
        Related Property;

       

      (vi)  Letter
        of
        Credit Rights;

       

      (vii)  Money;

       

      (viii)  Non-payment
        Contracts;

       

      (ix)  Receivables
        Contracts and Receivable Records;

       

      (x)  Commercial
        Tort Claims;

       

      
        	
              	(xi)	
                to
                  the extent not otherwise included above, all
                  General Intangibles, Material Contracts, motor
                  vehicles and other personal property of any kind and all Collateral
                  Records, Collateral Support and Supporting  Obligations
                  relating to any of the foregoing;
                  and 

              

        	 	 	 

        	 	(xii)	
                to the extent not otherwise
                  included
                  above, all Proceeds, products, accessions, rents and profits of
                  or in
                  respect of any of the foregoing.

              

        	 	 	 

        	 	 	
                For the avoidance of any doubt,
                  it is
                  hereby agreed and clarified that none of the foregoing subsections
                  of this
                  Section 2 shall limit, restrict or prevent the performance of transactions
                  between the Grantor and Wintegra
                  Israel.

              

      

       

      2.2  Certain
        Limited Exclusions.Notwithstanding
        anything herein to the contrary, in no event shall the security interest
        granted
        under Section 2.1 hereof attach to any Lease, license, contract, property
        rights
        or agreement to which the Grantor is a party or any of its rights or interests
        thereunder if and for so long as the grant of such security interest shall
        constitute or result in (i) the abandonment, invalidation or unenforceability
        of
        any right, title or interest of the Grantor therein or (ii) in a breach or
        termination pursuant to the terms of, or a default under, any such Lease
        license, contract property rights or agreement (other than to the extent
        that
        any such term would be rendered ineffective pursuant to Sections 9-406, 9-407,
        9-408 or 9-409 of the UCC (or any successor provision or provisions) of any
        relevant jurisdiction or any other applicable law (including the Bankruptcy
        Code) or principles of equity), provided however that such security interest
        shall attach immediately at such time as the condition causing such abandonment,
        invalidation or unenforceability shall be remedied and, to the extent severable,
        shall attached immediately to any portion of such Lease, license, contract,
        property rights or agreement that does not result in any of the consequences
        specified in (i) or (ii).

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

       

      
        	SECTION
                3. 	
                SECURITY
                  FOR OBLIGATIONS.

              

      

       

      3.1  Security
        for Obligations.This
        Agreement secures, and the Collateral is collateral security for, the prompt
        and
        complete payment or performance in full when due, by acceleration, Event
        of
        Default, demand or otherwise (including the payment of amounts that would
        become
        due but for the operation of the automatic stay under Section 362(a) of the
        Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of
        all Secured Obligations.

       

      3.2  Continuing
        Liability under Collateral.Notwithstanding
        anything herein to the contrary, (i) the Grantor shall remain liable for
        all
        obligations under the Collateral and nothing contained herein is intended
        or
        shall be a delegation of duties to the Collateral Agent or any Secured Party
        and
        (ii) the Grantor shall remain liable under each of the agreements included
        in
        the Collateral, including, without limitation, any agreements relating to
        Pledged Partnership Interests or Pledged LLC Interests, to perform all of
        the
        obligations undertaken by it thereunder all in accordance with and pursuant
        to
        the terms and provisions thereof and neither the Collateral Agent nor any
        other
        Secured Party shall have any obligation or liability under any of such
        agreements by reason of or arising out of this Agreement or any other document
        related thereto nor shall the Collateral Agent nor any other Secured Party
        have
        any obligation to make any inquiry as to the nature or sufficiency of any
        payment received by it or have any obligation to take any action to collect
        or
        enforce any rights under any agreement included in the Collateral, including,
        without limitation, any agreements relating to Pledged Partnership Interests
        or
        Pledged LLC Interests, (iii) the exercise by a Lender of any of its rights
        hereunder shall not release the Grant or from any of its duties or obligations
        under the contracts and agreements included n the Collateral.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	SECTION
                4.	
                REPRESENTATIONS,
                  WARRANTIES, AGREEMENTS AND COVENANTS.

              

      

       

      4.1  General
        Representations and Warranties.The
        Grantor hereby represents and warrants, as of the date hereof and as of each
        date that an Installment (as defined in the Credit Agreement) is made,
        that:

       

      (i)  The
        full
        legal name of the Grantor is Wintegra, Inc., its organizational identification
        number is 3164711 and it has been duly organized as a corporation solely
        under
        the laws of the State of Delaware and remains duly existing as such. The
        Grantor
        has not filed any certificates of domestication, transfer or continuance
        in any
        other jurisdiction;

       

      (ii)  Upon
        the
        filing of all UCC financing statements naming the Grantor as "grantor" and
        the
        Collateral Agent as "Collateral Agent" and describing the Collateral in the
        filing office of [_________] and other filing delivered by the Grantor including
        without limitation the control agreement , the security interests granted
        to the
        Collateral Agent hereunder constitute valid and perfected first priority
        Liens;

       

      (iii)  Other
        than the financing statements filed in favor of the Collateral Agent, no
        effective UCC financing statement, fixture filing or other instrument similar
        in
        effect under any applicable law is on file in any filing or recording
        office.

       

      4.2  General
        Agreements and Covenants.The
        Grantor hereby covenants and agrees that without the prior written consent
        of
        the Collateral Agent it will not: 

       

      (i)  materially
        change the general nature of its business; 

       

      (ii)  make
        any
        loan or other extension of credit to its distributors, customers, subsidiaries,
        or employees other than loans and advances granted in the ordinary course
        of
        business and for an aggregate amount of not more than US$100,000, provided,
        however,
        that
        this subsection (ii) shall not apply to transactions between Grantor and
        any of
        its current or future subsidiaries, conducted in the ordinary course of
        business, including, without limitation, transfer of funds for the coverage
        of
        salaries, leases and all other reasonable administrative expenses, each of
        such
        transactions shall not exceed the amount of $ US300,000;
        

       

      (iii)  receive
        any loan or advance from a third party or incur any debt other than debt
        incurred in the ordinary course of business consistent with past business
        practices of the Grantor and up to an aggregate amount of
        US$100,000;

       

      (iv)  issue
        any
        guarantee or otherwise incur any contingent liability other than in the ordinary
        course of business and up to an aggregate amount of US$100,000;

       

      
        
          
          

        

        
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      (v)  sell,
        pledge, transfer, assign or grant a security interest in any of the Collateral
        or any of the Grantor's other than
        with
        respect to the creation of a fixed charge on assets of the Grantor which
        are
        acquired by the Grantor following the date hereof, and further provided however,
        that the value of such pledged assets does not exceed $100,000 in the aggregate,
        and provided that such fixed charge shall only be recorded on behalf of the
        actual seller of such assets or a commercial bank specifically financing
        such an
        acquisition of assets;

       

      (vi)  repay
        any
        existing or future loans or debts in the aggregate amount of more than
        US$100,000 or financial obligations, including without limitation shareholders’
loans, in each case excluding operating expenses of the Grantor which are
        incurred in the Grantor's ordinary course of business,
        provided,
        however,
        that
        this subsection (f) shall not apply to (i) a loan in the amount of US$ 50,000
        and any accrued interest thereon payable with respect to such loan provided
        to
        the Grantor by Bank Leumi USA for the financing of purchasing certain assets
        as
        collateral for bill of sale of those assets; and (ii) any amounts payable
        to
        suppliers of Grantor, which suppliers provide Grantor CAD software, IP
        licensing, chips manufacturing services and any other services or parts required
        by Grantor in the ordinary course of business as currently conducted;

       

      (vii)  transfer
        ownership of its assets to a third party other than in the ordinary course
        of
        business;

       

      (viii)  create
        or
        permit to exist any encumbrance over all or any of its present or future
        revenues or assets; and

       

      (ix)  distribute
        any dividends.

       

      The
        above
        covenants shall also apply to any subsidiaries to be created by the Grantor
        after the date hereof. This Section 4.2 shall not apply to any transaction
        conducted solely between Grantor and Wintegra Israel. 

       

      4.3  Use
        of
        Collateral.The
        Grantor shall use its best efforts and shall cause its subsidiaries and
        affiliates to use their best efforts to preserve the Collateral, without
        interfering with the use of the Collateral in the ordinary course of business,
        and shall either procure the economically reasonable necessary insurance
        to do
        so or shall maintain existing insurance which is reasonable for a company
        of the
        size, at the stage of development and in the industry which the Grantor
        operates. The Grantor shall permit the Collateral Agent to inspect the
        Collateral and its records at all reasonable times and upon reasonable notice,
        subject to customary non-disclosure restrictions as reasonably determined
        by the
        Grantor or Wintegra Israel.

       

      4.4  Corporate
        Name and Identity.The
        Grantor shall not change its name, identity, corporate structure (e.g. by
        merger, consolidation, or change in corporate form), sole place of business,
        chief executive office, type of organization or jurisdiction of organization
        or
        establish any trade names unless it shall have (a) notified the Collateral
        Agent
        in writing, by executing and delivering to the Collateral Agent a completed
        Pledge Supplement, substantially in the form of Annex C attached hereto,
        together with all Supplements to Schedules thereto, as least thirty (30)
        days
        prior to any such change or establishment, identifying such new proposed
        name,
        identity, corporate structure, sole place of business, chief executive office,
        jurisdiction of organization or trade name and providing such other information
        in connection therewith as the Collateral Agent may reasonably request and
        (b)
        taken all actions necessary or advisable to maintain the continuous validity,
        perfection and the same or better priority of the Collateral Agent's security
        interest in the Collateral granted or intended to be granted and agreed to
        hereby.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      4.5  Value
        of Collateral.The
        Grantor shall promptly notify the Collateral Agent in writing of any event
        known
        to the Grantor, which materially adversely affects the value of the Collateral.
        

       

      4.6  Intellectual
        Property.
        Grantor
        hereby makes those representations and warranties appearing in Section 4(viii)
        of the Credit Agreement to the Lenders, and such representations and warranties
        are incorporated by reference herein.

       

      4.7  Intellectual
        Property Covenants and Agreements.
        The Grantor hereby covenants and agrees as follows:

       

      (a)  it
        shall
        promptly (but in no event more than thirty (30) days after the Grantor obtains
        knowledge thereof)
        report
        to the Collateral Agent (i) the filing of any application to register any
        Intellectual Property with the United States Patent and Trademark
        Office,
        the United States Copyright Office, or any state registry or foreign counterpart
        of the foregoing (whether such application is filed by such Grantor or through
        any agent, employee, licensee, or designee thereof)
        and (ii)
        the registration of any Intellectual Property by any such office, in each
        case
        by executing and delivering to the Collateral Agent a completed Pledge
        Supplement, substantially in the form of Annex A attached hereto, together
        with all Supplements to Schedules thereto; 

       

      (b)  it
        shall,
        promptly upon the reasonable request of the Collateral Agent, execute and
        deliver to the Collateral Agent any document required to acknowledge,
        confirm, register, record, or perfect
        the
        Collateral Agent's interest in any part of the Intellectual Property, whether
        now owned or hereafter acquired; it is hereby expressly agreed that prior
        to an
        Event of Default, the Collateral Agent shall not unreasonably withhold its
        consent , to the extent such consent is required due to the recording or
        registration of
        the
        security interest with respect to the Intellectual Property
        with the
United
        States Patent and Trademark Office or the United States Copyright Office,
        to any
        action by the Grantor which would otherwise be permissible under the terms
        of
        the Transaction Documents. Further Assurances

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

      

       

      (a)  The
        Grantor agrees that from time to time, upon the reasonable request of Collateral
        Agent and at the Grantor's expense, to Authenticate, execute and deliver
        all
        further instruments and documents, and take all further action, that may
        be
        necessary or desirable in order to create and/or maintain the validity,
        perfection or priority of and protect any security interest granted or purported
        to be granted hereby or to enable the Collateral Agent to exercise and enforce
        its rights and remedies hereunder with respect to any Collateral. 

       

      
        	(i) 
                 	
                file
                  such financing or continuation execute and deliver such other agreements,
                  instruments, endorsements, powers of attorney or notices, as may
                  be
                  necessary or desirable, or as the Collateral Agent may reasonably
                  request,
                  in order to perfect and preserve the security interests granted
                  or
                  purported to be granted hereby;

              

      

       

      
        	(ii)
                  	
                take
                  all actions necessary to ensure the recordation of appropriate
                  evidence of
                  the liens and security interest granted hereunder in the Intellectual
                  Property with any intellectual property registry in which said
                  Intellectual Property is registered or in which an application
                  for
                  registration is pending including, without limitation, the United
                  States
                  Patent and Trademark Office, the United States Copyright Office,
                  the
                  various Secretaries of State, and the foreign counterparts on any
                  of the
                  foregoing.

              

      

       

      
        	(iii)
                  	
                at
                  any reasonable time, upon request by the Collateral Agent, Annex
                  the
                  Collateral to and allow inspection of the Collateral by the Collateral
                  Agent, or persons designated by the Collateral Agent; and
                  

              

      

       

      
        	(iv)
                  	
                at
                  the Collateral Agent's reasonable request, appear in and defend
                  any action
                  or proceeding that may affect such Grantor's title to or the Collateral
                  Agent's security interest in all or any part of the Collateral.
                  

              

      

       

      (b)  The
        Grantor hereby authorizes the filing of any financing statements or continuation
        statements, and amendments to financing statements, or any similar document
        in
        any jurisdictions and with any filing offices as the Collateral Agent may
        determine, in its sole discretion, are necessary or advisable to perfect
        the
        security interest granted to the Collateral Agent herein. Such financing
        statements may describe the Collateral in the same manner as described herein
        or
        may contain an indication or description of collateral that describes such
        property in any other manner as the Collateral Agent may determine, in its
        sole
        discretion, is necessary, advisable or prudent to ensure the perfection of
        the
        security interest in the Collateral granted to the Collateral Agent herein,
        including, without limitation, describing such property as "all assets" or
        "all
        personal property, whether now owned or hereafter acquired. The Grantor
        shall furnish to the Collateral Agent from time to time statements and schedules
        further identifying and describing the Collateral and such other reports
        in
        connection with the Collateral as the Collateral Agent may reasonably request,
        all in reasonable detail.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      (c)  The
        Grantor hereby authorizes the Collateral Agent to modify this Agreement after
        obtaining such Grantor's written approval of or signature to such modification
        by amending Schedule III hereto (as such schedule may be amended or supplemented
        from time to time)
        to
        include reference to any right, title or interest in any existing Intellectual
        Property or any Intellectual Property acquired or developed by the Grantor
        or
        any of its subsidiaries or affiliates, including, without limitation, Wintegra
        Israel, after the execution hereof or to delete any reference to any right,
        title or interest in any Intellectual Property in which the Grantor no longer
        has or claims any right, title or interest.

       

      
        	SECTION
                5.	
                COLLATERAL
                  AGENT APPOINTED
                  ATTORNEY-IN-FACT.

              

      

       

      5.1  Power
        of Attorney.The
        Grantor hereby appoints the Collateral Agent (such appointment being coupled
        with an interest) as such Grantor's attorney-in-fact, with full authority
        in the
        place and stead of such Grantor and in the name of such Grantor, the Collateral
        Agent or otherwise, to take any action and to execute any instrument that
        the
        Collateral Agent may deem reasonably necessary or advisable to accomplish
        the
        purposes of this Agreement, including, without limitation, the following:
        

       

      (a)  
        upon the
        occurrence and during the continuance of any Event of Default, provided that
        the
        Event of Default has not been cured within seven (7) days, to obtain and
        adjust
        insurance required to be maintained by such Grantor or paid to the Collateral
        Agent pursuant to the Transaction Documents; upon the occurrence and during
        the
        continuance of any Event of Default, to ask for, demand, collect, sue for,
        recover, compound, receive and give acquittance and receipts for moneys due
        and
        to become due under or in respect of any of the Collateral;

       

      (b)  upon
        the
        occurrence and during the continuance of any Event of Default, provided that
        the
        Event of Default has not been cured within seven (7) days, to receive, endorse
        and collect any drafts or other instruments, documents and chattel paper
        in
        connection with clause (b) above; 

       

      (c)  upon
        the
        occurrence and during the continuance of any Event of Default, provided that
        the
        Event of Default has not been cured within seven (7) days, to file any claims
        or
        take any action or institute any proceedings that the Collateral Agent may
        deem
        necessary or desirable for the collection of any of the Collateral or otherwise
        to enforce the rights of the Collateral Agent with respect to any of the
        Collateral; 

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      (d)  to
        prepare, sign, and file for recordation in any intellectual property registry,
        appropriate evidence of the lien and security interest granted herein in
        the
        Intellectual Property in the name of such Grantor as assignor; 

       

      (e)  to
        take
        or cause to be taken all actions necessary to perform or comply or cause
        performance or compliance with the terms of this Agreement, including, without
        limitation, access to pay or discharge taxes or Liens levied or placed upon
        or
        threatened against the Collateral, the legality or validity thereof and the
        amounts necessary to discharge the same , any such payments made by the
        Collateral Agent to become obligations of such Grantor to the Collateral
        Agent,
        due and payable immediately without demand; and 

       

      (f)  generally
        to sell, transfer, pledge, make any agreement with respect to or otherwise
        deal
        with any of the Collateral as fully and completely as though the Collateral
        Agent were the absolute owner thereof for all purposes, and to do, at the
        Collateral Agent's option, at any time or from time to time, all acts and
        things
        that the Collateral Agent deems reasonably necessary to protect, preserve
        or
        realize upon the Collateral and the Collateral Agent's security interest
        therein
        in order to effect the intent of this Agreement, all as fully and effectively
        as
        such Grantor might do.

       

      5.2  No
        Duty on the Part of Collateral Agent or Collateral Agents.The
        powers conferred on the Collateral Agent hereunder are solely to protect
        the
        interests of the Secured Parties in the Collateral and shall not impose any
        duty
        upon the Collateral Agent or any Secured Party to exercise any such powers.
        The
        Collateral Agent and the Secured Parties shall be accountable only for amounts
        that they actually receive as a result of the exercise of such powers, and
        neither they nor any of their officers, directors, employees or agents shall
        be
        responsible to the Grantor for any act or failure to act hereunder, except
        for
        their own gross negligence or willful misconduct.

       

       

      
        	SECTION
                6.	
                REMEDIES.

              

      

       

      6.1  Generally

       

      (a)  If
        any Event of Default shall have occurred and be continuing, which Event of
        Default was not cured within seven (7) days as of the delivery of a written
        notice from the Collateral Agent, the Collateral Agent may exercise in respect
        of the Collateral, in addition to all other rights and remedies provided
        for
        herein or otherwise available to it at law or in equity, all the rights and
        remedies of the Collateral Agent on default under the UCC (whether or not
        the
        UCC applies to the affected Collateral) to collect, enforce or
        satisfy any Secured Obligations then owing, whether by acceleration or
        otherwise, including without limitation any of the following:

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      
        	(i)  	
                require
                  the Grantor to, and the
                  Grantor hereby agrees that it shall at its expense and promptly
                  upon
                  request of the Collateral Agent forthwith, assemble all or art
                  of the
                  Collateral as directed by the Collateral Agent and make it available
                  to
                  the Collateral Agent at a place to be designated by the Collateral
                  Agent
                  that is reasonably convenient to both parties;

              

      

       

      
        	(ii)  	
                enter
                  onto the property where any Collateral is located and take possession
                  thereof with or without judicial
                  process;

              

      

       

      
        	(iii)  	
                prior
                  to the disposition of the Collateral, store, process, repair or
                  recondition the Collateral or otherwise prepare the Collateral
                  for
                  disposition in any manner to the extent the Collateral Agent deems
                  appropriate; 

              

      

       

      
        	(iv)  	
                without
                  notice except as specified below or under the UCC, sell, assign,
                  lease,
                  license (on an exclusive or nonexclusive basis)
                  or
                  otherwise dispose of the Collateral or any part thereof in one
                  or more
                  parcels at public or private sale, at any of the Collateral Agent's
                  offices or elsewhere, for cash, on credit or for future delivery,
                  at such
                  time or times and at such price or prices and upon such other terms
                  as the
                  Collateral Agent may deem commercially reasonable; and
                  

              

      

       

      (b)  The
        Collateral Agent or any Secured Party may be the purchaser of any or all
        of the
        Collateral at any public or private (to the extent to portion of the Collateral
        being privately sold is of a kind that is customarily sold on a recognized
        market or the subject of widely distributed standard price
        quotations)
        sale in
        accordance with the UCC and the Collateral Agent, as collateral agent for
        and
        representative of the Secured Parties, shall be entitled, for the purpose
        of
        bidding and making settlement or payment of the purchase price for all or
        any
        portion of the Collateral sold at any such sale made in accordance with the
        UCC,
        to use and apply any of the Secured Obligations as a credit on account of
        the
        purchase price for any Collateral payable by the Collateral Agent at such
        sale.
        Each purchaser at any such sale shall hold the property sold absolutely free
        from any claim or right on the part of the Grantor, subject to Grantor's
        certain
        liens in favor of Bank Leumi USA, as set forth above and the Grantor hereby
        waives (to the extent permitted by applicable law)
        all
        rights of redemption and/or stay which it now has or may at any time in the
        future have under any rule of law or statute now existing or hereafter enacted.
        The Grantor agrees that, to the extent notice of sale shall be required by
        law,
        at least ten (10) days notice to such Grantor of the time and place of any
        public sale or the time after which any private sale is to be made shall
        constitute reasonable notification. The Collateral Agent shall not be obligated
        to make any sale of Collateral regardless of notice of sale having been given.
        The Collateral Agent may adjourn any public or private sale from time to
        time by
        announcement at the time and place fixed therefore, and such sale may, without
        further notice, be made at the time and place to which it was so adjourned.
        The
        Grantor agrees that it would not be commercially unreasonable for the Collateral
        Agent to dispose of the Collateral or any portion thereof by using Internet
        sites that provide for the auction of assets of the types included in the
        Collateral or that have the reasonable capability of doing so, or that match
        buyers and sellers of assets. The Grantor
        hereby waives any claims against the Collateral Agent arising by reason of
        the
        fact that the price at which any Collateral may have been sold at such a
        private
        sale was less than the price which might have been obtained at a public sale,
        even if the Collateral Agent accepts the first offer received and does not
        offer
        such Collateral to more than one offeree. If the proceeds of any sale or
        other
        disposition of the Collateral are insufficient to pay all the Secured
        Obligations, the Grantor shall be liable for the deficiency and the fees
        of any
        attorneys employed by the Collateral Agent to collect such deficiency.
        The Grantor
        further agrees that a breach of any of the covenants contained in this Section
        will cause irreparable injury to the Collateral Agent, that the Collateral
        Agent
        has no adequate remedy at law in respect of such breach and, as a consequence,
        that each and every covenant contained in this Section shall be specifically
        enforceable against the Grantor, and the Grantor hereby waives and agrees
        not to
        assert any defenses against an action for specific performance of such covenants
        except for a defense that no default has occurred giving rise to the Secured
        Obligations becoming due and payable prior to their stated maturities. Nothing
        in this Section shall in any way alter the rights of the Collateral Agent
        hereunder. 

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      (c)  The
        Collateral Agent may sell the Collateral without giving any warranties as
        to the
        Collateral. The Collateral Agent may specifically disclaim or modify any
        warranties of title or the like, except that the Collateral Agent may not
        disclaim or modify a warranty as to its claim to the Collateral pursuant
        to this
        Agreement. This procedure will not be considered to adversely effect the
        commercial reasonableness of any sale of the Collateral

       

      (d)  The
        Collateral Agent shall have no obligation to marshall any of the
        Collateral.

       

      (e)  Upon
        the
        occurrence and during the continuance of any Event of Default, provided that
        the
        Event of Default has not been cured within seven (7) days, all amounts and
        proceeds (including checks and other instruments) received by the Grantor
        in
        respect of amounts due to such Grantor in respect of the Collateral or any
        portion thereof shall be received in trust for the benefit of the Collateral
        Agent hereunder, shall be segregated from other funds of such Grantor and
        shall
        be forthwith paid over or delivered to the Collateral Agent in the same form
        as
        so received (with any necessary endorsement)
        to be
        held as cash Collateral and applied then or at any time against the Secured
        Obligations then due and owing. The Grantor shall
        not, without the prior written consent of the Collateral Agent, adjust, settle
        or compromise the amount or payment of any such amount or release wholly
        or
        partly any obligor with respect thereto or allow any credit or discount
        thereon.

       

      6.2  Application
        of Proceeds. 
        Except
        as
        expressly provided elsewhere in this Agreement, all proceeds received by
        the
        Collateral Agent in respect of any sale, any collection from, or other
        realization upon all or any part of the Collateral shall be applied in full
        or
        in part by the Collateral Agent against, the Secured Obligations in the
        following order of priority: first,
        to the
        payment of all costs and expenses of such sale, collection or other realization,
        including reasonable compensation to the Collateral Agent and its agents
        and
        counsel, and all other expenses, liabilities and advances made or incurred
        by
        the Collateral Agent in connection therewith, and all amounts for which the
        Collateral Agent is entitled to indemnification under the Transaction Documents
        (in its capacity as the Collateral Agent) and all advances made by the
        Collateral Agent hereunder for the account of the applicable Grantor, and
        to the
        payment of all costs and expenses paid or incurred by the Collateral Agent
        in
        connection with the exercise of any right or remedy hereunder or under any
        Transaction Document, all in accordance with the terms hereof or thereof;
        second,
        to the
        extent of any excess of such proceeds, to the payment of all other Secured
        Obligations for the ratable benefit of the Secured Party; and third,
        to the
        extent of any excess of such proceeds, to the payment to or upon the order
        of
        such Grantor or to whosoever may be lawfully entitled to receive the same
        or as
        a court of competent jurisdiction may direct.

       

      6.3  Sales
        on Credit. 
        If
        Collateral Agent sells any of the Collateral upon credit, Grantor will be
        credited only with payments actually made by purchaser and received by
        Collateral Agent and applied to indebtedness of the Purchaser. In the event
        the
        purchaser fails to pay for the Collateral, Collateral Agent may resell the
        Collateral and Grantor shall be credited with proceeds of the sale.

       

      6.4  Investment
        Related Property.

       

      (a)  The
        Grantor recognizes that, by reason of certain prohibitions contained in the
        Securities Act of 1933 and applicable state securities laws, the Collateral
        Agent may be compelled, with respect to any sale of all or any part of the
        Investment Related Property conducted without prior registration or
        qualification of such Investment Related Property under the Securities Act
        and/or such state securities laws, to limit purchasers to those who will
        agree,
        among other things, to acquire the Investment Related Property for their
        own
        account, for investment and not with a view to the distribution or resale
        thereof. The Grantor
        acknowledges that any such private sale may be at prices and on terms less
        favorable than those obtainable through a public sale without such restrictions
        (including a public offering made pursuant to a registration statement under
        the
        Securities Act)
        and,
        notwithstanding such circumstances, the Grantor
        agrees that any such private sale shall be deemed to have been made in a
        commercially reasonable manner and that the Collateral Agent shall have no
        obligation to engage in public sales and no obligation to delay the sale
        of any
        Investment Related Property for the period of time necessary to permit the
        issuer thereof to register it for a form of public sale requiring registration
        under the Securities Act or under applicable state securities laws, even
        if such
        issuer would, or should, agree to so register it. If the Collateral Agent
        determines to exercise its right to sell any or all of the Investment Related
        Property, upon written request, the Grantor
        shall and shall cause each issuer of any Pledged Stock to be sold hereunder,
        each partnership and each limited liability company from time to time to
        furnish
        to the Collateral Agent all such information as the Collateral Agent may
        request
        in order to determine the number and nature of interest, shares or other
        instruments included in the Investment Related Property which may be sold
        by the
        Collateral Agent in exempt transactions under the Securities Act and the
        rules
        and regulations of the Securities and Exchange Commission thereunder, as
        the
        same are from time to time in effect.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      (b)  Upon
        the
        occurrence and during the continuation of an Event of Default, which
        Event of Default was not cured within seven (7) days as of the delivery of
        a
        written notice from the Collateral Agent, the
        Collateral Agent shall have the right to apply the balance from the Grantor
        Account or instruct the bank at which Grantor Account is maintained to pay
        the
        balance of Grantor Account to or for the benefit of the Collateral Agent,
        all in
        accordance with that certain Account Control Agreement between Grantor and
        Collateral Agent, dated the date hereof.

       

      6.5  Intellectual
        Property.

       

      (a)  Anything
        contained herein to the contrary notwithstanding, upon the occurrence and
        during
        the continuation of an Event of Default, which
        Event of Default was not cured within seven (7) days as of the delivery of
        a
        written notice from the Collateral Agent:
        

       

      
        	(i)  	
                the
                  Collateral Agent shall have the right (but not the obligation)
                  to
                  bring suit or otherwise commence any action or proceeding in the
                  name of
                  the Grantor, the Collateral Agent or otherwise, in the Collateral
                  Agent's
                  sole discretion, to enforce any Intellectual Property, in which
                  event such
                  Grantor shall, at the request
                  of
                  the Collateral Agent, do any and all lawful acts and execute any
                  and all
                  documents required by the Collateral Agent in aid of such enforcement
                  and
                  such Grantor shall promptly, upon demand, reimburse and indemnify
                  the
                  Collateral Agent as provided in the Transaction Documents in connection
                  with the exercise of its rights under this Section, and, to the
                  extent
                  that the Collateral Agent shall elect not to bring suit to enforce
                  any
                  Intellectual Property as provided in this Section, the Grantor
                  agrees to
                  use all reasonable measures, whether by action, suit, proceeding
                  or
                  otherwise, to prevent the infringement of any of the Intellectual
                  Property
                  by others and for that purpose agrees to diligently maintain any
                  action,
                  suit or proceeding against any Person so infringing as shall be
                  necessary
                  to prevent such infringement;

              

      

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      
        	(ii)  	
                upon
                  written demand from the Collateral Agent, the Grantor shall grant,
                  assign,
                  convey or otherwise transfer to the Collateral Agent all of such
                  Grantor's
                  right, title and interest
                  in
                  and to the Intellectual Property and shall execute and deliver
                  to the
                  Collateral Agent such documents as are necessary or appropriate
                  to carry
                  out the intent and purposes of this Agreement;

              

      

       

      
        	(iii)  	
                the
                  Grantor agrees that such an assignment and/or recording shall be
                  applied
                  to reduce the Secured Obligations outstanding only to the extent
                  that the
                  Collateral Agent receives cash proceeds or the equivalent in respect
                  of
                  the sale of, or other realization upon, the Intellectual Property;
                  

              

      

       

      
        	(iv)  	
                within
                  five (5)
                  business days after written notice from the Collateral Agent, the
                  Grantor
                  shall make available to the Collateral Agent, to the extent within
                  such
                  Grantor's power and authority, such personnel in such Grantor's
                  employ on
                  the date of such Event of Default as the Collateral Agent may reasonably
                  designate, by name, title or job responsibility, to permit such
                  Grantor to
                  continue, directly or indirectly, to produce, advertise and sell
                  the
                  products and services
                  sold or delivered by such Grantor under or in connection with the
                  Trademarks, Trademark Licenses, such persons to be available to
                  perform
                  their prior functions on the Collateral Agent's behalf and to be
                  compensated by the Collateral Agent at such Grantor's expense on
                  a per
                  diem, pro-rata basis consistent with the salary and benefit structure
                  applicable to each as of the date of such Event of Default;
                  

              

      

       

      
        	(v)  	
                the
                  Collateral Agent shall have the right to notify, or require the
                  Grantor to
                  notify, any obligors
                  with respect to amounts due or to become due to such Grantor in
                  respect of
                  the Intellectual Property, of the existence of the security interest
                  created herein, to direct such obligors to make payment of all
                  such
                  amounts directly to the Collateral Agent, and, upon such notification
                  and
                  at the expense of such Grantor, to enforce collection of any such
                  amounts
                  and to adjust, settle or compromise the amount or payment thereof,
                  in the
                  same manner and to the same extent as such Grantor might have
                  done;

              

      

       

      
        	(vi)  	
                all
                  amounts and proceeds (including checks and other instruments) received
                  by
                  the Grantor in respect of amounts due to such Grantor in respect
                  of the
                  Collateral or any portion thereof shall be received in trust for
                  the
                  benefit of the Collateral Agent hereunder, shall be segregated
                  from other
                  funds of such Grantor and shall be forthwith paid over or delivered
                  to the
                  Collateral Agent in the same form as so received (with any necessary
                  endorsement)
                  to
                  be held as cash Collateral and applied then or at any time against
                  the
                  Secured Obligations then due and owing;
                  and

              

      

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      (b)  the
        Grantor shall
        not, without the prior written consent of the Collateral Agent, adjust, settle
        or compromise the amount or payment of any such amount or release wholly
        or
        partly any obligor with respect thereto or allow any credit or discount thereon.
        If
        (i) an
        Event of Default shall have occurred and, by reason of cure, waiver,
        modification, amendment or otherwise, no longer be continuing, (ii) no other
        Event of Default shall have occurred and be continuing, (iii) an assignment
        or
        other transfer to the Collateral Agent of any rights, title and interests
        in and
        to the Intellectual Property shall have been previously made other than in
        accordance with Section 4 of this Agreement, and (iv) the Secured Obligations
        shall not have become immediately due and payable according to the Credit
        Agreement, upon the written request of the Grantor, the Collateral Agent
        shall
        promptly execute and deliver to such Grantor, at such Grantor's sole cost
        and
        expense, such assignments or other transfer as may be necessary to reassign
        to
        such Grantor any such rights, title and interests as may have been assigned
        to
        the Collateral Agent as aforesaid, subject to any disposition thereof that
        may
        have been made by the Collateral Agent (in such event, the Collateral Agent
        shall deliver to the Grantor all of the funds or the equivalent, paid to
        Collateral Agent in consideration for any such disposition); provided, after
        giving effect to such reassignment, the Collateral Agent's security interest
        granted pursuant hereto, as well as all other rights and remedies of the
        Collateral Agent granted hereunder, shall continue to be in full force and
        effect; and provided further, the rights, title and interests so reassigned
        shall be free and clear of any Liens granted by or on behalf of the Collateral
        Agent and the Collateral Agents.

       

      Solely
        for the purpose of enabling the Collateral Agent to exercise rights and remedies
        under this Section 6 and at such time as the Collateral Agent shall be lawfully
        entitled to exercise such rights and remedies, the Grantor hereby grants
        to the
        Collateral Agent, to the extent it has the right to do so, an irrevocable,
        nonexclusive license (exercisable without payment of royalty or other
        compensation to such Grantor),
        subject, in the case of Trademarks, to sufficient rights to quality control
        and
        inspection in favor of such Grantor to avoid the risk of invalidation of
        said
        Trademarks, to use, operate under, license, or sublicense any Intellectual
        Property now owned or hereafter acquired by such Grantor, and wherever the
        same
        may be located, such license to terminate upon termination of this Agreement
        and
        the payment in full of the Secured Obligations.

       

      
        
          	SECTION
                  7. 	
                  COLLATERAL
                    AGENT.

                

        

      

       

      The
        Collateral Agent has been appointed to act as Collateral Agent hereunder
        by each
        Secured Party either pursuant to the Transaction Documents or by their
        acceptance of the benefits hereof. The Collateral Agent shall be obligated,
        and
        shall have the right hereunder, to make demands, to give notices, to exercise
        or
        refrain from exercising any rights, and to take or refrain from taking any
        action (including, without limitation, the release or substitution of
        Collateral),
        solely
        in accordance with this Agreement and the Credit Agreement. Without the written
        consent of the Collateral Agent that would be affected thereby, no amendment,
        modification, termination, or consent shall be effective if the effect thereof
        would release all or substantially all of the Collateral except as expressly
        provided herein. In furtherance of the foregoing provisions of this Section,
        each Secured Party, by its acceptance of the benefits hereof, agrees that
        it
        shall have no right individually to realize upon any of the Collateral
        hereunder, it being understood and agreed by such Secured Party that all
        rights
        and remedies hereunder may be exercised solely by the Collateral Agent for
        the
        benefit of each Secured Party in accordance with the terms of this Section.
        

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      
        
          	SECTION
                  8. 	
                  TERM
                    OF SECURITY INTEREST; TRANSFER OF SECURED
                    OBLIGATIONS.

                

        

      

       

      This
        Agreement shall create a continuing security interest in the Collateral and
        shall remain in full force and effect until the termination of the Credit
        Agreement, according to the terms therein, including without limitation the
        payment in full of all amounts due to the Lenders, by executing a Letter
        of
        Termination (as defined and attached thereto) ("Credit
        Termination"),
        be
        binding upon the Grantor, its successors and assigns, and inure, together
        with
        the rights and remedies of the Collateral Agent hereunder, to the benefit
        of the
        Collateral Agent and its successors, transferees and assigns. Upon a Credit
        Termination, this Agreement and all schedules and exhibits attached hereto,
        as
        may be amended from time to time, shall immediately and automatically be
        terminated, without any further action from the parties hereto. Without limiting
        the generality of the foregoing, each Secured Party may assign or transfer
        its
        rights hereunder to a Permitted Transferee and the Permitted Transferee shall
        thereupon become vested with all the benefits in respect thereof granted
        to the
        Secured Party herein or otherwise. Upon the payment in full of all Secured
        Obligations, the cancellation or termination of the commitments and any other
        contingent obligation included in the Secured Obligations, the security interest
        granted hereby shall automatically terminate hereunder and of record and
        all
        rights to the Collateral shall automatically and immediately revert to Grantor.
        Upon a Credit Termination, the Collateral Agent shall and hereby agree and
        undertakes, at Grantor's expense and immediately upon Grantor's request,
        to
        execute and deliver to Grantor such documents as Grantor shall reasonably
        request to evidence such termination. By executing this Agreement, the
        Collateral Agent and Grantor hereby agree and undertake that in the event
        that
        the Credit Agreement is terminated according to the terms therein, including
        without limitation the payment in full of all amounts due to the Lenders:
        (i)
        the security interest contemplated hereunder shall have no effect whatsoever,
        and will be null and void, (ii) Grantor shall maintain and/or revert all
        rights
        in the Collateral, and (iii) this Agreement and any Control Agreement shall
        be
        terminated and cancelled.

       

      
        
          	SECTION 9 . 	
                  STANDARD
                    OF CARE; COLLATERAL AGENT MAY
                    PERFORM

                

        

      

       

      The
        powers conferred on the Collateral Agent hereunder are solely to protect
        its
        interest in the Collateral and the interests of the Secured Parties and shall
        not impose any duty upon it to exercise any such powers. Except for the exercise
        of reasonable care in the custody of any Collateral in its possession and
        the
        accounting for moneys actually received by it hereunder, the Collateral Agent
        shall have no duty as to any Collateral or as to the taking of any necessary
        steps to preserve rights against prior parties or any other rights pertaining
        to
        any Collateral. The Collateral Agent shall be deemed to have exercised
        reasonable care in the custody and preservation of Collateral in its possession
        if such Collateral is accorded treatment substantially equal to that which
        the
        Collateral Agent accords its own property. Neither the Collateral Agent nor
        any
        of its directors, officers, employees or agents shall be liable for failure
        to
        demand, collect or realize upon all or any part of the Collateral or for
        any
        delay in doing so or shall be under any obligation to sell or otherwise dispose
        of any Collateral upon the request of the Grantor or otherwise. If the Grantor
        fails to perform any agreement contained herein, the Collateral Agent may
        itself
        perform, or cause performance of, such agreement, and the expenses of the
        Collateral Agent incurred in connection therewith shall be payable by the
        Grantor.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      
        
          	SECTION
                  10. 	
                  MISCELLANEOUS.

                

        

      

       

      10.1  Notices.
        Unless
        otherwise specifically provided herein, any notice or other communication
        herein
        required or permitted to be given to a Grantor or Collateral Agent, shall
        be
        sent pursuant to Section 9.10 of the Credit Agreement.

       

      10.2  Amendments
        and Waivers

       

      (a)  Consent.
        Except
        as
        provided for herein, no amendment or modification of this Agreement may be
        effective without the written consent of both the Grantor and the Collateral
        Agent. No waiver of any provision of this Agreement, or consent to any departure
        by the Grantor therefrom, shall in any event be effective without the written
        concurrence of the Collateral Agent.

       

      (b)  No
        Waiver; Remedies Cumulative.
        No
        failure or delay on the part of the Collateral Agent or Grantor in the exercise
        of any power, right or privilege hereunder or under any other Transaction
        Document shall impair such power, right or privilege or be construed to be
        a
        waiver of any default or acquiescence therein, nor shall any single or partial
        exercise of any such power, right or privilege preclude other or further
        exercise thereof or of any other power, right or privilege. All rights, powers
        and remedies existing under this Agreement and the other Transaction Documents
        are cumulative, and not exclusive of, any rights or remedies otherwise
        available. Any forbearance or failure to exercise, and any delay in exercising,
        any right, power or remedy hereunder shall not impair any such right, power or
        remedy or be construed to be a waiver thereof, nor shall it preclude the
        further
        exercise of any such right, power or remedy.

       

      10.3  Successors
        and Assigns.This
        Agreement shall be binding upon the parties hereto and their respective
        successors and assigns including all persons who become bound as debtor to
        this
        Agreement, Grantor shall not, without the prior written consent of the
        Collateral Agent, assign any right, duty or obligation hereunder.

       

      10.4  Independence
        of Covenants.All
        covenants hereunder shall be given independent effect so that if a particular
        action or condition is not permitted by any of such covenants, the fact that
        it
        would be permitted by an exception to, or would otherwise be within the
        limitations of, another covenant shall not avoid the occurrence of a Default
        or
        an Event of Default if such action is taken or condition exists.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      10.5  Survival
        of Representations, Warranties and Agreements.All
        representations, warranties and agreements made herein shall survive the
        execution and delivery hereof. 

       

      10.6  Severability.In
        case
        any provision in or obligation hereunder shall be invalid, illegal or
        unenforceable in any jurisdiction, the validity, legality and enforceability
        of
        the remaining provisions or obligations, or of such provision or obligation
        in
        any other jurisdiction, shall not in any way be affected or impaired
        thereby.

       

      10.7  Headings.Section headings
        herein are included herein for convenience of reference only and shall not
        constitute a part hereof for any other purpose or be given any substantive
        effect.

       

      10.8  Applicable
        Law.This
        agreement and the rights and obligations of the parties hereunder shall be
        governed by, and shall be construed and enforced in accordance with, the
        laws of
        the State of New York.

       

      10.9  Consent
        To Jurisdiction.All
        judicial proceedings brought against the Grantor arising out of this Agreement,
        may be brought in any state or federal court of competent jurisdiction in
        the
        State, county and city of New York. By executing and delivering this agreement,
        the Grantor, for itself and in connection with its properties, irrevocably
        accepts generally and unconditionally the nonexclusive jurisdiction and venue
        of
        such courts; waives any defense of forum non conveniens; agrees that service
        of
        all process in any such proceeding in any such court may be made by registered
        or certified mail, return receipt requested, to the applicable Grantor at
        its
        address provided in accordance with section 11.1; agrees that service as
        provided above is sufficient to confer personal jurisdiction over the applicable
        Grantor in any such proceeding in any such court, and otherwise constitutes
        effective and binding service in every respect; and agrees that the Collateral
        Agent retains the right to serve process in any other manner permitted by
        law or
        to bring proceedings against the Grantor in the courts of any other
        jurisdiction.

       

      10.10  WAIVER
        OF JURY TRIAL.EACH
        OF
        THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY
        TRIAL
        OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER. THE SCOPE
        OF
        THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT
        MAY
        BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
        INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER
        COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS
        WAIVER
        IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH
        HAS
        ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH
        WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH
        PARTY
        HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH
        ITS
        LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
        RIGHTS
        FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING
        THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A
        MUTUAL
        WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 11.10 AND EXECUTED
        BY EACH
        OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
        AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO. IN THE EVENT OF
        LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY
        THE
        COURT.

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      10.11  Counterparts.
        This
        Agreement may be executed in any number of counterparts, each of which when
        so
        executed and delivered shall be deemed an original, but all such counterparts
        together shall constitute but one and the same instrument.

       

      10.12  Effectiveness.This
        Agreement shall become effective upon the execution of a counterpart hereof
        by
        each of the parties hereto and receipt by Grantor and the Collateral Agent
        of
        written or telephonic notification of such execution and authorization of
        delivery thereof. 

       

      10.13  Entire
        Agreement. This
        Agreement and the other Transaction Documents embody the entire agreement
        and
        understanding between Grantor and the Collateral Agent and supersede all
        prior
        agreements and understandings between such parties relating to the subject
        matter hereof and thereof. Accordingly, the Transaction Documents may not
        be
        contradicted by evidence of prior, contemporaneous or subsequent oral agreements
        of the parties. There are no unwritten oral agreements between the
        parties.

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        the
        Grantor and the Collateral Agent have caused this Agreement to be duly executed
        and delivered by their respective officers thereunto duly authorized as of
        the
        date first written above.

       

      
        	 	 	 
	 	WINTEGRA
                INC.
	 
 	 
 	 
 
	 	By:  	/s/ Kobi Ben-Zvi
	 	
                
Name:

	 	Title: 

      
         

        
          	 	 	 
	 	
                  PLENUS
                    TECHNOLOGIES LTD.

                  as the Collateral Agent

                
	 
 	 
 	 
 
	 	By:  	/s/ Ruth Simha           /s/
                  Slomo
                  Karako
	 	
                  
Name:
	 	Title: 
                  Managing Partner       CFO

      

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        I

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

       

       

      INVESTMENT
        RELATED PROPERTY

       

      

       

      Pledged
        Stock: 

       

      
        	
                 

                Grantor

              	
                 

                Stock
                  Issuer

              	
                 

                Class
                  of Stock

              	
                 

                Certificated
                  (Y/N)

              	
                 

                Stock
                  Certificate No.

              	
                 

                Par
                  Value

              	
                 

                No.
                  of Pledged Stock

              	
                 

                %
                  of Outstanding Stock of the Stock Issuer

              
	Wintegra
                INC.	Wintegra
                LTD	Ordinary
                Shares	 	 	1
                NIS	
                1000
                  shares

              	100%

      

      

       

      Pledged
        LLC Interests:

       

      
        	
                 

                Grantor

              	
                 

                Limited
                  Liability Company

              	
                 

                Certificated
                  (Y/N)

              	
                 

                Certificate
                  No. (if any)

              	
                 

                No.
                  of Pledged Units

              	
                 

                %
                  of Outstanding LLC Interests of the Limited Liability
                  Company

              
	N/A	 	 	 	 	 

      

      

       

      Pledged
        Partnership Interests:

       

      
        	
                 

                Grantor

              	
                 

                Partnership

              	
                 

                Type
                  of Partnership Interests (e.g.,
                  general or limited)

              	
                 

                Certificated
                  (Y/N)

              	
                 

                Certificate
                  No.

                (if
                  any)

              	
                 

                %
                  of Outstanding Partnership Interests of the
                  Partnership

              
	 	 	 	 	 	 

      

      

       

      
        
          
            
              
              

            

            
              
                S-I-1

              

              
                

              

            

            
              
              

            

          

           

          Pledged
            Trust Interests:

        

      

       

      
        	
                 

                Grantor

              	
                 

                Trust

              	
                 

                Class
                  of Trust Interests

              	
                 

                Certificated
                  (Y/N)

              	
                 

                Certificate
                  No.

                (if
                  any)

              	
                 

                %
                  of Outstanding Trust Interests of the Trust

              
	N/A	 	 	 	 	 

      

       

       

      Pledged
        Debt:

       

      
        	
                 

                Grantor

              	
                 

                Issuer

              	
                 

                Original
                  Principal Amount

              	
                 

                Outstanding
                  Principal Balance

              	
                 

                Issue
                  Date

              	
                 

                Maturity
                  Date

              
	Wintegra
                INC.	Wintegra
                LTD	
                $250,000

              	
                $250,000

              	Feb
                23, 2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $550,000

              	
                $550,000

              	March
                15,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $500,000

              	
                $500,000

              	June
                21,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $22,500

              	
                $22,500

              	August
                17,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $500,000

              	
                $500,000

              	September
                21,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $600,000

              	
                $600,000

              	October
                19,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $380,000

              	
                $380,000

              	November
                22,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $400,000

              	
                $400,000

              	December
                26,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $1,750,000

              	
                $1,750,000

              	March
                27,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $2,200,000

              	
                $2,200,000

              	June
                25,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $10,400,000

              	
                $10,400,000

              	July
                24, 2000	None

      

      

       

      
        
          
          

        

        
          
            S-I-2

          

          
            

          

        

        
          
          

        

      

       

      Securities
        Account:

       

      
        	
                 

                Grantor

              	
                 

                Share
                  of Securities Intermediary

              	
                 

                Account
                  Number

              	
                 

                Account
                  Name

              
	N/A	 	 	 

      

      

       

      Commodities
        Accounts:

       

      
        	
                 

                Grantor

              	
                 

                Name
                  of Commodities Intermediary

              	
                 

                Account
                  Number

              	
                 

                Account
                  Name

              
	N/A	 	 	 

      

      

       

      Deposit
        Accounts:

       

      
        	
                 

                Grantor

              	
                 

                Name
                  of Depositary Bank

              	
                 

                Account
                  Number

              	
                 

                Account
                  Name

              
	N/A	 	 	 

      

      

       

      (B)

      Name
        of Grantor Date
        of Acquisition 
Description
        of Acquisition 

       

       

      
        
          
            
            

          

          
            
              S-I-3

            

            
              

            

          

          
            
            

          

        

      SCHEDULE
        II

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

       

      

       

      
        	Name of Grantor	 	Description of Letters of
                Credit

      

      

       

       

      
         

        
          
            
              
              

            

            
              
                S-II-1

              

              
                

              

            

            
              
              

            

          

        

      

      

      SCHEDULE
        III

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

       

       

      INTELLECTUAL
        PROPERTY

       

      
        	(a)  	
                Copyrights
                  - None

              

      

       

      
        	(b)  	
                Copyright
                  Licenses - None

              

      

       

      
        	(c)  	
                Patents
                  - None

              

      

       

      
        	(d)  	
                Patent
                  Licenses - None

              

      

       

      
        	(e)  	
                Trademarks
                  - None

              

      

       

      
        	(f)  	
                Trademark
                  Licenses - None

              

      

       

      
        	(g)  	
                Trade
                  Secret Licenses - None

              

      

       

      
        	(h)  	
                Intellectual
                  Property Matters - N/A

              

      

       

       

      
        
          
            
            

          

          
            
              S-III-1

            

            
              

            

          

          
            
            

        

      

      SCHEDULE
        IV

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

       

      

       

      
        	
                 

                Name
                  of Grantor

              	
                 

                Commercial
                  Tort Claims

              
	 	
                None

              

      

      

       

      
         

        
          
            
              
              

            

            
              
                S-IV-1

              

              
                

              

            

            
              
              

          

        

      

      Annex
        A

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

      
 

       

      CONTROL
        AGREEMENT FOR DEPOSIT ACCOUNTS

       

      

       

       

       

       

      
        
          
          

        

        
          ANNEX A-1

          
            

          

        

        
          
          

        

      

      

      

 

      Annex
        B

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

       

      
 

       

      CONTROL
        AGREEMENT FOR SECURITIES ACCOUNTS

       

      

       

       

       

      
 

      
        
          
            
            

          

          
            ANNEX B-1

            
              

            

          

          
            
            

Annex
            C

        

      

       

      PLEDGE
        SUPPLEMENT

       

      

       

      This
        PLEDGE
        SUPPLEMENT,
        dated
[mm/dd/yy],
        is
        delivered by [NAME
        OF NEW GRANTOR]
        a
[NAME
        OF STATE OF INCORPORATION] [Corporation]
        (the
        "New Grantor") pursuant to the Pledge and Security Agreement, dated as of
        [
        ], 2002
        (as it
        may be from time to time amended, restated, modified or supplemented, the
        "Security
        Agreement"),
        among
Wintegra,
        Inc.,
        and
[NAME
        OF COLLATERAL AGENT],
        as the
        Collateral Agent. Capitalized terms used herein not otherwise defined herein
        shall have the meanings ascribed thereto in the Security Agreement.

       

       

      New
        Grantor hereby confirms the grant to the Collateral Agent set forth in the
        Security Agreement of, and does hereby grant to the Collateral Agent, a security
        interest in all of New Grantor's right, title and interest in and to all
        Collateral to secure the Secured Obligations, in each case whether now or
        hereafter existing or in which New Grantor
        now has
        or hereafter acquires an interest and wherever the same may be located. From
        and
        after the date hereof, New Grantor shall be a "Grantor" for all purposes
        of the
        Security Agreement. New Grantor hereby makes all of the representations and
        warranties set forth in the Security Agreement. New Grantor represents and
        warrants that the attached Supplements to Schedules accurately and completely
        set forth all additional information required pursuant to the Security Agreement
        and hereby agrees that such Supplements to Schedules shall constitute part
        of
        the Schedules to the Security Agreement.

       

       

      IN
        WITNESS WHEREOF,
        New
        Grantor has caused this Pledge Supplement to be duly executed and delivered
        by
        its duly authorized officer as of [mm/dd/yy].

      
        	 	 	 
	 	 	 
	 	[NAME
                OF NEW GRANTOR]
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
	 	Title: 

      

      

       

      
        
          
            
              
              

            

            
              ANNEX
                C-1

              
                

              

            

            
              
              

            

          

        

      

    

     

    
       

      
        	 	 	
                [bank
                  leumi logo]

              

      

       

      ACCOUNT
        CONTROL AGREEMENT

      

      Date:
        July __, 2002

      

      PARTIES

      

      Plenus
        Technologies Ltd. as Collateral Agent for the Lenders parties pursuant to
        and as
        such terms are defined in the Agreement (hereinafter defined)
        (''Creditor'')

      Wintegra
        Inc. (“Customer'')

      Bank
        Leumi USA (''Bank'')

      562
        5th
        Avenue,
        New York, NY 10036 (''Banking Office'')

      

      BACKGROUND

      

      Customer
        hereby grants Creditor a security interest in accounts maintained by Bank
        for
        Customer and in all funds heretofore or hereafter deposited into that account,
        including any interest earned thereon. The Parties are entering into this
        agreement to perfect Creditor’s security interest in that account.

      

      
        
          	1.	
                  AGREEMENT

                

        

      

      
        	 	 

      

      
        
          	1.	
                  The
                    Account

                

        

      

      

      Bank
        represents and warrants to Creditor that Bank maintains accounts numbers:
        2200474202, 2200474218 and 0200474228 (collectively, the ''Account'')
        for
        Customer at the Banking Office and that, as of the date hereof, Bank does
        not
        know of any claim to or interest in the Account, except for claims and interests
        of the parties referred to in this agreement.

      

      
        
          	2.	
                  Control
                    of Account by Creditor

                

        

      

      

      a.  Bank,
        Customer and Creditor agree that Bank will comply with written instructions
        (''Orders'')
        originated by Creditor in the form attached hereto as Schedule
        2a,
        for the
        disposition of funds in the Account without further consent from Customer
        and
        without regard to any inconsistent or conflicting Orders given to Bank by
        Customer. Creditor hereby undertakes to deliver Customer with a copy of such
        Order simultaneously with the delivery of such Order to the Bank.

      

      b.  It
        is
        hereby clarified that for so long as Bank has not received an Order from
        Creditor, Customer shall be fully entitled and authorized to withdraw and
        deposit any and all funds available in the Account, subject to penalties
        for
        early withdraws of any time deposits.

      

      c.  
        Creditor
        agrees that before it attempts to give Bank any Orders concerning the Account,
        Creditor shall deliver to the Banking Office such documentation as Bank may
        from
        time to time reasonably request to evidence the authority of those partners,
        officers, employees or agents whom Creditor may designate to give
        Orders.

      

      
        
          	3.	
                  Priority
                    of Creditor’s Security Interest; Rights Reserved by the
                    Bank

                

        

      

      

      a.
         Bank
        agrees that all of its present and future rights against the Account are
        subordinate to Creditor's security interest therein; provided,
        however,
        that
        Creditor agrees that nothing herein subordinates or waives, and that Bank
        expressly reserves, all of its present and future rights (whether described
        as
        rights of setoff, banker's lien, chargeback or otherwise, and whether available
        to Bank under the law or under any other agreement between Bank and Customer
        concerning the Account, or otherwise) with respect to: (i) items deposited
        to
        the Account and returned unpaid, whether for insufficient funds or for any
        other
        reason, and without regard to the timeliness of return of any such items;
        (ii)
        checks paid, or other payment orders executed in good faith against uncollected
        funds in the Account provided Bank does not have reasonable cause to doubt
        the
        collectibility of such uncollected funds; (iii) claims of breach of the transfer
        or presentment warranties arising under the applicable Uniform Commercial
        Code
        made against Bank in connection with items deposited to the Account; (iv)
        Bank's
        usual and customary charges for services rendered in connection with the
        Account; and (v) liens in favor of the Bank, not to exceed US$ 50,000, to
        secure
        the Loan (as defined below).

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      b.
         Except
        as
        otherwise required by law, Bank will not agree with any third party that
        Bank
        will comply with Orders originated by such third party.

      

      
        
          	4.	
                  Statements;
                    Notices of Adverse Claims

                

        

      

      

      Bank
        may
        disclose to Creditor such information concerning the Account as Creditor
        may
        from time to time reasonably request; provided,
        however,
        that
        Bank shall have no obligation to disclose to Creditor any information which
        Bank
        does not ordinarily make available to its depositors. Bank will use reasonable
        efforts promptly to notify Creditor and Customer if any other person claims
        that
        it has a property interest in the Account. It is hereby acknowledged by the
        parties hereto that Customer shall be entitled to record a first priority
        lien
        of certain assets to be purchased under a bill of sale, in favor of the Bank,
        in
        the amount of up to $50,000, which may be provided to Customer as a loan
        from
        the Bank (the "Loan").

      

      
        
          	5.	
                  Bank's
                    Responsibility

                

        

      

      

      a.  Except
        for permitting a withdrawal in violation of section 2, above, Bank will not
        be
        liable to Creditor for complying with Orders from Customer that are received
        by
        Bank before Bank receives and has had a reasonable opportunity to act on
        a
        contrary Order from Creditor.

      

      b.  Bank
        will
        not be liable to Customer for complying with Orders originated by Creditor,
        even
        if Customer notifies Bank that Creditor is not legally entitled to issue
        Orders,
        unless Bank takes the action after it is served with an injunction, restraining
        order or other legal process enjoining it from doing so, issued by a court
        of
        competent jurisdiction, and has had a reasonable opportunity to act on the
        injunction, restraining order or other legal process.

      

      c.  This
        agreement does not create any obligation of Bank except for those expressly
        set
        forth in this agreement. In particular, Bank need not investigate whether
        Creditor is entitled under Creditor's agreements with Customer to give Orders.
        Bank may rely on notices and communications it believes are given by the
        appropriate party.

      

      
        	6.	
                Indemnity

              

      

      

      Creditor
        and Customer will indemnify Bank, its officers, directors, employees, and
        agents
        against claims, liabilities, and expenses arising out of this agreement
        (including reasonable attorneys' fees and disbursements), except to the extent
        the claims, liabilities, or expenses are caused by Bank's gross negligence
        or
        willful misconduct. Creditor's and Customer's liability under this section
        is
        several and not joint.

      

      
        	7.	
                Termination;
                  Survival

              

      

       

      a.   This
        Agreement and
        the obligations of the Bank to the Creditor pursuant to this Agreement shall
        be
        in effect as of the date hereof and shall be terminated immediately upon
        the
        receipt by the Bank of a Notice of Termination, in the form attached hereto
        as
Schedule
        7,
        duly
        executed by both Customer and Creditor.

       

      b.   The
        termination of this
        Agreement shall not terminate the Account or alter the obligations of the
        Bank
        to the Customer pursuant to any other agreement with respect to the Account.
        

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      c.
        Upon
        the termination of this Agreement, Creditor shall have no further right to
        originate Orders concerning the Account, and Bank shall take such steps as
        Customer may reasonably request to vest full ownership and control of the
        Account, with Customer, including, but not limited to, transferring all of
        the
        assets in the Account, to other account(s) in the name of Customer, its
        designees or affiliates.
        

      

      d.
        Sections 5, "Bank's Responsibility," and 6, "Indemnity," will survive
        termination of this agreement.

      

      
        	8.	
                Governing
                  Law

              

      

      

      This
        agreement and the Account will be governed by the laws of the State of New
        York.
        Bank may not change the law governing the Account without Creditor's express
        written agreement, which consent shall not be unreasonably
        withheld.

      

      
        	9.	
                Entire
                  Agreement

              

      

      

      This
        agreement is the entire agreement and supersedes any prior agreements and
        contemporaneous oral agreements of the parties concerning its subject
        matter.

      

      
        
          	10.	
                  Amendments

                

        

      

      

      No
        amendment of, or waiver of a right under, this agreement will be binding
        unless
        it is in writing and signed by the party to be charged.

      

      
        
          	11.	
                  Severability

                

        

      

      

      To
        the
        extent a provision of this agreement is unenforceable, this agreement will
        be
        construed as if the unenforceable provision were omitted.

      

      
        
          	12.	
                  Other
                    Agreements

                

        

      

      

      For
        so
        long as this agreement remains in effect, transactions involving the Account
        shall be subject, except to the extent inconsistent herewith, to the provisions
        of such demand-deposit account agreements, disclosures, and fee schedules
        as are
        in effect from time to time for accounts like the Account.

      

      
        
          	13.	
                  Successors
                    and Assigns

                

        

      

      

      The
        provisions of this agreement shall be binding upon and inure to the benefit
        of
        Bank, Creditor and Customer and their respective successors and
        assigns.

      

      
        
          	14.	
                  Notices

                

        

      

      

      A
        notice
        or other communication to a party under this agreement will be in writing
        and
        will be sent to the party's address set forth below or to such other address
        as
        the party may notify the other parties, and will be effective on
        receipt.

      

      
        
          	15.	
                  Counterparts

                

        

      

      

      This
        agreement may be executed in counterparts, each of which shall be an original,
        and all of which shall constitute but one and the same instrument.

      

      The
        foregoing is hereby acknowledged and agreed to, effective as of the last
        of the
        dates set forth below.

      
 

      [Remainder
        page intentionally left blank]

      
 

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Signatures
        page –
        Account Control Agreement – June
        2002

      

      

      
        
          	Jacob
                  Ben-Zvi
	(Customer)	 
	 	 
	Address:	 7200
                  N      Expy
	 	 
	 	 Suite
                  270, Austin TX 7831
	 	 
	Facsimile:	 512-345-3828
	 	 
	Telephone:	 512-345-3808
	 	 
	Date:	 June
                  4, 2002
	 	 
	 	 
	 	 PLENUS
                  TECHNOLOGIES LTD.
	(Creditor)	 
	 	 
	By:	
                   /s/
                    R. Simha /s/ Shlomo Karako

                
	 	 
	Name:	 Ruth
                  Simha / Shlomo Karako
	 	 
	Title:	 Managing
                  Partner / CFO
	 	 
	Address:	 16
                  Hagalim Avenue
	 	 
	 	 Herzlia
                  Pituson, Israel
	 	 
	Facsimile:	 972-9-957-8770
	 	 
	Telephone:	 972-9-957-4944
	 	 
	Date:	 

        

         

         

        
          	
                  Bank
                    Leumi USA

                	 
	(Bank)	 
	 	 
	/s/
                  Howard Kramer	 
                  /s/ Rafael Siso
	By: Howard Kramer 	 Rafael Siso 
	 	 
	Name: Howard Kramer 	 Rafael Siso 
	 	 
	Title: Vice President 	 First Vice
                  President

        

      

       

      Address: 562
        5th
        Avenue,
        New York, NY 10036

      (Banking
        office)

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      Signatures
        page –
        Account Control Agreement – May
        2002

      

      
 

      Facsimile: 212-626-1072
        

      (Banking
        office)

      

      

      Telephone: 212-626-1055
        

      (Banking
        office)

      

      

      Date: 
        August 6, 2002

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      Schedule
        2a

      Date:
        __________________

      

      Bank
        Leumi USA

      562
        5th
        Avenue,

      New
        York,
        NY 10036

      

      

      Re:
        Wintegra
        Inc. –
        Default Order

      

      Dear
        Sirs,

      

      This
        is
        to certify that due to an Event of Default (as such term is defined in that
        certain Pledge and Security Agreement between Customer and Creditor, dated
        May
        __, 2002 (the "Security
        Agreement"))
        which
        has occurred and was not cured according to the Security Agreement, you are
        hereby given an Order (as such term is defined in that certain Account Control
        Agreement dated May __, 2002) to cease complying with orders or instructions
        originated by Customer concerning the Account.

      

      Furthermore,
        you are hereby instructed to comply with the following actions within the
        Account:

      

       

      
        	1.  	
                Cease
                  any transfer or withdrawing of funds out of the
                  Account.

              

      

       

      
        	2.  	
                Effect
                  the transfer of US$ ____________ to the Creditor, out of the funds
                  available within the Account [such
                  amount shall not be less than US$ 250,000].

              

      

       

      
        	 	 	 
	 	Sincerely,
	 	 
	 	Plenus Technologies Ltd.
	 
 	 
 	 
 
	 	By:  	 
	 	 	
                
 
	 	Title:	 
	 	 	
                
 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      Schedule
        7

       

       

      
        	Plenus Technologies Ltd.  	 	
                Date_________

              

      

      

          

      Re:
        Notice
        of Termination (the “Letter”)

       

      Dear
        Sirs:

       

       

      In
        accordance with Section 2.4 of the Loan Agreement between Plenus Technologies
        Ltd. ( “Plenus”)
        and
        among other with Wintegra Inc. (the “Company”),
        dated
        May __, 2002 (the “Agreement”),
        we,
        the Company, hereby provide Plenus with notice to terminate the Loan Agreement
        pursuant to its terms (including all of its schedules, exhibits and annexes
        with
        the exception of the Warrant).

       

      On
        or
        prior to the date hereof, we repaid to Plenus the outstanding Principal Amount
        and all accrued Interest (as defined in the Agreement) thereon. Accordingly,
        Plenus has no further rights of any kind in the Company, except as specified
        below, and shall relieve the Company from any of its obligations under the
        Loan
        Agreement and all of its schedules, exhibits and annexes, except as specified
        below. 

       

      We
        hereby
        acknowledge that the termination of the Agreement (including all of its
        schedules, exhibits and annexes with the exception of the Warrant) in accordance
        with this notice of termination is subject to Plenus’ confirmation that on or
        prior to the date herein, we have repaid the Principal Amount and all accrued
        Interest (as defined in the Loan Agreement) thereon; Concurrently with the
        execution of its acceptance of this letter, Plenus shall execute any documents
        necessary to cancel the floating charge recorded with the Registrar of Companies
        in Israel and the UCC Pledge. 

       

      We
        are
        aware further that this Termination Letter shall not be construed to derogate
        in
        any manner whatsoever, from Plenus’ rights in accordance with the Warrant issued
        to Plenus on April ___, 2002 and the reporting and notice rights of Plenus
        under
        Section 5 of the Loan Agreement, and the
        obligations of the Company to indemnify Plenus in Section 4 of the Agreement
        will survive this Letter until all statutes of limitations for actions that
        may
        be brought against Plenus have expired
        which
        shall survive the termination of the Loan Agreement in accordance with its
        terms.

       

      
        	 	 	 
	 	Sincerely,
	 	 
	 	Wintegra Inc.
	 	 	 
	 	By:  	 
	 	
                

              
	
                Agreed and accepted:

                 

                 

              	 
	
                
                  

                

                 

              	 
	
                Plenus Technologies Ltd.

              	 

      

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

     

    Exhibit
      C1

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
  

    Exhibit
      C2

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      D1

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      UNANIMOUS
        WRITTEN CONSENT OF

      THE
        BOARD OF DIRECTORS 

      OF
        WINTEGRA, INC.

      

       

      June
        4th, 2002

      

      The
        undersigned, being all of the directors of Wintegra, Inc., a Delaware
        corporation (the “Corporation”),
        hereby approve and adopt the following preambles and resolutions by written
        consent pursuant to Section 141(f) of the Delaware General Corporation Law
        (“DGCL”):

       

      WHEREAS,
        the Corporation wishes to enter into a Loan Agreement ("Loan
        Agreement")
        with
        Plenus Technologies Ltd., Citibank and other lenders listed therein (the
        substantial form of which is attached hereto as Exhibit
        A),
        under
        which the Corporation shall be entitled to a certain Credit Facility (as
        defined
        below), according to the terms and conditions set forth in the Loan Agreement
        and exhibits attached thereto; and

      

      WHEREAS,
        the Board believes that it is in the best interests of the Corporation to allow
        and enable the consummation of said Credit Line transaction; and

       

      WHEREAS,
        in order to enable such Credit Facility transaction, the Corporation is required
        to (i) adopt and amend the Restated Certificate of Incorporation of the
        Corporation in the form of the Fourth Restated and Amended Certificate of
        Incorporation attached hereto as Exhibit
        B
        and
        incorporated herein by this reference (the “Fourth
        Certificate”)
        in
        order to permit the Board to issue such amount of warrants to purchase Preferred
        B Stock of the Corporation as designated in the Loan Agreement; (ii) adopt
        and
        execute the Pledge Agreement substantially in the form attached hereto as
        Exhibit
        C
        (“Pledge
        Agreement”);
        and
        (iii) adopt and execute the Account Control Agreement substantially in the
        form
        attached hereto as Exhibit
        D
        (“Control
        Agreement”).

      

      

      It
        was unanimously resolved:

       

      	1.  	
              To
                obtain a revolving credit facility of an aggregate amount of up to
                US$
                5,000,000 (the “Credit
                Facility”)
                from Plenus Technologies Ltd. (“Plenus”)
                and Citibank N.A., Tel Aviv Branch (“Citibank”).

            

       

      	2.  	
              To
                enter and execute the Loan Agreement including all schedules, exhibits
                and
                annexes thereto with Plenus and Citibank.

            

       

      	3.  	
              As
                security for the Credit Facility, to create in favor of Plenus, Citibank
                and Bank Leumi Le Israel B.M., a first priority UCC pledge over the
                assets
                and property of the Company, in accordance with the Pledge Agreement,
                including certain collateral control under Company's account with
                bank
                Leumi of New York, as set forth in the Control
                Agreement.

            

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      	4.  	
              To
                issue a warrant (the “Warrant”)
                to Plenus to purchase the Company’s Preferred B Stock (as designated in
                the Warrant) in an aggregate amount of up to US$ 1,500,000, at an
                exercise
                price of US$ 2.75656 per share, all in accordance with the terms
                and
                conditions of the Warrant attached hereto as Exhibit
                E
                ("Warrant
                Shares")
                and to issue the underlying Warrant Shares upon exercise of the Warrant
                in
                accordance with the terms and conditions of the
                Warrant.

            

       

      	5.  	
              To
                reserve a sufficient number of Warrant Shares from the share capital
                of
                the Company to be issued to Plenus upon the exercise of the Warrant
                in
                accordance with its terms.

            

       

      	6.  	
              To
                authorize Mr. Jacob Ben-Zvi to execute, on behalf of the Company,
                the Loan
                Agreement, the Schedules and Exhibits attached thereto, and any other
                document or filing necessary in order to implement the resolutions
                above.

            

       

      	7.  	
              To
                authorize Mr. Jacob Ben-Zvi to disburse, on behalf of the Company,
                any
                portion of the Credit Facility, at his sole discretion and in accordance
                with the Loan Agreement.

            

       

      	8.  	
              That
                the Board hereby calls for a stockholders meeting and recommends
                and
                advises the adoption of the Fourth Certificate which is thereafter
                to be
                submitted with the Secretary of the State of Delaware as the Corporation’s
                Fourth Restated and Amended Certificate of
                Incorporation.

            

       

      	9.  	
              That
                the officers of the Corporation or any of them be, and they hereby
                are,
                directed to take any and all actions necessary or desirable in order
                to
                cause the Certificate to become effective under the DGCL and other
                applicable law, such officers or any of them being specifically hereby
                directed to file the Third Certificate with the Secretary of State
                of the
                State of Delaware following such approval and adoption.
                

            

      

      

      This
        Unanimous Written Consent of the Board of Directors, which may be executed
        in
        counterparts, each being deemed an original but all of which together shall
        be
        deemed one and the same instrument, dated as of the first date set forth
        above,
        shall be filed with the minutes of the proceedings of the Board and shall
        have
        the same force and effect as if approved and adopted at a duly noticed and
        scheduled meeting of the Board.

      

      

      

      
        	 	 	 
	
                Jacob
                  Ben Zvi

                 

              	 	
                Matty
                  Carp

              
	 	 	 
	
                Robert
                  O'dell

                 

              	 	
                Ron
                  Yachini

              
	 	 	 
	
                Amos
                  Weiss

              	 	
                Zvika
                  Limon

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Exhibit
      D2

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      Wintegra
        Ltd.

       

      No.
        51-290107-5

      (the
        “Company”)

      

      Unanimous
        Written Resolution of the Board of Directors of the Company

      

      Dated June
        4th, 2002

      

      The
        undersigned being all the directors of the Company, hereby consent to the
        following resolutions in lieu of a meeting in accordance with Articles 102
        of
        the Articles of Association of the Company.

      

      It
        was unanimously resolved:

       

      	1.  	
              To
                enter and execute the Loan Agreement including all schedules, exhibits
                and
                annexes thereto (the “Loan
                Agreement”)
                with Plenus Technologies Ltd. (“Plenus”)
                and Citibank N.A., Tel Aviv Branch (“Citibank”),
                in the form attached hereto as Schedule
                A.

            

       

      	2.  	
              As
                security for the revolving credit facility of an aggregate amount
                of up to
                US$ 5,000,000 (the “Credit
                Facility”)
                provided to Wintegra Inc., to create in favor of Plenus, Citibank
                and Bank
                Leumi Le Israel B.M., a first ranking floating charge over the assets
                and
                property of the Company, in accordance with the Floating Charge Agreement
                attached hereto as Schedule
                B.

            

       

      	3.  	
              To
                authorize Mr. Jacob Ben-Zvi to execute, on behalf of the Company,
                Schedules A, B and any other document or filing necessary in order
                to
                implement the resolutions above. Mr. Ben-Zvi shall discretionally
                revise,
                prepare and adjust any documents required in order to consummate
                and
                effect the Credit Facility set forth in the Loan Agreement and the
                exhibits attached thereto. 

            

      

       

      

      
        	 	 	 
	
                Jacob
                  Ben Zvi

              	 	
                Matty
                  Carp

              
	 	 	 
	 	 	 
	
                Robert
                  O'dell

              	 	
                Ron
                  Yachini

              
	 	 	 
	 	 	 
	
                Amos
                  Weiss

              	 	
                Zvika
                  Limon

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      Schedule
        A

      

      Loan
        Agreement

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Schedule
        B

      

      Floating
        Charge Agreement

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    Exhibit
      E

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      F

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      June
        2,
        2002

      To:

      Plenus
        Technologies Ltd.

      Citibank
        N.A.

      

      Re:
        Wintegra
        Ltd. and Wintegra Inc.

      

      Dear
        Sirs,

      

      We
        have
        acted as Israeli counsels to Wintegra Inc., a corporation duly
        incorporated under the laws of Delaware, USA (the
        "Company"),
        and
        Wintegra Ltd., a company duly incorporated under the laws of Israel
        ("Wintegra
        Israel"),
        in
        connection with a loan transaction by and between the Company, Wintegra Israel,
        Plenus Technologies Ltd., and Citibank N.A., including a Loan Agreement (the
        "Loan
        Agreement"),
        Floating Charge Agreement (the "Floating
        Charge Agreement"),
        Pledge Agreement (the “Pledge
        Agreement”),
        and a
        Warrant (the "Warrant")
        (the
        Loan Agreement including all of its exhibits, schedules and annexes, the
        Floating Charge Agreement, the Pledge Agreement and the Warrant shall be
        referred to herein as the “Transaction
        Documents”).
        All
        capitalized terms as used herein shall have the meaning ascribed to them
        in the
        Transaction Documents, unless otherwise specifically stated in this Opinion
        Letter. This opinion is being rendered to you pursuant to Section 1.5(vi)
        of the
        Loan Agreement.

      

      In
        furnishing this opinion we have reviewed the Transaction Documents, including
        all exhibits and schedules thereto, the Third Restated Certificate of
        Incorporation of the Company and all amendments thereto (collectively, the
        "Corporate
        Documents"),
        the
        corporate records, and all other documents of the Company which we deemed
        necessary or appropriate.

      

      In
        all
        such reviews, we have assumed the due execution and delivery of documents
        by the
        parties thereto (pursuant to due authorization), the genuineness of all
        signatures, the authenticity and completeness of all documents submitted
        to us
        as originals, the conformity to original documents of documents submitted
        to us
        as certified or photostatic copies, the authenticity of the originals of
        such
        latter documents and the legal capacity of all signatories to such
        documents.

      

      As
        to
        factual matters which are not within our knowledge, we have relied upon the
        representations by the Company and Wintegra Israel as to certain factual
        matters, and have made no independent checks or verification of such factual
        matters. Except as expressly set forth in this opinion, we have not undertaken
        any independent investigation to determine the existence or absence of such
        facts. We have not examined any records of any court, administrative tribunal
        or
        other similar entity in connection with our opinions expressed herein. Except
        to
        the extent expressly set forth herein or as we otherwise believe to be necessary
        to our opinion, we have not undertaken any independent investigation to
        determine the existence or absence of any fact, and no inference as to our
        knowledge of the existence or absence of any fact should be drawn from our
        representation of the Company or the rendering of the opinion set forth below.
        Whenever our opinions herein are indicated to be based on "our knowledge",
        it is
        intended to signify that during the course of our engagement in connection
        with
        the transactions referred to herein, no information has come to our attention
        that would give us actual knowledge of the existence or absence of such facts,
        and such expression refers to the current actual knowledge of the attorneys
        of
        this firm who have worked on matters for the Company. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      We
        are
        admitted to practice in the State of Israel and are not admitted to practice
        in
        the State of Delaware. However, for the limited purpose of this opinion,
        we are
        generally familiar with the laws of the State of Delaware, including the
        Delaware General Corporation Law as it relates to corporate formalities,
        all as
        presently in effect. This opinion is limited to the laws of the State of
        Israel
        and, to the limited extent set forth above, the laws of the State of Delaware
        as
        such laws presently exist and to the facts as they presently presented. We
        express no opinion with respect to the effect or the applicability of the
        laws
        of any other jurisdiction.

      

      With
        respect to certain matters within this opinion, we have relied upon the legal
        opinions of Eitan, Pearl, Latzer & Cohen-Zedek dated April 9th,
        2001,
        and the legal opinion of Gray Cary Ware & Freidenrich, LLP, dated April
        9th,
        2001,
        as issued with respect to the latest equity investment in the Company.

      

      Our
        opinions below are further subject to the following qualifications and
        exceptions:

      

      (i) the
        effect of bankruptcy, insolvency, reorganization, arrangement, moratorium
        or
        other similar laws relating to or affecting the rights of creditors generally,
        including, without limitation, laws relating to fraudulent transfers or
        conveyances, preferences and equitable subordination;

      

      (ii) the
        effect of foreign laws, judicial determinations or governmental actions
        affecting creditors' rights or the Company's performance of its obligations
        under the Transaction Documents;

      

      (iii) limitations
        imposed by general principles of equity upon the availability of equitable
        remedies or the enforcement of provisions of any documents referred to herein
        and the effect of judicial decisions which have held that certain provisions
        are
        unenforceable where their enforcement would violate the implied covenant
        of good
        faith and fair dealing, or would be commercially unreasonable, or where their
        breach is not material; and

      

      (iv) our
        opinions expressed herein are based upon current statutes, rules, regulations,
        cases and official interpretive opinions which, in our experience, are normally
        applicable to the type of transaction provided for in the
        Agreement.

      

      Except
        as
        otherwise indicated, our opinions expressed herein are rendered as of, and
        are
        based upon the facts in existence and known to us on the date
        hereof.

       

      Based
        on
        the foregoing, and subject to the foregoing, and subject to the limitations
        set
        forth below, we are of the opinion that as of the date hereof:

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      1.  The
        Company is a corporation duly incorporated and validly existing under the
        laws
        of the State of Delaware USA for an unlimited duration. 

       

      2.  Wintegra
        Israel is a company duly incorporated and validly existing under the laws
        of the
        State of Israel for an unlimited duration.

       

      3.  The
        Company has the corporate power under its Third Restated Certificate of
        Incorporation to enter into each of the Transaction Documents, to issue and
        sell
        the Warrant Shares (as defined in the Warrant), and to carry out and perform
        its
        obligations under the terms of the Transaction Documents.

       

      4.  Wintegra
        Israel has the corporate power under its Articles of Association to enter
        into
        each of the Transaction Documents and to carry out and perform its obligations
        under the terms of the Transaction Documents.

       

      5.  The
        execution of the Transaction Documents by the Company and the performance
        of its
        obligations thereunder, to our knowledge do not conflict with or result in
        a
        breach of any of the terms or provisions of any agreement or other obligation
        to
        which the Company is a party, or by which it or its properties are
        bound.

       

      6.  The
        execution of the Transaction Documents by Wintegra Israel and the performance
        of
        its obligations thereunder, to our knowledge do not conflict with or result
        in a
        breach of any of the terms or provisions of any agreement or other obligation
        to
        which Wintegra Israel is a party, or by which it or its properties are
        bound.

       

      7.  Each
        of
        the Transaction Documents has been duly authorized by all requisite corporate
        action on the part of the Company and Wintegra Israel and has been duly executed
        and delivered by authorized signatories.

       

      8.  Each
        of
        the Transaction Documents constitutes a legal, valid and binding obligation
        of
        the Company, enforceable against the Company and Wintegra Israel.

       

      9.  The
        Warrant has been duly authorized, validly issued and is nonassessable and
        to our
        knowledge, the Warrant Shares when issued shall be duly authorized, validly
        issued, fully paid and non-assessable.

       

      10.  The
        execution and delivery by the Company of, and the performance by the Company
        of
        its obligations in each of the Transaction Documents do not violate applicable
        provisions of corporate statutory law or regulation, rule, order or decree
        of
        any competent Authority in Delaware applicable to the Company.

       

      11.  The
        execution and delivery by Wintegra Israel of, and the performance by Wintegra
        Israel of its obligations in each of the Transaction Documents do not violate
        applicable provisions of corporate statutory law or regulation, rule, order
        or
        decree of any competent Authority in the State of Israel applicable to Wintegra
        Israel. 

       

      12.  To
        the
        best of our knowledge, no authorizations, consents or approvals are required
        from any governmental authorities or agencies or other official bodies in
        Delaware in connection with the execution or delivery of the Transaction
        Documents or the performance by the Company of its obligations thereunder,
        other
        than the approvals applied for and received by the Company, as specified
        in
        Exhibit E of the Loan Agreement.

       

      13.  To
        the
        best of our knowledge, no authorizations, consents or approvals are required
        from any governmental authorities or agencies or other official bodies in
        the
        State of Israel in connection with the execution or delivery of the Transaction
        Documents or the performance by Wintegra Israel of its obligations thereunder.
        

       

      This
        opinion is rendered only to you and is solely for your benefit in connection
        with the Agreement. This opinion may not be relied upon by you for any other
        purpose; nor may this opinion be provided to, quoted to or relied upon by
        any
        other person or entity for any purpose without our prior written
        consent.

      

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

     

    UNANIMOUS
      WRITTEN CONSENT OF

    THE
      STOCKHOLDERS OF

    WINTEGRA,
      INC.

    

    June
      4th, 2002

    

    The
      undersigned, being the stockholders of Wintegra, Inc., a Delaware corporation
      (the “Corporation”),
      hereby approve and adopt the following preambles and resolutions by written
      consent pursuant to Section 228 of the Delaware General Corporation Law and
      Section 1.9 of the Corporation’s Bylaws:

     

    WHEREAS,
      the Board of Directors of the Corporation (the “Board”)
      has
      determined it to be in the best interests of the Corporation to approve and
      execute a certain loan agreement, between the Corporation and certain lenders
      named therein (the "Lenders"),
      providing the Corporation a credit facility of up to US$ 5,000,000, all as
      more
      detailed in the loan agreement, substantially in the form attached hereto as
      Exhibit
      A
      ("Loan
      Agreement")
      ; and

     

    WHEREAS,
      under said Loan Agreement, the Corporation is required to amend the Third
      Restated and Amended Certificate of Incorporation of the Corporation,
      substantially in the form of the Fourth Restated and Amended Certificate of
      Incorporation (the “Fourth
      Certificate”)
      attached hereto as Exhibit
      B,
      increasing the authorized share capital of the Corporation, in order to permit
      the Board to issue the Lenders, upon the consummation of the Loan Agreement,
      a
      warrant to purchase the initial amount of 145,108 shares of Series B Preferred
      Stock par value US$ 0.001 each ("Preferred
      B Stock"),
      and
      additional amount of up to 399,048 Preferred B Stock, subject to the terms
      set
      forth in said warrant (the "Warrant"),
      as
      more detailed in the Warrant, attached hereto as Exhibit
      C.
      Upon
      exercise, the Preferred B Stock issuable thereof, shall have the rights,
      preferences, designations and qualifications set forth in said Fourth
      Certificate.

     

    RESOLVED,
      that the Fourth Certificate, together with any changes thereto as the executive
      officers of the Corporation or any of them deem necessary or desirable as
      conclusively indicated by any such officer’s execution and filing thereof, be,
      and hereby is, approved, ratified and adopted by the stockholders of the
      Corporation in all respects; and further

     

    RESOLVED,
      that upon the execution of the Loan Agreement and all agreements, amendments
      and
      other documents, as the Board may deem fit, and all the transactions
      contemplated thereby, all actions taken by the Board or officers in furtherance
      thereof, including the issuance of said Warrants, be, and they hereby are,
      approved and adopted in all respects.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    WHEREAS,
      upon the exercise of said Warrants according to the terms and conditions
      contemplated therein, Lenders shall be holders of shares of Series B Preferred
      Stock of the Corporation; and

    

    WHEREAS,
      the Warrant provides that upon exercise, the Preferred B Stock issuable thereof
      to the Lenders shall have all registration, co-sale and first refusal rights,
      granted to "Holders" or "Initiating Holders" under each of those certain Second
      Amended Investors' Rights Agreement, and Second
      Amended and Restated Right of First Refusal and Co-Sale Agreement,
      both
      dated July 19, 2001.

    

    RESOLVED,
      that the Warrant be, and hereby is, in all respects approved.

     

    WHEREAS,
      the foregoing preambles and resolutions are intended to provide broad
      authorization of the actions described therein, whether taken prior or
      subsequent to the date this Action by Written Consent of the Stockholders is
      executed;

    

    RESOLVED,
      that the undersigned stockholders hereby ratify and confirm any and all acts
      heretofore taken in connection with the foregoing resolutions by the duly
      elected officers of the Corporation in good faith in their capacities as
      officers of the Corporation as the valid and binding acts of the Corporation
      duly approved by the stockholders; and

    

    RESOLVED
      FURTHER, that the officers of the Corporation or any of them are hereby
      authorized and directed, in the name and on behalf of the Corporation, or
      otherwise, to execute and deliver all such instruments, documents and
      certificates together with such changes thereto as any such officer deems
      necessary or desirable as conclusively indicated by such officer’s execution and
      delivery thereof, and to take all such further and other action in connection
      with the resolutions hereinabove adopted as they may deem necessary, advisable,
      or proper to effectuate the intent and accomplish the purposes of these
      resolutions.

    

    [The
      remainder of this page is intentionally left blank.]

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Signatures
      - Stockholders resolution - May 2002

    

    IN
      WITNESS WHEREOF,
      the
      undersigned stockholders of Wintegra Inc. have executed this Unanimous Written
      Consent to be effective as of the date first above written, and have directed
      that this Unanimous Written Consent be filed with the minutes of the proceedings
      of the stockholders of the Corporation.

    

    STOCKHOLDERS:

     

    
      	
               

            	 	
               

            	 	
               

            
	
              Kobi
                Ben-Zvi
 	 	
              Robert
                O'Dell
 	 	
              Magnum
                Communications 

              Fund
                (Israel ) L.P.
 
	 	 	 	 	 
	 	 	 	 	
              By:
                ______________

              Title:
                _____________

               

               

            
	
               

            	 	
               

            	 	
               

            
	 Magnum
              Communications 
              Entrepeneurs
                Fund L.P.

            	 	
              Magnum
                Communications 

              Fund
                L.P.
 	 	
              Concord
                Ventures II (Israel) L.P. 
 
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

               

               

            	 	
              By:
                ______________

              Title:
                _____________

            	 	
              By:
                ______________

              Title:
                _____________

               

            
	
               

            	 	
               

            	 	
               

            
	
              Concord Ventures II 

              (Cayman) L.P. 

            	 	
              Galileo
                Technology Ltd.
 	 	 GCWF
              Investment Partners II
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

               

               

            	 	
              By:
                ______________

              Title:
                _____________

            	 	
              By:
                ______________

              Title:
                _____________

               

            
	
               

            	 	
               

            	 	
               

            
	 BDA Investment
              Partners	 	
               Tally A. Eitan - Zeev Pearl & Co.

              Trustees Ltd

            	 	
              Texas
                Instruments Incorporated
 
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

               

               

            	 	
              By:
                ______________

              Title:
                _____________

            	 	
              By:
                ______________

              Title:
                _____________

               

            
	
               

            	 	
               

            	 	
              .

            
	
              Genesis
                Partners II LDC 

            	 	 Genesis
              Partners II (Israel), L.P.	 	 Marinon Development
              Inc
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

               

               

            	 	
              By:
                ______________

              Title:
                _____________

            	 	
              By:
                ______________

              Title:
                _____________

               

            
	
               

            	 	
               

            	 	
               

            
	
              MRVM
                Advisory Services Ltd. 

            	 	 Sonostar
              Ventures LLC	 	 Stanley
              B. Shopkorn
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

            	 	
              By:
                ______________

              Title:
                _____________

               

               

            	 	
              By:
                ______________

              Title:
                _____________

               

            
	
               

            	 	 	 	 
	
              China
                Development
                Industrial 

              Bank
                Inc. 

            	 	 	 	 
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

            	 	 	 	 

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      Exhibit
        A

    

    

    LOAN
      AGREEMENT

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    Exhibit
      B

    

    

    FOURTH
      RESTATED AND AMENDED CERTIFICATE OF INCORPORATION

    

    

    (See
      attached)

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      FOURTH
        RESTATED AND AMENDED CERTIFICATE OF INCORPORATION

      OF

      WINTEGRA,
        INC.

       

      Wintegra,
        Inc., a corporation organized and existing under the laws of the State of
        Delaware (the “Corporation”), hereby certifies as follows:

      

      FIRST:
        The
        name
        of the corporation is Wintegra, Inc. The original Certificate of Incorporation
        of the corporation was filed with the Secretary of State of the State of
        Delaware on January 26, 2000. The Third Restated and Amended Certificate
        of
        Incorporation was filed with the Secretary of State of the State of Delaware
        on
        July 17, 2001.

      

      SECOND:
        This
        Fourth Restated and Amended Certificate of Incorporation restates and integrates
        and further amends the Restated and Amended Certificate of Incorporation
        of the
        corporation and has been duly adopted and approved in accordance with Sections
        242 and 245 of the General Corporation Law of the State of Delaware. Stockholder
        approval of this Third Restated and Amended Certificate of Incorporation
        was
        given by written consent of the stockholders of the corporation in accordance
        with Section 228 of the General Corporation Law of the State of
        Delaware.

      

      THIRD:
        The
        text
        of the Third Restated and Amended Certificate of Incorporation is hereby
        amended
        and restated in its entirety as follows:

      

      

      

      

      

      [Remainder
        of page intentionally left blank]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        I

       

      The
        name
        of this corporation is Wintegra, Inc.

       

      ARTICLE
        II

       

      The
        address of the registered office of this corporation in the State of Delaware
        is
        1209 Orange Street, in the City of Wilmington, County of New Castle, Delaware.
        The name of its registered agent at such address is The Corporation Trust
        Company.

       

      ARTICLE
        III

       

      The
        nature of the business or purposes to be conducted or promoted is to engage
        in
        any lawful act or activity for which corporations may be organized under
        the
        General Corporation Law of Delaware.

       

      ARTICLE
        IV

       

      I.  Classes
        of Stock.
        This
        corporation is authorized to issue two classes of stock to be designated,
        respectively, “Common Stock” and "Preferred Stock". The total number of shares
        that this corporation is authorized to issue is Forty Million (40,000,000)
        shares, of which twenty six million six hundred ninety thousand nine hundred
        and
        seven ( 26,690,907) shall be shares of Common Stock, US$ 0.001 par value
        each,
        and the remaining thirteen million three hundred nine thousand ninety three
        (13,309,093) shall be Preferred Stock. 

       

      The
        Preferred Stock may be issued from time to time in one or more series. The
        first
        series of Preferred Stock shall be designated as Series A Preferred Stock,
        which
        series shall consist of 5,050,000 shares (“Series
        A Preferred Stock”)
        and
        shall have the rights, preferences, privileges and restrictions set forth
        herein. The second series of Preferred Stock shall be designated as Series
        B
        Preferred Stock, which series shall consist of eight million two hundred
        and
        fifty nine thousand ninety three (8,259,093) shares (“Series
        B Preferred Stock”)
        and
        shall have the rights, preferences, privileges and restrictions set forth
        herein. Series A Preferred Stock and the Series B Preferred Stock shall be
        referred to as the “Preferred
        Stock”.
        For
        the purposes of this Restated Certificate, any reference to "Preferred
        Stock"
        shall
        be to one combined class of shares.

      

      II.  Rights,
        Preferences and Restrictions of Preferred Stock.
        The
        Preferred Stock authorized by this Certificate of Incorporation may be issued
        from time to time in one or more series. The rights, preferences, privileges,
        and restrictions granted to and imposed on the Preferred Stock, are as set
        forth
        below in this Article IV(II). 

       

      1.  Dividend
        Provisions.

       

      (i) The
        holders of the Series A Preferred Stock and Series B Preferred Stock shall
        be entitled to receive, out of funds legally available therefore, non-cumulative
        dividends at the rate of 8% of the Original Series A Issue Price and the
        Original Series B Issue Price respectively (as defined below) (subject to
        appropriate adjustments in the event of any stock dividend, stock split,
        combination or other similar recapitalization affecting such shares) per
        annum
        per share, payable in preference and priority to any payment of any cash
        dividend on Common Stock or any other shares of capital stock of the corporation
        other than the Preferred Stock, payable when and as declared by the Board
        of
        Directors of the corporation. If such dividends on the Preferred Stock shall
        not
        have been paid, or declared and set apart for payment, the deficiency shall
        be
        fully paid or declared and set apart for payment before any dividend shall
        be
        paid or declared or set apart for any Common Stock.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      2.  Liquidation
        Preference.

       

      (i) In
        the
        event of any liquidation, dissolution or winding up of this corporation,
        either
        voluntary or involuntary, the holders of Series B Preferred Stock shall be
        entitled to receive, prior and in preference to any distribution of any of
        the
        assets of this corporation to the holders of Series A Preferred Stock and
        Common
        Stock by reason of their ownership thereof, an amount per share equal to
        the sum
        of (i) two U.S dollars and seventy five point seven cents (U$2.75656) (as
        may be adjusted in accordance with Section 1.3 of the Series B Preferred
        Stock
        Purchase Agreement) for each outstanding share of Series B Preferred Stock
        (the “Original
        Series B Issue Price”)
        plus
        annual interest at the rate of 90 days LIBOR plus 1.0%, for the period that
        has
        passed since the date of the first issuance of any Series B Preferred
        Stock, plus (ii) all declared but unpaid dividends on such share (subject
        to
        adjustment of such fixed dollar amounts for any stock splits, stock dividends,
        combinations, recapitalizations or the like)(collectively, the “B
        Preference Amount”).
        If
        upon the occurrence of such event, the assets and funds thus distributed
        among
        the holders of the Series B Preferred Stock shall be insufficient to permit
        the payment to such holders of the full aforesaid B Preference Amount, then
        the
        entire assets and funds of this corporation legally available for distribution
        shall be distributed ratably among the holders of the Series B Preferred
        Stock in proportion to the amount of such stock owned by each such
        holder.

       

      (ii) Upon
        the
        completion of the distribution required by subsection (i) of this
        Section 2, the remaining assets of this corporation available for
        distribution to stockholders shall be distributed among the holders of
        Series A Preferred Stock in accordance with the provision of Section
        (II)(2)(ii) of this Article IV. In such event, the holders of Series A
        Preferred Stock shall be entitled to receive, prior and in preference to
        any
        distribution of any of the assets of this corporation to the holders of Common
        Stock by reason of their ownership thereof, an amount per share equal to
        the sum
        of (i) one US dollar (U$1.0) for each outstanding share of Series A
        Preferred Stock (the “Original
        Series A Issue Price”)
        plus
        annual interest at the rate of 90 days LIBOR plus 1.0%, for the period that
        has
        passed since the date of issuance of any Series A Preferred Stock, plus
        (ii) all declared but unpaid dividends on such share (subject to adjustment
        of
        such fixed dollar amounts for any stock splits, stock dividends, combinations,
        recapitalizations or the like)(collectively, the “A Preference
        Amount”).
        If
        upon the occurrence of such event, such remaining assets and funds of this
        corporation available for distribution among the holders of the Series A
        Preferred Stock shall be insufficient to permit the payment to such holders
        of
        the full aforesaid A Preference Amount, then the remaining assets and funds
        of
        this corporation legally available for distribution shall be distributed
        ratably
        among the holders of the Series A Preferred Stock in proportion to the
        amount of such stock owned by each such holder.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      Notwithstanding
        the foregoing, the respective Preference Amounts shall not be payable, if
        upon a
        liquidation or deemed liquidation, the funds or assets available for
        distribution yield (i) in respect of each share of Series B Preferred Stock,
        three times the Original Series B Issue Price; and (ii) in respect of each
        share
        of Series A Preferred Stock, four times the Original Series A Issue Price,
        In
        such event, the holders of Preferred Stock shall not be entitled to their
        respective Preference Amounts and shall participate ratably with the holders
        of
        Common Stock as described in Section 2(iii) below.

       

      (iii) Upon
        the
        completion of the distribution required by subsections (i) and (ii) of this
        Section 2, the remaining assets of this corporation available for
        distribution to stockholders shall be distributed among the holders of
        Series B Preferred Stock, Series A Preferred Stock and Common Stock pro
        rata based on the number of shares of Common Stock held by each (on an
        as-converted basis).

       

      (iv) (a) For
        purposes of this Section 2, a liquidation, dissolution or winding up of this
        corporation shall be deemed to be occasioned by, or to include (unless the
        holders of at least a majority of the Preferred Stock then outstanding and
        voting as a separate class shall determine otherwise), (A) the
        acquisition of this corporation by another entity by means of any transaction
        or
        series of related trans-actions (including, without limitation, any
        reorganization, merger or consolidation) that results in the transfer of
        fifty
        percent (50%) or more of the outstanding voting power of this corporation;
        or
        (B) a
        sale of all or substantially all of the assets of this corporation
        ("Merger
        and Acquisition").

      

      b) In
        any of
        the events specified in Subsections 2(i), 2(ii), 2(iii) and 2 (iv) the holders
        of Preferred Stock shall be paid for each share of such stock in cash or
        in
        securities received from the acquiring entity, or in a combination thereof,
        at
        the closing of any such transaction, amounts as set forth in subsection 2(i),
        2(ii) and 2(iii) above.

      

      (c) If,
        in
        any of the events specified in Subsections 2(i), 2(ii), 2(iii) and 2(iv),
        the
        consideration received by this corporation is other than cash, the value
        of such
        consideration will be deemed its fair market value. Any securities shall
        be
        valued as follows:

      

      (I)  Securities
        not subject to restrictions on free marketability covered by Section (c)(I)(B)
        below:

       

      (1)  If
        traded
        on a securities exchange or through the Nasdaq National Market, the value
        shall
        be deemed to be the average of the closing prices of the securities on such
        exchange or system over the thirty (30) day period ending three (3) days
        prior
        to the closing;

       

      (2)  If
        actively traded over-the-counter, the value shall be deemed to be the average
        of
        the closing bid or sale prices (whichever is applicable) over the thirty
        (30)
        day period ending three (3) days prior to the closing; and

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (3)  If
        there
        is no active public market, the value shall be the fair market value thereof,
        as
        determined by an independent appraiser appointed by the Board of the Corporation
        with the consent of the holders of at least a majority of the voting power
        of
        all then outstanding shares of Preferred Stock.

       

      (II)  Securities
        subject to restrictions on free marketability: The method of valuation of
        securities subject to restrictions on free marketability (other than
        restrictions arising solely by virtue of a stockholder’s status as an affiliate
        or former affiliate) shall be to make an appropriate discount from the market
        value determined as above in (A) (I) (1), (2) or (3) to reflect the approximate
        fair market value thereof, as mutually determined by this corporation and
        at
        least one director appointed by the holders of the then outstanding shares
        of
        such Preferred Stock. In the event that no mutual determination can be
        concluded, fair market value will be as determined by an independent appraiser
        appointed by the Board of the Corporation.

       

      (d) In
        the
        event the requirements of this subsection 2(iv) are not complied with, this
        corporation shall forthwith either:

      

      (I) cause
        such closing to be postponed until such time as the requirements of this
        Section 2 have been complied with; or

      

      (II) cancel
        such transaction, in which event the rights, preferences and privileges of
        the
        holders of shares of Preferred Stock shall revert to and be the same as such
        rights, preferences and privileges existing immediately prior to the date
        of the
        first notice referred to in subsection 2(iv)(e) hereof.

      

      (e) This
        corporation shall give each holder of record of Preferred Stock written notice
        of such impending transaction not later than twenty (20) days prior to the
        stockholders’ meeting called to approve such transaction, or twenty (20) days
        prior to the closing of such transaction, whichever is earlier, and shall
        also
        notify such holders in writing of the final approval of such transaction.
        The
        first of such notices shall describe the material terms and conditions of
        the
        impending transaction and the provisions of this Section 2, and this corporation
        shall thereafter give such holders prompt notice of any material changes.
        The
        transaction shall in no event take place sooner than ten (10) days after
        this
        corporation has given the first notice provided for herein or sooner than
        five
        (5) days after this corporation has given notice of any material changes
        provided for herein; provided, however, that such periods may be shortened
        upon
        the written consent of the holders of Preferred Stock that are entitled to
        such
        notice rights or similar notice rights and that represent at least majority
        of
        the voting power of all then outstanding shares of such Preferred
        Stock.

      

      3.  Conversion.
        The
        holders of Preferred Stock shall have conversion rights as follows (the
“Conversion
        Rights”):

       

      (i)  Right
        to Convert.
        Each
        share of Preferred Stock shall be convertible, at the option of the holder
        thereof, at any time after the date of issuance of such share, at the office
        of
        this corporation or any transfer agent for such stock, into such number of
        fully
        paid and nonassessable shares of Common Stock as is determined by dividing
        the
        Original Series A Issue Price and the Original Series B Issue Price,
        respectively, by the Conversion Price applicable to such share, determined
        as
        hereafter provided, in effect on the date the certificate is surrendered
        for
        conversion of such class of Preferred Shares ("Conversion
        Rate").
        The
        initial Conversion Price per share for shares of Series A Preferred Stock
        shall be the Original Series A Issue Price, and the initial Conversion
        Price per share for shares of Series B Preferred Stock shall be the
        Original Series B Issue Price; provided, however, that the Conversion Price
        for the Preferred Stock shall be subject to adjustment as set forth in
        subsection 3(iv). 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (ii)  Automatic
        Conversion.
        Each
        share of
        Preferred Stock shall automatically be converted into shares of Common Stock
        at
        the Conversion Rate at the time in effect for such Preferred Stock immediately
        upon the earlier of (i) 
        this corporation’s sale of its Common Stock in a firm commitment underwritten
        public offering pursuant to an effective registration statement under the
        Securities Act of 1933, as amended, with a pre-money valuation of the
        corporation of at least $200,000,000 and aggregate net proceeds of at least
        $30,000,000 (a “Qualified
        IPO”)
        or
        (ii) the
        date specified by written consent or agreement of the holders of sixty percent
        (60%) of the then outstanding shares of Preferred Stock. In the event of
        such
        Qualified IPO, the person(s) entitled to receive the Common Stock issuable
        upon
        such conversion of Preferred Stock shall not be deemed to have converted
        such
        shares of Preferred Stock until immediately prior to the closing of such
        public
        offering at which time the Preferred Stock shall be converted automatically
        without any further action by the holders of such shares and whether or not
        the
        certificates representing such shares are surrendered to the corporation
        or its
        transfer agent; provided, however, that the corporation shall not be obligated
        to issue certificates evidencing the shares of Common Stock issuable upon
        such
        conversion unless certificates evidencing such shares of Preferred Stock
        being
        converted are either delivered to the corporation or its transfer agent,
        as
        hereinafter provided, or the holder notifies the corporation or any transfer
        agent, as hereinafter provided, that such certificates have been lost, stolen
        or
        destroyed.

       

      (iii)  Mechanics
        of Conversion.
        Before
        any holder of Preferred Stock shall be entitled to convert the same into
        shares
        of Common Stock, he or she shall surrender the certificate or certificates
        therefor, duly endorsed, at the office of this corporation or of any transfer
        agent for the Preferred Stock, and shall give a written notice to this
        corporation at its principal corporate office, of the election to convert
        the
        same and shall state therein the name or names in which the certificate or
        certificates for shares of Common Stock are to be issued. This corporation
        shall, as soon as practicable thereafter, issue and deliver at such office
        to
        such holder of Preferred Stock, or to the nominee or nominees of such holder,
        a
        certificate or certificates for the number of shares of Common Stock to which
        such holder shall be entitled as aforesaid. Such conversion shall be deemed
        to
        have been made immediately prior to the close of business on the date of
        such
        surrender of the shares of Preferred Stock to be converted, and the person
        or
        persons entitled to receive the shares of Common Stock issuable upon such
        conversion shall be treated for all purposes as the record holder or holders
        of
        such shares of Common Stock as of such date. If the conversion is in connection
        with an underwritten offering of securities registered pursuant to the
        Securities Act of 1933, the conversion may, at the option of any holder
        tendering Preferred Stock for conversion, be conditioned upon the closing
        with
        the underwriters of the sale of securities pursuant to such offering, in
        which
        event the persons entitled to receive the Common Stock upon conversion of
        the
        Preferred Stock shall not be deemed to have converted such Preferred Stock
        until
        immediately prior to the closing of such sale of securities. 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (iv)  Conversion
        Price Adjustments for Certain Dilutive Issuances, Splits and
        Combinations.
        The
        Conversion Price of the Series A Preferred Stock and Series B Preferred Stock
        shall be subject to adjustment from time to time as follows:

       

      (i) (A)(I) Series
        B Preferred Stock.
        If this
        corporation shall issue, after the date upon which any shares of Series B
        Preferred Stock were first issued (the “Purchase
        Date”),
        any
        Additional Stock (as defined below) without consideration or for consideration
        per share less than the Conversion Price for the Series B Preferred Stock
        in
        effect immediately prior to the issuance of such Additional Stock (in each
        case,
        the “Series B New Price”), the Conversion Price for Series B Preferred Stock in
        effect immediately prior to each such issuance shall forthwith be adjusted
        to
        the Series B New Price. 

       

      (II) Series
        A Preferred Stock.
        If this
        corporation shall issue, after the date upon which any shares of Series A
        Preferred Stock were first issued, any Additional Stock (as defined below)
        without consideration or for consideration per share less than the Conversion
        Price for the Series A Preferred Stock in effect immediately prior to the
        issuance of such Additional Stock (in each case, the “Series A New Price”), the
        Conversion Price for Series A Preferred Stock in effect immediately prior
        to
        each such issuance shall forthwith be adjusted to the Series A New Price.
        

       

      (B) No
        adjustment of the Conversion Price for the Preferred Stock shall be made
        in an
        amount of less than one cent per share, provided that any adjustments that
        are
        not required to be made by reason of this sentence shall be carried forward
        and
        shall be either taken into account in any subsequent adjustment made prior
        to
        three (3) years from the date of the event giving rise to the adjustment
        being
        carried forward, or shall be made at the end of three (3) years from the
        date of
        the event giving rise to the adjustment being carried forward. Except to
        the
        limited extent provided for in subsections (E)(3) and (E)(4) below, no
        adjustment of such Conversion Price pursuant to this subsection 3(iv)(i)
        shall
        have the effect of increasing the Conversion Price above the Conversion Price
        in
        effect immediately prior to such adjustment.

       

      (C) In
        the
        case of the issuance of Common Stock for cash, the consideration shall be
        deemed
        to be the amount of cash paid therefor before deducting any reasonable
        discounts, commissions or other expenses allowed, paid or incurred by this
        corporation for any underwriting or otherwise in connection with the issuance
        and sale thereof.

       

      (D) In
        the
        case of the issuance of the Common Stock for a consideration in whole or
        in part
        other than cash, the consideration other than cash shall be deemed to be
        the
        fair value thereof as determined by the Board of Directors irrespective of
        any
        accounting treatment.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (E) In
        the
        case of the issuance (whether before, on or after the applicable Purchase
        Date)
        of options to purchase or rights to subscribe for Common Stock, securities
        by
        their terms convertible into or exchangeable for Common Stock or options
        to
        purchase or rights to subscribe for such convertible or exchangeable securities,
        the following provisions shall apply for all purposes of this
        subsection 3(iv)(i) and subsection 3(iv)(ii):

       

      (1)  The
        aggregate maximum number of shares of Common Stock deliverable upon exercise
        (assuming the satisfaction of any conditions to exercisability, including
        without limitation, the passage of time, but without taking into account
        potential antidilution adjustments) of such options to purchase or rights
        to
        subscribe for Common Stock shall be deemed to have been issued at the time
        such
        options or rights were issued and for a consideration equal to the consideration
        (determined in the manner provided in subsections 3(iv)(i)(C) and (iv)(i)(D)),
        if any, received by this corporation upon the issuance of such options or
        rights
        plus the minimum exercise price provided in such options or rights (without
        taking into account potential antidilution adjustments) for the Common Stock
        covered thereby.

       

      (2)  The
        aggregate maximum number of shares of Common Stock deliverable upon conversion
        of, or in exchange (assuming the satisfaction of any conditions to
        convertibility or exchangeability, including, without limitation, the passage
        of
        time, but without taking into account potential antidilution adjustments)
        for,
        any such convertible or exchangeable securities or upon the exercise of options
        to purchase or rights to subscribe for such convertible or exchangeable
        securities and subsequent conversion or exchange thereof shall be deemed
        to have
        been issued at the time such securities were issued or such options or rights
        were issued and for a consideration equal to the consideration, if any, received
        by this corporation for any such securities and related options or rights
        (excluding any cash received on account of accrued interest or accrued
        dividends), plus the minimum additional consideration, if any, to be received
        by
        this corporation (without taking into account potential antidilution
        adjustments) upon the conversion or exchange of such securities or the exercise
        of any related options or rights (the consideration in each case to be
        determined in the manner provided in subsections 3(iv)(i)(C) and
        (iv)(i)(D)).

       

      (3)  In
        the
        event of any change in the number of shares of Common Stock deliverable or
        in
        the consideration payable to this corporation upon exercise of such options
        or
        rights or upon conversion of or in exchange for such convertible or exchangeable
        securities, including, but not limited to, a change resulting from the
        antidilution provisions thereof, the Conversion Price of the Series A
        Preferred Stock and the Conversion Price of the Series B Preferred Stock,
        respectively, to the extent in any way affected by or computed using such
        options, rights or securities, shall be recomputed to reflect such change,
        but
        no further adjustment shall be made for the actual issuance of Common Stock
        or
        any payment of such consideration upon the exercise of any such options or
        rights or the conversion or exchange of such securities.

       

      (4)  Upon
        the
        expiration of any such options or rights, the termination of any such rights
        to
        convert or exchange or the expiration of any options or rights related to
        such
        convertible or exchangeable securities, the Conversion Price of the
        Series A Preferred Stock and the Conversion Price of the Series B
        Preferred Stock, respectively, to the extent in any way affected by or computed
        using such options, rights or securities or options or rights related to
        such
        securities, shall be recomputed to reflect the issuance of only shares of
        Common
        Stock (and convertible or exchangeable securities that remain in effect)
        actually issued upon the exercise of such options or rights, upon the conversion
        or exchange of such securities or upon the exercise of the options or rights
        related to such securities.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (5)  
        Shares
        of Common Stock deemed issued and the consideration deemed paid therefor
        pursuant to subsections 3(iv)(i)(E)(1) and (2) shall be appropriately adjusted
        to reflect any change, termination or expiration of the type described in
        either
        subsection 3(iv)(i)(E)(3) or (4).

       

      

      (ii) “Additional
        Stock”
shall
        mean any shares of Common Stock issued (or deemed to have been issued pursuant
        to subsection 3(iv)(i)(E)) by this corporation after the Purchase Date other
        than:

      

      (A) Common
        Stock issued pursuant to a transaction described in subsection 3(iv)(iii)
        hereof; or

      

      (B) Shares
        of
        Common Stock (excluding shares repurchased at cost by this corporation in
        connection with the termination of service) issuable or issued to employees,
        consultants, directors or vendors (if in transactions with primarily
        non-financing purposes) of this corporation directly or pursuant to a stock
        option plan or restricted stock plan approved by the Board of Directors of
        this
        corporation.

      

      (C) Shares
        of
        Common Stock issued upon conversion of the Series A Preferred Stock or Series
        B
        Preferred Stock, in accordance with the provisions of this Section
        3.

      

      (iii) In
        the
        event this corporation should at any time or from time to time after the
        Purchase Date fix a record date for the effectuation of a split or subdivision
        of the outstanding shares of Common Stock or the determination of holders
        of
        Common Stock entitled to receive a dividend or other distribution payable
        in
        additional shares of Common Stock or other securities or rights convertible
        into, or entitling the holder thereof to receive directly or indirectly,
        additional shares of Common Stock (hereinafter referred to as “Common
        Stock Equivalents”)
        without payment of any consideration by such holder for the additional shares
        of
        Common Stock or the Common Stock Equivalents (including the additional shares
        of
        Common Stock issuable upon conversion or exercise thereof), then, as of such
        record date (or the date of such dividend distribution, split or subdivision
        if
        no record date is fixed), the Conversion Price of the Series A Preferred
        Stock and the Conversion Price of the Series B Preferred Stock shall be
        appropriately decreased so that the number of shares of Common Stock issuable
        on
        conversion of each share of such series shall be increased in proportion
        to such
        increase of the aggregate of shares of Common Stock outstanding and those
        issuable with respect to such Common Stock Equivalents with the number of
        shares
        issuable with respect to Common Stock Equivalents determined from time to
        time
        in the manner provided for deemed issuances in subsection
        3(iv)(i)(E).

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      (iv) If
        the
        number of shares of Common Stock outstanding at any time after the Purchase
        Date
        is decreased by a combination of the outstanding shares of Common Stock,
        then,
        following the record date of such combination, the Conversion Price for the
        Series A Preferred Stock and the Conversion Price of the Series B
        Preferred Stock shall be appropriately increased so that the number of shares
        of
        Common Stock issuable on conversion of each share of such series shall be
        decreased in proportion to such decrease in outstanding shares.

      

      (v)  Other
        Distributions.
        In the
        event this corporation shall declare a distribution payable in securities
        of
        other persons, evidences of indebtedness issued by this corporation or other
        persons, assets (excluding cash dividends) or options or rights not referred
        to
        in subsection 3(iv)(iii), then, in each such case for the purpose of this
        subsection 3(v), the holders of the Preferred Stock shall be entitled to
        a
        proportionate share of any such distribution as though they were the holders
        of
        the number of shares of Common Stock of this corporation into which their
        shares
        of Preferred Stock are convertible as of the record date fixed for the
        determination of the holders of Common Stock of this corporation entitled
        to
        receive such distribution. 

       

      (vi)  Recapitalizations.
        If at
        any time or from time to time there shall be a recapitalization of the Common
        Stock (other than a subdivision, combination or merger or sale of assets
        transaction provided for elsewhere in this Section 3 or Section 2) provision
        shall be made so that the holders of Preferred Stock shall thereafter be
        entitled to receive upon conversion of the shares of Preferred Stock the
        number
        of shares of stock or other securities or property of the Corporation or
        otherwise, to which a holder of Common Stock deliverable upon conversion
        would
        have been entitled on such recapitalization. In any such case, appropriate
        adjustment shall be made in the application of the provisions of this Section
        3
        with respect to the rights of the holders of Preferred Stock after the
        recapitalization to the end that the provisions of this Section 3 (including
        adjustment of the respective Conversion Price then in effect and the number
        of
        shares purchasable upon conversion of the shares of Preferred Stock) shall
        be
        applicable after that event as nearly equivalent as may be
        practicable.

       

      (vii)  No
        Impairment.
        This
        corporation will not, by amendment of its Certificate of Incorporation or
        through any reorganization, recapitalization, transfer of assets, consolidation,
        merger, dissolution, issue or sale of securities or any other voluntary action,
        avoid or seek to avoid the observance or performance of any of the terms
        to be
        observed or performed hereunder by this corporation, but will at all times
        in
        good faith assist in the carrying out of all the provisions of this Section
        3
        and in the taking of all such action as may be necessary or appropriate in
        order
        to protect the conversion rights of the holders of Preferred Stock against
        impairment.

       

      (viii)  No
        Fractional Shares and Certificate as to Adjustments.

       

      (a) No
        fractional shares shall be issued upon the conversion of any share or shares
        of
        Preferred Stock. Whether or not fractional shares are issuable upon such
        conversion shall be determined on the basis of the total number of shares
        of
        Preferred Stock the holder is at the time converting into Common Stock and
        the
        number of shares of Common Stock issuable upon such aggregate conversion.
        In
        lieu of any fractional share to which the holder would otherwise be entitled,
        the Corporation shall pay cash equal to the fair market value of such fractional
        share as reasonably determined in good faith by the Board of Directors of
        the
        Corporation.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (b) Upon
        the
        occurrence of each adjustment or readjustment of the respective Conversion
        Price
        of Preferred Stock pursuant to this Section 3, this corporation, at its expense,
        shall promptly compute such adjustment or readjustment in accordance with
        the
        terms hereof and prepare and furnish to each holder of Preferred Stock a
        certificate setting forth such adjustment or readjustment and showing in
        detail
        the facts upon which such adjustment or readjustment is based. This corporation
        shall, upon the written request at any time of any holder of Preferred Stock,
        furnish or cause to be furnished to such holder a like certificate setting
        forth
        (A) such adjustment and readjustment, (B) the Conversion Price for
        such series of Preferred Stock at the time in effect, and (C) the number of
        shares of Common Stock and the amount, if any, of other property that at
        the
        time would be received upon the conversion of a share of Preferred
        Stock.

      

      (ix)  Notices
        of Record Date.
        In the
        event of any taking by this corporation of a record of the holders of any
        class
        of securities for the purpose of determining the holders thereof who are
        entitled to receive any dividend (other than a cash dividend) or other
        distribution, any right to subscribe for, purchase or otherwise acquire any
        shares of stock of any class or any other securities or property, or to receive
        any other right, this corporation shall mail to each holder of Preferred
        Stock,
        at least twenty (20) days prior to the date specified therein, a notice
        specifying the date on which any such record is to be taken for the purpose
        of
        such dividend, distribution or right, and the amount and character of such
        dividend, distribution or right.

       

      (x)  Reservation
        of Stock Issuable Upon Conversion.
        This
        corporation shall at all times reserve and keep available out of its
        authorized but unissued shares of Common Stock, solely for the purpose of
        effecting the conversion of the shares of the Preferred Stock, such number
        of
        its shares of Common Stock as shall from time to time be sufficient to effect
        the conversion of all outstanding shares of the Preferred Stock; and if at
        any
        time the number of authorized but unissued shares of Common Stock shall not
        be
        sufficient to effect the conversion of all then outstanding shares of Preferred
        Stock (on a fully-diluted basis), in addition to such other remedies as shall
        be
        available to the holder of such series of Preferred Stock, this corporation
        will
        take such corporate action as may, in the opinion of its counsel, be necessary
        to increase its authorized but unissued shares of Common Stock to such number
        of
        shares as shall be sufficient for such purposes, including, without limitation,
        engaging in best efforts to obtain the requisite shareholder approval of
        any
        necessary amendment to this Restated Certificate of Incorporation.

       

      (xi)  Status
        of Converted Stock
        In the
        event any shares of Preferred Stock shall be converted pursuant to this
        Section 3, the shares so converted shall be cancelled and shall not be
        issuable by this corporation. The Third Restated and Amended Certificate
        of
        Incorporation of this corporation shall be appropriately amended to effect
        the
        corresponding reduction in this corporation’s authorized capital
        stock.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      (xii)  Notices.
        Any
        notice required by the provisions of this Section 3 to be given to the holders
        of shares of Preferred Stock shall be deemed given if deposited in the United
        States mail, postage prepaid, and addressed to each holder of record at his
        address appearing on the books of this corporation.

       

      4.  Voting
        Rights.
        

       

      (i)  General
        Voting Rights of Preferred Stock.
        The
        holder of each share of Preferred Stock shall have the right to one vote
        for
        each share of Common Stock into which such Preferred Stock could then be
        converted, and with respect to such vote, such holder shall have full voting
        rights and powers equal to the voting rights and powers of the holders of
        Common
        Stock, and shall be entitled, notwithstanding any provision hereof, to notice
        of
        any stockholders’ meeting in accordance with the bylaws of this corporation, and
        shall be entitled to vote, together with holders of Common Stock, with respect
        to any question upon which holders of Common Stock have the right to vote.
        Fractional votes shall not, however, be permitted. (ii)Voting
        for the Election of Directors.
        The
        number of directors shall be seven (7) and the Board of Directors shall be
        elected as follows:

       

      (i) Three
        directors (the “Preferred Stock Designees”) shall be elected by the holders of
        the outstanding Preferred Stock voting as a single class and in accordance
        with
        the provisions of the Second Amended and Restated Investors’ Rights Agreement,
        dated July, 2001 (the “Investors’ Rights Agreement”). The holders of the
        outstanding Preferred Stock shall be entitled to remove or fill a vacancy
        in any
        of the Preferred Stock Designees in accordance with the provisions of the
        Investors’ Rights Agreement.

       

      (ii) Three
        directors (the “Common Stock Designees”) shall be elected by the holders of the
        outstanding Common Stock of the Company , voting as a single class and in
        accordance with the provisions of the Investors’ Rights Agreement. The holders
        of the outstanding Common Stock shall be entitled to remove or fill a vacancy
        in
        any of the Common Stock Designees in accordance with the provisions of the
        Investors’ Rights Agreement.

       

      (iii) One
        director shall be elected by the holders of the outstanding Preferred Stock
        and
        the outstanding Common Stock voting together as a single class and in accordance
        with the provisions of the Investors’ Rights Agreement. 

       

      5.  Redemption
        Rights.
        In the
        event that holders of any class of stock of the corporation shall be entitled
        to
        demand redemption of their shares by the corporation, then the holders of
        the
        Preferred Stock shall be entitled to the most favorable redemption rights
        granted to the holders of any class of stock at the same time as such class
        of
        stock but giving effect to the Original Series A Issue Price and the Original
        Series B Issue Price. To remove all doubt, under no circumstances will the
        Preferred Stock be redeemed prior to the redemption date set for any other
        class
        of stock.

      

      6. Negative
        Covenants.

       

      
        
          
          

        

        
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      6.1 As
        long
        as the Preferred Stock of the Company represents at least 10% of the outstanding
        share capital of the Company (on an as-converted basis), then without limitation
        of any rights of the holders of Preferred Stock under applicable law, all
        the
        following decisions of the Company will require the affirmative vote at least
        50% of the outstanding Preferred Stock of the Company, voting together as
        one
        class (provided that the voting rights of Galileo Technology Ltd. and holders
        of
        Preferred Stock who hold less than one (1%) of the outstanding shares of
        the
        Company (calculated on an as converted basis), shall be excluded from such
        a
        vote, and further provided that if such decision may be approved by the Board
        of
        Directors in accordance with applicable law, the decision will require the
        affirmative vote of at least 50% of the Preferred Stock Designees, excluding
        the
        Preferred Stock Designee appointed by Galileo Technology): 

       

      (i) A
        decision which results in a Merger
        and Acquisition (as such term is defined in section 2(iv)). This veto shall
        not
        apply in any one of the following events: (i) with respect to the holders
        of
        Series B Preferred Stock, the transaction described herein yields funds or
        assets available for distribution to the holders of Series B Preferred Stock
        of
        a multiple of three (3) times the purchase price per share of Series B Preferred
        Stock for each share of Series B Preferred Stock (the“B
        Qualified Value”);
        or
        (ii) with respect to the holders of Series A Preferred Stock, the transaction
        described herein yields funds or assets available for distribution to the
        holders of Series A Preferred Stock of a multiple of four (4) times the purchase
        price per share of Series A Preferred Stock for each share of Series A Stock
        (the "A Qualified
        Value").

       

      (ii) A
        decision to sell, transfer, lease, pledge, license or dispose of all or assets
        that reflect in excess of 40% of the fair market value of the assets, rights
        or
        business of the Company. This veto shall not apply: (i) with respect to the
        holders of Series A Preferred, in the event that the transaction described
        herein yields a distribution reflecting A Qualified Value Stock; (ii) with
        respect to the holders of Series B Preferred Stock, in the event that the
        transaction described herein yields a distribution reflecting B Qualified
        Value;

       

      (iii) A
        decision to declare or pay any dividend on or any other distribution of cash,
        shares, or other assets on account of the Common Stock of the Company;

       

      (iv) A
        decision to effect a dissolution, liquidation or winding up of the Company
        and/or the cessation of all or a substantial part of the business of the
        Company. This veto shall not apply: (i) to the holders of Series A Preferred
        Stock, in the event that the transaction described herein yields a distribution
        reflecting A Qualified Value (ii) to the holders of Series B Preferred Stock,
        in
        the event that the transaction described herein yields a distribution reflecting
        B Qualified Value;

       

      (v) A
        decision to approve the annual budget of the Company (however, it is clarified
        that approval of the budget will be made by the Board of
        Directors);

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (vi) A
        material change in the nature of the business as conducted by the Company
        prior
        to such decision, provided that this Section 6.1(vi) shall not be construed
        as a
        veto on any transaction to which another veto right under this Section 6.1
        applies;

       

      (vii) A
        decision to enter into any agreement with a holder of more than 5% of the
        Company’s share capital (on an as converted basis) or a director of the Company
        or any related party thereto. 

       

      6.2 Notwithstanding
        Section 6.1, and without limitation of any rights of the holders of preferred
        shares under applicable law, as long as the outstanding Preferred Stock
        represent at least 10% of the outstanding share capital of the Company (on
        an
        as-converted basis) all of the following decisions of the Company will require
        the affirmative vote of at least a majority of the Preferred Shares, voting
        together as one class (provided that if such decision would only adversely
        affect the Series A Preferred Stock or the Series B Preferred Stock, as the
        case
        may be, then only the shares of such series of Preferred Stock shall be
        considered a separate class for the purpose of this Section 6.2 and further
        provided that if such decision may be approved by the Board of Directors
        in
        accordance with applicable law, they will require the affirmative vote of
        at
        least a majority of the Preferred Stock Designees):

       

      (i) A
        decision to adopt any amendment of the certificate of incorporation and/or
        the
        bylaws of the Company that adversely affects the rights attached to the
        Preferred Stock, such as, without limitations, voting rights, liquidation
        rights, anti-dilution rights, dividend rights, first refusal rights and rights
        to appoint directors, and specifically includes any amendment to this Section
        6.

       

      (ii) A
        decision which allows an authorization or issuance of any Shares having rights,
        preferences or privileges senior to or on a parity with the Preferred Stock.
        For
        the purposes of this subsection (ii), Shares
        shall
        not include: (i) the issuance or sale of shares of stock (or options
        therefor) to employees, directors and consultants under stock plans approved
        by
        the Company’s Board of Directors; (ii) the issuance of securities pursuant
        to the conversion or exercise of convertible or exercisable securities; (iii)
        any dividend payable in shares of Common Stock or any shares issued upon
        a
        subdivision or combination of such shares; (iv) the issuance of securities
        in
        connection with acquisitions of assets, businesses or companies, made by
        the
        Company or settlements of claims involving the Company (v) the issuance of
        securities constituting up to 15% of the outstanding share capital of the
        Company immediately prior to such issuance, to a Strategic Investor, (herein
        defined as an entity that has entered into a material agreement with the
        Company
        such as an OEM agreement, agreement for purchase and/or sale of goods, or
        a
        joint project), which Strategic Investor has been designated as a Strategic
        Investor by a majority of the Board of Directors with the affirmative vote
        of at
        least one of the Board members appointed by the holders of Preferred Stock,
        provided that such director was not appointed by Galileo Technology Ltd.;
        and
        (vi) issuance of securities or warrants to a lending institution in connection
        with a Hybrid Financing, as defined in subsection 3.2 (vi) of the Amended
        and
        Restated Investor Rights Agreement.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

      III. Common
        Stock.
        The
        rights, preferences, privileges and restrictions granted to and imposed on
        the
        Common Stock are as set forth below in this Article IV(III).

       

      1.  Dividend
        Rights.
        Subject
        to the prior rights of holders of all classes of stock at the time outstanding
        having prior rights as to dividends, the holders of the Common Stock shall
        be
        entitled to receive, when and as declared by the Board of Directors, out
        of any
        assets of this corporation legally available therefor, such dividends as
        may be
        declared from time to time by the Board of Directors.

       

      2.  Liquidation
        Rights.
        Upon
        the liquidation, dissolution or winding up of this corporation, the assets
        of
        this corporation shall be distributed as provided in Section (II)(2) of
        Article IV hereof.

       

      3.  Redemption.
        The
        Common Stock is not redeemable.

       

      4.  Voting
        Rights.
        The
        holder of each share of Common Stock shall have the right to one vote for
        each
        such share, and shall be entitled to notice of any stockholders’ meeting in
        accordance with the bylaws of this corporation, and shall be entitled to
        vote
        upon such matters and in such manner as may be provided by law.

       

      ARTICLE
        V

      

      Except
        as
        otherwise provided in this Certificate of Incorporation, in furtherance and
        not
        in limitation of the powers conferred by statute, the Board of Directors
        is
        expressly authorized to make, repeal, alter, amend and rescind any or all
        of the
        Bylaws of this corporation.

       

      ARTICLE
        VI

      

      Issuances
        of stock of the Company are subject to certain preemptive rights of the
        stockholders of the Company as set forth and in accordance with the provisions
        of the Investors’ Rights Agreement.

       

      ARTICLE
        VII

       

      Elections
        of directors need not be by written ballot unless the Bylaws of this corporation
        shall so provide. 

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        VIII

       

      Meetings
        of stockholders may be held within or without the State of Delaware, as the
        Bylaws may provide. The books of this corporation may be kept (subject to
        any
        provision contained in the statutes) outside the State of Delaware at such
        place
        or places as may be designated from time to time by the Board of Directors
        or in
        the Bylaws of this corporation.

       

      ARTICLE
        IX

       

      A
        director of this corporation shall, to the fullest extent permitted by the
        General Corporation Law as it now exists or as it may hereafter be amended,
        not
        be personally liable to this corporation or its stockholders for monetary
        damages for breach of fiduciary duty as a director, except for liability
        (i) for any breach of the director’s duty of loyalty to this corporation or
        its stockholders, (ii) for acts or omissions not in good faith or that
        involve intentional misconduct or a knowing violation of law, (iii) under
        Section 174 of the General Corporation Law, or (iv) for any transaction
        from which the director derived any improper personal benefit. If the General
        Corporation Law is amended, after approval by the stockholders of this Article,
        to authorize corporation action further eliminating or limiting the personal
        liability of directors, then the liability of a director of this corporation
        shall be eliminated or limited to the fullest extent permitted by the General
        Corporation Law, as so amended.

       

      Any
        amendment, repeal or modification of this Article IX, or the adoption of
        any provision of this Amended and Restated Certificate of Incorporation
        inconsistent with this Article IX, by the stockholders of this corporation
        shall not apply to or adversely affect any right or protection of a director
        of
        this corporation existing at the time of such amendment, repeal, modification
        or
        adoption.

       

      ARTICLE
        X

       

      This
        corporation reserves the right to amend, alter, change or repeal any provision
        contained in this Certificate of Incorporation, in the manner now or hereafter
        prescribed by statute subject to the provisions of this Certificate of
        Incorporation.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        XI

       

      To
        the
        fullest extent permitted by applicable law, this corporation is authorized
        to
        provide indemnification of (and advancement of expenses to) agents of this
        corporation (and any other persons to which General Corporation Law permits
        this
        corporation to provide indemnification) through bylaw provisions, agreements
        with such agents or other persons, vote of stockholders or disinterested
        directors or otherwise, in excess of the indemnification and advancement
        otherwise permitted by Section 145 of the General Corporation Law, subject
        only
        to limits created by applicable General Corporation Law (statutory or
        non-statutory), with respect to actions for breach of duty to this corporation,
        its stockholders, and others.

       

      Any
        amendment, repeal or modification of the foregoing provisions of this
        Article XI shall not adversely affect any right or protection of a
        director, officer, agent, or other person existing at the time of, or increase
        the liability of any director of this corporation with respect to any acts
        or
        omissions of such director, officer or agent occurring prior to, such amendment,
        repeal or modification.

       

      Dated
        as
        of May __, 2003

       

      
        	 	 	 
	 	  
	 	JACOB
                BEN-ZVI

      

       

       

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    Exhibit
      C

    

    WARRANT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        SCHEDULE
          2.4

        FORM
          OF TERMINATION LETTER

      

      

       

      
        	Plenus Technologies Ltd. 	 	Date_________

      

           

       

      Re:
        Notice
        of Termination (the “Letter”)

       

       

      Dear
        Sirs:

       

      In
        accordance with Section 2.4 of the Loan Agreement between Plenus Technologies
        Ltd. ( “Plenus”)
        and
        among other with Wintegra Inc. (the “Company”),
        dated
        June 4, 2002 (the “Agreement”),
        we,
        the Company, hereby provide Plenus with notice to terminate the Loan Agreement
        pursuant to its terms (including all of its schedules, exhibits and annexes
        with
        the exception of the Warrant).

       

      On
        or
        prior to the date hereof, we repaid to Plenus the outstanding Principal Amount
        and all accrued Interest (as defined in the Agreement) thereon. Accordingly,
        Plenus has no further rights of any kind in the Company, except as specified
        below, and shall relieve the Company from any of its obligations under the
        Loan
        Agreement and all of its schedules, exhibits and annexes, except as specified
        below. 

       

      We
        hereby
        acknowledge that the termination of the Agreement (including all of its
        schedules, exhibits and annexes with the exception of the Warrant) in accordance
        with this notice of termination is subject to Plenus’ confirmation that on or
        prior to the date herein, we have repaid the Principal Amount and all accrued
        Interest (as defined in the Loan Agreement) thereon; Concurrently with the
        execution of its acceptance of this letter, Plenus shall execute any documents
        necessary to cancel the floating charge recorded with the Registrar of Companies
        in Israel and the UCC Pledge recorded (as set forth in the Pledge Agreement
        between Wintegra Inc. and Plenus Technologies Ltd.). 

       

      We
        are
        aware further that this Termination Letter shall not be construed to derogate
        in
        any manner whatsoever, from Plenus’ rights in accordance with the Warrant issued
        to Plenus on June 4, 2002 and the reporting and notice rights of Plenus under
        Section 5 of the Loan Agreement, and the
        obligations of the Company to indemnify Plenus in Section 4 of the Agreement
        will survive this Letter until all statutes of limitations for actions that
        may
        be brought against Plenus have expired
        which
        shall survive the termination of the Loan Agreement in accordance with its
        terms.

      
        	 	 	 
	 	Sincerely,
	 	 
	 	Wintegra Inc.
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	
                Agreed
                  and accepted:

              	 
	 	 
	 	 
	
                
 	 
	Plenus Technologies Ltd.	 

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

      Schedule 4(i)A

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SCHDULE
        4 (vii)

      

       Guarantees,
        Royalty payments, Options, Rights or other privileges 

      

      Liens,
        Guarantees

       

      	1.  	
              Wintegra
                Israel has recorded a first priority lien by Bank Leumi of Israel
                against
                certain assets as collateral for bill of sale of certain equipment,
                in the
                amount of $200,000. The Company has an undertaking to record a first
                priority lien by Bank Leumi of New York against certain assets as
                collateral for bill of sale of certain equipment, in the amount of
                up to
                $50,000. 

            

       

      	2.  	
              Wintegra
                Israel provided bank guarantees to its lessor in the amount of
                $243,000.

            

       

      	3.  	
              Wintegra
                Israel recorded a pledge on its switch board as part of a capital
                lease
                agreement.

            

      

      Royalties

       

      	1.  	
              As
                part of Wintegra Israel's agreement with Mips dated December 22,
                2000
                Wintegra Israel will pay Mips royalties for each core being integrated
                in
                the company's chip based on a percentage of the per unit selling
                price.

            

       

      	2.  	
              As
                part of Wintegra Israel's agreement with Philips dated January 22,
                2001
                Wintegra Israel will pay Philips royalties for selling Licensed Products
                based on a percentage of the net selling price of the company's
                sales.

            

      

      Options

       

      	3.  	
              Certain
                holders of preferred B stock of the company hold warrants entitle
                them to
                purchase up to 181,390 preferred B stock of the
                company.

            

       

      	4.  	
              As
                of April 30, 2002 the company has reserved 5,000,000 shares of common
                stock of the company as a pool for issuance to employees, directors
                and
                advisors of the company according to the company's approved stock
                plan.
                Out of the pool 4,061,100 options were granted, out of which 1,154,250
                options have been exercised by grantees. 

            

      

      Privilege
        with respect to the company's securities 

      The
        holders of preferred stock of the company and the company's founders are
        entitle
        to certain privilege with respect to their holdings and with respect to the
        company's securities, at set forth in company's third restated certificate
        of
        incorporation and in that certain second amended and restated investor rights
        agreement dated July 19th
        2001.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      Schedule
        7

       

      Wintegra
        Inc.

       

      IRREVOCABLE
        PROXY

       

      A. The
        undersigned ("Proxy
        Grantors"),
        being
        the Co-lenders and their successors (as these terms are defined in that certain
        Loan Agreement between Wintegra Inc., an Delaware corporation, Plenus
        Technologies Ltd., an Israeli company and others, dated June 4, 2002) (the
        "Agreement"
        and
        "Company"
        respectively), hereby irrevocably appoint Plenus
        Technologies Ltd. of Delta House, 16 Hagalim Avenue, Herzylia 46725, Israel
        (the
“Proxy
        Holder”)
        as their
        proxy to sign and execute the Agreement and any Exhibits and Schedules attached
        thereto and any other documents related to the transaction contemplated hereby
        and thereby and to vote for them and on their behalf at shareholders meetings
        of
        the Company 

       

      B. This
        Irrevocable Proxy is given in accordance with and pursuant to the
        Agreement.

       

      The
        Proxy
        Grantors agree as follows:

       

      1.
        Each
        Proxy Grantor hereby severally and irrevocably appoints and constitutes the
        Proxy Holder as the Proxy Grantor's true and lawful proxy and attorney-in-fact,
        with full power of substitution and revocation, to sign and execute, at the
        sole
        discretion of Proxy Holder, the Agreement and any document, form or letter
        related to or in connection with the performance of the undertakings and
        obligations of the parties to the Agreement, their successors, under the
        Agreement and all exhibits and schedules attached thereto. 

       

      2. Upon
        exercise of the Warrant (as defined in the Agreement), Proxy Holder, on behalf
        of each Proxy Grantor, shall be entitled to attend meetings of the shareholders
        of the Company to be held at any time, or any continuation or adjournment
        thereof, to vote or take action by written consent with respect to those
        shares
        of the Company's Series B Preferred Shares, nominal value 0.001 US$ each,
        set
        forth next to each of the Proxy Grantors’ names in Schedule
        A
        of this
        Irrevocable Proxy, on all matters as the Proxy Holder shall determine in
        its
        discretion, including, without limitation, shareholders meetings, shareholders
        actions by written consent and waivers. 

       

      3. Each
        Proxy Grantor hereby acknowledges and agrees that the foregoing irrevocable
        grant to the Proxy Holder is in connection with the Agreement, is coupled
        with
        an interest, and shall survive with respect to each Proxy Grantor each Proxy
        Grantor’s liquidation or dissolution. Furthermore, each Proxy Grantor hereby
        severally and irrevocably appoints the Proxy Holder as the Proxy Grantor's
        true
        and lawful proxy and attorney-in-fact, with full power of substitution, to
        receive all notices to which they are entitled to by virtue of contract or
        the
        Company’s Articles of Association.

       

      4. This
        Irrevocable Proxy shall terminate automatically upon the earlier of: (a)
        the
        consummation of a Realization Event, or (b) the termination of Proxy Holder's
        formation agreements. This Irrevocable Proxy is irrevocable until its
        termination as set forth above.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      For
        the
        purposes of this Section 2 the term “Realization
        Event”
shall
        mean either (x) the closing of a firmly underwritten initial public offering
        of
        the Company’s shares (an “IPO”)
        pursuant to a registration statement filed with the Securities and Exchange
        Commission pursuant to the Act or pursuant to a registration statement filed
        with a similar law under any foreign jurisdiction; or (y) the closing of
        an
        M&A Transaction. For the purposes of this Section 2, the term “M&A
        Transaction”
        shall
        mean either: (x) the consummation of any consolidation or merger of the Company
        with or into a third party, pursuant to which the Company's shareholders
        immediately prior to such transaction own less than fifty-one percent (51%)
        of
        the voting securities of the surviving entity immediately after the consummation
        of such transaction, or (y) the consummation of a sale of all or substantially
        all of the Company’s shares or assets to any third party.

       

      5. This
        Irrevocable Proxy shall be governed by and construed in accordance with the
        laws
        of the State of Israel, without regard to its conflict of laws
        principles.

       

      6. This
        Irrevocable Proxy may be executed in counterparts, each of which shall be
        an
        original, but all of which together shall be deemed to constitute one
        instrument.

       

      7. Each
        of
        the signatories hereto acknowledges and agrees that this Irrevocable Proxy
        supersedes and replaces any prior proxies, or amendments thereto, which may
        have
        been executed by any or all of the parties hereto, and any prior oral or
        written
        proxies given with respect to the Company's securities are hereby revoked
        as of
        the date hereof. 

      

       

      8.
        This
        proxy shall be binding upon the heirs, estate, executors, personal
        representatives, successors and assigns of the undersigned.

       

      9.
        If any
        provision of this proxy or any part of any such provision is held under any
        circumstances to be invalid or unenforceable in any jurisdiction, then (i)
        such
        provision or part thereof shall, with respect to such circumstances and in
        such
        jurisdiction, be deemed amended to conform to applicable laws so as to be
        valid
        and enforceable to the fullest possible extent, (ii) the invalidity or
        unenforceability of such provision or part thereof under such circumstances
        and
        in such jurisdiction shall not affect the validity or enforceability of such
        provision or part thereof under any other circumstances or in any other
        jurisdiction, and (iii) the invalidity or unenforceability of such provision
        or
        part thereof shall not affect the validity or enforceability of the remainder
        of
        such provision or the validity or enforceability of any other provision of
        this
        proxy. Each provision of this proxy is separable from every other provision
        of
        this proxy, and each part of each provision of this proxy is separable from
        every other part of such provision.

      
 

       

      [remainder
        of page intentionally left blank]

      
 

      
        
          
          

        

        
          -2-Unassociated Document

    [Wintegra
      logo]

     

    Date:
      August 12,
      2004

    

    

    Customer’s
      name: WINTEGRA
      LTD.

    Corporate
      no.: 512901075

    

    Address:
      6 Hamasger St. Ra'anana

    Account
      No.: ______________________,
      

    

    To:

    United
      Mizrahi Bank Ltd.

    ______________
      Branch

    

    Dear
      Sir,

    

    Re: Framework
      Agreement for Foreign Currency Loans

    

    It
      is
      hereby agreed and declared between Wintegra Ltd. (hereinafter: the “Borrower”)
      and
      United Mizrahi Bank Ltd. (hereinafter: the “Bank”)
      that
      the following terms and conditions shall apply to all loans that the Bank shall
      make available from time to time to the Borrower, in accordance with (i) this
      Framework Agreement for Foreign Currency Loans (hereinafter: the “Agreement”)
      and (ii) every specific loan agreement in the form attached hereto as
Appendix
      “A”
      (hereinafter: the “Loan Agreement”), such Loan Agreement being deemed to form an
      integral part of the Agreement and will be submitted to the Bank from time
      to
      time in the future, in accordance with the terms of the Agreement and approved
      by the Bank.

    

    All
      loans
      made available to the Borrower shall be made in accordance with and subject
      to
      the Bank’s “Agreement and General Business Terms” and/or “Application for
      Opening an Account” and/or “Changes in Account” forms, as well as the Bank’s
“Account Management General Terms and
      Conditions” and “General Conditions for Credit Activity” including all annexes
      and amendments relating thereto (hereinafter: the “Bank Forms”) which the
      Borrower has executed with the Bank. All of the terms and conditions appearing
      in such Bank Forms shall apply and bind the parties hereto with respect to
      the
      loans that shall be made available to the Borrower by the Bank.

     

     

     

    
      WINTEGRA
        LTD.

      /s/
        Jacob Ben-Zvi

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THE
      FOLLOWING TERMS AND CONDITIONS SHALL BIND THE PARTIES HERETO:

     

    1.  The
      Lender:
      United
      Mizrahi Bank Ltd.

     

    2.  The
      Borrower:
      Wintegra
      Ltd. (hereinafter: the “Borrower”)

     

    3.  The
      Loans:
      The
      aggregate amount of the loan facility that the Borrower may draw pursuant to
      the
      Agreement shall be up to the sum of US$ 2,000,000 (Two Million United States
      Dollars) (hereinafter: the “Loan
      Facility”)
      in
      accordance with the terms and conditions set forth below. Each portion of the
      Loan Facility may only be drawn upon the fulfillment of all the preconditions
      stipulated in Section ‎5
      below
      (hereinafter: the “Preconditions”).

     

    4.  Each
      drawdown pursuant to the Loan Facility shall be made available by the Bank
      to
      the Borrower until the earlier of 24 (Twenty-four) months as of the date hereof,
      or June 30th,
      2006.
      Each drawdown shall be in an amount of not less than US$ 250,000 (Two Hundred
      and Fifty Thousand United States Dollars) (hereinafter: the “Loan/s”).
      Each
      notice given by the Borrower to the Bank of its request to drawdown a Loan
      shall
      be delivered to the Bank in writing at least 3 (three) business days prior
      to
      the date that the Loan is to be granted together with details stipulating the
      requested date for drawing each Loan, the amount to be drawn down. The Bank
      and
      the Borrower shall thereupon execute a form of Loan Agreement in the form
      attached hereto as Appendix
      “A”,
      which
      shall be based on the terms and conditions set forth herein, except for the
      period of the Loan which will be adjusted for each Loan. In addition, the Bank
      may require the Borrower to file an “Applications for the Granting of Credit”
and any requisite Minutes and Protocols that are to be submitted by the Borrower
      to the Bank, customarily used by the Bank. The Loan shall be made available
      to
      the Borrower by the Bank crediting the Borrower’s account no. 107195
      maintained at the Herzelia Branch of the Bank (hereinafter: the
“Account”)
      following the delivery of all of the above mentioned documents duly executed
      and
      certified to the satisfaction of the Bank.

     

    5.  The
      Preconditions for the granting of a Loan pursuant to the Agreement shall be
      as
      follows:

    
       

       

      
        WINTEGRA
          LTD.

        /s/
          Jacob Ben-Zvi

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.1. That
      the
      Borrower has opened the Account at the Bank, has executed all of the credit
      documents customary at the Bank and has delivered all of the minutes, protocols
      and legal certifications customarily required at the Bank.

     

    5.2. The
      Borrower has delivered to the Bank all of the requisite security interest and
      the following documents:

     

    5.2.1. A
      first
      ranking floating charge (Pari Passu with Plenus, defined below), in an unlimited
      amount, over all the equipment, assets, monies, property and rights, including
      all proceeds deriving therefrom, of every type whatsoever of the Borrower and
      a
      first ranking fixed charge and pledge over the intellectual property of the
      Borrower, all pursuant to the debenture form customarily used at the Bank.
      It is
      hereby clarified that prior to the Bank making any Loan available to the
      Borrower pursuant to the Agreement, all current registered charges and pledges
      over any assets of the Borrower shall be rescinded, except for the charges
      in
      favour of Plenus and the charges and guarantees specified in Section 5.3
      below. 

     

    Both
      the
      above-mentioned floating and fixed charges and pledges shall rank pari passu
      with those granted to Plenus Technologies Ltd. (hereinafter: “Plenus”).

     

    5.2.2. A
      duly
      executed Pari Passu Agreement between Plenus and the Bank.

     

    5.2.3.
      A
      duly
      executed warrant in favour of the Bank to purchase shares of the Borrower in
      the
      form attached hereto as Appendix
      “B”
      (hereinafter: the “Warrant”).

     

    5.2.4.
      A
      Continuing Guarantee in an unlimited amount duly executed by the parent company
      - Wintegra Inc. (hereinafter: the “Parent Company”).

     

    5.2.5.
      A
      duly
      executed negative pledge over the assets of the Parent Company and over the
      Borrower’s subsidiaries.

     

    5.3.
      Existing
      Charges
      and
      Guarantees: The Bank hereby acknowledges that the following charges currently
      exist and agrees that such charges shall remain in force and effect at the
      discretion of the Borrower: 

     

    5.3.1.
      The
      Borrower's long-term deposit in an amount of $75,000 is restricted in favor
      of
      bank Leumi of Israel along with other specific fixed assets, according to a
      loan
      agreement for the amount of $200,000 which the Borrower received from said
      bank
      for the purpose of purchasing property and
      equipment. The property and equipment which were purchased using said $200,000
      loan, are under fixed charge in favour of Leumi of Israel Ltd.;

     

     

     

    
      WINTEGRA
        LTD.

      /s/
        Jacob Ben-Zvi

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.3.2. Floating
      and Fixed Charges in favor of Plenus, in accordance with a Loan Agreement dated
      4 June 2002 (subject to Section ‎5.2.1
      above);

     

    5.3.3.
      The
      Borrower possesses leased computers, central telephone system and computer
      related materials pursuant to lease agreements with Unilease, Techlease
      Financial Services Ltd. and International Leasing Ltd.. All of the leased
      equipment under said lease agreements are mortgaged in favour of the relevant
      lessors;

     

    5.3.4.
      The
      Borrower provided a bank guarantee of US$ 170,000 in favor of the lessors of
      its
      premises.

     

    6. 
      The
      Borrower shall make reasonable efforts in order that payments from the
      Borrower’s Israeli customers that become due in the future shall be transferred
      to the Account. 

     

    7.
      The
      Borrower hereby undertakes to pay to the Bank an annual non-utilization
      commission of 1% (one percent) with respect to any amount of the Loan Facility
      which the Borrower shall not utilize (hereinafter: the “Commission”) which shall
      accrue from the date that the Bank shall make the credit facility available
      to
      the Borrower. The Commission shall be payable and compounded quarterly, as
      computed by the Bank.

     

    8.
      The
      interest rate prevailing pursuant to the Agreement shall be Libor plus 3.75%
      (three and seventy five hundredth percent) (hereinafter: the “Interest”),
      such
      Interest shall be set in the Loan Agreement. The Interest shall be payable
      in
      quarterly installments as stipulated in the Loan Agreement.

     

    9.
      Every
      amount made available by the Bank to the Borrower pursuant to the Loan shall
      be
      repaid no later then June 30th, 2006, at which date the Loan Facility shall
      be
      cancelled. Notwithstanding anything to the contrary, the Borrower may prepay
      any
      amounts owed to the Bank pursuant to this Agreement, at any time, by providing
      the Bank with thirty (30) days prior written notice informing the Bank of such
      intention to prepay, provided that such prepayment shall take place on the
      a
      date of payment of Interest by Borrower. 

     

    10.
      The
      Borrower undertakes that as long as it owes the Bank any amounts whatsoever,
      its
      consolidated financial reports at any given time shall reflect: 

     

     

    
      WINTEGRA
        LTD.

      /s/
        Jacob Ben-Zvi

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    10.1.
      A
      cash
      surplus which shall be not less than half of the approved credit lines
      maintained with the Bank and Plenus, which should be served to the Bank within
      10 (ten) business days of the end of the relevant quarter.

     

    10.2. 
      Sales
      of
      at least 60% of its business plan quarterly forecast as attached hereto.

     

    These
      covenants will be examined on the basis of the unaudited quarterly financial
      statements of the Borrower within 45 days of the end of each quarter,
      consolidated to reflect cumulative financial information of Borrower and Parent
      Company. In the event the Borrower does not fulfill the conditions set forth
      in
      this Section ‎10,
      the
      Bank may, at its sole discretion, do the following: (i) request that the
      security interest be improved and/or (ii) request that the prevailing interest
      rate be increased and/or (iii) demand, in writing, the immediate repayment
      of
      all outstanding Loans and/or (iv) shall not enable the Borrower to draw any
      additional loans under the credit facility. For avoidance of doubt, all the
      above shall be in addition to any other event enabling the Bank to demand the
      immediate repayment of the Loans as set forth in the documents that the Borrower
      has signed with the Bank.

     

    11.
      Borrower
      shall be allowed to obtain an additional bank or other sound and reputable
      financial institute debt financing ("Additional Lender") in an amount of up
      to
      US$ 1,000,000 (One Million United States Dollars) ("Additional Loan"). The
      Borrower shall be allowed to create additional pledges and charges and/or liens
      in favor of such Additional Lender equal in level to the charges in favor of
      the
      Bank, and the Bank shall provide a prior written consent to such Additional
      Loan, provided, that all the following conditions are fulfilled (i) the
      accumulated revenues of the Parent Company and Borrower shall reach up to US$
      8,000,000 (Eight Million United States Dollars) during the two consecutive
      preceding quarters as reflected in its consolidated financial statements (ii)
      an
      operating profit during the last quarter has been achieved (iii) the Bank
      refused to provide the Additional Loan at the terms proposed by such Additional
      Lender (or did not reply to a written notice delivered by the Company to the
      Bank within seven days of receipt). A Pari Passu Agreement shall be executed
      between the Bank and the other lender prior to the granting of such additional
      charge.

     

    12.
      The
      Borrower may terminate this Agreement at any time until the maturity of the
      Loan
      Facility, pursuant to procedure of Section 9 above, by providing the Bank with
      a
      30-day prior notice in writing indicating its intention to terminate this
      Agreement (the “Termination Letter”), provided that upon or immediately after
      the delivery of the Termination Letter to the Bank, the Borrower shall have
      satisfied all of its obligations to the Bank of any kind and further provided
      that upon
      such
      delivery any and all amounts due from the Borrower shall have been paid in
      full
      to the reasonable satisfaction of the Bank and all other credit facilities
      with
      the Bank have been terminated ("Initiated Termination"). Upon Initiated
      Termination, this Agreement, will be immediately and automatically terminated,
      without any further action from neither of the parties hereto. All of the
      charges (fixed and floating) created in favor of the Bank hereunder or otherwise
      and the Negative Pledge Agreements or forms, Continuing Guarantee to Secure
      all
      Dents and the Secured Debenture, shall be cancelled and released within seven
      (7) days as of the date of receipt of a written request by the Bank after the
      Initiated Termination, and the Bank shall provide the Borrower with all
      documents necessary to release the charges granted hereunder or under the
      exhibits and schedules hereto, and any other consent, form, instrument or action
      required to release any charges in favor of the Bank as may be required by
      Borrower.

     

     

     

    
      WINTEGRA
        LTD.

      /s/
        Jacob Ben-Zvi

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13.
      Upon
      the
      execution of the Agreement and the Warrant, the Borrower shall pay the Bank
      a
      one time, up-front fee in the amount of US$10,000 (Ten Thousand United States
      Dollars) which fee shall be in addition to and not in substitution for the
      regular commissions customarily charged at the Bank.

     

    14.
      All
      of
      the Preconditions set forth in Section ‎5
      above
      shall be fulfilled not later than on 31.7.2004 and failure to comply with one
      or
      more of the Preconditions shall automatically render the Agreement null and
      void.

     

    15.
      All
      of
      the appendices to the Agreement form an integral part hereof and are
      supplementary to all the terms and conditions stipulated in the
      Agreement.

     

    16.
      Any
      term
      of this Agreement may be amended and the observance of any term hereof may
      be
      waived (either prospectively or retroactively and either generally or in a
      particular instance) only with the written consent of all of the parties to
      this
      Agreement. 

     

    17.
      This
      Agreement shall be governed by and construed according to the laws of the State
      of Israel, without regard to the conflict of laws provisions
      thereof.

     

     

    Sincerely
      yours,

     

    The
      Borrower - Wintegra Ltd. 

     

    _________________________________________

     

    
      We
        approve the above and shall act accordingly

       

      ____________________________________

       

      United
        Mizrahi Bank Ltd.

       

       

       

      
        WINTEGRA
          LTD.

        /s/
          Jacob Ben-Zvi

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    Appendix
      A

     

    Form
      of
      Loan Agreement

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      

        TRANSLATION
          FOR CONVINIENCE

        Foreign
          Currency Loan Agreement (LIBOR Interest)

        

        Account
          Number __________________ in Branch / Business Center _____________

        Signed
          and Executed at _______________ on _______ Month __________ Year
          _______

        

        between

        United
          Mizrahi Bank Ltd.

        (hereinafter:
          "The
          Bank")

        

        and
          between

        ____________________________

        ____________________________

        ____________________________

        

        (Jointly
          and severely, hereinafter: "The
          Lender")

        

        WHEREAS
           The
          Lender has asked The Bank to lend him the amount of ___________ [please
          specify
          name of foreign currency] (hereinafter: "The
          Loan");
          and

        

        WHEREAS
           The
          Bank
          has agreed to The Lender's request to provide the Lender The Loan, subject
          to
          the terms and conditions of this agreement;

        

        Therefore
          the parties have agreed as follows:

        

        
          	1.	
                  The
                    Loan is granted in accordance with and subject to the "Request
                    to Open an
                    Account" and/or "Changes in Account" and "General Terms and Conditions
                    to
                    Operate an Account" and "General Terms and Conditions to Operations
                    in
                    Credit", including all amendments and corrections that The Lender
                    has
                    entered into with The Bank (hereinafter: "Terms
                    of Engagement"),
                    and all terms and conditions of the Terms of Engagement, shall
                    apply to
                    and be binding upon The Loan.

                

        

        
          	2.	
                  The
                    Loan

                

        

        Details
          of The Loan as agreed upon by The Lender and The Bank, are as
          follows:

        
          	
                	2.1.	
                  Purpose
                    of The Loan

                

        

        ________________________________________________

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	2.2.	
                  Amount
                    of The Loan 

                

        

        ______________________
          [please specify name of foreign currency]____________________

        
          	2.3.	
                  Term
                    of The Loan

                

        

        ______________________________
          months.

        
          	2.4.	
                  Type
                    of Interest

                

        

        LIBOR
          Interest of _________________[please specify name of foreign
          currency].

        
          	
                	2.4.1.	
                  LIBOR
                    Interest shall be set for a period of __________________
                    months.

                

        

        The
          nominal annual interest during the first interest period shall be ____________%,
          subject to Section 2.4.2.1 hereafter.

        
          	
                	2.4.2.	
                  The
                    foregoing nominal annual interest rate will consist of the following
                    interest rates:

                

        

        
          	
                	2.4.2.1.	
                  ________%
                    - the LIBOR rate at the day of drafting this agreement, which
                    may vary
                    from the date hereof until the actual date of The
                    Loan.

                

        

        
          
            	
                  	2.4.2.2.	
                    ________%
                      - fixed additional margin.

                  

          

        

        
          	2.5.	
                  Schedule
                    of payments of the principal of The
                    Loan

                

        

        ____________
          consecutive payments to be paid ________ [please specify: monthly, quarterly,
          semi-annual, or any other number of months], starting on _____.

        

        
          	2.6.	
                  Schedule
                    of payments of the
                    interest

                

        

        ____________
          consecutive payments to be paid ________ [please specify: monthly, quarterly,
          semi-annual, or any other number of months], starting on _____.

        

        
          	2.7.	
                  Commissions

                

        

        The
          Lender undertakes to pay The Bank the following commissions:

        
          	
                	2.7.3	
                  Payment
                    commission in the amount of _________ NIS, for every line of
                    payment
                    listed in the payment schedule. This commission shall be paid
                    at the time
                    of payment of each payment listed in the payment schedule. The
                    rate of
                    this commission shall be updated from time to time, in accordance
                    with the
                    rates of payment commission applicable in The Bank at the time
                    of each
                    payment.

                

        

        
          
            
              	*	2.7.2.	
                      Execution
                        commission in the amount of _________ for the execution of
                        The
                        Loan.

                    

            

          

        

        
          Thiscommission
            shall be paid at the time of executing The Loan.

        

         

        
          
            
              	*	2.7.2.	
                      Execution
                        commission in the amount of _________ NIS for the execution
                        of The Loan
                        (________% of the amount of The Loan, but not less than _______
                        NIS, and
                        not
                        more than _________NIS. This commission shall be paid at
                        the time of
                        executing
                        The Loan.

                    

            

          

        

         

         

        
          
            
            

          

          
            -2-

            
              

            

          

          
            
            

          

           

        

        
          	
                	
                  2.7.3

                	
                  Registration-of-transaction
                    commission in the amount of _________ NIS for each transaction
                    charged in
                    the foreign currency account, subject to the account's terms
                    and
                    conditions. Time of charge: the beginning of the month following
                    the
                    transaction. The rate of this commission shall be updated from
                    time to
                    time, in accordance with the rates of registration-of-transaction
                    commission applicable in The Bank at the applicable
                    date.

                

        

        
          	3.	
                  Instructions
                    for the execution of The
                    Loan

                

        

        The
          Lender hereby instructs The Bank to credit The Lender's account number
          _____________ in Branch/Business Center _______________ of The Bank in
          the
          amount of The Loan in the soonest possible time.

        
          	4.	
                  Coming
                    to effect of this
                    agreement

                

        

        
          	
                	4.1.	
                  The
                    effect of this agreement is conditioned upon submission of this
                    agreement
                    by The Lender to The Bank, duly signed by The Lender, no later
                    than
                    __________ (up to 3 days from the date of providing a draft of
                    this
                    agreement), and subject to the signature of The Bank of this
                    agreement.
                    Notwithstanding the aforesaid, The Bank may, at its sole discretion,
                    provide The Loan even if The Lender did not meet the date set
                    forth
                    above.

                

        

        
          	
                	4.2.	
                  In
                    case there is any change related to The Loan, and for as long
                    as The Loan
                    was not de
                    facto
                    provided to The Lender, The Bank will not be bound to provide
                    The
                    Loan.

                

        

        
          	5.	
                  Declaration

                

        

        I,
          The
          Lender, hereby declare and affirm that I read this agreement thoroughly,
          including all sections, and I understand the language and meaning of its
          content. 

        
          	6.	
                  Special
                    Terms  ___________________________________________

                

        

        

        And
          in witness thereof, The Lender has executed this
          agreement

        
          	 	
                  Name

                	
                  ID
                    number

                	
                  Signature

                	
                  Date

                
	
                  1

                	 	 	 	 
	
                  2

                	 	 	 	 
	
                  3

                	 	 	 	 

        

        

        And
          in witness thereof, The Bank has executed this
          agreement

        ____________________________

        United
          Mizrahi Bank Ltd.

         

        
           

          
            
              
              

            

            
              -3-

              
                

              

            

            
              
              

            

             

          

        

         

      

    

    March
      5,
      2006

     

    
      	To:	
              Alon Rozner, CFO

              Wintegra
                Inc.

            

    

     

     

    Re:
      Warrants

     

    This
      is to confirm that as of January 1, 2006 we are
      waiving our right in accordance with section 9 to the warrant agreement dated
      August 12, 2004 to an upside commission.

    Also,
      in connection with section 1.7 of the said
      agreement, we acknowledge that the minimal exercise price of the warrant will
      not be lower than $0.50 (no more than 1,200,000 shares).

     

     

     

    
      
        	
                Sincerely,

                 

                Mizrahi
                  Tefahot Bank Ltd.

                 

                MORAD
                  OFIR

                 

                Kuty
                  Mansdorf

                Deputy
                  Head of Corporate
                  Bank

              

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Date:
        August 12, 2004 

       

      To:
        United Mizrahi Bank Ltd.

      

      

      WARRANT

       

      To
        purchase Series C Preferred Stock

       

      of

       

      Wintegra,
        Inc.

       

      VOID
        AFTER 24:00 p.m. (prevailing Israel time)

       

      On
        the
        last day of the Warrant Period (defined below)

       

      Wintegra,
        Inc., a company organized and existing under the laws of the State of Delaware
        (the “Company”)
        hereby
        grants to United Mizrahi Bank Ltd. (the “Holder”),
        the
        right to purchase from the Company the number of fully paid and non-assessable
        Series C Preferred Shares of the Company, par value $0.001 each or Minimum
        Equity Raising Shares or Common Shares (each, as relevant, the “Warrant
        Shares”)
        each
        as specified and defined below, subject to the terms and conditions set forth
        below.

       

      The
        Warrant Shares shall have the same rights, preferences and privileges attached
        to Series C Preferred Shares of the Company (the “Series
        C Preferred Shares”),
        together with any additional rights (including without limitation registration
        rights, preemptive rights or any other rights) and the same obligations arising
        from the Third Amended Investor Rights Agreement dated March 25, 2003 and
        the
        Third Amended and Restated Rights of First Refusal & Co-Sale Agreement dated
        March 25, 2003, between the Company and the parties named therein, as such
        agreements may be amended from time to time, provided only that no amendment
        shall impose any financial liability on the Holder which has not been expressly
        agreed to by it. 

      

      Notwithstanding
        the preceding sentence, if the Company issues shares of stock other than
        Series
        C Preferred Shares within the framework of a Minimum Equity Raising (as defined
        below), and the Holder advises the Company that the Exercise Price will be
        the
        Minimum Equity Raising Share Price, then the Warrant Shares shall be of the
        same
        class of stock as such shares (the “Minimum
        Equity Raising Shares”).
        In
        the event that as part of the Minimum Equity Raising, the Company issues
        options
        or warrants to an investor together with the issuance of shares of stock,
        the
        Holder shall receive a pro rata right to purchase such options or warrants
        at
        the exercise price fixed in such equity raising.

       

      In
        any
        event, to the extent the rights granted to the Holder herein are greater
        than
        those granted to the class of shares to be issued upon exercise of the Warrant,
        the rights granted herein shall apply.

       

       

      
        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Further
        and notwithstanding the above, under certain circumstances as described herein,
        the Warrant Shares shall be of the class of stock of Common Shares, par value
        $0.001.

      
         

        
          	
                	1.	
                  Definitions

                

          	 	 	 

          	 	 	For the purpose of this
                  Warrant:

        

      

       

       

      
        	
              	1.1	
                “IPO”
                  shall mean the first underwritten public offering of the Company’s shares,
                  pursuant to an effective registration statement under the Securities
                  Act
                  of 1933, as amended, (the “Securities
                  Act”)
                  or pursuant to the corresponding securities laws of any other jurisdiction
                  (other than a registration statement effected solely to implement
                  an
                  employee benefit plan).

              

        	 	 	 

        	 	1.2	
                “Liquidity
                  Event”
                  shall mean (a) the
                  sale of all or substantially all of the shares of stock of the
                  Company,
                  property and/or assets (including by way of share swap); or (b)
                  the merger
                  or consolidation of the Company with or into another company following
                  which more than fifty percent (50%) of the shares of stock of the
                  Company
                  are held by persons who, prior to the said transaction, held, in
                  the
                  aggregate, less than five percent (5%) of the shares of stock of
                  the
                  Company.

              

        	 	 	 

        	 	1.3 	
                “Exit
                  Transaction”
                  shall mean an IPO or a Liquidity Event.

              

        	 	 	 

        	 	1.4 	
                “Effective
                  Date”
                  shall mean the date of execution of this
                  Warrant.

              

        	 	 	 

        	 	1.5	
                “Warrant
                  Amount”
                  shall mean Six Hundred Thousand United States Dollars (US $600,000).
                  

              

        	 	 	 

        	 	1.6	
                “Warrant
                  Period”
                  shall mean the period for exercise of this Warrant, as determined
                  pursuant
                  to Section 3.

              

        	 	 	 

        	 	1.7	
                “Exercise
                  Price”
                  shall mean the exercise price of each Warrant Share purchasable
                  hereunder,
                  which will be as determined pursuant to Sections 1.7.1 or 1.7.2
                  below,
                  subject to modification pursuant to Section
                  10:

              

      

       

      
        	
              	1.7.1	
                Exercise
                  Price Based on Minimum Equity Raising

              

        	 	 	 

        	 	 	
                The exercise price of each
                  Warrant Share
                  shall be at the discretion of the Holder (i) the Minimum Equity
                  Raising
                  Share Price or (ii) the Last Financing Price per Share. The Holder
                  shall
                  advise the Company in writing within 30 days of receipt by the
                  Holder of
                  notice of the closing of such Minimum Equity Raising which Exercise
                  Price
                  and which class of shares it chooses.

              

        	 	 	 

        	 	 	
                The Minimum Equity Raising
                  shall be deemed
                  to have occurred when the closing of transactions in the amount
                  of the
                  Minimum Equity Raising has occurred and the investment funds of
                  such
                  transactions have been paid to the
                  Company.

              

      

       

      
        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      
         

        
          	 	1.7.2	
                  Exercise
                    Price Based on Exit Transaction Prior to Minimum Equity
                    Raising

                

        

        
          	 	 	 

        

        
          	 	 	
                  If there is an Exit Transaction
                    prior to
                    the closing of the Minimum Equity Raising, the Exercise Price
                    shall be the
                    price per share set by the Exit Transaction less 40% (Forty Per
                    Cent)
                    unless such Exit Transaction takes place within 12 months of
                    the Effective
                    Date, in which event, the Exercise Price shall be the price per
                    share set
                    by the Exit Transaction less 30% (Thirty Per Cent). In the event
                    of such
                    an Exit Transaction, notwithstanding anything stated to the contrary
                    herein, the Company shall first convert all preferred shares
                    to Ordinary
                    Shares, such that the Warrant Shares shall be Ordinary Shares
                    of the
                    Company and in the event the Holder would have been entitled
                    to any
                    additional shares had it held Preferred Shares immediately prior
                    to such
                    conversion, the Company will issue the Holder such additional
                    number of
                    Ordinary Shares, at par value, as it would have had had it held
                    the
                    Preferred Shares.

                

        

        
          	 	 	 

        

        
          	 	 	
                  In the event of a Minimum
                    Equity Raising
                    or Exit Transaction in which a number of prices are used, the
                    lowest share
                    price shall be used (excluding any reasonable finder’s fees or broker fees
                    paid in securities).

                

        

         

        
        

        
          
            	
                  	1.8	
                    “Minimum
                      Equity Raising”
                      shall mean the first Equity Raising by the Company after the
                      date hereof
                      of at least $3,000,000 (gross) in equity, or at the election
                      of the
                      Holder, an Equity Raising of less than $3,000,000. The Company
                      shall
                      advise the Holder promptly in each case of an Equity Raising
                      and notify
                      the Holder of the total sum raised or to be raised, and the
                      Holder shall
                      advise of its election not later than 30 (thirty) days from
                      receipt of
                      Company Notice (as defined under Section _____ below).
                      

                  

          

        

        
          	 	 	 

        

        
          
            	
                  	1.9	
                    “Equity
                      Raising”
                      shall mean issuance by the Company of (i) equity securities,
                      other than
                      (a) issue of securities pursuant to any employee stock option
                      plan of the
                      Company, or (b) exercise of all outstanding warrants, options
                      or any other
                      right to purchase the Company’s stock, or, (ii) at the election of the
                      Holder other securities, convertible debentures, warrants,
                      options or any
                      other rights, whatsoever, to receive shares exchangeable for
                      or
                      convertible into equity securities, other than (a) issue of
                      securities
                      pursuant to any employee stock option plan of the Company,
                      or (b) exercise
                      of all warrants, options or any other right to purchase the
                      Company’s
                      stock. The Company shall advise the Holder promptly in each
                      case of the
                      issuance of any securities, convertible debentures, warrants,
                      options or
                      any other rights, whatsoever, to receive shares exchangeable
                      for or
                      convertible into equity securities, providing details of the
                      price at
                      which such securities would be convertible into equity securities,
                      and the
                      Holder shall advise within 30 (thirty) days from receipt of
                      Company Notice
                      (as defined under Section 4.1 below) as to whether it will
                      regard such
                      issuance as an Equity
                      Raising.

                  

          

        

         

        
          WINTEGRA
            INC.

          /s/
            Jacob Ben-Zvi  

        

         

        
          
            
            

          

          
            -3-

            
              

            

          

          
            
            

          

        

         

        
          
            	
                  	1.10	
                    “Minimum
                      Equity Raising Share Price”
                      shall mean the purchase price of each share issued or issuable
                      pursuant to
                      the Minimum Equity Raising.

                  

          

          	 	 	 

          
            	
                  	1.11	
                    “Financial
                      Statements”
                      shall mean the Company’s audited balance sheets and statements of income
                      as of December 31, 2003, certified by the Company’s independent certified
                      public accountants and the unaudited balance sheets and statements
                      of
                      income as of March 31, 2004. 

                  

          

          	 	 	 

          
            	
                  	1.12	
                    “Dollar”
                      and “$”
                      shall mean the United States
                      Dollar.

                  

          

          	 	 	 

          
            	
                  	1.13	
                    “Certificate
                      of Incorporation”
                      shall mean the Certificate of Incorporation of the Company,
                      the By Laws of
                      the Company and any agreement referenced therein, and any agreement
                      referenced in the SPA (as defined below), all and each as may
                      be amended
                      from time to time.

                  

          

          	 	 	 

          
            	
                  	1.14	
                    “Upside Commission”
                      shall mean an amount equal to (i) US$ 350,000 (Three Hundred
                      and Fifty
                      Thousand Dollars), if an Exit Transaction occurs on or prior
                      to June 30,
                      2005, or (iii) US$ 400,000 (Four Hundred Thousand Dollars)
                      if an Exit
                      Transaction occurs after June 30,
                      2005.

                  

          

          	 	 	 

          
            	
                  	1.15	
                    “Last
                      Financing”
                      shall mean the investment agreement between the Company and
                      the investors
                      listed on Schedule A thereto, dated March 25, 2003 (the “SPA”),
                      pursuant to which the Company issued Series C Preferred Shares
                      at a price
                      per share of $1.65005. The Last Financing Price per Share shall
                      be
                      $1.65005 (subject to adjustment in the event of share splits,
                      share
                      consolidations, issuances of bonus shares, and other recapitalizations
                      of
                      the Series C Preferred Stock).

                  

          

          	 	 	 

          
            	
                  	1.16	
                    “Preferred
                      Stock”
                      shall have the meaning subscribed to such term in the Certificate
                      of
                      Incorporation.

                  

          

        

         

      

      
        
          
            	
                  	2. 	
                    
                      Number
                        of Shares Available for Purchase
                        

                    

                  

            	 	 	 

            	 	 	This Warrant may be exercised
                    to purchase that
                    number of Warrant Shares determined by dividing the Warrant Amount
                    by the
                    Exercise Price.

          

           

        

      

      
        
          
            	
                  	3.	
                    
                      
                        Warrant
                          Period.
                          

                      

                    

                  

            	 	 	 

            	 	 	The Warrant may be exercised,
                    in whole or in
                    part, and on one or more occasions, during the period commencing
                    from the
                    Effective Date and ending on the earliest to occur of (i) seven
                    (7) years
                    following the Effective Date, or (ii)  twelve months after the
                    consummation of an Exit Transaction; provided however, that if
                    the
                    underwriter in an IPO, or the buying party(ies) in the Liquidity
                    Event
                    require that all outstanding warrants of the Company (not including
                    options issued to employees and consultants), including this
                    Warrant, be
                    exercised and all convertible loans or debentures be converted,
                    prior to
                    or as part of the IPO or the Liquidity Event, as the case may
                    be, then the
                    period for exercise of the Warrant shall terminate upon the consummation
                    of the IPO or the Liquidity Event, subject to compliance by the
                    Company
                    with the provisions of Section 4.1
                    hereof.

          

           

          
            WINTEGRA
              INC.

            /s/
              Jacob Ben-Zvi

          

           

          
            
              
              

            

            
              -4-

              
                

              

            

            
              
              

            

          

           

        

      

      
        
          
            	
                  	4.	
                    
                      
                        
                          Notice
                            of Events. 

                        

                      

                    

                  

          

          
            
              	 	 	 

              	 	4.1	
                      In
                        the event that the Company (i) files a registration statement
                        (including
                        confidential registration) for a public offering, or (ii)
                        receives written
                        terms and a bona fide offer for a Liquidity Event, the Company
                        shall, at
                        least 20 (twenty) days prior to the Exit Transaction, provide
                        written
                        notice of such filing or offer to the Holder (the “Company
                        Notice”)
                        unless the giving of such notice is barred by applicable
                        law or by a
                        non-disclosure agreement governing such offer. If the giving
                        of such
                        notice is barred, and during the period in which the giving
                        of such notice
                        is barred the Warrant would otherwise have expired, then
                        the Warrant will
                        remain in full force and effect for a further period of 20
                        (twenty) days
                        after the date when such notice may be given.

                    

              	 	 	 

              	 	4.2	
                      Without
                        derogating from the provisions of section 4.1 and in addition
                        thereto, if
                        at any time the Company shall offer for subscription pro
                        rata to the
                        holders of its shares any additional shares of any class,
                        other rights or
                        any equity security of any kind, or there shall be any capital
                        reorganization or reclassification of the capital shares
                        of the Company,
                        or consolidation or merger of the Company with, or sale of
                        all or
                        substantially all of its assets to another person or there
                        shall be a
                        voluntary or involuntary dissolution, liquidation or winding-up
                        of the
                        Company, or other event described in Section 10 of this Warrant,
                        then, in
                        any one or more of said cases, the Company shall give the
                        Holder written
                        notice of the date on which (i) a record shall be taken for
                        such
                        subscription rights or (ii) such reorganization, reclassification,
                        consolidation, merger, sale, dissolution, liquidation or
                        winding-up shall
                        take place, as the case may be. Such notice shall also specify
                        the date as
                        of which the holders of record of shares shall participate
                        in such
                        subscription rights, or shall be entitled to exchange their
                        shares for
                        securities or other property deliverable upon such reorganization,
                        reclassification, consolidation, merger, sale, dissolution,
                        liquidation or
                        winding-up, as the case may be. Unless prohibited under the
                        law or by a
                        non-disclosure agreement governing such transaction, such
                        written notice
                        shall be given by not later than 30 (Thirty) days prior to
                        the action in
                        question and by not later than 30 (Thirty) days prior to
                        the record date
                        in respect thereto. If the giving of such notice is prohibited
                        under the
                        law or by a non-disclosure agreement governing such transaction,
                        and
                        during the period in which the giving of such notice is prohibited
                        the
                        Warrant would otherwise have expired, the Warrant will remain
                        in full
                        force and effect for a further period of 30 (Thirty) days
                        after the date
                        when such notice may be given.

                    

              	 	 	 

              	 	 	In the event that the Certificate
                      of
                      Incorporation or any agreement to which the Company is a party
                      provides
                      any shareholders of the Company any co-sale or tag-along rights
                      upon the
                      sale of shares by any other shareholder, and the Holder, if
                      it held
                      Warrant Shares would be entitled to participate in such sale,
                      the
                      provisions of this Section 4.1 shall apply, mutates mutandis,
                      and the
                      Company will give all necessary notices to the Holder to enable
                      it to
                      exercise the Warrant in a timely manner so as to be able to
                      participate in
                      the sale.

            

             

            
              WINTEGRA
                INC.

              /s/
                Jacob Ben-Zvi

            

             

            
              
                
                

              

              
                -5-

                
                  

                

              

              
                
                

              

            

          

        

      

       

      
        
          
            
              	
                    	5.	
                      
                        
                          
                            Exercise
                              of
                              Warrant

                          

                        

                      

                    

            

          

        

      

       

      
        
          	 	5.1	
                  Exercise.
                    Subject to the provisions hereof, this Warrant may be exercised
                    in whole
                    or in part, on one or more occasions at any time during the Warrant
                    Period. This Warrant shall be exercised by presentation and surrender
                    hereof to the Company at the principal office of the Company
                    or at such
                    other office or agency as the Company may designate in writing,
                    accompanied by a written notice of exercise in the form attached
                    hereto as
                    Exhibit
                    5.1
                    and for the purpose of determining the relevant Exercise Price,
                    the
                    Warrant shall be deemed to have been exercised at such
                    time.

                

          	 	 	 

          	 	5.2	
                  Exercise
                    for Cash.
                    If the Holder, at its sole discretion, elects to make a cash
                    payment for
                    the Warrant Shares it shall make such payment by not later than
                    10 (ten)
                    days from giving the Exercise Notice to the Company in an amount
                    equal to
                    the Exercise Price multiplied by the number of Warrant Shares
                    specified in
                    such notice. The Exercise Price for the number of Warrant Shares
                    specified
                    in the notice shall be payable in immediately available funds,
                    in U.S.
                    dollars.
                    If
                    at such time, the Company has outstanding lines of credit with
                    the Holder,
                    but only if the portion of the Warrant being exercised is then
                    held by the
                    Holder and has not been assigned or transferred to any other
                    party, such
                    payment may, at the Holder’s sole discretion, be made by way of conversion
                    of all or any part of such credit lines, including any accrued
                    interest
                    (whether then payable or not) and in such case, such debt owed
                    by the
                    Company to the Holder being converted, whether due or not, shall
                    be
                    declared due and converted.

                

          	 	 	 

          	 	5.3	
                  Exercise
                    on Net Issuance.
                    In lieu of payment to the Company as set forth in section 5.2
                    above, and
                    without the payment of any Exercise Price (other than the par
                    value of the
                    Warrant Shares being exercised), the Holder may convert this
                    Warrant in
                    whole or in part, into the number of Warrant Shares calculated
                    pursuant to
                    the following formula, by surrendering this Warrant to the Company
                    at the
                    principal office of the Company, accompanied by a written notice
                    of
                    exercise, specifying the number of Warrant Shares into which
                    the Holder
                    desires to convert this Warrant:

                

          	 	 	 

        

      

       

    

    
      

      
        	
                X
                  =
                  

              	
                Y(A-B)

              
	
                A

              

      

       

      
        	
                Where:
                  

              	 	
                X =
                  

              	 	
                the
                  number of Warrant Shares to be issued to the Holder;

              
	 	 	 	 	 
	 	 	Y = 	 	
                the
                  number of Warrant Shares to which the
                  Holder is otherwise entitled
                  upon exercise of this Warrant (excluding Warrant Shares already
                  issued
                  under this Warrant);

              
	 	 	 	 	 
	 	 	
                A =
                  

              	 	
                the
                  Fair Market Value of one Warrant Share; and

              
	 	 	 	 	 
	 	 	
                B =
                  

              	 	
                the
                  Exercise Price.

              
	 	 	 	 	 
	Upon completion of the
                calculation, if X is a negative number, then X shall be deemed to
                be 0
                (zero).
	 	 	 	 	 

      

      

       

      
        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      As
        used
        herein, the Fair Market Value of a Warrant Share shall mean one of the
        following, in descending order of priority:

       

      
        	(i)  	
                If
                  the exercise date is a Liquidity Event in which shareholders of
                  the
                  Company receive payment for the transfer of shares held by them,
                  then the
                  highest price at which any such shares are purchased within the
                  framework
                  of the Liquidity Event.

              

      

       

      
        	(ii)  	
                If
                  the exercise date is the date of the closing of a public offering
                  of the
                  Company’s Ordinary Shares pursuant to an effective registration statement
                  under the Securities Act, or any similar law of any other jurisdiction,
                  then the public offering price (before deduction of underwriters’
                  discounts or commissions) in such offering.

              

      

       

      
        	(iii)  	
                If
                  the exercise date is within 90 days of any issuance of shares by
                  the
                  Company pursuant to any Equity Raising, then the highest price
                  at which
                  any such shares are issued within the framework of such Equity
                  Raising.

              

      

       

      
        	(iv)  	
                If
                  the Company’s shares are listed on a securities exchange or are quoted on
                  the quoting system on which shares of the Company are registered,
                  then the
                  closing or last sale price, respectively, reported for the exercise
                  date.

              

      

       

      
        	(v)  	
                If
                  the Company’s shares are not listed on a securities exchange or are not
                  quoted on the quoting system on which shares of the Company are
                  registered, but are traded in the over-the-counter market, then
                  the mean
                  of the bid and asked prices as reported for the exercise
                  date.

              

      

       

      
        	(vi)  	
                In
                  any other case, as determined in good faith in a reasoned written
                  determination by the Board of Directors of the Company.
                  

              

      

       

      
        
          
            	 	 	
                    provided,
                      however, that in any of cases (iv), (v) or (vi) the Holder
                      shall be
                      entitled to demand that the valuation be established by independent
                      auditors who are an internationally recognized auditing firm
                      at Holder's
                      expense.

                  

          

          
            	 	 	 

          

          
            	 	5.4	
                    Partial
                      Exercise, Etc.
                      If
                      this Warrant should be exercised in part only, the Company
                      shall, upon
                      surrender of this Warrant for cancellation, execute and deliver
                      a new
                      Warrant evidencing the rights of the Holder to purchase the
                      balance of the
                      shares purchasable hereunder.

                  

          

          
            	 	 	 

          

          
            	 	5.5	
                    Issuance
                      of the Warrant Shares.
                      Upon presentation and surrender of the notice of exercise and
                      after the
                      payment of the Exercise Price pursuant to section 5.2, or upon
                      presentation and surrender of the notice of exercise pursuant
                      to section
                      5.3, as the case may be, the Company shall issue within 3 business
                      days to
                      the Holder the shares to which the Holder is entitled.
                      

                  

          

          
            	 	 	 

          

          
            	 	 	
                    As of and from the close
                      of business on
                      the date of receipt by the Company of the notice of exercise
                      and the
                      Exercise Price, if applicable, the Holder shall be deemed to
                      be the Holder
                      of the shares issuable upon such exercise, notwithstanding
                      that the share
                      transfer books of the Company shall then be closed and that
                      certificates
                      representing such shares shall not then be actually delivered
                      to the
                      Holder. The Company shall pay the stamp duty that may be payable
                      in
                      connection with the issuance of the shares and the preparation
                      and
                      delivery of share certificates pursuant to this Section 5 in
                      the name of
                      the Holder. No fractions of shares shall be issued in connection
                      with the
                      exercise of this Warrant and the number of shares shall be
                      rounded to the
                      nearest whole number.

                  

          

           

          
            WINTEGRA
              INC.

            /s/
              Jacob Ben-Zvi

          

           

          
            
              
              

            

            
              -7-

              
                

              

            

            
              
              

            

          

           

          
            	 	 	All Warrant Shares issued shall
                    be fully paid
                    and non-assessable.

          

          
            	 	 	 

            	 	5.6	
                    Automatic Exercise.
If
                      at the time of expiry of the Warrant Period  for
                      any portion of the Warrant, a portion of the Warrant has not
                      been
                      exercised, the Warrant will be deemed to have been exercised
                      in accordance
                      with the provisions of Section 5.3 at the date of expiry of
                      the Warrant
                      Period.

                  

            	 	 	 

            	 	5.6	
                    Conditional Exercise.
                      Any (i) purchase of Warrant Shares or (ii) exercise of the
                      upside
                      commission pursuant to Section 9 below, by the Holder in connection
                      with
                      the receipt of a notice of an anticipated Exit Transaction
                      or
                      equity-raising event may be made conditional upon the consummation
                      and
                      closing of such Exit Transaction or equity-raising event of
                      the Company.
                      

                  

          

           

          
            
              
                
                  
                    	
                          	6.  	
                            
                              
                                
                                  
                                    Reservation
                                      of Shares and Preservation of Rights of Holder 

                                  

                                

                              

                            

                          

                    	 	 	 

                    	 	 	
                            The Company hereby
                              agrees that at all
                              times it will maintain and reserve, free from preemptive
                              rights, lien or
                              other third party rights, such number of authorized
                              but un-issued shares
                              in its capital so that this Warrant may be exercised
                              without additional
                              authorization of Warrant Shares after giving effect
                              to all other options,
                              warrants, convertible securities and other rights to
                              acquire shares of the
                              Company. The Company further agrees that it will not,
                              by charter amendment
                              or through reorganization, voluntary liquidation, consolidation,
                              merger,
                              dissolution, winding up or sale of assets, or by any
                              other voluntary act,
                              avoid or seek to avoid the observance or performance
                              of any of the
                              covenants, stipulations or conditions to be observed
                              or performed
                              hereunder by the Company.

                          

                    	 	 	 

                    	 	7.	Representations
                            and Warranties of the Company

                    	 	 	 

                    	 	 	The Company hereby represents
                            and warrants to
                            the Holder that as of the Effective Date:

                  

                  
                    
                      	 	 	 

                    

                    
                      	 	7.1. 	
                              This
                                Warrant has been duly authorized and executed by
                                the Company and is a
                                valid and binding obligation of the Company enforceable
                                in accordance with
                                its terms. No measures, including, without limitation,
                                obtaining approval
                                of holders of the Company’s Preferred Stock as per Article IV Part II
                                Section 6 and Article VI of the certificate of incorporation
                                of the
                                Company and Sections 3 and 4 of the Third Amended
                                and Restated Rights of
                                First Refusal & Co-Sale Agreement dated March 25, 2003, are required
                                to be taken by the Company in order to enable the
                                performance by the
                                Company in full of this Warrant.

                            

                    

                    
                      	 	 	 

                    

                    
                      	 	7.2.	
                              The
                                Warrant Shares when paid for and issued in accordance
                                with the terms
                                hereof shall be duly authorized, will be validly
                                issued, fully paid and
                                nonassessable, not subject to any preemptive rights
                                (other than preemptive
                                rights waived prior to the issue of this Warrant
                                or shortly thereafter)
                                and issued free and clear of all debts, liens, encumbrances,
                                taxes,
                                charges, equities, claims, any rights of third parties
                                and any other
                                liabilities, other than any such liability created
                                by the Holder.
                                

                            

                    

                     

                    
                      WINTEGRA
                        INC.

                      /s/
                        Jacob Ben-Zvi

                    

                     

                    
                      
                        
                        

                      

                      
                        -8-

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                    
                      	 	7.3.	
                              The
                                execution and delivery of this Warrant are not, and
                                the issuance of the
                                Warrant Shares upon exercise of this Warrant in accordance
                                with the terms
                                hereof will not conflict with the Certificate of
                                Incorporation, do not and
                                will not contravene any law, governmental rule or
                                regulation, judgment or
                                order applicable to the Company, and, except for
                                consents that have
                                already been obtained by the Company, do not and
                                will not conflict with or
                                contravene any provision of, or constitute a default
                                under, any indenture,
                                mortgage, contract or other instrument of which the
                                Company is a party or
                                by which it is bound or require the consent or approval
                                of, the giving of
                                notice to, the registration with or the taking of
                                any action in respect of
                                or by, any government authority or agency or other
                                person known to the
                                Company, other than the Registrar of
                                Companies.

                            

                    

                    
                      	 	 	 

                    

                    
                      	 	 	
                              Without derogating
                                from the generality of
                                the aforesaid, (i) the Company has fulfilled all
                                requirements of the
                                Certificate of Incorporation and any other document
                                by which the Company
                                is bound in respect of pre-emptive rights on the
                                issuance of this Warrant
                                or the right of the Holder to exercise the Warrant
                                and purchase Warrant
                                Shares and every shareholder or other holder of pre-emptive
                                rights has
                                waived or failed to exercise such rights within the
                                time periods
                                specified, after receiving due notice of this transaction
                                and its terms,
                                and (ii) this Warrant has been duly approved in accordance
                                with any
                                special voting rights specified in the Certificate
                                of Incorporation and
                                Agreements.

                            

                      	 	 	 

                      	 	7.4. 	
                              Without
                                derogating from the Holder’s rights, the Company warrants and undertakes,
                                that no holder of shares (or related party) of the
                                Company is or shall be
                                entitled (including, without limitation, in any of
                                the following events:
                                conversion, split, consolidation, reorganization,
                                reclassification,
                                merger, combination or subdivision of shares, distribution
                                of stock
                                dividend or disposition of assets) to any bonus,
                                compensation, or any
                                fiscal or monetary rights from the Company to which
                                the Holder, subject to
                                the exercise of the Warrant, is not entitled other
                                than payment to
                                shareholders who are employees or who provide services
                                to the Company
                                which payment is made to such shareholders not in
                                their capacity as
                                shareholders. 

                            

                      	 	 	 

                      	 	7.5.	
                              The
                                authorized and issued share capital of the Company
                                on a fully diluted
                                basis is as set forth in Exhibit
                                7.5
                                attached hereto. Except as set forth in Exhibit 7.5,
                                there are no
                                outstanding options, warrants, rights or agreements
                                of any kind for the
                                purchase or acquisition from the Company of any of
                                its securities.
                                

                            

                      	 	 	 

                      	 	7.6.	
                              The
                                Financial Statements, as were provided to the Holder
                                prior to the date
                                hereof, (a) were prepared in accordance with the
                                books and records of the
                                Company; in accordance with US generally accepted
                                accounting principles
                                (GAAP) consistently applied; (b) fairly present the
                                Company‘s financial
                                condition and the results of its operations as of
                                the relevant dates
                                thereof and for the periods covered thereby (subject
                                to year end
                                adjustments); and (c) contain and reflect all necessary
                                adjustments,
                                accruals and reserves for a fair presentation of
                                the Company’s financial
                                condition and the results of its operations for the
                                periods covered by
                                said Financial Statements (subject to year end adjustments),
                                provided
                                however that any unaudited Financial Statements may
                                be subject to
                                amendments upon audit. 

                            

                      	 	 	 

                      	 	7.7. 	
                              The
                                certificate of incorporation of the Company, as in
                                force at the date
                                hereof, is attached hereto as Exhibit
                                7.7.

                            

                      	 	 	 

                      	 	7.8. 	
                              The
                                Last Financing was effected in accordance with the
                                agreements provided to
                                the Holder prior to the date hereof.

                            

                    

                     

                    
                      
                        
                          
                            
                              	
                                    	8. 	
                                      
                                        
                                          
                                            
                                              Investment
                                                Representation

                                            

                                          

                                        

                                      

                                    

                              	 	 	 

                              	 	 	
                                      Neither
                                        this Warrant nor the Warrant Shares issuable
                                        upon the exercise of this
                                        Warrant have been registered under the Securities
                                        Act, or any other
                                        securities laws. The Holder acknowledges
                                        by acceptance of this Warrant
                                        that (a) it has acquired this Warrant for investment
                                        and not with a
                                        view to distribution; (b) it has either a pre-existing personal or
                                        business relationship with the Company, or
                                        its executive officers, or by
                                        reason of its business or financial experience,
                                        it has the capacity to
                                        protect its own interests in connection with
                                        the transaction; and
                                        (c) it is an accredited investor as that term
                                        is defined in
                                        Regulation D promulgated under the Securities Act. The
                                        Holder agrees
                                        that any Warrant Shares issuable upon exercise
                                        of this Warrant will be
                                        acquired for investment and not with a view
                                        to distribution, that such
                                        Warrant Shares will not be registered under
                                        the Securities Act and
                                        applicable state securities laws or any other
                                        securities laws and that
                                        such Warrant Shares may have to be held indefinitely
                                        unless they are
                                        subsequently registered or qualified under
                                        the Securities Act and
                                        applicable state securities laws, or an exemption
                                        from such registration
                                        and qualification is available. The Holder,
                                        by acceptance hereof, consents
                                        to the placement of legend(s) on all securities
                                        hereunder as to the
                                        applicable restrictions on transferability
                                        in order to ensure compliance
                                        with the Securities Act, unless in the opinion
                                        of counsel for the Company
                                        such legend is not required in order to ensure
                                        compliance with the
                                        Securities Act. The Company may issue stop
                                        transfer instructions to its
                                        transfer agent in connection with such
                                        restrictions.

                                    

                              	 	 	 

                              	 	9. 	
                                      Upside
                                        Commission

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          	 	 	 

        

        
          	 	9.1	
                  If
                    the Warrant (or any portion thereof) is still outstanding at
                    the time of
                    an Exit Transaction, the Holder may elect to convert all or any
                    portion of
                    the rights it may then have under this Warrant into the Upside
                    Commission,
                    and the Holder shall advise of its election not later than 60
                    (sixty) days
                    from receipt of Company Notice (as defined under Section____
                    above),
                    provided however, that if the underwriter in an IPO, or the buying
                    party(ies) in the Liquidity Event require that Holder make its
                    election
                    hereunder prior to or as part of or within a more limited time
                    period of
                    the IPO or the Liquidity Event, as the case may be, then the
                    above-mentioned period for election shall terminate as required
                    by such
                    third party, subject to compliance by the Company with the provisions
                    of
                    Section 4.1 hereof.

                

        

        
          	 	 	 

        

        
        

         

        
          WINTEGRA
            INC.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            -9-

            
              

            

          

          
            
            

          

        

         

         

        
          	 	9.2	
                  Any
                    conversion of the Warrant into the Upside Commission upon an
                    Exit
                    Transaction shall be conditional upon the consummation and closing
                    of the
                    relevant Exit Transaction.

                

        

         

        
          	 	9.3	
                  The
                    Holder may convert its rights under this Warrant into the Upside
                    Commission by surrendering this Warrant to the Company at the
                    principal
                    office of the Company or at such other office or agency as the
                    Company may
                    designate in writing, accompanied by a written notice attesting
                    to the
                    fact that the Holder wishes to exercise its right pursuant to
                    this section
                    9 in the form attached hereto as Exhibit
                    9.3.
                    The Upside Commission shall by paid by the Company to the Holder
                    within 10
                    days following the closing of the Exit Transaction. Upon payment
                    of the
                    Upside Commission in full, this Warrant shall be cancelled and
                    of no
                    further force or effect.

                

        

        
          	 	 	 

        

        
          	 	9.4	
                  If
                    at the time of conversion of rights, a portion of the Warrant
                    has already
                    been exercised, the conversion rights will apply on a pro-rata
                    basis to
                    the balance of the Warrant and Exhibit 9.3 will be amended
                    accordingly.

                

        

         

        
          
            
              
                
                  
                    
                      	
                            	10.  	
                              
                                
                                  
                                    
                                      
                                        Adjustment

                                      

                                    

                                  

                                

                              

                            

                      	 	 	 

                      	 	 	The number and kind
                              of securities purchasable
                              initially upon the exercise of this Warrant and the
                              Exercise Price shall
                              be subject to adjustment from time to time upon the
                              occurrence of certain
                              events, as
                              follows:

                    

                  

                

              

            

          

        

      

       

      
        
          	 	10.1. 	
                  Adjustment
                    for Shares Splits and Combinations.
                    If the Company at any time or from time to time effects a subdivision
                    of
                    the outstanding shares, the number of shares issuable upon exercise
                    of
                    this Warrant immediately before the subdivision shall be proportionately
                    increased, and conversely, if the Company at any time or from
                    time to time
                    combines the outstanding shares, the number of shares issuable
                    upon
                    exercise of this Warrant immediately before the combination shall
                    be
                    proportionately decreased. Any adjustment under this Section
‎10.1
                    shall become effective at the close of business on the date the
                    subdivision or combination becomes
                    effective.

                

        

        
          	 	 	 

        

        
          	 	10.2.	
                  Adjustment
                    for Certain Dividends and Distributions.
                    In the event the Company at any time, or from time to time makes,
                    or fixes
                    a record date for the determination of holders of shares entitled
                    to
                    receive a dividend or other distribution payable in additional
                    shares of
                    the Company, then and in each such event the number of shares
                    issuable
                    upon exercise of this Warrant shall be increased as of the time
                    of such
                    issuance or, in the event such a record date is fixed, as of
                    the close of
                    business on such record date, by multiplying the number of shares
                    issuable
                    upon exercise of this Warrant by a fraction: (i) the numerator
                    of which
                    shall be the total number of shares of the Company issued and
                    outstanding
                    immediately prior to the time of such issuance or the close of
                    business on
                    such record date plus the number of shares issuable in payment
                    of such
                    dividend or distribution, and (ii) the denominator of which is
                    the total
                    number of shares of the Company issued and outstanding immediately
                    prior
                    to the time of such issuance or the close of business on such
                    record date;
                    provided,
                    however,
                    that if such record date is fixed and such dividend is not fully
                    paid or
                    if such distribution is not fully made on the date fixed thereof,
                    the
                    number of shares issuable upon exercise of this Warrant shall
                    be
                    recomputed accordingly as of the close of business on such record
                    date and
                    thereafter the number of shares issuable upon exercise of this
                    Warrant
                    shall be adjusted pursuant to this Section 10.2 as of the time
                    of actual
                    payment of such dividends or
                    distributions.

                

        

        
          	 	 	 

        

         

        
          WINTEGRA
            INC.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            -10-

            
              

            

          

          
            
            

          

        

         

        
          	 	10.3. 	
                  Adjustments
                    for Other Dividends and Distributions.
                    In
                    the event the Company at any time or from time to time makes,
                    or fixes a
                    record date for the determination of holders of shares entitled
                    to receive
                    a dividend or other distribution payable in securities of the
                    Company
                    other than shares, then in each such event provision shall be
                    made so that
                    the Holder shall receive upon exercise of this Warrant, in addition
                    to the
                    number of shares receivable thereupon, the amount of securities
                    of the
                    Company that the Holder would have received had this Warrant
                    been
                    exercised for Warrant Shares immediately prior to such event
                    (or the
                    record date for such event) and had the Holder thereafter, during
                    the
                    period from the date of such event to and including the date
                    of exercise,
                    retained such securities receivable by it as aforesaid during
                    such period,
                    subject to all other adjustments called for during such period
                    under this
                    Section 10 and the Certificate of Incorporation with respect
                    to the rights
                    of the Holder. In the event the Company, at any time or from
                    time to time,
                    distributes dividends (in cash or in any other form, including,
                    without
                    limitation, assets of the Company, but other than in securities)
                    the
                    Exercise Price will be reduced by the per Warrant Share amount
                    of the
                    distribution. 

                

        

        
          	 	 	 

        

        
          	 	10.4. 	
                  Other
                    Transactions.
                    In the event that the Company shall issue shares to its shareholders
                    as a
                    result of a split-off, spin-off or the like, then the Company
                    shall only
                    complete such issuance or other action if, as part thereof, allowance
                    is
                    made to protect the economic interest of the Holder either by
                    increasing
                    the number of Warrant Shares, adjusting the Exercise Price, and/or
                    by
                    procuring that the Holder shall be entitled, on economically
                    proportionate
                    terms, determined in good faith by the Company’s Board of Directors, to
                    acquire additional shares of the spun-off or split-off entities,
                    in the
                    event of an exercise of this
                    Warrant.

                

        

        
          	 	 	 

        

        
          	 	10.5. 	
                  Other
                    Dilutive Events.
                    In
                    case any event shall occur as to which the preceding Sections
                    10.1 through
                    10.4 are not strictly applicable but as to which the failure
                    to make any
                    adjustment would not fairly protect the rights to receive shares
                    represented by this Warrant in accordance with the essential
                    intent and
                    principles hereof, then, in each such case, the Company's Board
                    of
                    Directors shall, in good faith, determine what adjustments are
                    necessary
                    to preserve the rights of the Holder to receive shares represented
                    by this
                    Warrant.

                

        

         

        
          WINTEGRA
            INC.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            -11-

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  10.6

                	
                  Adjustment
                    of Exercise Price.
                    Upon each adjustment in the number of Warrant Shares purchasable
                    hereunder, the Exercise Price shall be proportionately increased
                    or
                    decreased, as the case may be, in a manner that is the inverse
                    of the
                    manner in which the number of Warrant Shares purchasable hereunder
                    shall
                    be adjusted.

                

        

        

          
            
              
                
                  
                    
                      
                        	
                              	11. 	
                                
                                  
                                    
                                      
                                        
                                          
                                            Share
                                              Swap

                                          

                                        

                                      

                                    

                                  

                                

                              

                        	 	 	 

                      

                    

                  

                

              

            

          

        

      

      
        	 	
                Subject
                  to the provisions of Section 3, the Company undertakes not to enter
                  into
                  any share swap agreement or arrangement (such as a merger, reorganization,
                  or sale of all, or substantially all, of the Company’s shares) (“Share
                  Swap”),
                  unless the other company to such a Share Swap agreement undertakes
                  to
                  allot to the Holder, upon, and subject to, the exercise of this
                  Warrant,
                  such securities as were swapped for the shares of the Company,
                  as though
                  the Holder had held the Warrant Shares on the record date of the
                  Share
                  Swap. In the event of a Share Swap, the securities issuable upon
                  exercise
                  of this Warrant shall be the swapped securities of such other company
                  (not
                  the Company’s shares). Nothing herein shall derogate from the notice
                  requirements of Section 4.

              

      

       

      
        
          
            
              
                
                  
                    
                      	
                            	12.	
                              
                                
                                  
                                    
                                      
                                        
                                          Notice
                                            of Changes and Exchange or Loss of
                                            Warrant

                                        

                                      

                                    

                                  

                                

                              

                            

                    

                  

                

              

            

          

        

      

      
        
          	 	 	 

          	 	12.1	
                  Whenever
                    the number of Warrant Shares for which this Warrant is exercisable
                    is
                    adjusted as provided in Sections 4 and ‎10,
                    the Company shall promptly compute such adjustment and deliver
                    to the
                    Holder a certificate, signed by a principal financial officer
                    of the
                    Company, setting forth the number of Warrant Shares for which
                    this Warrant
                    is exercisable and the Exercise Price as a result of such adjustment,
                    a
                    brief statement of the facts requiring such adjustment and the
                    computation
                    thereof and when such adjustment has or will become effective.
                    

                

          	 	 	 

          	 	12.2 	
                  Upon
                    receipt by the Company of a declaration by an officer of the
                    Holder of the
                    loss, theft, destruction or mutilation of this Warrant, and (in
                    the case
                    of loss, theft or destruction) of a declaration that the Holder
                    will
                    provide indemnification, and reimbursement to the Company of
                    all
                    reasonable expenses incidental thereto and surrender and cancellation
                    of
                    this Warrant, if mutilated, the Company will execute and deliver
                    a new
                    Warrant of like tenor and date.

                

        

        
        

         

        
          
            
              
                
                  
                    
                      
                        	
                              	13. 	
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              Assignment

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                        	 	 	 

                        	 	 	
                                The
                                  Holder may offer, sell or otherwise dispose of
                                  this Warrant, in whole or
                                  in part and on one or more occasions, to any entity
                                  in which the Holder
                                  has an equity interest of at least 10% or to any
                                  other financial
                                  institution, bank or venture capital fund provided
                                  such assignee does not
                                  compete with the Company, subject to any rights
                                  of first refusal of any
                                  other shareholders in the Company.
                                  Approval by the Board of Directors of this Warrant
                                  shall constitute
                                  approval of such assignment.

                              

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        	
                              	14. 	
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                Rights
                                                  of the
                                                  Holder

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                        	 	 	 

                        	 	 	The Holder shall
                                not, by virtue hereof, be
                                entitled to any rights of a shareholder in the Company,
                                unless
                                specifically stated
                                herein.

                      

                    

                  

                

              

            

          

        

      

       

      
        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                	15. 	
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    Termination

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                          	 	 	 

                          	 	 	
                                  This
                                    Warrant and the rights conferred hereby
                                    shall terminate at the aforementioned time on
                                    the last day of the Warrant
                                    Period.

                                

                          	 	 	 

                          	 	16.	
                                  Governing
                                    Law

                                

                          	 	 	 

                          	 	 	
                                  This Warrant
                                    shall be governed by, and
                                    interpreted in accordance with, the laws of the
                                    State of Israel, without
                                    giving effect to the rules respective conflict
                                    of law, and the parties
                                    hereto irrevocably submit to the exclusive jurisdiction
                                    of the Courts of
                                    Tel Aviv in respect of any dispute or matter
                                    arising out of or connected
                                    with this
                                    Warrant.

                                

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        	Wintegra,
                Inc.	 	 	 
	 	 	 	 
	 	 	 	 
	By:
/s/
                Jacob
                Ben-Zvi	 	 	 
	Title:
                CEO                    
                	 	 	
              

      

       

      
        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

       

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      
         

        
          Exhibit
            5.1

          

          NOTICE
            OF EXERCISE

          

           

          To: Wintegra,
            Inc.

           

          

           

          
            	
                    1.

                  	
                    The
                      undersigned hereby elects to purchase _________ Shares of Wintegra,
                      Inc.,
                      pursuant to the terms of the attached
                      Warrant.

                  

          

          

          
            	
                    2.

                  	
                    In
                      exercising this Warrant, the undersigned hereby confirms and
                      acknowledges
                      that the Shares are being acquired solely for the account of
                      the
                      undersigned and not as a nominee for any other party, or for
                      investment,
                      and that the undersigned will not offer, sell or otherwise
                      dispose of any
                      such Shares except under circumstances that will not result
                      in a violation
                      of the Securities Act of 1933, as amended, or any other securities
                      laws.

                  

          

          

          
            
              	3.	
                      Please
                        issue a certificate representing said Shares in the name
                        of the
                        undersigned, at the following
                        address:

                    

            

          

          

          
            	
                    4.

                  	
                    Please
                      issue a new Warrant for the unexercised portion of the attached
                      Warrant
                      (if any) in the name of the
                      undersigned.

                  

          

          
            	
                     

                     

                  	 	 	 
	 	 	 	 
	
                    
(Date)	 	 	
                    
(Print
                    Name of Holder)
	 	 	 	 
	 	 	 	
                     

                    
                      
(Signature)

                  
	 	 	 	 
	 	 	 	
                    Name:

                    Title:

                    Telephone:

                  

          

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        Exhibit
          9.3

        

        NOTICE
          OF CONVERSION OF UPSIDE COMMISSION

        

        

        

        
          	
                  To:

                	
                  Wintegra,
                    Inc.

                

        

        

        
          	
                  1.

                	
                  The
                    undersigned hereby elects to convert any and all rights it may
                    have under
                    the Warrant granted to United Mizrahi Bank Ltd., dated ________
                    into a
                    one-time commission (“Upside
                    Commission”)
                    of US$ __________ pursuant to the terms of this
                    Warrant.

                

        

        

        
          	
                  2.

                	
                  The
                    undersigned hereby declares that upon receipt of the Upside Commission,
                    the Holder shall not have any further rights under said
                    Warrant.

                

        

         

        
          	 	 	 	 
	 	 	 	 
	
                  
(Date)	 	 	
                  
(Print
                  Name of Holder)
	 	 	 	 
	 	 	 	
                  
(Signature)
	 	 	 	
                
	 	 	 	
                  Name:

                  Title:

                  Telephone:

                

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      MIZRAHI
        BANK 

      

      Name
        of
        Customer: Wintegra Ltd.

      

      
        	Address:	
                Taya
                  Center 
                  6,
                    Hamasger St.

                  P.O.B.
                    3048

                  43653
                    Ra'anana

                  Israel

                

              

      

       

      Local
        Private Company No: 51-290107-5 

      

      UNITED
        MIZRAHI BANK LTD

      Branch
        No
        122

      Account
        No:107195 (Hereinafter: ”Account”)

       

      CONTINUING
        GUARANTEE TO SECURE ALL DEBTS

      

      
        	PREAMBLE	
                WHEREAS
                  United Mizrahi Bank Ltd. (hereinafter referred to as “the
                  Bank”)
                  has granted or from time to time shall grant Wintegra Ltd. (hereinafter
                  referred to as “the Customer”)
                  credit under such terms as from time to time were and/or shall
                  be agreed
                  upon between the Bank and the Customer in respect of each
                  credit;

                 

                
                  AND
                    WHEREAS we, the undersigned, Wintegra Inc. (the "Guarantor")
                    are willing
                    to guarantee to the Bank the repayment of debts of any kind owing
                    now and
                    hereafter from the Customer to the Bank;

                   

                  NOW
                    THEREFORE WE CONFIRM, GUARANTEE AND UNDERTAKE AS FOLLOWS:
                    -

                

              

      

       

      1.
        DEFINITIONS in this Guarantee: -

      

      
        	a  	
                “Credit”,
                  whether in Israeli currency or in any foreign currency, includes
                  every
                  revolving credit, single credit, loan, discount, purchase and or
                  brokerage
                  of bills, overdraft, granting of guarantee and/or letter of indemnity,
                  opening of documentary credit, grant of extension of time, and
                  of various
                  banking facilities, handling of bills of lading transactions in
                  securities, services, or any other payments granted or to be granted
                  now
                  or hereafter by the Bank to the Customer or to his order, whether
                  in
                  Israel or abroad, as well as every and any other transaction or
                  other
                  action whereby or as a result of which debts or obligations are
                  or may be
                  incurred or undertaken by the Customer towards the Bank, whether
                  as
                  debtor, guarantor or endorser and/or in any other manner whether
                  the said
                  debts be owing from the Customer jointly or severally, whether
                  owing
                  presently or hereafter, whether maturing prior to the execution
                  hereof or
                  thereafter, whether certain or contingent, whether owing directly
                  or
                  indirectly, whether express or
                  implied.

              

      

      
        	b  	
                Words
                  importing the singular shall include the plural and vice
                  versa.

              

      

      
        	c  	
                Words
                  importing the masculine gender shall include the feminine gender
                  and vice
                  versa.

              

      

       

      
        WINTEGRA
          LTD.

        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	d  	
                “Bank”
                  means United Mizrahi Bank Ltd. and includes all branches and/or
                  offices
                  and/or subsidiaries and/or affiliates of the Bank existing on the
                  date of
                  this Guarantee, whether in Israel or abroad, and/or any such branch
                  and/or
                  office and/or subsidiary and/or affiliate of the Bank that shall
                  at any
                  future date be established in any place whether in Israel or abroad,
                  its
                  assigns and any person or legal entity duly authorized to act on
                  behalf of
                  the Bank and its duly appointed
                  representatives.

              

      

      
        	e  	
                “The
                  Customer”
                  includes the successors, trustees, liquidators and assigns of Wintegra
                  Ltd..

              

      

      
        	f  	
                “Bills”
                  include promissory notes, cheques, bills of exchange, commitments,
                  guarantees, securities, drafts, bills of lading and any other negotiable
                  and non-negotiable instruments.

              

      

      
        	g  	
                “Consumer
                  Price Index”
                  means the price index known as “the Consumer Price Index” (cost of living
                  index) including fruit and vegetables, published by the Central
                  Bureau of
                  Statistics, and including such index if published by another official
                  body
                  or institute, and also any official index replacing it, irrespective
                  of
                  whether based on the same data. If there is another index and the
                  Bureau,
                  body or institute as aforesaid do not determine the ratio between
                  it and
                  the replaced index, the Accountant-General of the Ministry of Finance
                  shall determine the ratio between the last index and the replaced
                  index.

              

      

      
        	h  	
                The
                  expression “Representative
                  Rate of the US Dollar”
                  or
                  “Representative
                  Rate”
                  means the representative of the US dollar determined by the Bank
                  of
                  Israel.

              

      

      If
        the
        Bank of Israel ceases to determine the Representative Rate either temporarily
        or
        permanently, the Representative Rate shall be determined by the State of
        Israel
        through the Accountant-General of the Ministry of Finance.

      
        	i  	
                The
                  expression “Dollar”
                  means the US dollar.

              

      

      
        	j  	
                “Exchange
                  Rate”
                  means the selling price for drafts and transfers and/or bank notes
                  of any
                  denomination whatsoever in foreign currency as shall be determined
                  by the
                  Bank. In the event that at any such time two or more exchange rates
                  as
                  aforesaid are prevailing at the Bank, the Exchange Rate shall be
                  the
                  highest such rate then prevailing. In the event that at the time
                  of such
                  conversion of foreign currency additional payments, including commissions,
                  levies, taxes, fees and other costs, etc. shall apply, the Exchange
                  Rate
                  shall be deemed to include any such additional
                  payments.

              

      

      
        	k  	
                The
                  preamble hereto constitutes an integral part
                  hereof.

              

      

      

      2.
        GUARANTEE  

      We
        hereby
        guarantee to the Bank and its assignees, absolutely, unequivocally and
        unconditionally the full and prompt repayment of any sums owing now and/or
        hereafter from the Customer to the Bank, inter alia,
        in
        connection with the granting of the Credit by the Bank to the Customer in
        its
        Account, whether the said debts be owing from the Customer solely or jointly
        with others, whether incurred by the Customer in the past or are to be incurred
        thereby in the future, whether owing now or hereafter, whether certain or
        contingent, whether owing directly or indirectly, with the addition of interest,
        commissions, damages, linkage differentials, exchange rate differentials
        and any
        other charges and costs (all the aforesaid sums hereby guaranteed by us shall
        hereinafter be referred to as “the
        Said Sums”).
        For
        the avoidance of any doubt, it is hereby agreed and confirmed that we hereby
        guarantee all linkage differentials and/or exchange rate differentials of
        any
        kind whatsoever owing now and/or hereafter from the Customer to the Bank
        in
        respect of linked principal and/or linked interest constituting part of the
        Said
        Sums. Accordingly, the expression “the Said Sums” shall also be deemed to
        include the aforesaid linkage differentials and exchange rate
        differentials.

       

       

      
        WINTEGRA
          LTD.

        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      3.
        OBLIGATION AMOUNT  

      The
        aggregate amount which we shall be obliged to pay the Bank under the present
        Guarantee is unlimited (hereinafter referred to as “the
        Guaranteed Amount”).

      

      4.
        PAYMENT DATES AND LINKAGE.
        

      We
        shall
        pay the Bank any amount it may demand from us from time to time, within 10
        (ten)
        days of the date of the dispatch of its first demand notice on account of
        the
        Guaranteed Amount as follows:

      

      
        	a  	
                In
                  the event that our Guarantee is unlimited in amount, all the Said
                  Sums (as
                  defined in Clause 2 above) as the Customer shall owe the Bank,
                  up to the
                  full and actual discharge thereof.

              

      

      
        	b  	
                In
                  the event that the Guaranteed Amount is not paid by us within 10
                  (ten)
                  days of the date of dispatch of demand notice, the Guaranteed Amount
                  shall
                  be recalculated by the Bank up to the date the demand notice has
                  been
                  dispatched (hereinafter referred to as “the
                  Revalued Amount”)
                  and from such date henceforth the Revalued Amount shall bear interest
                  at
                  the maximum rate prevailing from time to time in respect of Consumer
                  Price
                  Index Linked loans pursuant to the Interest Law, 5717-1957, and
                  any
                  regulations or orders enacted by virtue
                  thereof.

              

      

      The
        Revalued Amount together with the interest accrued thereon shall be linked
        to
        the Consumer Price Index known on the date the demand notice is dispatched
        (hereinafter referred to as “the
        Base Calculation Index”)
        up to
        the date of actual payment, namely, in the event that the Consumer Price
        Index
        known on the date of actual payment of the Revalued Amount together with
        accrued
        interest (hereinafter referred to as “the
        New Calculation Index”)
        has
        increased as compared with the Base Calculation Index, the interest and the
        Revalued Amount shall be increased proportionately to the extent of the increase
        in the New Calculation Index as compared with the Base Calculation
        Index.

      I.

      5.
        WAIVER OF PRIOR DEMAND NOTICE FOR REPAYMENT TO CUSTOMER

      We
        shall
        pay the Bank all such amounts as the Bank may demand from us as aforesaid,
        without imposing upon the Bank any duty to provide us with any accounts or
        proof
        whatsoever of the non-performance by the Customer of his obligations. The
        Bank
        shall be entitled to demand from us the performance of our Guarantee, without
        the Bank being obliged to instituted legal proceedings against the Customer
        to
        realize other collateral. The institution of any proceedings by the Bank
        in
        order to collect the Said Sums shall not derogate from our obligations to
        pay
        the Said Sums forthwith and we shall not be entitled to delay the payment
        of the
        Said Sums until the finalization of any other proceedings instituted by the
        Bank.

      

      6.
        FOREIGN CURRENCY TRANSACTION

      In
        every
        instance that Credit is granted or is to be granted to the Customer in any
        foreign currency (hereinafter referred to as a “Foreign
        Currency Transaction”),
        we
        hereby undertake to pay the Bank or to its order in that same foreign currency
        all the sums which are due and which shall become due from the Customer with
        respect to the Foreign Currency Transaction, including principal, interest,
        if
        any, and also any commissions and expenses deriving from the linkage of the
        principal and the interest, or any one of them to the Exchange
        Rate.

       

       

      
        WINTEGRA
          LTD.

        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      In
        the
        event that the Bank shall be compelled to take legal action against us on
        the
        basis of this Guarantee
        in order to recover sums in respect of a Foreign Currency Transaction and
        court
        and q or the execution office shall order us to pay any sums in respect of
        the
        Foreign Exchange Transaction, in Israeli currency or in consideration of
        Israeli
        currency, we hereby undertake to pay the Bank the amount, in New Israeli
        Shekel,
        or the proceeds thereof, which shall be sufficient for the conversion into
        foreign currency of the said amount in accordance with the Exchange Rate
        as
        defined in Clause 1(j) above, prevailing on the date of actual
        payment.

      

      7.
        LIABILITY IN EVENT OF ARRANGMENT, LIQUIDATION OR BANKRUPCY:
        

      Any
        arrangement made with respect to the debts of the Customer, including an
        arrangement by the court or the liquidation or bankruptcy thereof, shall
        not
        derogate from our obligations pursuant to this Guarantee and the Bank shall
        be
        entitled to demand from us the Guaranteed Amount in full in accordance with
        the
        amount of the Said Sums as would have been due from the Customer to the Bank
        if
        it were not for such arrangement, liquidation or bankruptcy. In the event
        of any
        bankruptcy or liquidation, as applicable, and similar arrangements, the Bank
        shall be entitled to prove in such bankruptcy or liquidation proceedings
        the
        amount of the debt of the Customer, taking into consideration amounts that
        were
        paid pursuant to this Guarantee and the Bank shall be entitled to consent
        to any
        compromise settlement.

      

      8.
        UNCONDITIONAL GUARANTEE

      The
        Bank
        is not bound to accept any additional collateral or guarantee from the Customer
        in respect of the payment of the Said Sums. If it was known to us upon or
        prior
        to our signing this Guarantee that the Bank was about to obtain other collateral
        from the Customer or further guarantees, including any instance in which
        names
        of additional guarantors were to be supplemented to this Guarantee and the
        Bank
        shall not have received such additional collateral and/or the additional
        guarantors shall not have signed any other guarantees or this Guarantee,
        the
        validity of this Guarantee shall not thereby be derogated from and we shall
        perform all our obligations hereunder.

      

      9.
        PRESERVATION
        OF GUARANTEE

      The
        Bank
        may from time to time whether with or without our consent and with or without
        any notice to us:-

      
        	a  	
                discontinue,
                  vary, decrease, increase or renew any Credit to the
                  Customer;

              

      

      
        	b  	
                extend
                  the time for payment or grant other similar accommodations to the
                  Customer;

              

      

      
        	c  	
                exchange,
                  renew, modify, release, terminate, enforce or refrain from enforcing
                  any
                  collaterals or guarantees held or which shall be held by the Bank,
                  whether
                  obtained from the Customer and/or from
                  us;

              

      

      
        	d  	
                to
                  compromise, waive, release or make any other arrangement with the
                  Customer
                  and/or with us, of its obligations;

              

      

      
        	e  	
                to
                  allow non-discharge of any indebtedness incurred by the Customer
                  in
                  respect of the granting of the Credit, or to allow the release
                  of any
                  collateral given in connection with the granting of the
                  Credit;

              

      

      
        	f  	
                to
                  refrain from notifying us of the non-performance of any obligations
                  whatsoever by the Customer
                  and
                  to
                  postpone or suspend the submission of demands against us hereunder,
                  without the same being deemed to constitute a precedent, waiver,
                  limitation of action or negligence on the part of the
                  Bank.

              

      

       

       

       

      
        WINTEGRA
          LTD.

        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Upon
        the
        occurrence of any of the aforesaid events, if as a consequence thereof a
        loss
        shall be incurred by the Bank, this Guarantee shall remain fully valid and
        effective and shall not be affected or altered or reduced as to the amount
        thereof and all our obligations shall remain unaffected and shall not be
        reduced. In order to avoid all doubt, it is hereby stipulated that if the
        Bank
        performs any of the aforesaid acts, we shall not be entitled to the right
        of
        cancellation stipulated in the Guarantee Law, 5727-1967, in respect of the
        said
        acts, provided however, that the above shall in no event derogate from our
        rights pursuant to Sections 4, 6(b), 7, 8, 9, and 11, stipulated under the
        Guarantee Law, 5727-1967.

      

      10.
        WAIVER OF DEFENCE CLAIMS

      This
        Guarantee shall not be derogated from, reduced or altered and shall remain
        valid
        and effective:

      
        	a  	
                in
                  the event that the Customer’s indebtedness to the Bank is impaired or
                  invalid for any reason whatsoever, excluding an impairment stemming
                  from
                  actions or omissions of the bank, and including, inter alia, by
                  reason of
                  the capacity or representation of the
                  Customer;

              

      

      
        	b  	
                in
                  the event that the Bank’s right to claim the payment of the Guaranteed
                  Amount from the Customer has terminated due to
                  prescription;

              

      

      
        	c  	
                In
                  the event that the Customer denies its liability towards the Bank
                  or in
                  the event that the Customer has or raises any claims against the
                  Bank,
                  unless such claims have been accepted by a competent court of
                  law.

              

      

      

      In
        each
        of the aforesaid instances, the abovementioned indebtedness shall, for the
        purposes of this Guarantee, be deemed to be valid, unimpaired, fully effective
        and non-appeal able and that all our obligations hereunder shall remain fully
        effective and we hereby waive, in advance, rights that the Guarantee Law,
        5727-1967, confers or allows in such circumstances, provided however, that
        the
        above shall in no event derogate from our rights, pursuant to Sections 4,
        6(b),
        7, 8, 9, and 11, stipulated under the Guarantee Law, 5727-1967.

      

      11.
        PRESERVATION OF OBLIGATIONS

      In
        the
        event that we or any one of us or the Customer is a legal entity, whether
        incorporated or unincorporated, or any type of organization or entity
        constituting an affiliation of entities, our obligations hereunder shall
        not
        be derogated from by reason of any change in our name, constitution or
        composition or in that of the Customer.

      

      12.
        CONSIDERATION

      Without
        deeming consideration to be a precondition to the validity of this Guarantee
        in
        whole or in part, we hereby confirm that the Bank’s consent to advance credit
        from time to time to the Customer or any party constituting the Customer
        shall
        be deemed to be full consideration for our obligations hereunder, in whole
        or in
        part.

      

      13.
        COLLATERAL

      Deleted.

       

       

       

      
        WINTEGRA
          LTD.

        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      14.
        BANKER’S LIEN, PLEDGE AND SET-OFF

      Deleted.

      

      15.
        DEBITING AND CREDITING OF PAYMENTS

      The
        Bank
        may at any time at its reasonable discretion:

      
        	a  	
                Debit
                  any account in our name with any amount owing from the Customer
                  now or
                  hereafter to the Bank hereunder; 

              

      

      
        	b  	
                credit
                  any amount paid by us or on our account in any manner and form
                  to such
                  account as the Bank shall reasonably deem fit;

              

      

      
        	c  	
                Transfer
                  any amount standing to our credit in any account in our name to
                  any other
                  account maintained in our name; credit any amount received from
                  the
                  Customer or on its behalf or on account thereof or upon the realization
                  of
                  any collateral held by the Bank to such account as the Bank shall
                  reasonably deem proper.

              

      

      

      16.
        CONTINUING GUARANTEE

      This
        Guarantee shall be a continuing and revolving security and shall continue
        to be
        effective notwithstanding any settlement of accounts with the Customer and
        shall
        bind us and
        our
        assigns (which expression shall be interpreted
        as including guardians, heirs, administrators and executors of wills, trustees,
        receivers, liquidators and successors) until the expiration of one month
        from
        the day on which the Bank, through the branch at which we executed the present
        Guarantee, receives written notice from us of the termination of the Guarantee
        which shall be signed by us. The said notice by us shall not affect our
        guarantee and liability in respect of debts, businesses and obligations
        incurred, made and undertaken by the Customer before the termination of the
        said
        period of one month, even though their maturity dates may occur after the
        expiration of the period of one month.

      

      17.
        CONDITIONAL RELEASE

      
        	a  	
                In
                  the event that our obligation to the Bank pursuant to this Guarantee
                  is
                  for any reason whatsoever revoked or terminated or the Bank shall
                  confirm
                  that our obligation as herein specified has terminated, or there
                  shall be
                  no further sums whatsoever due to the Bank from the undersigned
                  or the
                  Customer, we hereby agree that in any event of the Bank being ordered
                  by
                  any final non-appealable court decision by the competent court
                  of law to
                  repay to any person or body whatsoever any amount whatsoever paid
                  to the
                  Bank in discharge of the Said Sums or on account thereof ("Repaid
                  Sums"),
                  we hereby undertake that with respect to such Repaid Sums this
                  Guarantee
                  will remain valid.

              

      

      
        	b  	
                In
                  any event of our obligations being terminated for any reason whatsoever,
                  the Bank shall be entitled to continue to grant Credit to the Customer,
                  notwithstanding the said termination and/or maturity and we shall
                  continue
                  to be liable in respect of all such sums for which the Customer
                  shall be
                  indebted on the date of the termination, even although payments
                  shall be
                  made and costs shall be incurred to the debit of any of the Customer’s
                  accounts maintained with the Bank subsequent to the said termination
                  and/or maturity, whether such payment or costs are made or incurred
                  by or
                  on behalf of or for the Customer, provided however, that Guarantor
                  shall
                  not be liable to any such additional or continued Credit or other
                  loans
                  made by the Bank to Customer on the date of termination or
                  thereafter.

              

      

       

       

       

      
        WINTEGRA
          LTD.

        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      18.
        AUTONOMOUS NATURE OF COLLATERAL

      This
        Guarantee shall be deemed to be autonomous of any other collateral or guarantees
        and shall not be prejudiced or affected by any such other collateral or by
        reason of the Bank receiving impaired or invalid collateral or
        guarantees.

      We
        hereby
        waive any right to receive by way of transfer to us or participate in any
        other
        Securities, which the Bank holds in respect of the discharge of the Said
        Sums
        and we shall not perform any act with the object of obtaining any rights
        in the
        said collateral, notwithstanding payment by us of the full Guaranteed
        Amount.

      

      19.
        INDEMNITY

      Deleted.

      

      20.
        BANK ENTRIES

      All
        entries recorded in the books of the Bank shall be deemed to be accurate
        in very
        respect and shall serve as prima facie evidence with respect to the accounts
        of
        the Customer. Copies of such entries and/or, at the discretion of the Bank,
        every item in such entry or of such page or in a separate document shall
        serve
        as prima facie evidence as to the existence of such entry and as to the accuracy
        of the details appearing thereon.

      The
        term
“the
        books of the Bank”
shall
        be deemed to also include any book, ledger, statement, copy of statement,
        or
        other confirmation signed by the Bank with respect to any account, loan
        agreement, deed of undertaking, bill signed by the Customer, index card,
        page,
        roll and any other means of electronic data storage and computerization and
        other means of data storage. The term ‘entries’
        shall
        be
        deemed to also include any entry or copy of an entry whether written or copied
        by hand or typewriter or whether recorded by printing, stenciling, duplicating,
        Photostatting (including microfilming) or any other mechanical, electrical
        or
        electronic means or by electronic computer recording means or any other means
        of
        recording or presenting words or numbers or any other
        symbols
        whatsoever which exist and/or are customarily utilized at the Bank.

      

      21.
        TECHNICAL CHANGES

      For
        the
        avoidance of any doubt and for the purposes of clarification, it is hereby
        stated that in the event that for any bureaucratic, administrative or technical
        reasons a change shall occur in the number of the Account (as is included
        in the
        definition of “Credit” in this document) or the Account is transferred to
        another branch of the Bank, all the provisions of this Guarantee shall be
        deemed
        to relate to the said account pursuant to the new number so given or at the
        other branch to which the account has been transferred, even in the event
        that
        it shall be stated in this document that our Guarantee relates to credit
        which
        the Customer has received in a particular account or at a particular
        branch.

      

      22.
        ASSIGNMENT OF RIGHTS 

      This
        Guarantee may be assigned by the Bank without the need to obtain our prior
        consent.

       

      23.
        JOINT AND SEVERAL LIABILITY

      Deleted.

       

       

       

      
        WINTEGRA
          LTD.

        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      24.
        PRESCRIPTION.

      The
        fact
        that the Bank does not immediately exercise its rights hereunder or in
        connection herewith in any given event shall not be deemed a waiver of such
        rights, or a consent or acknowledgement by the Bank, or shall be deemed to
        create any precedent and the Bank shall be entitled to exercise the rights
        deriving from this document and/or in connection herewith and/or the law
        at such
        time as it may deem fit.

      

      25.
        RATIFICATION.

      We
        hereby
        undertake to sign all such documents and forms as the Bank may, at its
        reasonable discretion, request, if and insofar as under any law of the State
        of
        Israel our signing of any such document or form is or shall be required in
        order
        to make the present document fully valid and effective. 

      

      26.
        NOTICES

      For
        the
        purpose of this Guarantee, the expression "written" or "in writing" shall
        mean
        "by letter, facsimile, SWIFT, cable or telex”.

      Any
        demand for payment of any amounts due and payable under this Guarantee and
        any
        notice in writing required or permitted to be made hereunder shall, if made
        by
        letter, be deemed to be sufficiently made if addressed as follows:

      

      In
        the
        case of a demand or notice to the Guarantor at the address set forth above;
        and:

       

      
        
          	
                  Attention:

                  Address:

                	 	Mr. Jacob Ben-Zvi
                  6850
                    Austin Center Blvd.

                  Suite
                    215

                  Austin
                    TX 78731

                  USA

                
	 	 	 
	
                  Tel
                    No:

                	 	512.345.3808
                   

                
	
                  Fax
                    No: 

                	 	512.345.3828

        

      

      
 

      With
        a copy to the Customer

      
        Wintegra LTD.

         

      

      
        	Address:	 	
                Taya Center

                
                  6,
                    Hamasger St.

                  P.O.B.
                    3048

                  43653
                    Ra'anana, Israel

                

              
	 	 	 
	
                Tel
                  No:

              	 	972.9.743.9998 
                 

              
	
                Fax
                  No: 

              	 	972.9.743.9992
	 	 	 
	Attention:  	 	Mr. Alon
                Rozner

      

       

       

      
        WINTEGRA
          LTD.

        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      In
        the
        case of a demand or notice to the Bank:

      UNITED
        MIZRAHI BANK LTD

      

      Branch
        No
        122

      Hagalim
        Blvd.. 

      Herzlia,
        Israel 

      Att:
        Mr.
        Moshe Godinger

      Tel
        No:
        972-9-9574884

      A
        written
        statement by the Bank shall constitute conclusive proof of the time and posting
        of the notice.

      

      27.
        SERVICE OF PROCESS

      The
        Guarantor hereby irrevocably designates, appoints and empowers Adv. Ayal
        Shenhav, Herzlia, Israel, to receive for and on behalf of the Guarantor,
        service
        of process issued out of the courts of the state of Israel addressed to
        Guarantor. Notwithstanding the above, if Guarantor wishes to replace the
        process
        agent, the Guarantor will appoint another process agent with an office in
        Israel
        where process may be served and will forthwith notify the Bank
        thereof.

      

      28.
        STAMPING AND EXPENSES

      Stamp
        duty payable in respect of this Guarantee and all such other expenses as
        relate
        to the enforcement hereof or the realization of any collateral delivered
        in
        connection herewith, including the Bank’s advocate’s fees, shall be borne by us
        and secured by this Guarantee.

      

      29.
        WAIVER OF PRIOR NOTICE

      We
        hereby
        waive the need for dispatching any notaries or other warnings in all matters
        in
        connection with this Guarantee.

       

      30.
        GOVERING LAW

      This
        Guarantee shall be governed by, and construed in accordance with, the laws
        of
        the State of Israel.

      

      31.
        JURISDICTION

      The
        Guarantor agree that the Courts of the City of the City of Tel-Aviv shall
        have
        exclusive jurisdiction over any dispute arising from or in connection with
        the
        existence, the interpretation, the performance, enforcement or the termination
        of this Guarantee, but nothing herein contained shall derogate from the right
        of
        the Bank to institute, at its sole choice and direction, proceedings against
        the
        guarantor in any other competent courts whosesoever situated. 

      

      32.
        MARGINAL NOTES

      The
        marginal notes in this Guarantee have been inserted for ease of reference
        only
        and shall not be utilized as a means of interpreting the intentions of the
        parties or the interpretation of this Guarantee.

       

       

       

      
        WINTEGRA
          LTD.

        WINTEGRA
          INC.

        /s/
          Jacob Ben-Zvi

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      33.
        DECLARATION

      We,
        the
        Guarantor, hereby declare and confirm that we have carefully examined this
        Guarantee and all the clauses hereof and that we have fully understood the
        contents and significance thereof.

      

      32.
        SPECIAL
        CONDITIONS:

      

      
 

      SIGNED
        BY
        THE GUARANTOR

      
 

      WINTEGRA
        INC.

      

      By:
        Jacob
        Ben-Zvi                              

      At:
        WINTEGRA
        INC.                         

      

      

      12/8/2004

      DATE

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        United
          Mizrahi Bank Ltd.

        

        Certification

        

        I,
          ________________________, Advocate, do hereby certify that on the __ day
          of
          ________ the original document of this copy was presented to me and that
          the
          amount of stamp duty on the original was NIS ___. I further certify the
          following particulars:

        1.  
          The original document was stamped with an adhesive/glued stamp.

        2.  
          The original document was stamped by the Treasury and the serial number
          appearing alongside the stamp was:

        3.  
          The original document was stamped with an excise machine at United Mizrahi
          Bank
          in the city of Tel Aviv dated ________

        and
          the
          number appearing alongside the stamp or on the face of the stamp is _______
          dated____________ signature ________________________

        

        SECURED
          DEBENTURE

        

        Made
          this 17 day of August 2004

        

        By
          Wintegra Ltd. PC: 512901075 of Taya Center 6, Hamasger St., P.O.B. 3048,
          43653
          Ra'anana, Israel (hereinafter referred to as “the Company”)

        

        In
          favour
          of United Mizrahi Bank Ltd (hereinafter referred to as the “Bank”) in accordance
          with the Company’s memorandum and articles of association and all the other
          provisions that grant the Company power in such respect and in accordance
          with a
          resolution of the Company’s board of directors of 29 July
          2004.

        

        Whereas
          the Company has obtained and from time to time will obtain from the Bank
          credit,
          documentary credit, various loans, current and other account overdrafts,
          indemnities, bonds and guarantees for the Company or for others at the
          Company’s
          request, the discounting of bills, the grant of various banking facilities
          and
          extensions and other miscellaneous banking services (hereinafter jointly
          and
          severally referred to as the “Banking Services”) on such terms as have been
          and/or are in future from time to time agreed in respect of each banking
          service.

        

        And
          whereas it has been agreed between the Company and the Bank that the Company
          will, by this Debenture, secure all its debts and liabilities to the Bank
          of
          every type and kind whatsoever, whether in Israeli currency or in any foreign
          currency whatsoever, as set out below, in addition to all the collateral
          that
          has been and/or is in future given to the Bank.

        

        Now
          therefore this Debenture witnesseth as follows - 

         

        WINTEGRA
          LTD.

        /s/
          Jacob Ben-Zvi

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  1.

                	
                  (a)

                	
                  This
                    Debenture has been issued to secure the full and punctual payment
                    of all
                    the amounts, whether in Israeli shekels or in any foreign currency,
                    now
                    and in future due to the Bank from the Company in any manner
                    or way and
                    for any reason, whether or not the amounts are due from the Company
                    in
                    connection with the provision of the Banking Services, whether
                    due from
                    the Company alone or together with others, whether the Company
                    has already
                    become liable for them or becomes liable for them in the future,
                    as debtor
                    and/or guarantor and/or otherwise (including the Company’s liability in
                    accordance with bills that have been or are in future delivered
                    to the
                    Bank either by the Company or by third parties for discounting
                    or as
                    security and/or pursuant to any other liability of the Company
                    to the
                    Bank), that are now and/or in future due, payable prior to or
                    after
                    realisation of the collateral hereby given, absolutely or contingently
                    due, directly or indirectly due, due pursuant to the Company’s original
                    obligation or formulated in a court judgment or otherwise
                    -

                

        

        

        
          	 	 	
                  IN
                    AN UNLIMITED AMOUNT

                

          	 	 	 

        

        
          	 	 	
                  plus
                    interest, commissions and all expenses whatsoever, including
                    the costs of
                    realisation, advocates’ professional fees, insurance fees, stamp duty and
                    other payments pursuant to this Debenture, with the addition
                    of linkage of
                    any type now or in future due from the Company to the Bank in
                    any way in
                    respect of linked principal and linked interest (all the aforegoing
                    amounts being hereinafter referred to as “the Secured
                    Sums”).

                

        

        

        
          	
                  2.

                	
                  The
                    Company hereby undertakes to pay the Bank every one of the Secured
                    Sums:

                

        

        

        
          	 	
                  (a)

                	
                  on
                    its agreed due date, if it has been agreed between the Bank and
                    the
                    Company that the particular amount is payable on a particular
                    date;

                

        

        

        
          	 	
                  (b)

                	
                  at
                    the end of seven days from the date of the Bank’s sending its first
                    written demand to the Company, if a due date has not been agreed
                    as
                    provided in paragraph (a) above.

                

        

        

        
          	
                  3.

                	
                  (a)

                	
                  The
                    Company or anyone whose right might be impaired by the grant
                    of this
                    Debenture or its realisation shall have no right pursuant to
                    section 13(b)
                    of the Pledges Law, 5727-1967 or any other
                    statute.

                

        

        

        
          	 	
                  (b)

                	
                  In
                    the event that the Bank agrees to the Company’s application for
                    accelerated payment of any amount on account of the Secured Sums
                    to be
                    repaid by Company other than pursuant to the terms of prepayment
                    set forth
                    in the Framework Agreement (defined below), it may charge and
                    collect from
                    the Company interest until the due date of the amount accelerated
                    or
                    interest for six months after the payment, whichever is the shorter
                    period.

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          	
                  4.

                	
                  (a)

                	
                  The
                    Bank may compute interest on the Secured Sums at such rate as
                    has been or
                    is in future from time to time agreed between it and the Company.
                    In cases
                    in which the interest rate has not been agreed, the Bank may
                    fix the
                    interest rate and give notice thereof to the Company. The Company
                    shall be
                    charged such interest rates as aforesaid and the Bank may add
                    them to
                    principal at the end of each quarter or at the end of any other
                    period, as
                    determined by it.

                

        

        

        
          	 	
                  (b)

                	
                  In
                    the event of default in payment of all or any of the Secured
                    Sums, they
                    shall bear default interest at the rate agreed upon in the agreement
                    for
                    the provision of the Banking Services. In the absence of a provision
                    with
                    regard to default interest in those agreements, the Secured Sums
                    shall
                    bear interest at the maximum rate prevailing at the Bank in respect
                    of
                    unauthorised withdrawals and defaults on an approved overdraft
                    account,
                    but not less than 2% more than the interest rate fixed in the
                    agreement
                    for the provision of any banking
                    service.

                

        

        

        
          	 	
                  (c)

                	
                  In
                    the event that the Bank becomes entitled to realise the collateral
                    under
                    this Debenture it may increase the interest rates of the Secured
                    Sums to
                    the maximum rate for the time being prevailing at the Bank in
                    respect of
                    unauthorised withdrawals and defaults on an approved overdraft
                    account.

                

        

        

        
          	
                  5.

                	
                  To
                    secure the full and punctual discharge of all the Secured Sums,
                    the
                    Company hereby grants to the Bank:

                

        

        

        
          	 	
                  (a)

                	
                  a
                    first ranking floating charge (Pari Passu with Plenus Technologies
                    Ltd.)
                    over the whole enterprise and all the equipment, assets, monies,
                    property
                    and rights, including revenue therefrom, of every type whatsoever
                    without
                    exception that the Company now or in future at any time has in
                    any way
                    whatsoever, including its insurance rights in respect thereof,
                    the rights
                    pursuant to the Property Tax and Compensation Fund Law, 5721-1961
                    and
                    every right to compensation or indemnity that the Company in
                    future has
                    against any third party by reason of the loss, damage or expropriation
                    of
                    its property or any of it (hereinafter referred to as the “Charged
                    Assets”);

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  (b)

                	
                  a
                    first ranking fixed charge and pledge over the Company’s goodwill, as
                    currently and at any time in future existing (hereinafter referred
                    to as
                    the “Charged Goodwill”);

                

        

        

        
          	 	
                  (c)

                	
                  deleted;

                

        

        

        
          	 	
                  (d)

                	
                  a
                    first charge over all the rights, including intellectual property
                    rights,
                    of the Company as set forth in Appendix A (hereinafter referred
                    to as the
                    “Charged Intellectual Property
                    Rights”).

                

        

        

        
          	 	
                  (e)

                	
                  a
                    fixed charge and pledge over the marine or air bills of lading,
                    documents
                    of title in respect of goods, warehousing certificates, delivery
                    notes,
                    goods, orders, documentary letters of credit, postal receipts
                    or other
                    documents that are customary in international trade and attest
                    to title to
                    goods or merchandise (hereinafter referred to as “the documents”), which
                    are from time to time in future given to the Bank for collection,
                    safe
                    custody, security or otherwise, including all the insurance rights
                    whatsoever against the Israeli Foreign Trade Risks Corporation
                    Ltd or any
                    other insurance company and every right to compensation or indemnity
                    that
                    the Company in future has against third parties by reason of
                    loss, damage
                    or expropriation of the goods or merchandise. On their being
                    given to the
                    Bank as aforesaid they shall be deemed subject to a first ranking
                    fixed
                    charge and pledge in favour of the Bank in accordance with the
                    terms and
                    conditions of this Debenture; 

                

        

        

        
          	 	
                  (f)

                	
                  a
                    fixed charge and pledge over all those securities, documents
                    and bills of
                    others that the Company has given or does in future from time
                    to time give
                    to the Bank, whether for collection, safe custody, security or
                    otherwise
                    (hereinafter referred to as “the Charged Documents”) and on being given
                    they shall be deemed subject to a first ranking fixed charge
                    and pledge in
                    favour of the Bank in accordance with the terms and conditions
                    of this
                    Debenture and the provisions hereof shall apply mutatis mutandis
                    to the charge and pledge of them.

                

        

        

        
          	 	
                  (g)

                	
                  the
                    “Charged Assets”, the “Charged Goodwill”, the “Charged Intellectual
                    Property Rights”, the “Documents” and the “Charged Documents”, and every
                    other charge mentioned in this clause is hereinafter referred
                    to as the
                    “Charged Property”.

                

        

        

        
          	
                  6.

                	
                  The
                    Company hereby warrants as follows:

                

        

        

        
          	 	
                  (a)

                	
                  that
                    the Charged Property is not charged or pledged to others or attached
                    in
                    any way, save as set out below:

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        
          	(1)  	
                  The
                    Borrower's long-term deposit in an amount of $75,000 is restricted
                    in
                    favor of bank Leumi of Israel along with other specific fixed
                    assets,
                    according to a loan agreement for the amount of $200,000 which
                    the
                    Borrower received from said bank for the purpose of purchasing
                    property
                    and equipment. The property and equipment which were purchased
                    using said
                    $200,000 loan, are under fixed charge in favour of Leumi of Israel
                    Ltd.;

                

        

         

        
          	(2)  	
                  Floating
                    and Fixed Charges in favor of Plenus, in accordance with a Loan
                    Agreement
                    dated 4 June 2002;

                

        

         

        
          	(3)  	
                  The
                    Borrower possesses leased computers, central telephone system
                    and computer
                    related materials pursuant to lease agreements with Unilease,
                    Techlease
                    Financial Services Ltd. and International Leasing Ltd.. All of
                    the leased
                    equipment under said lease agreements are mortgaged in favour
                    of the
                    relevant lessors;

                

        

         

        
          	(4)  	
                  The
                    Borrower provided a bank guarantee of US$ 170,000 in favor of
                    the lessors
                    of its premises.

                

        

        

        
          	 	
                  (b)

                	
                  that
                    the Charged Property is owned by the Borrower and/or leased and/or
                    licensed to the Borrower by third parties;

                

        

        

        
          	 	
                  (c)

                	
                  that
                    there is no legal, contractual or other restraint or condition
                    governing
                    the charge or pledge of the Charged
                    Property;

                

        

        

        
          	 	
                  (d)

                	
                  that
                    it may pledge or charge the Charged Property as hereunder
                    undertaken;

                

        

        

        
          	 	
                  (e)

                	
                  that
                    to the best knowledge of the Company, no assignment of right
                    or other
                    transaction has been made that materially derogated from the
                    value of the
                    Charged Property;

                

        

        

        
          	 	
                  (f)

                	
                  that
                    it received the necessary consents and/or waivers (if any) from
                    the
                    shareholders or investors pursuant to the articles of association
                    of the
                    Company or the various investment
                    agreements.

                

        

        

        
          	
                  7.

                	
                  The
                    Company hereby undertakes to the Bank as
                    follows:

                

        

        

        
          	 	
                  (a)

                	
                  to
                    keep the Charged Property in its possession, other than required
                    in the
                    ordinary course of Company's
                    business;

                

        

        

        
          	 	
                  (b)

                	
                  deleted;

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  (c)

                	
                  that
                    subject to prior coordination with the Company, to allow the
                    Bank’s
                    representative, escorted by Company's representative, to attend
                    and
                    examine the condition of the Charged Property in
                    situ;

                

        

        

        
          	 	
                  (d)

                	
                  Subject
                    to Appendix A, not, without obtaining the Bank’s prior written consent, to
                    sell, lease out, move elsewhere or howsoever deliver up the Charged
                    Property or any of it, save for sales, transfers and leases of
                    Company's
                    products made in the ordinary course of the Company’s
                    business;

                

        

        

        
          	 	
                  (e)

                	
                  not
                    to sell, lease out, move elsewhere, deliver up or grant to others
                    any
                    right to use the Charged Property without obtaining the Bank’s prior
                    written consent, except for transactions in connection with Company's
                    products made in the ordinary course of Company's
                    business;

                

        

        

        
          	 	
                  (f)

                	
                  forthwith
                    to notify the Bank of the imposition of an attachment over the
                    Charged
                    Property and/or the Charged Assets and/or any of them and forthwith
                    to
                    notify the attacher of the charge in favour of the Bank and at
                    the
                    Company’s expense forthwith and without delay to take all steps in order
                    to remove the attachment. If the Company does not take such steps
                    as
                    aforesaid, the Bank may (but need not) take all steps to remove
                    the
                    attachment, and the Company shall be liable immediately to pay
                    the Bank
                    all the expenses involved therein (including the professional
                    fees of the
                    Bank’s advocates);

                

        

        

        
          	 	
                  (g)

                	
                  not
                    howsoever to charge the Charged Property or any of it with rights
                    that are
                    pari passu with or prior or inferior to the Bank’s rights and not
                    to assign any right that the Company has in the Charged Property
                    without
                    obtaining the Bank’s prior written consent, except for charges the Company
                    is entitled to effect pursuant to that certain Framework Agreement
                    dated August 12, 2004 ("Framework
                    Agreement") in connection with Additional Loans (as defined in
                    the Framework Agreement);

                

        

        

        
          	 	
                  (h)

                	
                  deleted;

                

        

        

        
          	 	
                  (i)

                	
                  to
                    pay on due date all the taxes, municipal rates, levies and other
                    mandatory
                    payments legally imposed over the Charged Property, if any, and
                    to furnish
                    the Bank, on demand, with all the receipts for such payments,
                    and if the
                    Company does not duly make such payments, the Bank may make them
                    at the
                    Company’s expense and charge it the payments, plus expenses and interest
                    at the maximum rate. Those payments are secured by this
                    Debenture;

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  (j)

                	
                  to
                    keep books of account and that subject to prior coordination
                    with the
                    Company and escort of its representative, permit the Bank or
                    its
                    representative to examine the books. The Company undertakes to
                    assist the
                    Bank or its representatives and to give them on demand balance
                    sheets,
                    documents and any information required by them, including explanations
                    in
                    connection with the financial and operational state of the Company
                    and/or
                    its business;

                

        

        

        
          	 	
                  (k)

                	
                  that
                    there shall be no material adverse change to the business of
                    the Company
                    without the Bank’s prior written
                    consent;

                

        

        

        
          	 	
                  (l)

                	
                  to
                    the best of its knowledge, the Company is the owner and/or holds
                    the
                    rights of use under license or agreement, of all the intellectual
                    property
                    required by the Company for the purpose of its business, as currently
                    conducted;

                

        

        

        
          	 	
                  (m)

                	
                  to
                    the best of its knowledge, the Company is not currently in breach
                    and
                    there are no proceedings against it in connection with any breach
                    of any
                    intellectual property rights of any third
                    party;

                

        

        

        
          	 	
                  (n)

                	
                  the
                    Company has attached hereto a full list of all its intellectual
                    property
                    and shall submit to the Bank any update or variation to the list
                    that may
                    occur, on a quarterly basis. 

                

        

        

        
          	
                  8.

                	
                  Throughout
                    the subsistence of this Debenture, the Company undertakes as
                    follows:

                

        

        

        
          	 	
                  (a)

                	
                  deleted;

                

        

        

        
          	 	
                  (b)

                	
                  not
                    howsoever to pay its shareholders any loan or funds that the
                    shareholders
                    have lent or do in future lend to the Company or any funds that
                    they have
                    invested and/or do in future invest in the Company. Notwithstanding
                    the
                    above, conversion of loans provided to the Company into Company's
                    equity
                    as part of an equity transaction shall not be deemed payment
                    of loan or
                    funds pursuant to this Section;

                

        

        

        
          	 	
                  (c)

                	
                  not
                    to give its shareholders any loan or credit whatsoever without
                    the Bank’s
                    written consent;

                

        

        

        
          	 	
                  (d)

                	
                  to
                    procure that its shareholders undertake to the Bank not to demand
                    or claim
                    any such monies as aforesaid from the Company and if for any
                    reason
                    amounts are nevertheless due to them from the Company, to return
                    the said
                    amounts to the Bank for them to be applied in discharge of the
                    said
                    amounts.

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        
          	
                  9.

                	
                  (a)

                	
                  The
                    Company hereby undertakes at all times to keep the Charged Property
                    insured in a customary business insurance against customary risks,
                    including theft, fire, and other customary risks covered in this
                    kind of
                    insurance. The Company shall duly pay all the insurance fees
                    and deliver
                    to the Bank all the insurance certificates and the receipts for
                    payment of
                    the insurance fees, upon each annual renewal of such insurance.
                    

                

        

        

        
          	 	
                  (b)

                	
                  Without
                    prejudice to the aforegoing and in addition thereto the Company
                    undertakes
                    to give the insurance company through which the Charged Property
                    is
                    insured irrevocable instructions to transfer all monies that
                    are due to
                    the Company pursuant to the Charged Property insurance policy
                    solely to
                    the Bank pursuant to the terms of this Debenture or other agreements
                    with
                    the Bank. The Company further undertakes to provide the Bank
                    with the said
                    insurance company’s undertaking and to notify the Bank of the date of
                    termination of any insurance policies taken out by it at least
                    30 days
                    prior to their expiration.

                

        

        

        
          	 	
                  (c)

                	
                  In
                    each of the under-mentioned cases the Bank may, at its sole discretion,
                    insure the Charged Property in the name of the Bank and charge
                    the cost of
                    the insurance fees to the Company’s
                    account:

                

        

        

        
          	 	
                  (1)

                	
                  if
                    the Charged Property is not insured as above undertaken by the
                    Company;

                

        

        

        
          	 	
                  (2)

                	
                  if
                    within 30 business days of the execution of this Debenture the
                    Company
                    does not provide the Bank with insurance certificates in respect
                    of the
                    Charged Property to the Bank’s absolute
                    satisfaction;

                

        

        

        
          	 	
                  (3)

                	
                  In
                    the event that the insurance is arranged by the Bank as aforesaid,
                    the
                    Bank shall not be liable for any fault or defect discovered in
                    connection
                    with the insurance. Amounts that are paid as such expenses and
                    insurance
                    fees as aforesaid are secured pursuant to this
                    Debenture.

                

        

        

        
          	 	
                  (d)

                	
                  All
                    the rights deriving from such property insurance as aforesaid,
                    including
                    rights under the Property Tax and Compensation Law, 5721-1961
                    as in force
                    from time to time or in accordance with any other law, whether
                    or not
                    transferred to the Bank as aforesaid, are hereby made subject
                    to a first
                    ranking fixed charge and pledge in favour of the
                    Bank.

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  (e)

                	
                  In
                    connection with the Company’s property insurance it hereby appoints the
                    Bank as its sole attorney and grants it exclusive rights, in
                    the name of
                    the Company, to negotiate, agree to settlements and compromise
                    with and
                    waive and accept funds from insurance companies and apply them
                    in
                    discharge of the Secured Sums. The said power of attorney is
                    irrevocable
                    since third party rights are dependent thereon. The Company shall
                    have no
                    complaints in connection with settlements, waivers and compromises
                    that
                    the Bank makes with insurance
                    companies.

                

        

        

        
          	 	
                  (f)

                	
                  The
                    Company undertakes, on the Bank’s first demand, to sign all applications,
                    documents and certificates necessary or desirable for the performance
                    of
                    the Company’s obligations contained in this clause. The Company further
                    undertakes not howsoever to cancel or modify any of the aforegoing
                    insurance conditions without the Bank’s prior written
                    consent.

                

        

        

        
          	
                  10.

                	
                  (a)

                	
                  The
                    collateral that has been given to the Bank pursuant to this Debenture
                    is
                    of a continual character notwithstanding settlement of all or
                    any of the
                    Company’s accounts with the Bank and it shall remain in force until the
                    Bank confirms in writing that this Debenture is
                    void.

                

        

        

        
          	 	
                  (b)

                	
                  Should
                    the Bank have been or in future be given collateral or guarantees
                    for
                    payment of the Secured Sums, all the collateral and guarantees
                    shall be
                    independent of each other.

                

        

        

        
          	 	
                  (c)

                	
                  Should
                    the Bank compromise with or grant forbearance or a concession
                    to the
                    Company, should the Bank alter the Company’s obligations in connection
                    with the Secured Sums or release or waive other collateral or
                    guarantees,
                    the same shall not alter the nature of the collateral created
                    pursuant to
                    this Debenture and all the collateral and obligations of the
                    Company
                    pursuant to this Debenture shall remain in full force and
                    effect.

                

        

        

        
          	
                  11.

                	
                  The
                    Bank shall have rights of possession, lien and set-off over all
                    the
                    amounts, assets and rights, including securities, currency, gold,
                    bank
                    notes and documents for goods, insurance policies, bills, cheques,
                    obligations, deposits, collateral and the proceeds thereof, that
                    are at
                    the Bank at any time to or for the credit of the Company, including
                    those
                    given for collection, security, safe keeping or otherwise. The
                    Bank may
                    withhold the said assets until full discharge of the Secured
                    Sums or sell
                    them and apply all or any of the proceeds of sale in discharge
                    of the
                    Secured Sums.

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  In
                    the event that the amounts that are set off are deposited in
                    foreign
                    currency, the Company hereby grants the Bank authority and instructions
                    to
                    sell the foreign currency balance at the rate obtainable for
                    it by the
                    Bank.

                

        

        

        
          	
                  12.

                	
                  The
                    Bank may at any time charge any of the Company’s accounts with it with any
                    amount now or in future due to it from the Company and apply
                    any amount
                    that it receives from or for the Company to the credit of such
                    account as
                    it deems fit and transfer any amount standing to the Company’s credit in
                    any account with it to any other account with it as the Bank
                    deems
                    fit.

                

        

        

        
          	
                  13.

                	
                  Having
                    regard to the fact that the amounts that are now and in future
                    due to the
                    Bank from the Company on account of the Secured Sums can be both
                    in
                    Israeli currency and in foreign currency, it is hereby agreed
                    and declared
                    that the Bank and the receiver, as the case may be, may convert
                    Israeli
                    currency in their possession to foreign currency as necessary
                    for the full
                    or partial discharge of the Secured Sums that are due to the
                    Bank in
                    foreign currency and convert foreign currency in their possession
                    to
                    Israeli currency, at the official rates of exchange existing
                    in Israel at
                    the time when any such conversions are actually made by either
                    of
                    them.

                

        

        

        The
          expression “rate of exchange” means: the highest price for the purchase of a
          unit of the currency of such debt existing at the Bank of Israel in respect
          of
          bank telegraphic withdrawals on a city for the time being known as one
          of the
          financial centres of the state in which the currency of the debt is legal
          tender
          or on New York, at the option of the Bank, together with the bank commission
          for
          such transaction.

        

        
          	
                  14.

                	
                  Without
                    prejudice to the generality of the provisions of this Debenture
                    and
                    without derogating from other undertakings by the Company in
                    other
                    agreements with the Bank, the Bank may in any of the under-mentioned
                    cases
                    call for the immediate payment of all or any of the Secured Sums,
                    without
                    prior notice to the Company:

                

        

        

        
          	 	
                  (a)

                	
                  if
                    the Company does not discharge to the Bank on the due date or
                    dates any of
                    the Secured Sums due to it;

                

        

        

        
          	 	
                  (b)

                	
                  if
                    a voluntary winding-up resolution is passed by the Company or
                    if a
                    winding-up order is issued against it by the court or if the
                    court calls a
                    creditors meeting for the purpose of finding an arrangement with
                    them
                    ;

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  (c)

                	
                  if
                    a (provisional or permanent) receiver, receiver and manager or
                    liquidator
                    is appointed over the Company’s assets or any of them, provided that if a
                    provisional receiver was appointed in the presence of one party,
                    Company
                    shall have forty five (45) days to cancel such appointment, during
                    which
                    period Company shall not be deemed in default under this
                    Agreement;

                

        

        

        
          	 	
                  (d)

                	
                  if
                    an attachment is imposed over all or any of the Company’s assets or over
                    any of the collateral given by the Company to the Bank or if
                    any act of
                    execution is taken against it, provided that if actual attachment
                    has not
                    yet been performed (as opposed to registered attachment), Company
                    shall
                    have forty five (45) days to cancel such attachment imposition,
                    during
                    which period Company shall not be deemed in default under this
                    Agreement;

                

        

        

        
          	 	
                  (e)

                	
                  if
                    the Company stops paying its debts or carrying on its business
                    for two or
                    more months;

                

        

        

        
          	 	
                  (f)

                	
                  deleted;

                

        

        

        
          	 	
                  (g)

                	
                  deleted;

                

        

        

        
          	 	
                  (h)

                	
                  if
                    it appears to the Bank that there has been a change of control
                    of the
                    Company, in comparison with the situation existing on the date
                    hereof, by
                    a voluntary share transfer or otherwise (save for transfer to
                    a Permitted
                    Transferee (as defined below), and (iii) the transmission of
                    shares by
                    inheritance) or by a resolution of the members who constitute
                    the Company,
                    without the Bank’s prior written
                    approval;

                

        

        

        
          	 	 	
                  in
                    this subsection (h), "control" shall have the meaning ascribed
                    to it in
                    Section 1 to the Securities Law,
                    5728-1968.

                

        

        

        
          	 	 	
                  in
                    this subsection (h), "Permitted Transferee" shall mean (i) in
                    the case of
                    an individual shareholder - a spouse, child, brother, sister
                    or trustee of
                    the shareholder and any corporate entity which is controlled
                    by it; (ii)
                    in the case of any incorporated shareholder (whether company
                    or
                    partnership) - any corporate entity which controls, is controlled
                    by, or
                    is under common control with such incorporated shareholder, or
                    any of its
                    partners, management companies, shareholders, directors or
                    officers;

                

        

        

        
          	 	
                  (i)

                	
                  if
                    a receivership or bankruptcy order is awarded against any of
                    the Company’s
                    guarantors (in the event that the Secured Sums are inter alia
                    also secured pursuant to guarantees by such guarantors) or in
                    the event of
                    the death of a guarantor or in the case of a guardian being appointed
                    for
                    the person or estate of a guarantor and the Company does not
                    provide the
                    Bank within seven days of the occurrence of any of the aforegoing
                    with a
                    guarantee and undertaking signed by a person or entity agreed
                    in advance
                    by the Bank and in such terms as prescribed by the Bank, pursuant
                    whereto
                    that person or entity will guarantee the Bank the full and punctual
                    payment of the said sums. The provisions of this sub-clause shall
                    also
                    apply mutatis mutandis to such person or entity as though that
                    person or entity were the original guarantor and also to their
                    successors;

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  (j)

                	
                  deleted;

                

        

        

        
          	 	
                  (k)

                	
                  if
                    the Bank, on a reasonable basis, takes the view that an event
                    has occurred
                    that might materially and adversely impair the Company’s financial
                    capacity;

                

        

        

        
          	 	
                  (l)

                	
                  if,
                    at the Bank’s discretion and in its reasonable estimation there is a
                    material adverse deterioration in the value of the collateral
                    that has
                    been given to secure payment of the Secured
                    Sums;

                

        

        

        
          	 	
                  (m)

                	
                  if
                    the Company is under a continuing default pursuant to its agreements
                    with
                    other creditors and it is required to accelerate the discharge
                    of debts
                    that it owes to other creditors;

                

        

        

        
          	 	
                  (n)

                	
                  if
                    the Company breaches or does not perform any of its obligations
                    that are
                    contained in this Debenture and/or any agreement and/or instrument
                    and/or
                    contract made in the past and/or future between the Company and
                    the
                    Bank;

                

        

        

        
          	 	
                  (o)

                	
                  if
                    it transpires that any warranty of the Company in this Debenture
                    and/or
                    any contract made in the past and/or future between the Company
                    and the
                    Bank is materially incorrect.

                

        

        

        
          	 	
                  (p)

                	
                  if
                    the Company alters its articles of association or some of them
                    and does
                    not give notice thereof to the Bank within 48
                    hours;

                

        

        

        
          	 	
                  (q)

                	
                  if
                    the Company passes a resolution to merge with another company,
                    whether as
                    absorbing or target company, as defined in the Companies Law,
                    5759-1999,
                    unless Company has paid all of its debts to the Bank and terminated
                    the
                    credit prior to such resolution date, or as otherwise agreed
                    between the
                    Bank and the Company;

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  (r)

                	
                  if
                    any license, consent, approval or registration of any of the
                    intellectual
                    property rights of the Company is denied, becomes void, suspended
                    or is
                    materially prejudiced, which denial or suspension has a material
                    adverse
                    effect on the Company.

                

        

        

        
          	
                  15.

                	
                  (a)

                	
                  In
                    each of the cases set out in the preceding clause, the Bank may
                    take all
                    the steps it deems fit in order to collect all the Secured Sums,
                    realise
                    the collateral in any way that the law permits and exercise all
                    its rights
                    pursuant to this Debenture, including realising the Charged Property,
                    in
                    whole or parts and applying the proceeds thereof in discharge
                    of the
                    Secured Sums, without the Bank having to enforce or realise any
                    other
                    guarantees or collateral that it might
                    have.

                

        

        

        
          	 	
                  (b)

                	
                  The
                    Bank may, subject and pursuant to a dully held court order and
                    applicable
                    law, sell the Charged Property and any part of it by auction
                    or otherwise,
                    itself or through others and on conditions at the Bank’s absolute
                    discretion subject to applicable law, and the Bank may itself
                    or by the
                    court or execution office realise the collateral granted to it
                    pursuant to
                    this Debenture or otherwise by the appointment of a receiver
                    or receiver
                    and manager on behalf of the Bank (and the Company agrees in
                    advance to
                    any person or legal entity that the Bank appoints or proposes
                    as receiver
                    and manager as aforesaid) and amongst his other powers, he may
                    subject to
                    applicable law and supervision and approval of the
                    court:

                

        

        

        
          	 	
                  (1)

                	
                  take
                    possession of all or any of the Charged
                    Property;

                

        

        

        
          	 	
                  (2)

                	
                  manage
                    the Company’s business or take part in its management as he deems
                    fit;

                

        

        

        
          	 	
                  (3)

                	
                  sell
                    or let and/or agree to the sale or letting of the Charged Property,
                    in
                    whole or parts, or otherwise transfer it on such conditions as
                    he deems
                    fit;

                

        

        

        
          	 	
                  (4)

                	
                  make
                    any other arrangement in respect of all or any of the Charged
                    Property.

                

        

        

        
          	
                  16.

                	
                  All
                    income obtained by the receiver and manager from the Charged
                    Property and
                    all proceeds obtained by the Bank and/or the receiver and manager
                    from the
                    sale of the Charged Property or part of it shall be
                    applied:

                

        

        

        
          	 	
                  (a)

                	
                  firstly,
                    in discharge of all expenses incurred in connection with collecting
                    the
                    Secured Sums, including the expenses and remuneration of the
                    receiver or
                    receiver and manager at such rate as fixed by the
                    Bank;

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  (b)

                	
                  secondly,
                    in discharge of the further amounts that are due to the Bank
                    in
                    consequence of the linkage conditions, the interest, damages,
                    commission
                    and expenses now and in future due to the Bank pursuant to this
                    Debenture;

                

        

        

        
          	 	
                  (c)

                	
                  thirdly,
                    in discharge of the principal of the Secured Sums, or in any
                    other order
                    of application as prescribed by the
                    Bank.

                

        

        

        
          	
                  17.

                	
                  In
                    the event that at the time the Charged Property is realised pursuant
                    hereto and the Secured Sums have not yet fallen due or the Secured
                    Sums
                    are only due to the Bank contingently, the Bank may collect from
                    the
                    proceeds of realisation an amount sufficient to cover the Secured
                    Sums and
                    the amount that it collects shall be charged to the Bank as collateral
                    for
                    them and be retained by the Bank until their
                    discharge.

                

        

        

        
          	
                  18.

                	
                  Without
                    derogating from the other provisions of this Debenture, no waiver,
                    forbearance, concession, silence or abstinence (hereinafter referred
                    to as
                    “Waiver”) on the part of the Bank in respect of the non-performance or
                    partial or incorrect performance of any of the Company’s obligations
                    pursuant to this Debenture shall be construed as a Waiver by
                    the Bank of
                    any right and it shall only be treated as acquiescence limited
                    to the
                    specific instance in which it was
                    given.

                

        

        

        
          	 	
                  Any
                    Waiver that the Bank grants to any party to a bill that the Bank
                    holds
                    pursuant to this Debenture shall have no effect whatsoever on
                    the
                    Company’s obligations.

                

        

        

        
          	19.	
                  (a) If
                    and insofar as the Company is made liable or treated as a guarantor
                    (hereinafter referred to as the “Guarantor Company”), the Company hereby
                    agrees that the Bank may:

                

        

        

        
          	
                  (1)

                	
                  take
                    proceedings in accordance with the law in order to realise the
                    collateral
                    and/or collect the said amounts, without the Bank first being
                    liable to
                    apply to the guaranteed debtors to discharge the said amounts
                    that are due
                    from them to the Bank;

                

        

        

        
          	
                  (2)

                	
                  stop,
                    modify, increase, reduce or renew any credit or other banking
                    service that
                    has been and/or is in future given to the
                    debtors;

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

         

        
          	
                  (3)

                	
                  grant
                    an extension of time and/or similar concession in connection
                    with the
                    discharge of the said amounts;

                

        

        

        
          	
                  (4)

                	
                  replace,
                    renew, release, amend, refrain from performing or realising collateral
                    or
                    other guarantees that the Bank now or in future holds, whether
                    received by
                    it from the guaranteed debtors or
                    others;

                

        

        

        
          	
                  (5)

                	
                  compromise
                    with the guaranteed debtors or
                    others.

                

        

        

        
          	 	
                  The
                    guarantor Company hereby agrees that the doing of any of the
                    said acts by
                    the Bank shall not vest it with any right to alter or revoke
                    its
                    obligations to the Bank.

                

        

        

        
          	 	
                  (b)

                	
                  Deleted.

                

        

        

        
          	
                  20.

                	
                  The
                    Company confirms that the Bank’s books and accounts are acceptable to it,
                    shall be deemed correct and shall serve as conclusive evidence
                    against it
                    of all their particulars, including as regards the computation
                    of the
                    Secured Sums, the details of the bills and guarantees and the
                    other
                    collateral and every other matter relating to this
                    Debenture.

                

        

        

        
          	 	
                  The
                    expression “the Bank’s books” means every statement or copy statement and
                    every loan contract or deed signed by the Company, and the expression
                    “accounts” means every record or copy record, whether entered or copied
                    in
                    handwriting or typewriter or entered or copied by means of printing,
                    duplication or photocopying or by means of any electrical or
                    electronic
                    technical instrument, including
                    microfilm.

                

        

        

        
          	
                  21.

                	
                  The
                    Bank may at any time, at its discretion, without needing the
                    Company’s
                    consent, transfer to another financial bank this Debenture and
                    the rights
                    pursuant hereto, including the collateral, in whole or parts,
                    and any
                    transferee may also transfer the said rights without requiring
                    further
                    consent from the Company and provided that each such transfer
                    shall not
                    derogate from the rights of the Company pursuant to any credit
                    facility it
                    is entitled to from the Bank under agreements and/or credit arrangements
                    between the Company and the Bank, and further provided that any
                    and all of
                    the expenses and costs of any such transfer shall borne by the
                    transferor.
                    The transfer may be made by endorsement of the Debenture or in
                    such other
                    manner as the Bank deems fit, provided that the Company shall
                    receive a
                    written notice of each such transfer as soon as possible close
                    to such
                    transfer.

                

        

        

        
          	
                  22.

                	
                  deleted.

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

         

        
          	
                  23.

                	
                  (a)

                	
                  The
                    grant of this Debenture is without prejudice to the Bank’s right to
                    collect the Secured Sums otherwise than by realisation of this
                    Debenture.

                

        

        

        
          	 	
                  (b)

                	
                  The
                    realisation of this Debenture shall be without prejudice to the
                    Bank’s
                    right to collect from the Company the remainder of the Secured
                    Sums that
                    have not been discharged by realisation of the
                    Debenture.

                

        

        

        
          	
                  24.

                	
                  All
                    expenses in connection with this Debenture, its stamping and
                    registration,
                    the realisation of the collateral (including the professional
                    fees of the
                    Bank’s advocates) and also insurance, maintenance and repair of the
                    Charged Property shall be paid by the Company to the Bank on
                    its first
                    demand, plus interest at the maximum rate prevailing at the Bank
                    for the
                    time being on unauthorised withdrawals and defaults on approved
                    overdraft
                    accounts from the date of demand until full discharge. Until
                    their full
                    discharge all the said expenses shall be secured by this
                    Debenture.

                

        

        

        
          	
                  25.

                	
                  In
                    this Debenture:

                

        

        

        
          	 	
                  (a)

                	
                  “Bank”
                    means United Mizrahi Bank Ltd and each one of its branches existing
                    on the
                    date hereof and/or opened anywhere in the future and also the
                    Bank’s
                    successors and assigns;

                

        

        

        
          	 	
                  (b)

                	
                  “bills”
                    means promissory notes, bills of exchange, cheques, undertakings,
                    guarantees, collateral, bills of lading, deeds of deposit and
                    all other
                    negotiable instruments;

                

        

        

        
          	 	
                  (c)

                	
                  the
                    recitals to this Debenture constitute an integral part of
                    it;

                

        

        

        
          	 	
                  (d)

                	
                  should
                    this Debenture be signed by two or more persons, the signatories
                    shall be
                    jointly and severally liable for the performance of all the obligations
                    pursuant to this Debenture.

                

        

        

        
          	
                  26.

                	
                  Any
                    notice posted by the Bank to the Company by registered or ordinary
                    mail at
                    the address specified above, of which the Company shall give
                    the Bank
                    written notice, shall be deemed duly received by the Company
                    within 48
                    hours of the time the letter containing the notice was
                    posted.

                

        

        

        
          	
                  27.

                	
                  The
                    competent court in Tel Aviv is hereby vested with jurisdiction
                    for the
                    purpose of this Debenture but the Bank may also take legal proceedings
                    in
                    any other competent court.

                

        

         

        
          WINTEGRA
            LTD.

          /s/
            Jacob Ben-Zvi

        

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

        
 

        
          	
                  28.

                	
                  Special
                    conditions: _____________________________________________________________
                    ____________________________________________________________________________

                  ____________________________________________________________________________

                

        

        

        

        AS
          WITNESS THE HAND OF THE COMPANY

        

        

        /s/
          Jacob Ben-Zvi

        The
          Company

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

         

        
           

          Appendix
            A

          

          

          The
            charge shall also govern all the rights of the Company, inclusive of
            the
            intellectual property rights, as currently and at any time in future
            existing,
            whether or not they are registered, including where applications for
            registration have been submitted in respect thereof, as well as:

          

          
            	(a)    	
                    any
                      know-how, inventions, patents, trademarks, models, designs,
                      trade names,
                      copyright and technological processes and
                      applications;

                  

          

           

          
            	(b)    	
                    Internet
                      domain names, licenses, franchise agreements, user rights agreements,
                      drawings, computer software, trade secrets and customer
                      lists;

                  

          

          

          
            	        	
                    all
                      whether or not the rights of the Company were registered, or
                      whether the
                      aforesaid rights are currently and at any time in future
                      existing.

                  

          

          

          In
            respect of the aforesaid intellectual property rights, or any part thereof,
            the
            Company undertakes to ensure that the Company itself, as well as any
            of its
            subsidiaries:

          

          
            	(a)    	
                    shall
                      perform all the appropriate applications and shall pay all
                      the costs and
                      fees necessary to safeguard and protect the intellectual property
                      rights
                      of the Company and/or of its subsidiaries and/or the application
                      thereof;

                  

          

          

          
            	(b)    	
                    shall
                      take all steps necessary, including legal action, to prevent
                      any third
                      party from prejudicing these intellectual property
                      rights;

                  

          

          

          
            	(c)    	
                    shall
                      not sell, transfer, lease or grant a user license, save for
                      any license
                      arrangements with a third party which is not an affiliated
                      party (except
                      for the parent company of Company), made during the regular
                      course of
                      business of the Company.

                  

          

           

          
            WINTEGRA
              LTD.

            /s/
              Jacob Ben-Zvi

          

        

         

         

         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

      

    

     

    
      List
        of
        Patents on file and preparation

       

      
        
          	
                  Patent
                    

                  Publication
                    

                  Number

                	 	
                  Patent
                    

                  Application
                    

                  Number

                	 	
                  Patent

                  Name

                	 	Status	 	
                  International

                  Filing
                    Date

                
	WO
                  02/29511	 	PCT/IL01/00930	 	METHOD
                  SYSTEM AND APPARATUS FOR MULTIPROCESSING	 	
                  International
                    PCT application
                    filed

                	 	October
                  2001
	WO 02/51166	 	PCT/IL01/01147	 	METHOD AND APPARATUS FOR DYNAMIC
                  BANDWIDTH ALLOCATION FOR VOICE AND DATA MULTIPLEXING OVER AAL-2
                  CONNECTIONS	 	
                  International
                    PCT application
                    filed

                	 	December 2001
	 	 	60/354256	 	DYNAMIC ADJUSTMENT OF AAL2 TIMER_CU
                  IN VOICE
                  AND DATA MULTIPLEXING OVER AAL2 CONNECTIONS	 	
                  US
                    Provisional Application
                    (in preparation
                    for PCT
                    filing)

                	 	February 2002

        

      

       

      List
        of Trademarks

       

      
         

        
          
            	
                    Trademark
                      

                    Registration

                    Number

                  	 	
                    Registration

                    Date

                  	 	
                    Trademark

                    Application Date

                    and Number

                  	 	
                    Trademark

                    Name

                  	 	
                    Status

                  
	
                    2600208

                  	 	
                    30/7/2002

                  	 	
                    3/7/2000

                  	 	
                    WINPATH

                  	 	Registered
                    in the U.S. Patent and Trademark Office
	
                    2551737

                  	 	
                    26/3/2002

                  	 	
                    28/2/2000

                  	 	
                    
                      WINTEGRA

                    

                  	 	Registered in the
                    U.S. Patent and
                    Trademark Office
	
                     

                  	 	 	 	
                    7/12/2000

                  	 	
                    
                      WINPATH

                    

                  	 	Pending to be registered
                    in the
                    EU.
	
                    001735828

                  	 	
                    23/11/2001

                  	 	
                    27/6/2000

                  	 	
                    WINTEGRA

                  	 	Registered in the European
                    Union office of OHIM
	
                    134693

                  	 	
                    5/3/2001

                  	 	
                    8/2/2000

                  	 	
                    WINTEGRA

                  	 	Registered in the
                    Israeli
                    Registrar of Trademarks
	
                    139067

                  	 	
                    4/9/2001

                  	 	
                    3/7/2000

                  	 	
                    WINPATH

                  	 	Registered in the
                    Israeli
                    Registrar of Trademarks

          

        

      

    

     

     

     

    
      WINTEGRA
        LTD.

      /s/
        Jacob Ben-Zvi

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
       

      
        List
          of
          Patents on file and preparation

         

        
          
            	
                    Patent
                      

                    Publication
                      

                    Number

                  	 	
                    Patent
                      

                    Application
                      

                    Number

                  	 	
                    Patent

                    Name

                  	 	Status	 	
                    International

                    Filing
                      Date

                  
	WO
                    02/29511	 	PCT/IL01/00930	 	METHOD
                    SYSTEM AND APPARATUS FOR MULTIPROCESSING	 	
                    International
                      PCT application
                      filed

                  	 	October
                    2001
	WO 02/51166	 	PCT/IL01/01147	 	METHOD AND APPARATUS FOR DYNAMIC
                    BANDWIDTH ALLOCATION FOR VOICE AND DATA MULTIPLEXING OVER AAL-2
                    CONNECTIONS	 	
                    International
                      PCT application
                      filed

                  	 	December 2001
	 	 	60/354256	 	DYNAMIC ADJUSTMENT OF AAL2 TIMER_CU
                    IN VOICE
                    AND DATA MULTIPLEXING OVER AAL2 CONNECTIONS	 	
                    US
                      Provisional Application
                      (in preparation
                      for PCT
                      filing)

                  	 	February 2002

          

        

         

        List
          of Trademarks

         

        
           

          
            
              	
                      Trademark
                        

                      Registration

                      Number

                    	 	
                      Registration

                      Date

                    	 	
                      Trademark

                      Application Date

                      and Number

                    	 	
                      Trademark

                      Name

                    	 	
                      Status

                    
	
                      2600208

                    	 	
                      30/7/2002

                    	 	
                      3/7/2000

                    	 	
                      WINPATH

                    	 	Registered
                      in the U.S. Patent and Trademark Office
	
                      2551737

                    	 	
                      26/3/2002

                    	 	
                      28/2/2000

                    	 	
                      
                        WINTEGRA

                      

                    	 	Registered in the
                      U.S. Patent and
                      Trademark Office
	
                       

                    	 	 	 	
                      7/12/2000

                    	 	
                      
                        WINPATH

                      

                    	 	Pending to be registered
                      in the
                      EU.
	
                      001735828

                    	 	
                      23/11/2001

                    	 	
                      27/6/2000

                    	 	
                      WINTEGRA

                    	 	Registered in the European
                      Union office of OHIM
	
                      134693

                    	 	
                      5/3/2001

                    	 	
                      8/2/2000

                    	 	
                      WINTEGRA

                    	 	Registered in the
                      Israeli
                      Registrar of Trademarks
	
                      139067

                    	 	
                      4/9/2001

                    	 	
                      3/7/2000

                    	 	
                      WINPATH

                    	 	Registered in the
                      Israeli
                      Registrar of Trademarks

            

          

        

      

       

       

       

      
        WINTEGRA
          LTD.

        /s/
          Jacob Ben-Zvi

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

    

    
       

       

      Date:
        Aug/12/2004

      United
        Mizrahi Bank Ltd

      Herzlia Branch

      (hereinafter
        : the "Bank")

      

      Re:
        Negative
        Charge

      Irrevocable
        Undertaking for a Guaranteed Party

      

      
        	WHEREAS	
                Wintegra
                  Ltd. (hereinafter: the “Guaranteed Party”) has received and/or is about to
                  receive Credit from the Bank, as defined in the Bank’s "Agreement and
                  General Business Terms” and/or “Application to Open an Account" and/or
                  “Application to Effect Changes in an Account" and/or “Account Management
                  General Terms and Conditions” and/or “General Conditions for Credit
                  Activities” and all the appendices and amendments thereto and/or various
                  banking services, (hereinafter: “the
                  Credit”);

              

      

      
        	AND
                WHEREAS	
                we,
                  the undersigned, Wintegra Inc. (hereinafter: the “Company”) are guarantors
                  for all the Guaranteed Party’s obligations to the Bank in connection with
                  the Credit;

              

      

      
        	AND
                WHEREAS	
                the
                  Credit is and/or shall be given by the Bank inter
                  alia
                  in
                  reliance upon this undertaking;

              

      

      

      WE
        ACCORDINGLY WARRANT, CONFIRM AND UNDERTAKE TO THE BANK AS
        FOLLOWS:

      

      
        	
                1.

              	
                As
                  at the date of giving this undertaking, there is no floating charge
                  over
                  the Company’s assets in favour of any third party, nor has the Company
                  given any undertaking to create a floating charge in favour of
                  any third
                  party.

              

      

      

      
        	
                2.

              	
                As
                  at the date of giving this undertaking, there is no fixed charge
                  over the
                  Company’s assets in favour of a third party, nor has the Company given
                  any
                  undertaking to create a fixed charge in favour of any third
                  party.

              

      

      
        	 	
                The
                  provisions of this clause and clause 1 above are save for the charges
                  specified below:

              

      

      

      
        	
              	2.1	
                Charges
                  made in favour of Plenus Technologies Ltd., pursuant to that certain
                  Loan
                  Agreement dated 4 June 2002.

              

      

      

      
        	
              	2.2	
                Charges
                  Company has made in favour of leasing companies in respect of computers
                  and related equipment.

              

      

      

      
        	
                3.

              	
                The
                  Company shall not in any matter charge its existing assets or its
                  assets
                  as shall exist from time to time in a floating charge and of any
                  type or
                  ranking without obtaining the Bank’s prior written
                  consent.

              

      

      

      
        	
                4.

              	
                The
                  Company shall not charge any asset that exists and/or is registered
                  in its
                  name without obtaining the Bank’s prior written consent. Notwithstanding
                  the aforegoing provisions in this clause, the Company shall be
                  entitled to
                  create a fixed charge over new fixed assets in favour of another
                  bank the
                  purchase whereof shall be financed by such bank and such being
                  up to the
                  amount that it has borrowed from it for such
                  purpose.

              

      

      

      
        	
                5.

              	
                If
                  for any reason whatsoever the Company shall breach its commitment
                  herein,
                  the Bank shall be entitled to immediate repayment of the credit
                  amounts
                  given to the Company and/or to the Guaranteed Party, in addition
                  to any
                  relief and/or remedy to which the Bank is entitled against the
                  Company
                  and/or the Guaranteed Party pursuant to any agreement or
                  law.

              

      

      

      
        	
                6.

              	
                The
                  Company’s undertakings herein are given to secure the rights of United
                  Mizrahi Bank Ltd., and shall continue to be in effect until its
                  termination is approved by the Bank which approval shall be obtained
                  pursuant the Framework Agreement between the Guaranteed Party and
                  the
                  Bank. 

              

      

      

      Yours
        faithfully,

      

      Jacob
        Ben-Zvi WINTEGRA INC.

      The
        Company

      

      I,
        the
        undersigned, Noma Floom, the Company’s Advocate, hereby certify that the
        Company’s resolution with regard to the above undertaking was duly passed and is
        in accordance with the Company’s current Memorandum and Articles of Association
        and was duly recorded in the Company’s books. 

      

      I
        certify
        that the signatures of Jacob Ben-Zvi who have signed this document,
        together with the Company stamp or alongside its printed name, bind the Company.
        Furthermore, I certify that I have received a copy of this undertaking and
        have
        taken note thereof.

      

      6.
        September 2004                         Noma
        Floom

      Date       
Advocate’s
        Signature and Stamp

      

      United
        Mizrahi Bank Ltd

      Dear
        Sirs,

      

      We
        the
        undersigned agree to the matters set forth in the above undertaking.
        Furthermore, we confirm that we are aware that United Mizrahi Bank Ltd’s rights
        depend upon the performance of the Company’s undertaking pursuant hereto and
        that we have received the Credit from the Bank inter
        alia
        in
        reliance on this undertaking.

      

      Aug/12/2004                 Jacob
        Ben-Zvi WINTEGRA LTD.

      Date      
 The
        Guaranteed Party’s Signature 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
         

        

          Date:
            May 16, 2005

          United
            Mizrahi Bank Ltd

          ______________
            Branch

          (hereinafter
            : the "Bank")

          

          Re:
            Negative
            Charge

          Irrevocable
            Undertaking 

          

          
            	WHEREAS	
                    Wintegra
                      Ltd. (hereinafter: the “Client”) has received and/or is about to receive
                      Credit from the Bank, as defined in the Bank’s "Agreement and General
                      Business Terms” and/or “Application to Open an Account" and/or
                      “Application to Effect Changes in an Account" and/or “Account Management
                      General Terms and Conditions” and/or “General Conditions for Credit
                      Activities” and all the appendices and amendments thereto and/or various
                      banking services, (hereinafter: “the
                      Credit”);

                  

          

          
            	AND
                    WHEREAS	
                    we,
                      the undersigned, Wintegra (UK) Ltd. (hereinafter: the “Company”) are
                      subsidiary of the Client ;

                  

          

          
            	AND
                    WHEREAS	
                    the
                      Credit is and/or shall be given by the Bank inter
                      alia
                      in
                      reliance upon this undertaking;

                  

          

          

          WE
            ACCORDINGLY WARRANT, CONFIRM AND UNDERTAKE TO THE BANK AS
            FOLLOWS:

          

          
            	
                    1.

                  	
                    As
                      at the date of giving this undertaking, there is no floating
                      charge over
                      the Company’s assets in favour of any third party, nor has the Company
                      given any undertaking to create a floating charge in favour
                      of any third
                      party.

                  

          

          

          
            	
                    2.

                  	
                    As
                      at the date of giving this undertaking, there is no fixed charge
                      over the
                      Company’s assets in favour of a third party, nor has the Company given
                      any
                      undertaking to create a fixed charge in favour of any third
                      party.

                  

          

          
            	 	
                    The
                      provisions of this clause and clause 1 above are save for the
                      charges
                      specified below:

                  

          

           

          
            	
                    3.

                  	
                    The
                      Company shall not in any matter charge its existing assets
                      or its assets
                      as shall exist from time to time in a floating charge and of
                      any type or
                      ranking without obtaining the Bank’s prior written
                      consent.

                  

          

          

          
            	
                    4.

                  	
                    The
                      Company shall not charge any asset that exists and/or is registered
                      in its
                      name without obtaining the Bank’s prior written consent. Notwithstanding
                      the aforegoing provisions in this clause, the Company shall
                      be entitled to
                      create a fixed charge over new fixed assets in favour of another
                      bank the
                      purchase whereof shall be financed by such bank and such being
                      up to the
                      amount that it has borrowed from it for such
                      purpose.

                  

          

          

          
            	
                    5.

                  	
                    If
                      for any reason whatsoever the Company shall breach its commitment
                      herein,
                      the Bank shall be entitled to immediate repayment of the credit
                      amounts
                      given to the Company and/or to the Client, in addition to any
                      relief
                      and/or remedy to which the Bank is entitled against the Company
                      and/or the
                      Client pursuant to any agreement or
                      law.

                  

          

          

          
            	
                    6.

                  	
                    The
                      Company’s undertakings herein are given to secure the rights of United
                      Mizrahi Bank Ltd., and shall continue to be in effect until
                      its
                      termination is approved by the Bank which approval shall be
                      obtained
                      pursuant the Framework Agreement between the Client and the
                      Bank.
                      

                  

          

          

          Yours
            faithfully,

          

          Jacob
            Ben-Zvi

          The
            Company for Wintegra (UK) Ltd.

          

          I,
            the
            undersigned, Noma Floom, the Company’s Advocate, hereby certify that the
            Company’s resolution with regard to the above undertaking was duly passed and
            is
            in accordance with the Company’s current Memorandum and Articles of Association
            and was duly recorded in the Company’s books. 

          

          I
            certify
            that the signatures of Jacob Ben-Zvi who have signed this document,
            together with the Company stamp or alongside its printed name, bind the
            Company.
            Furthermore, I certify that I have received a copy of this undertaking
            and have
            taken note thereof.

          

          May
            16, 2005                            Noma
            Floom

          Date       
Advocate’s
            Signature and Stamp

          

          United
            Mizrahi Bank Ltd

          

          Dear
            Sirs,

          

          We
            the
            undersigned agree to the matters set forth in the above undertaking.
            Furthermore, we confirm that we are aware that United Mizrahi Bank Ltd’s rights
            depend upon the performance of the Company’s undertaking pursuant hereto and
            that we have received the Credit from the Bank inter
            alia
            in
            reliance on this undertaking.

          

          ______________                        Jacob
            Ben-Zvi

          Date      
 The
            Client’s Signature 

          

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        Date:
          May 16, 2005

        United
          Mizrahi Bank Ltd

        ______________
          Branch

        (hereinafter
          : the "Bank")

        

        Re:
          Negative
          Charge

        Irrevocable
          Undertaking 

        

        
          	WHEREAS	
                  Wintegra
                    Ltd. (hereinafter: the “Client”) has received and/or is about to receive
                    Credit from the Bank, as defined in the Bank’s "Agreement and General
                    Business Terms” and/or “Application to Open an Account" and/or
                    “Application to Effect Changes in an Account" and/or “Account Management
                    General Terms and Conditions” and/or “General Conditions for Credit
                    Activities” and all the appendices and amendments thereto and/or various
                    banking services, (hereinafter: “the
                    Credit”);

                

        

        
          	AND
                  WHEREAS	
                  we,
                    the undersigned, Wintegra (Canada) Ltd. (hereinafter: the “Company”) are
                    subsidiary of the Client ;

                

        

        
          	AND
                  WHEREAS	
                  the
                    Credit is and/or shall be given by the Bank inter
                    alia
                    in
                    reliance upon this undertaking;

                

        

        

        WE
          ACCORDINGLY WARRANT, CONFIRM AND UNDERTAKE TO THE BANK AS
          FOLLOWS:

        

        
          	
                  1.

                	
                  As
                    at the date of giving this undertaking, there is no floating
                    charge over
                    the Company’s assets in favour of any third party, nor has the Company
                    given any undertaking to create a floating charge in favour of
                    any third
                    party.

                

        

        

        
          	
                  2.

                	
                  As
                    at the date of giving this undertaking, there is no fixed charge
                    over the
                    Company’s assets in favour of a third party, nor has the Company given
                    any
                    undertaking to create a fixed charge in favour of any third
                    party.

                

        

        
          	 	
                  The
                    provisions of this clause and clause 1 above are save for the
                    charges
                    specified below:

                

        

         

        
          	
                  3.

                	
                  The
                    Company shall not in any matter charge its existing assets or
                    its assets
                    as shall exist from time to time in a floating charge and of
                    any type or
                    ranking without obtaining the Bank’s prior written
                    consent.

                

        

        

        
          	
                  4.

                	
                  The
                    Company shall not charge any asset that exists and/or is registered
                    in its
                    name without obtaining the Bank’s prior written consent. Notwithstanding
                    the aforegoing provisions in this clause, the Company shall be
                    entitled to
                    create a fixed charge over new fixed assets in favour of another
                    bank the
                    purchase whereof shall be financed by such bank and such being
                    up to the
                    amount that it has borrowed from it for such
                    purpose.

                

        

        

        
          	
                  5.

                	
                  If
                    for any reason whatsoever the Company shall breach its commitment
                    herein,
                    the Bank shall be entitled to immediate repayment of the credit
                    amounts
                    given to the Company and/or to the Client, in addition to any
                    relief
                    and/or remedy to which the Bank is entitled against the Company
                    and/or the
                    Client pursuant to any agreement or
                    law.

                

        

        

        
          	
                  6.

                	
                  The
                    Company’s undertakings herein are given to secure the rights of United
                    Mizrahi Bank Ltd., and shall continue to be in effect until its
                    termination is approved by the Bank which approval shall be obtained
                    pursuant the Framework Agreement between the Client and the Bank.
                    

                

        

        

        Yours
          faithfully,

        

        
          Jacob
            Ben-Zvi

          The
            Company for Wintegra (Canada) Ltd.

          

          I,
            the
            undersigned, Noma Floom, the Company’s Advocate, hereby certify that the
            Company’s resolution with regard to the above undertaking was duly passed and
            is
            in accordance with the Company’s current Memorandum and Articles of Association
            and was duly recorded in the Company’s books. 

          

          I
            certify
            that the signatures of Jacob Ben-Zvi who have signed this document,
            together with the Company stamp or alongside its printed name, bind the
            Company.
            Furthermore, I certify that I have received a copy of this undertaking
            and have
            taken note thereof.

          

          May
            16, 2005                            Noma
            Floom

          Date       
Advocate’s
            Signature and Stamp

          

          United
            Mizrahi Bank Ltd

          

          Dear
            Sirs,

          

          We
            the
            undersigned agree to the matters set forth in the above undertaking.
            Furthermore, we confirm that we are aware that United Mizrahi Bank Ltd’s rights
            depend upon the performance of the Company’s undertaking pursuant hereto and
            that we have received the Credit from the Bank inter
            alia
            in
            reliance on this undertaking.

          

          ______________                        Jacob
            Ben-Zvi

          Date      
 The
            Client’s Signature

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]