Document:

Exhibit 10.1

                               SERVICES AGREEMENT

         This  Services  Agreement,  dated as of August  31,  2004,  is  between
Computer Access Technology  Corporation,  a Delaware corporation (the "Company")
and Dan Wilnai,  an individual  residing at 949 Hillboro Avenue,  Sunnyvale,  CA
94087 ("Wilnai").

1.       POSITION AND RESPONSIBILITIES

         (A)  POSITION.  Wilnai  shall  continue  to serve as a Director  on the
Company's Board of Directors ("Board") and more specifically,  as Chairman until
the date of his resignation or removal from such position in accordance with the
Company's  By-laws and Certificate of Incorporation  and any applicable law (the
"Term  Date").  Wilnai  shall  perform such duties and  responsibilities  as are
normally related to such position in accordance with the By-laws and Certificate
of  Incorporation  of the Company and  standards of the  industry.  Wilnai shall
abide by the rules, regulations,  and practices as adopted or modified from time
to time in the Board's sole discretion.

         (B) NO CONFLICT. Wilnai represents and warrants that Wilnai's execution
of this  Agreement  and  Wilnai's  service on the Board  shall not  violate  any
obligations  Wilnai may have to any  employer,  person or entity,  including any
obligations with respect to proprietary or confidential information of any other
person or entity.

2.       COMPENSATION AND BENEFITS.

         (A) COMPENSATION. In consideration of the services to be rendered under
this  Agreement  as Chairman of the Board of  Directors,  the Company  shall pay
Wilnai   compensation  at  the  annualized  rate  of  Thirty  Thousand   Dollars
($30,000.00) ("Compensation"). Compensation shall be paid in accordance with the
Company's regularly established policies and practices.

         (B) STOCK AND STOCK OPTIONS. Wilnai currently owns shares of the common
stock of the Company  which are held by the Wilnai  Family Trust UDT of November
12, 1997  (Restated)  and by the Wilnai  Grantor  Retained  Annuity  Trust Dated
October  31,  2002,  and which are  subject to their  terms and the terms of any
documents  applicable  thereto.  Wilnai  furthermore was previously  granted the
right to  purchase  up to  100,000  shares of the  common  stock of the  Company
pursuant to a stock option grant dated January 2, 2001. Such option shall remain
exercisable  until the earlier of (a) its  expiration;  or (b) the date on which
the Board  reasonably  determines  that  Wilnai is no longer  willing or able to
serve on the Board.

         (C) MEDICAL INSURANCE. So long as he serves as a member of the Board in
accordance with Section 1(a),  Wilnai shall be eligible,  at the Company's cost,
for  medical  insurance  coverage  for Wilnai and his spouse as a  founder/owner
under the Company's medical benefits plan, or equivalent medical coverage at the
Company's cost in the event that the Company's existing or any successor medical
benefits plan(s) is terminated. When they each reach age 65, coverage for Wilnai
and his spouse under the Company's  medical  benefits  plans then in effect will
cease,  and Wilnai and his spouse  will be covered  under  Medicare  and under a

<PAGE>

Medicare  supplement  plan to be procured and paid for by the Company,  which in
combination  will provide  substantially  similar benefits to the Company's then
current  medical  benefits plan. The benefits under this Subsection 2(c) will be
referred to as the "Medical  Benefits."  For so long as he serves as a member of
the  Board,  Wilnai and his  spouse's  eligibility  for  Medical  Benefits  will
continue until terminated by the mutual  agreement of the parties.  In the event
of a Change of Control (as defined below) of the Company,  the Medical  Benefits
for Wilnai and his spouse shall continue irrespective of Wilnai's service on the
Board,  subject  to  termination  as  described  in  the  immediately  preceding
sentence.  For purposes of this Section 2(c),  "Change of Control shall mean (1)
the acquisition of the Company by another entity by means of any reorganization,
merger or consolidation, or any transaction or series of related transactions in
which the Corporation's  stockholders of record as constituted immediately prior
to such transaction or series of related  transactions  will,  immediately after
such  transaction  or series of related  transactions  (by virtue of  securities
issued in such  transaction or series of related  transactions)  fail to hold at
least  50%  of the  voting  power  of the  resulting  or  surviving  corporation
following such transaction or series of related  transactions;  or (2) a sale of
all or substantially all of the assets of this Corporation.  In the event Wilnai
predeceases his spouse prior to the Term and the Medical  Benefits have not been
previously  terminated,  the  Company  agrees to  continue  to  provide  Medical
Benefits for Wilnai's  spouse  until her death in  accordance  with Section 2(c)
above.

         (D)  EXPENSES.  The  Company  shall  reimburse  Wilnai  for  reasonable
business  expenses  incurred in the performance of Wilnai's duties  hereunder in
accordance with the Company's expense reimbursement  guidelines now or hereafter
in effect.

3. NON-COMPETE.  In the event of a Change of Control and in consideration of the
amounts to be received by Wilnai,  as a significant and substantial  stockholder
of the Company,  in connection  with such Change of Control,  Wilnai agrees that
for a period of twenty-four (24) months after the consummation of such Change of
Control, he will not, without the written consent of the Chief Executive Officer
of the Company, directly or indirectly engage in business activities or services
for a Competing  Business  (as  defined  below) that are (i) similar to services
which  Wilnai has  provided  to or for the  Company  relating  to the  Company's
technology and products,  or (ii)  reasonably  related to current or prospective
products of the Company  with  respect to which Wilnai has worked as an employee
of the Company or with respect to which Wilnai has Confidential  Information.  A
"Competing   Business"  shall  mean  any  business   primarily  engaged  in  the
development and sale of advanced development and production verification systems
for the Bluetooth,  Fibre Channel,  IEEE 1394,  InfiniBand,  PCI Express,  SCSI,
Serial  ATA,  Serial  Attached  SCSI and USB  Standards,  as well as  production
products for the USB and Bluetooth standards.

4.       TERMINATION OBLIGATIONS

         (A) RETURN OF  PROPERTY.  Wilnai  agrees that all  property  (including
without limitation all equipment,  tangible proprietary information,  documents,
records,  notes,  contracts and  computer-generated  materials)  furnished to or
created or prepared by Wilnai incident to Wilnai's engagement  hereunder belongs
to the Company and shall be promptly returned to the Company on the Term Date or
at any other time determined by the Board.

<PAGE>

         (B) RESIGNATION AND COOPERATION. Following the Term Date and subject to
Section  1(b),  Wilnai shall be deemed to have resigned from any and all offices
and directorships  held with the Company.  Following the Term Date. Wilnai shall
also  cooperate  with the  Company in the  defense of any action  brought by any
third party against the Company that relates to Wilnai's performance of services
to the Company in any capacity.

5.   INVENTIONS  AND  PROPRIETARY   INFORMATION;   PROHIBITION  ON  THIRD  PARTY
INFORMATION.   Wilnai  agrees  as  a  condition  of  engagement   hereunder  and
eligibility for any benefits referenced in this Agreement,  to sign and be bound
by the  terms  of  the  Computer  Access  Technology  Corporation,  Confidential
Information,  Invention Assignment, and Arbitration Agreement, which is attached
as Exhibit A ("Proprietary Information Agreement").

6. AMENDMENTS;  WAIVERS;  REMEDIES.  This Agreement may not be amended or waived
except by a writing signed by Wilnai and by a duly authorized  representative of
the  Company  other  than  Wilnai.  Failure  to  exercise  any right  under this
Agreement shall not constitute a waiver of such right.  Any waiver of any breach
of this Agreement shall not operate as a waiver of any subsequent breaches.  All
rights or remedies  specified  for a party  herein  shall be  cumulative  and in
addition  to all other  rights  and  remedies  of the party  hereunder  or under
applicable law.

7. ASSIGNMENT;  BINDING EFFECT. The performance of Wilnai is personal hereunder,
and Wilnai agrees that Wilnai shall have no right to assign and shall not assign
or  purport  to assign any rights or  obligations  under  this  Agreement.  This
Agreement  may be assigned or  transferred  by the Company;  and nothing in this
Agreement  shall prevent the  consolidation,  merger or sale of the Company or a
sale of any or all or substantially all of its assets.  Subject to the foregoing
restriction on assignment by Wilnai,  this Agreement  shall inure to the benefit
of and be binding upon each of the parties; the affiliates, officers, directors,
agents, successors and assigns of the Company; and the heirs, devisees, spouses,
legal representatives and successors of Wilnai. In the event that the Company is
involved in any merger, tender offer, sale of substantially all of its assets or
any other  transaction  resulting  in a change of  control of the  Company,  the
Company's  successor  shall  assume  any and all  obligations  to Wilnai and his
spouse under this Agreement.

8. NOTICES. All notices or other communications  required or permitted hereunder
shall be made in  writing  and  shall  be  deemed  to have  been  duly  given if
delivered:  (a)  by  hand;  (b) by a  nationally  recognized  overnight  courier
service;  or (c) by United  States first class  registered  or  certified  mail,
return receipt  requested,  to the principal  address of the other party, as set
forth below.  The date of notice shall be deemed to be the earlier of (i) actual
receipt of notice by any permitted  means,  or (ii) five business days following
dispatch by overnight  delivery service or the United States Mail.  Wilnai shall
be obligated to notify the Company in writing of any change in Wilnai's address.
Notice of change of address shall be effective only when done in accordance with
this paragraph.

Company's Notice Address:

3385 Scott Boulevard
Santa Clara, CA 95054

<PAGE>

Wilnai's Notice Address:

949 Hillboro Avenue
Sunnyvale, CA  94087

9. SEVERABILITY.  If any provision of this Agreement shall be held by a court or
arbitrator  to be  invalid,  unenforceable,  or void,  such  provision  shall be
enforced to the fullest  extent  permitted  by law,  and the  remainder  of this
Agreement  shall  remain in full  force and  effect.  In the event that the time
period  or scope of any  provision  is  declared  by a court  or  arbitrator  of
competent  jurisdiction  to exceed the  maximum  time  period or scope that such
court or  arbitrator  deems  enforceable,  then such court or  arbitrator  shall
reduce the time period or scope to the maximum time period or scope permitted by
law.

10. TAXES. All compensation and benefits paid under this Agreement shall be paid
less  all  applicable   state  and  federal  tax   withholdings  and  any  other
withholdings  required by any  applicable  jurisdiction.  The  Company  makes no
representations  or  warranties  regarding  the tax  consequences  of any of the
compensation and benefits paid under this Agreement.

11.  GOVERNING  LAW.  This  Agreement  shall be  governed  by and  construed  in
accordance with the laws of the State of California.

12.  INTERPRETATION.  This Agreement shall be construed as a whole, according to
its fair meaning, and not in favor of or against any party. Sections and section
headings  contained in this Agreement are for reference purposes only, and shall
not affect in any  manner  the  meaning  or  interpretation  of this  Agreement.
Whenever the context  requires,  references  to the singular  shall  include the
plural and the plural the singular.

13. OBLIGATIONS SURVIVE TERMINATION.  Wilnai agrees that any and all of Wilnai's
obligations under this Agreement survive the termination of this Agreement.

14. COUNTERPARTS.  This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original  of this  Agreement,  but all of which
together shall constitute one and the same instrument.

15. AUTHORITY. Each party represents and warrants that such party has the right,
power and authority to enter into and execute this  Agreement and to perform and
discharge all of the obligations hereunder;  and that this Agreement constitutes
the valid and legally  binding  agreement  and  obligation  of such party and is
enforceable in accordance with its terms.

16. ENTIRE AGREEMENT.  This Agreement is intended to be the final, complete, and
exclusive statement regarding its subject matter, and may not be contradicted by
evidence of any prior or  contemporaneous  statements or agreements,  except for
agreements  specifically  referenced  herein.  To the extent that the practices,
policies or procedures of the Company, now or in the future, apply to Wilnai and
are  inconsistent  with the  terms of this  Agreement,  the  provisions  of this
Agreement shall control. Any subsequent change in Wilnai's duties,  position, or
compensation will not affect the validity or scope of this Agreement.

<PAGE>

17. WILNAI  ACKNOWLEDGEMENT.  WILNAI ACKNOWLEDGES WILNAI HAS HAD THE OPPORTUNITY
TO CONSULT LEGAL COUNSEL  CONCERNING  THIS  AGREEMENT,  THAT WILNAI HAS READ AND
UNDERSTANDS THE AGREEMENT,  THAT WILNAI IS FULLY AWARE OF ITS LEGAL EFFECT,  AND
THAT WILNAI HAS ENTERED INTO IT FREELY BASED ON WILNAI'S OWN JUDGMENT AND NOT ON
ANY REPRESENTATIONS OR PROMISES OTHER THAN THOSE CONTAINED IN THIS AGREEMENT.

<PAGE>

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

COMPUTER ACCESS TECHNOLOGY CORPORATION:             WILNAI:

By:
   ------------------------------------------       ----------------------------
   Carmine J. Napolitano, President and CEO         Dan Wilnai

<PAGE>

                                    EXHIBIT A
                     COMPUTER ACCESS TECHNOLOGY CORPORATION
                 CONFIDENTIAL INFORMATION, INVENTION ASSIGNMENT,
                            AND ARBITRATION AGREEMENT

         As a condition of my engagement  in any capacity  with Computer  Access
Technology  Corporation,  its  subsidiaries,  affiliates,  successors or assigns
(together the "Company"),  and in consideration of my engagement in any capacity
with the Company and my receipt of the compensation now and hereafter paid to me
by Company, I agree to the following:

         1.       Confidential Information.

                  A. Company  Information.  I agree at all times during the term
of my engagement and  thereafter,  to hold in strictest  confidence,  and not to
use, except for the benefit of the Company,  or to disclose to any person,  firm
or corporation  without written  authorization  of the Board of Directors of the
Company,   any  Confidential   Information  of  the  Company,   except  under  a
non-disclosure  agreement  duly  authorized  and  executed  by  the  Company.  I
understand that "Confidential Information" means any non-public information that
relates to the actual or anticipated business or research and development of the
Company,  technical data, trade secrets or know-how,  including, but not limited
to, research, product plans or other information regarding Company's products or
services and markets therefor,  customer lists and customers (including, but not
limited  to,  customers  of the  Company  on whom I called or with whom I became
acquainted   during  the  term  of  my  engagement),   software,   developments,
inventions,  processes,  formulas, technology,  designs, drawings,  engineering,
hardware  configuration  information,  marketing,  finances  or  other  business
information. I further understand that Confidential Information does not include
any of the foregoing  items which have become  publicly known and made generally
available  through  no  wrongful  act  of  mine  or of  others  who  were  under
confidentiality  obligations as to the item or items involved or improvements or
new versions thereof.

                  B.  Former  Employer  Information.  I agree  that I will  not,
during  my  engagement  with  the  Company,   improperly  use  or  disclose  any
proprietary information or trade secrets of any former or concurrent employer or
other  person  or  entity  and that I will not bring  onto the  premises  of the
Company any  unpublished  document or proprietary  information  belonging to any
such employer, person or entity unless consented to in writing by such employer,
person or entity.

                  C. Third Party  Information.  I recognize that the Company has
received and in the future will receive from third parties their confidential or
proprietary  information subject to a duty on the Company's part to maintain the
confidentiality  of such  information  and to use it only  for  certain  limited
purposes.  I agree to hold all such  confidential or proprietary  information in
the  strictest  confidence  and  not to  disclose  it to  any  person,  firm  or
corporation  or to use it except as  necessary  in carrying  out my work for the
Company consistent with the Company's agreement with such third party.

         2.       Inventions.

                  A. Inventions  Retained and Licensed.  I have attached hereto,
as Exhibit A-1, a list describing all inventions,  original works of authorship,
developments,  improvements, and trade secrets which were made by me prior to my
engagement with the Company  (collectively  referred to as "Prior  Inventions"),
which belong to me, which relate to the Company's proposed business, products or
research and development,  and which are not assigned to the Company  hereunder;
or,  if no such list is  attached,  I  represent  that  there are no such  Prior
Inventions.  If in the course of my engagement  with the Company,  I incorporate
into a Company  product,  process or service a Prior Invention owned by me or in
which  I have an  interest,  I  hereby  grant  to the  Company  a  nonexclusive,
royalty-free, fully paid-up, irrevocable,  perpetual, worldwide license to make,
have made, modify, use and sell such Prior Invention as part of or in connection
with such  product,  process or  service,  and to  practice  any method  related
thereto.

                  B. Assignment of Inventions. I agree that I will promptly make
full written  disclosure  to the Company,  will hold in trust for the sole right
and benefit of the Company,  and hereby assign to the Company,  or its designee,
all my right,  title,  and interest in and to any and all  inventions,  original
works of authorship, developments, concepts, improvements, designs, discoveries,
ideas,  trademarks or trade  secrets,  whether or not  patentable or registrable
under  copyright  or similar  laws,  which I may solely or jointly  conceive  or
develop or reduce to practice,  or cause to be conceived or developed or reduced
to  practice,  during the period of time I am in the  engagement  of the Company
(collectively  referred to as  "Inventions").  I  understand  and agree that the
decision whether or not to commercialize or market any invention developed by me
solely or jointly with others is within the Company's  sole  discretion  and for
the Company's  sole benefit and that no royalty will be due to me as a result of
the Company's efforts to commercialize or market any such invention.

<PAGE>

                  C. Inventions Assigned to the United States. I agree to assign
to the United States government all my right,  title, and interest in and to any
and all  Inventions  whenever  such full title is  required  to be in the United
States by a contract  between the  Company  and the United  States or any of its
agencies.

                  D.  Maintenance  of  Records.  I agree  to keep  and  maintain
adequate and current  written  records of all  Inventions  made by me (solely or
jointly  with others)  during the term of my  engagement  with the Company.  The
records will be in the form of notes,  sketches,  drawings, and any other format
that may be  specified  by the  Company.  The records  will be  available to and
remain the sole property of the Company at all times.

                  E. Patent and Copyright  Registrations.  I agree to assist the
Company,  or its  designee,  at the  Company's  expense,  in every proper way to
secure the Company's rights in the Inventions and any copyrights,  patents, mask
work rights or other  intellectual  property rights relating  thereto in any and
all  countries,  including  the  disclosure  to the  Company  of  all  pertinent
information and data with respect  thereto,  the execution of all  applications,
specifications,  oaths,  assignments and all other instruments which the Company
shall deem  necessary  in order to apply for and obtain such rights and in order
to assign and convey to the Company,  its successors,  assigns, and nominees the
sole and exclusive rights, title and interest in and to such Inventions, and any
copyrights,  patents,  mask work rights or other  intellectual  property  rights
relating  thereto.  I further agree that my obligation to execute or cause to be
executed,  when it is in my power to do so, any such  instrument or papers shall
continue  after the  termination  of this  Agreement.  If the  Company is unable
because of my mental or physical incapacity or for any other reason to secure my
signature  to apply for or to pursue any  application  for any United  States or
foreign patents or copyright registrations covering Inventions or original works
of  authorship  assigned  to the  Company  as above,  then I hereby  irrevocably
designate and appoint the Company and its duly authorized officers and agents as
my agent and attorney in fact,  to act for and in my behalf and stead to execute
and file any such  applications  and to do all other lawfully  permitted acts to
further  the   prosecution   and   issuance  of  letters   patent  or  copyright
registrations thereon with the same legal force and effect as if executed by me.

         3.  Conflicting  Employment.  I  agree  that,  during  the  term  of my
engagement  with  the  Company  in  any  capacity,  I  will  not  engage  in any
employment,  occupation or other consulting  directly related to the business in
which the  Company is now  involved  or becomes  involved  during the term of my
engagement,  nor will I engage in any other  activities  that  conflict  with my
obligations to the Company.

         4. Returning  Company  Documents.  I agree that, at the time of leaving
the engagement of the Company,  I will deliver to the Company (and will not keep
in my  possession,  recreate  or  deliver to anyone  else) any and all  devices,
records, data, notes, reports, proposals, lists, correspondence, specifications,
drawings  blueprints,   sketches,  materials,   equipment,  other  documents  or
property,  or reproductions of any aforementioned items developed by me pursuant
to my  engagement  with the Company or otherwise  belonging to the Company,  its
successors or assigns, including,  without limitation,  those records maintained
pursuant to paragraph 2.D. In the event of the  termination of my engagement,  I
agree to sign and deliver the  "Termination  Certification"  attached  hereto as
Exhibit A-2.

         5.  Notification  of New  Engagement.  In the  event  that I leave  the
engagement of the Company, I hereby grant consent to notification by the Company
to my new engagement about my rights and obligations under this Agreement.

         6. Solicitation of Employees. I agree that during my engagement and for
a period of twelve (12)  months  immediately  following  the  termination  of my
relationship  with the Company for any reason,  whether with or without cause, I
shall not either directly or indirectly  solicit,  induce,  recruit or encourage
any of the  Company's  employees  to leave their  employment,  or take away such
employees,  or attempt  to  solicit,  induce,  recruit,  encourage  or take away
employees of the Company, either for myself or for any other person or entity.

         7. Conflict of Interest Guidelines. I agree to diligently adhere to the
Conflict of Interest Guidelines attached as Exhibit A-3 hereto.

         8.  Representations.  I agree to execute  any proper oath or verify any
proper document  required to carry out the terms of this Agreement.  I represent
that my  performance  of all the terms of this  Agreement  will not  breach  any
agreement  to keep  in  confidence  proprietary  information  acquired  by me in
confidence or in trust prior to my engagement by the Company. I hereby represent
and warrant that I have not entered into, and I will not enter into, any oral or
written agreement in conflict herewith.

<PAGE>

         9.  Arbitration  and  Equitable  Relief.  I agree to read,  execute and
adhere to the Arbitration and Equitable  Relief  provisions  attached as Exhibit
A-4 hereto.

         10. General Provisions.

                  A.  Governing  Law;  Consent to  Personal  Jurisdiction.  This
Agreement  will be  governed  by the laws of the State of  California.  I hereby
expressly  consent to the personal  jurisdiction of the state and federal courts
located in  California  for any lawsuit  filed  there  against me by the Company
arising from or relating to this Agreement.

                  B.  Entire  Agreement.  This  Agreement,  along with the offer
letter provide to me and any  application I have submitted to the Company,  sets
forth the entire agreement and understanding between the Company and me relating
to  the  subject  matter  herein  and   supersedes  all  prior   discussions  or
representations between whether written or oral. No modification of or amendment
to this Agreement,  nor any waiver of any rights under this  Agreement,  will be
effective  unless in writing  signed by the President of the Company and me. Any
subsequent  change or  changes  in my duties,  salary or  compensation  will not
affect the validity or scope of this Agreement.

                  C.  Severability.  If one or  more of the  provisions  in this
Agreement are deemed void by law, then the remaining provisions will continue in
full force and effect.

                  D. Successors and Assigns. This Agreement will be binding upon
my heirs, executors,  administrators and other legal representatives and will be
for the benefit of the Company, its successors, and its assigns.

         I ACKNOWLEDGE  AND AGREE THAT I AM EXECUTING THIS AGREEMENT AND EACH OF
ITS  EXHIBITS  VOLUNTARILY  AND  WITHOUT  ANY DURESS OR UNDUE  INFLUENCE  BY THE
COMPANY OR ANYONE ELSE. I FURTHER  ACKNOWLEDGE  AND AGREE THAT I HAVE  CAREFULLY
READ  THIS  AGREEMENT  AND THAT I HAVE  ASKED  ANY  QUESTIONS  NEEDED  FOR ME TO
UNDERSTAND  THE TERMS,  CONSEQUENCES  AND BINDING  EFFECT OF THIS  AGREEMENT AND
FULLY  UNDERSTAND  IT,  INCLUDING  THAT I AM WAIVING  MY RIGHT TO A JURY  TRIAL.
FINALLY,  I AGREE THAT I HAVE BEEN PROVIDED AN OPPORTUNITY TO SEEK THE ADVICE OF
AN ATTORNEY OF MY CHOICE BEFORE SIGNING THIS AGREEMENT.

Date: August 28, 2004                       /s/ Dan Wilnai
      ----------------------------------    ------------------------------------
                                            Dan Wilnai

Witness:

/s/ Paul Katawicz
----------------------------------------
Signature

Paul Katawicz
----------------------------------------
Name (typed or printed)

<PAGE>

                                   EXHIBIT A-1

                            LIST OF PRIOR INVENTIONS
                        AND ORIGINAL WORKS OF AUTHORSHIP

     Title              Date           Identifying Number or Brief Description
--------------------------------------------------------------------------------

___  No inventions or improvements
___  Additional Sheets Attached

Signature: /s/ Dan Wilnai
           -------------------------------------------------

Print Name: Dan Wilnai
            ------------------------------------------------

Date: August 28, 2004
      ------------------------------------------------------

<PAGE>

                                   EXHIBIT A-2

                     COMPUTER ACCESS TECHNOLOGY CORPORATION
                            TERMINATION CERTIFICATION

         This is to  certify  that I do not  have in my  possession,  nor have I
failed to return, any devices, records, data, notes, reports,  proposals, lists,
correspondence,   specifications,  drawings,  blueprints,  sketches,  materials,
equipment,  other documents or property,  or reproductions of any aforementioned
items belonging to Computer Access  Technology  Corporation,  its  subsidiaries,
affiliates, successors or assigns (together, the "Company").

         I  further  certify  that I have  complied  with  all the  terms of the
Company's  Confidential   Information,   Invention  Assignment  and  Arbitration
Agreement  signed by me,  including the reporting of any inventions and original
works of  authorship  (as defined  therein),  conceived or made by me (solely or
jointly with others) covered by that agreement.

         I further  agree that, in  compliance  with the Company's  Confidential
Information, Invention Assignment, and Arbitration Agreement, I will preserve as
confidential  all  trade  secrets,   confidential   knowledge,   data  or  other
proprietary  information  relating to products,  processes,  know-how,  designs,
formulas,  developmental or experimental work,  computer  programs,  data bases,
other original works of authorship,  customer lists,  business plans,  financial
information or other subject matter pertaining to any business of the Company or
any of its employees, clients, consultants or licensees.

         I further  agree that for twelve (12) months from this date, I will not
solicit,  induce,  recruit or encourage any of the Company's  employees to leave
their employment.

Date: August 28, 2004
     --------------------------------------------

/s/ Dan Wilnai
-------------------------------------------------
Dan Wilnai

<PAGE>

                                   EXHIBIT A-3

                     COMPUTER ACCESS TECHNOLOGY CORPORATION
                         CONFLICT OF INTEREST GUIDELINES

         It is the policy of Computer Access  Technology  Corporation to conduct
its  affairs in strict  compliance  with the letter and spirit of the law and to
adhere to the highest principles of business ethics. Accordingly,  all officers,
employees,  advisors and independent  contractors must avoid activities that are
in conflict, or give the appearance of being in conflict,  with these principles
and  with  the  interests  of  the  Company.   The  following  are   potentially
compromising situations that must be avoided. Any exceptions must be reported to
the President and written approval for continuation must be obtained.

         1.  Revealing   confidential   information  to  outsiders  or  misusing
confidential  information.  Unauthorized divulging of information is a violation
of this policy  whether or not for personal  gain and whether or not harm to the
Company  is  intended.  (The  Company's  Confidential   Information,   Invention
Assignment  and  Arbitration  Agreement  elaborates  on this  principle and is a
binding agreement.)

         2. Accepting or offering  substantial gifts,  excessive  entertainment,
favors  or  payments  which  may be  deemed to  constitute  undue  influence  or
otherwise be improper or embarrassing to the Company.

         3.  Participating  in civic or  professional  organizations  that might
involve divulging confidential information of the Company.

         4.  Initiating  or  approving  personnel  actions  affecting  reward or
punishment of employees or applicants where there is a family relationship or is
or appears to be a personal or social involvement.

         5. Initiating or approving any form of personal or social harassment of
employees.

         6. Investing or holding outside  directorship in suppliers,  customers,
or competing companies, including financial speculations,  where such investment
or directorship  might influence in any manner a decision or course of action of
the Company.

         7. Borrowing from or lending to employees, customers or suppliers.

         8. Acquiring real estate of interest to the Company.

         9.  Improperly  using or  disclosing  to the  Company  any  proprietary
information  or trade  secrets of any  former or  concurrent  employer  or other
person or entity with whom obligations of confidentiality exist.

         10. Unlawfully  discussing prices, costs,  customers,  sales or markets
with competing companies or their employees.

         11. Making any unlawful  agreement  with  distributors  with respect to
prices.

         12.  Improperly using or authorizing the use of any inventions that are
the subject of patent claims of any other person or entity.

         13.  Engaging  in any conduct  that is not in the best  interest of the
Company.

         Each  officer,  employee  and  independent  contractor  must take every
necessary action to ensure compliance with these guidelines and to bring problem
areas to the  attention  of higher  management  for review.  Violations  of this
conflict of interest policy may result in discharge without warning.

<PAGE>

                                   EXHIBIT A-4

                     COMPUTER ACCESS TECHNOLOGY CORPORATION
                        ARBITRATION AND EQUITABLE RELIEF

         1. Arbitration. IN CONSIDERATION OF MY ENGAGEMENT WITH THE COMPANY, ITS
PROMISE TO ARBITRATE  ALL DISPUTES  RELATED TO MY  ENGAGEMENT  AND MY RECEIPT OF
COMPENSATION AND OTHER BENEFITS PAID TO ME BY THE COMPANY, AT PRESENT AND IN THE
FUTURE, I AGREE THAT ANY AND ALL CONTROVERSIES,  CLAIMS, OR DISPUTES WITH ANYONE
(INCLUDING  THE COMPANY AND ANY  EMPLOYEE,  OFFICER,  DIRECTOR,  SHAREHOLDER  OR
BENEFIT PLAN OF THE COMPANY IN THEIR CAPACITY AS SUCH OR OTHERWISE)  ARISING OUT
OF,  RELATING  TO, OR  RESULTING  FROM MY  ENGAGEMENT  WITH THE  COMPANY  OR THE
TERMINATION  OF MY  ENGAGEMENT  WITH THE COMPANY,  INCLUDING  ANY BREACH OF THIS
AGREEMENT,  SHALL BE SUBJECT TO BINDING  ARBITRATION UNDER THE ARBITRATION RULES
SET FORTH IN CALIFORNIA  CODE OF CIVIL  PROCEDURE  SECTION 1280 THROUGH  1294.2,
INCLUDING SECTION 1283.05 (THE "RULES") AND PURSUANT TO CALIFORNIA LAW. DISPUTES
WHICH I AGREE TO  ARBITRATE,  AND THEREBY AGREE TO WAIVE ANY RIGHT TO A TRIAL BY
JURY,  INCLUDE  ANY  STATUTORY  CLAIMS  UNDER  STATE OR  FEDERAL  LAW. I FURTHER
UNDERSTAND  THAT THIS  AGREEMENT TO ARBITRATE  ALSO APPLIES TO ANY DISPUTES THAT
THE COMPANY MAY HAVE WITH ME.

         2. Procedure.  I AGREE THAT ANY ARBITRATION WILL BE ADMINISTERED BY THE
AMERICAN ARBITRATION ASSOCIATION ("AAA") AND THAT THE NEUTRAL ARBITRATOR WILL BE
SELECTED IN A MANNER  CONSISTENT WITH THE AAA COMMERICIAL  ARBITRATION  RULES. I
AGREE THAT THE ARBITRATOR  SHALL HAVE THE POWER TO DECIDE ANY MOTIONS BROUGHT BY
ANY PARTY TO THE  ARBITRATION,  INCLUDING  MOTIONS FOR SUMMARY  JUDGMENT  AND/OR
ADJUDICATION  AND MOTIONS TO DISMISS  AND  DEMURRERS,  PRIOR TO ANY  ARBITRATION
HEARING.  I ALSO  AGREE  THAT THE  ARBITRATOR  SHALL HAVE THE POWER TO AWARD ANY
REMEDIES, INCLUDING ATTORNEYS' FEES AND COSTS, AVAILABLE UNDER APPLICABLE LAW. I
UNDERSTAND THE COMPANY WILL PAY FOR ANY  ADMINISTRATIVE  OR HEARING FEES CHARGED
BY THE ARBITRATOR OR AAA EXCEPT THAT I SHALL PAY THE FIRST $200.00 OF ANY FILING
FEES  ASSOCIATED  WITH ANY  ARBITRATION I INITIATE.  I AGREE THAT THE ARBITRATOR
SHALL  ADMINISTER AND CONDUCT ANY  ARBITRATION IN A MANNER  CONSISTENT  WITH THE
RULES AND THAT TO THE EXTENT THAT AAA'S  COMMERICIAL  ARBITRATION RULES CONFLICT
WITH THE RULES,  THE RULES SHALL TAKE  PRECEDENCE.  I AGREE THAT THE DECISION OF
THE ARBITRATOR SHALL BE IN WRITING.

         3.  Remedy.  EXCEPT  AS  PROVIDED  BY THE  RULES  AND  THIS  AGREEMENT,
ARBITRATION  SHALL BE THE SOLE,  EXCLUSIVE  AND  FINAL  REMEDY  FOR ANY  DISPUTE
BETWEEN ME AND THE COMPANY. ACCORDINGLY, EXCEPT AS PROVIDED FOR BY THE RULES AND
THIS  AGREEMENT,  NEITHER I NOR THE COMPANY  WILL BE  PERMITTED  TO PURSUE COURT
ACTION  REGARDING CLAIMS THAT ARE SUBJECT TO ARBITRATION.  NOTWITHSTANDING,  THE
ARBITRATOR  WILL NOT HAVE THE  AUTHORITY  TO  DISREGARD OR REFUSE TO ENFORCE ANY
LAWFUL COMPANY POLICY, AND THE ARBITRATOR SHALL NOT ORDER OR REQUIRE THE COMPANY
TO ADOPT A POLICY  NOT  OTHERWISE  REQUIRED  BY LAW  WHICH THE  COMPANY  HAS NOT
ADOPTED.

         4.  Availability of Injunctive  Relief.  IN ADDITION TO THE RIGHT UNDER
THE RULES TO PETITION THE COURT FOR PROVISIONAL  RELIEF,  I AGREE THAT ANY PARTY
MAY ALSO PETITION THE COURT FOR INJUNCTIVE  RELIEF WHERE EITHER PARTY ALLEGES OR
CLAIMS  A  VIOLATION  OF  THE  COMPANY'S  CONFIDENTIAL  INFORMATION,   INVENTION
ASSIGNMENT AGREEMENT BETWEEN ME AND THE COMPANY OR ANY OTHER AGREEMENT REGARDING
TRADE SECRETS, CONFIDENTIAL INFORMATION,  NONSOLICITATION OR LABOR CODE ss.2870.
I UNDERSTAND  THAT ANY BREACH OR  THREATENED  BREACH OF SUCH AN  AGREEMENT  WILL
CAUSE  IRREPARABLE  INJURY AND THAT MONEY  DAMAGES  WILL NOT PROVIDE AN ADEQUATE
REMEDY  THEREFOR  AND  BOTH  PARTIES  HEREBY  CONSENT  TO  THE  ISSUANCE  OF  AN
INJUNCTION.  IN THE EVENT EITHER PARTY SEEKS INJUNCTIVE  RELIEF,  THE PREVAILING
PARTY SHALL BE ENTITLED TO RECOVER REASONABLE COSTS AND ATTORNEYS FEES.

         5.  Administrative  Relief.  I UNDERSTAND  THAT THIS AGREEMENT DOES NOT
PROHIBIT ME FROM PURSUING AN ADMINISTRATIVE CLAIM WITH A LOCAL, STATE OR FEDERAL

<PAGE>

ADMINISTRATIVE  BODY.  THIS AGREEMENT DOES,  HOWEVER,  PRECLUDE ME FROM PURSUING
COURT ACTION REGARDING ANY SUCH CLAIM.

Date: August 28, 2004
      ----------------------------------------------

/s/ Dan Wilnai
----------------------------------------------------
Dan WilnaiExhibit 10.2

                              EMPLOYMENT AGREEMENT

         This  Employment  Agreement,  dated as of August 31,  2004,  is between
Computer Access Technology  Corporation,  a Delaware corporation (the "Company")
and Peretz Tzarnotzky,  an individual residing at 3871 Cornia Way, Palo Alto, CA
94303, ("Tzarnotzky").

1.       POSITION AND RESPONSIBILITIES

         (A) POSITION.  Tzarnotzky is employed by the Company to render services
to the  Company  in the  position  of  Executive  Vice  President,  Engineering.
Tzarnotzky  shall  perform  such  duties and  responsibilities  as are  normally
related to such  position in  accordance  with the standards of the industry and
any  additional  duties now or hereafter  assigned to Tzarnotzky by the Company.
Tzarnotzky  shall abide by the rules,  regulations,  and practices as adopted or
modified from time to time in the Company's sole discretion.

         (B)  TERM.  The  Company  shall  continue  to  employ  Tzarnotzky  on a
full-time  basis,  or, if less, as needed,  to render services to the Company in
the position and with the duties and responsibilities  described in Section 1(a)
from the date of this Agreement until the earlier of (i) March 31, 2005, or (ii)
termination  of this  Agreement  in  accordance  with Section 4 below (the "Term
Date").

         (C) NO CONFLICT.  Tzarnotzky  represents and warrants that Tzarnotzky's
execution of this Agreement,  Tzarnotzky's  employment with the Company, and the
performance  of  Tzarnotzky's  proposed  duties under this  Agreement  shall not
violate any  obligations  Tzarnotzky may have to any other  employer,  person or
entity,  including any  obligations  with respect to proprietary or confidential
information of any other person or entity.

2.       COMPENSATION AND BENEFITS

         (A) BASE SALARY. In consideration of the services to the Company in the
position and with the duties and responsibilities described in Section 1(a), the
Company  shall pay  Tzarnotzky  a salary at the  annualized  rate of Two Hundred
Twenty Thousand Dollars ($220,000.00) ("Base Salary").  The Base Salary shall be
paid in accordance with the Company's  regularly  established  payroll practice.
Tzarnotzky's  Base Salary will be reviewed from time to time in accordance  with
the established  procedures of the Company for adjusting  salaries for similarly
situated employees and may be adjusted in the sole discretion of the Company.

         (B) STOCK AND STOCK  OPTIONS.  Tzarnotzky  currently owns shares of the
common stock of the Company which are held by the  Tzarnotzky  Grantor  Retained
Annuity  Trust  dated May 12,  2004 and which are  subject  to its terms and the
terms of any documents applicable thereto. Tzarnotzky furthermore was previously
granted  the right to purchase  up to 70,000  shares of the common  stock of the
Company  pursuant to two stock option  grants dated January 2, 2001 and December
4, 2001. Such options shall remain  exercisable in accordance with the Company's
2000 Stock Option Plan.

         (C) MEDICAL INSURANCE.  In the event of a Change of Control (as defined
below) of the Company,  Tzarnotzky shall be eligible, at the Company's cost, for
medical  insurance  coverage for  Tzarnotzky  and his spouse as a  founder/owner
under the Company's medical benefits plan, or equivalent medical coverage at the
Company's cost in the event that the Company's existing or any successor medical
benefits plan(s) is terminated.  Such coverage shall furthermore include Company
paid medical benefits for Tzarnotzky's son, Uri Tzarnotzky, for so long as he is
eligible for coverage as a qualified dependent of Tzarnotzky under the Company's
medical benefits plans now or hereafter in effect.  When they each reach age 65,
coverage for  Tzarnotzky  and his spouse under the  Company's  medical  benefits
plans then in effect will cease,  and  Tzarnotzky and his spouse will be covered
under Medicare and under a Medicare  supplement plan to be procured and paid for
by the Company, which in combination will provide substantially similar benefits

<PAGE>

to the Company's  then current  medical  benefits  plan. The benefits under this
Subsection  2(c) will be referred to as the "Medical  Benefits."  Tzarnotzky and
his spouse's  eligibility for Medical Benefits will continue until terminated by
the mutual agreement of the parties.  For purposes of this Section 2(c), "Change
of Control shall mean (1) the  acquisition  of the Company by another  entity by
means of any  reorganization,  merger or  consolidation,  or any  transaction or
series of related transactions in which the Corporation's stockholders of record
as  constituted  immediately  prior to such  transaction  or series  of  related
transactions  will,  immediately  after  such  transaction  or series of related
transactions  (by virtue of securities  issued in such  transaction or series of
related  transactions)  fail to hold at  least  50% of the  voting  power of the
resulting or  surviving  corporation  following  such  transaction  or series of
related transactions; or (2) a sale of all or substantially all of the assets of
this Corporation. In the event Tzarnotzky predeceases his spouse and the Medical
Benefits have not been previously terminated,  the Company agrees to continue to
provide Medical Benefits for  Tzarnotzky's  spouse until her death in accordance
with Section 2(c) above.

         (D) OTHER  BENEFITS.  During  his  employment  with the  Company in the
position and with the duties and  responsibilities  described  in Section  1(a),
Tzarnotzky  shall  be  eligible  to  participate  in such  other  benefits  made
generally  available  by the  Company to  similarly-situated  executives  of the
Company, in accordance with the benefit plans established by the Company, and as
may be amended from time to time in the Company's sole discretion.

         (E) EXPENSES.  The Company shall  reimburse  Tzarnotzky  for reasonable
business expenses  incurred in the performance of Tzarnotzky's  duties hereunder
in  accordance  with  the  Company's  expense  reimbursement  guidelines  now or
hereafter in effect.

3. NON-COMPETE.  In the event of a Change of Control and in consideration of the
amounts  to  be  received  by  Tzarnotzky,  as  a  significant  and  substantial
stockholder  of  the  Company,  in  connection  with  such  Change  of  Control,
Tzarnotzky  agrees  that for a period  of  twenty-four  (24)  months  after  the
consummation of such Change of Control, he will not, without the written consent
of the Chief Executive Officer of the Company,  directly or indirectly engage in
business activities or services for a Competing Business (as defined below) that
are (i) similar to services which  Tzarnotzky has provided to or for the Company
relating to the Company's technology and products, or (ii) reasonably related to
current or prospective  products of the Company with respect to which Tzarnotzky
has worked as an employee of the Company or with respect to which Tzarnotzky has
Confidential  Information.  A  "Competing  Business"  shall  mean  any  business
primarily  engaged  in the  development  and sale of  advanced  development  and
production  verification  systems for the Bluetooth,  Fibre Channel,  IEEE 1394,
InfiniBand,  PCI  Express,  SCSI,  Serial  ATA,  Serial  Attached  SCSI  and USB
Standards, as well as production products for the USB and Bluetooth standards.

4.       AT-WILL EMPLOYMENT

         (A) AT-WILL  TERMINATION.  The employment of Tzarnotzky in any capacity
shall be  "at-will"  at all  times.  Either  party  may  terminate  Tzarnotzky's
employment  with the Company at any time,  without any advance  notice,  for any
reason or no reason at all,  notwithstanding  anything to the contrary contained
in or arising from any statements, policies or practices of the Company relating
to the  employment,  discipline or termination of its employees.  Upon and after
the  Term  Date,  even  where  due to  Tzarnotzky's  death  or  disability,  the
obligations of the Company shall be as follows (and otherwise all obligations of
the Company  shall  cease):  (i) if the Company  terminates  this  Agreement and
Tzarnotzky's  employment with the Company,  the Company shall pay Tzarnotzky six
months of his Base Salary,  (ii) if Tzarnotzky resigns after March 31, 2005, the
Company shall pay Tzarnotzky six months of his Base Salary,  (iii) if Tzarnotzky
resigns  before March 31, 2005, he shall not be entitled to any  additional  pay
other than as earned  through the Term Date,  and (iv) upon a Change of Control,
Tzarnotzky and his spouse,  and son, if  applicable,  shall receive the Lifetime
Medical  Benefits  referenced in Subsection  2(c),  which shall  continue  until
terminated by the mutual agreement of the parties.

<PAGE>

5.       TERMINATION OBLIGATIONS

         (A) RETURN OF PROPERTY.  Tzarnotzky agrees that all property (including
without limitation all equipment,  tangible proprietary information,  documents,
records,  notes,  contracts and  computer-generated  materials)  furnished to or
created or prepared by  Tzarnotzky  incident to  Tzarnotzky's  employment in any
capacity  belongs to the Company  and shall be promptly  returned to the Company
upon termination of Tzarnotzky's  employment in the position and with the duties
and responsibilities  described in Section 1(a), the termination of the Advisory
Period, or at any other time determined by the Company.

         (B) RESIGNATION AND  COOPERATION.  Following the Term Date,  Tzarnotzky
shall be deemed to have  resigned from all offices and  directorships  held with
the  Company.  Following  the Term Date,  Tzarnotzky  shall  cooperate  with the
Company  in the  winding  up of pending  work on behalf of the  Company  and the
orderly transfer of work to Company  employees or consultants.  Tzarnotzky shall
also  cooperate  with the  Company in the  defense of any action  brought by any
third party  against the Company that  relates to  Tzarnotzky's  performance  of
services to the Company in any capacity.

6.   INVENTIONS  AND  PROPRIETARY   INFORMATION;   PROHIBITION  ON  THIRD  PARTY
INFORMATION.  Tzarnotzky agrees as a condition of employment in any capacity and
eligibility for any benefits referenced in this Agreement,  to sign and be bound
by the terms of the Computer Access  Technology  Corporation At Will Employment,
Confidential Information, Invention Assignment, and Arbitration Agreement, which
is attached as Exhibit A ("Proprietary Information Agreement").

7. AMENDMENTS;  WAIVERS;  REMEDIES.  This Agreement may not be amended or waived
except by a writing signed by Tzarnotzky and by a duly authorized representative
of the Company other than  Tzarnotzky.  Failure to exercise any right under this
Agreement shall not constitute a waiver of such right.  Any waiver of any breach
of this Agreement shall not operate as a waiver of any subsequent breaches.  All
rights or remedies  specified  for a party  herein  shall be  cumulative  and in
addition  to all other  rights  and  remedies  of the party  hereunder  or under
applicable law.

8.  ASSIGNMENT;  BINDING  EFFECT.  The  performance  of  Tzarnotzky  is personal
hereunder,  and Tzarnotzky  agrees that Tzarnotzky shall have no right to assign
and shall not assign or purport to assign any rights or  obligations  under this
Agreement.  This Agreement may be assigned or  transferred  by the Company;  and
nothing in this Agreement shall prevent the consolidation, merger or sale of the
Company or a sale of any or all or substantially  all of its assets.  Subject to
the foregoing  restriction  on assignment by Tzarnotzky,  this  Agreement  shall
inure to the benefit of and be binding upon each of the parties; the affiliates,
officers,  directors,  agents,  successors  and assigns of the Company;  and the
heirs, devisees, spouses, legal representatives and successors of Tzarnotzky. In
the event that the  Company is involved in any  merger,  tender  offer,  sale of
substantially all of its assets or any other  transaction  resulting in a change
of control of the  Company,  the  Company's  successor  shall assume any and all
obligations to Tzarnotzky and his spouse under this Agreement.

9. NOTICES. All notices or other communications  required or permitted hereunder
shall be made in  writing  and  shall  be  deemed  to have  been  duly  given if
delivered:  (a)  by  hand;  (b) by a  nationally  recognized  overnight  courier
service;  or (c) by United  States first class  registered  or  certified  mail,
return receipt  requested,  to the principal  address of the other party, as set
forth below.  The date of notice shall be deemed to be the earlier of (i) actual
receipt of notice by any permitted  means,  or (ii) five business days following
dispatch by overnight  delivery  service or the United  States Mail.  Tzarnotzky
shall  be  obligated  to  notify  the  Company  in  writing  of  any  change  in
Tzarnotzky's  address.  Notice of change of address shall be effective only when
done in accordance with this paragraph.

<PAGE>

Company's Notice Address:

3385 Scott Boulevard
Santa Clara, CA 95054

Tzarnotzky's Notice Address:

3871 Corina Way
Palo Alto, CA 94303

10. SEVERABILITY. If any provision of this Agreement shall be held by a court or
arbitrator  to be  invalid,  unenforceable,  or void,  such  provision  shall be
enforced to the fullest  extent  permitted  by law,  and the  remainder  of this
Agreement  shall  remain in full  force and  effect.  In the event that the time
period  or scope of any  provision  is  declared  by a court  or  arbitrator  of
competent  jurisdiction  to exceed the  maximum  time  period or scope that such
court or  arbitrator  deems  enforceable,  then such court or  arbitrator  shall
reduce the time period or scope to the maximum time period or scope permitted by
law.

11. TAXES. All compensation and benefits paid under this Agreement shall be paid
less  all  applicable   state  and  federal  tax   withholdings  and  any  other
withholdings  required by any  applicable  jurisdiction.  The  Company  makes no
representations  or  warranties  regarding  the tax  consequences  of any of the
compensation and benefits paid under this Agreement.

12.  GOVERNING  LAW.  This  Agreement  shall be  governed  by and  construed  in
accordance with the laws of the State of California.

13.  INTERPRETATION.  This Agreement shall be construed as a whole, according to
its fair meaning, and not in favor of or against any party. Sections and section
headings  contained in this Agreement are for reference purposes only, and shall
not affect in any  manner  the  meaning  or  interpretation  of this  Agreement.
Whenever the context  requires,  references  to the singular  shall  include the
plural and the plural the singular.

14. OBLIGATIONS  SURVIVE  TERMINATION OF EMPLOYMENT.  Tzarnotzky agrees that any
and all of Tzarnotzky's obligations under this Agreement survive the termination
of this Agreement.

15. COUNTERPARTS.  This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original  of this  Agreement,  but all of which
together shall constitute one and the same instrument.

16. AUTHORITY. Each party represents and warrants that such party has the right,
power and authority to enter into and execute this  Agreement and to perform and
discharge all of the obligations hereunder;  and that this Agreement constitutes
the valid and legally  binding  agreement  and  obligation  of such party and is
enforceable in accordance with its terms.

17. ENTIRE AGREEMENT.  This Agreement is intended to be the final, complete, and
exclusive statement regarding its subject matter, and may not be contradicted by
evidence of any prior or  contemporaneous  statements or agreements,  except for
agreements specifically referenced herein (including the Proprietary Information
and  Inventions  Agreement  attached  as  Exhibit  A).  To the  extent  that the
practices, policies or procedures of the Company, now or in the future, apply to
Tzarnotzky and are inconsistent with the terms of this Agreement, the provisions
of this Agreement shall control.  Any subsequent change in Tzarnotzky's  duties,
position,  or  compensation  will  not  affect  the  validity  or  scope of this
Agreement.

18. TZARNOTZKY  ACKNOWLEDGEMENT.  TZARNOTZKY ACKNOWLEDGES TZARNOTZKY HAS HAD THE
OPPORTUNITY TO CONSULT LEGAL COUNSEL CONCERNING THIS AGREEMENT,  THAT TZARNOTZKY
HAS READ AND  UNDERSTANDS  THE AGREEMENT,  THAT TZARNOTZKY IS FULLY AWARE OF ITS

<PAGE>

LEGAL  EFFECT,  AND  THAT  TZARNOTZKY  HAS  ENTERED  INTO  IT  FREELY  BASED  ON
TZARNOTZKY'S OWN JUDGMENT AND NOT ON ANY  REPRESENTATIONS OR PROMISES OTHER THAN
THOSE CONTAINED IN THIS AGREEMENT.

<PAGE>

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

COMPUTER ACCESS TECHNOLOGY CORPORATION:         TZARNOTZKY:

By: /s/ Carmine J. Napolitano                   /s/ Peretz Tzarnotzky
   ----------------------------------------     --------------------------------
   Carmine J. Napolitano, President and CEO     Peretz Tzarnotzky

<PAGE>
                                    EXHIBIT A
                     COMPUTER ACCESS TECHNOLOGY CORPORATION
                  AT WILL EMPLOYMENT, CONFIDENTIAL INFORMATION,
                              INVENTION ASSIGNMENT,
                            AND ARBITRATION AGREEMENT

         As a condition of my employment  in any capacity  with Computer  Access
Technology  Corporation,  its  subsidiaries,  affiliates,  successors or assigns
(together the "Company"),  and in consideration of my employment in any capacity
with the Company and my receipt of the compensation now and hereafter paid to me
by Company, I agree to the following:

         1.       At-Will Employment.

         I UNDERSTAND AND ACKNOWLEDGE THAT MY EMPLOYMENT WITH THE COMPANY IS FOR
AN UNSPECIFIED DURATION AND CONSTITUTES "AT-WILL" EMPLOYMENT.  I ALSO UNDERSTAND
THAT ANY  REPRESENTATION  TO THE CONTRARY IS  UNAUTHORIZED  AND NOT VALID UNLESS
OBTAINED IN WRITING AND SIGNED BY THE  PRESIDENT OF THE COMPANY.  I  ACKNOWLEDGE
THAT THIS EMPLOYMENT RELATIONSHIP MAY BE TERMINATED AT ANY TIME, WITH OR WITHOUT
GOOD  CAUSE OR FOR ANY OR NO  CAUSE,  AT THE  OPTION  EITHER OF THE  COMPANY  OR
MYSELF, WITH OR WITHOUT NOTICE.

         2.       Confidential Information.

                  A. Company  Information.  I agree at all times during the term
of my employment and  thereafter,  to hold in strictest  confidence,  and not to
use, except for the benefit of the Company,  or to disclose to any person,  firm
or corporation  without written  authorization  of the Board of Directors of the
Company,   any  Confidential   Information  of  the  Company,   except  under  a
non-disclosure  agreement  duly  authorized  and  executed  by  the  Company.  I
understand that "Confidential Information" means any non-public information that
relates to the actual or anticipated business or research and development of the
Company,  technical data, trade secrets or know-how,  including, but not limited
to, research, product plans or other information regarding Company's products or
services and markets therefor,  customer lists and customers (including, but not
limited  to,  customers  of the  Company  on whom I called or with whom I became
acquainted   during  the  term  of  my  employment),   software,   developments,
inventions,  processes,  formulas, technology,  designs, drawings,  engineering,
hardware  configuration  information,  marketing,  finances  or  other  business
information. I further understand that Confidential Information does not include
any of the foregoing  items which have become  publicly known and made generally
available  through  no  wrongful  act  of  mine  or of  others  who  were  under
confidentiality  obligations as to the item or items involved or improvements or
new versions thereof.

                  B.  Former  Employer  Information.  I agree  that I will  not,
during  my  employment  with  the  Company,   improperly  use  or  disclose  any
proprietary information or trade secrets of any former or concurrent employer or
other  person  or  entity  and that I will not bring  onto the  premises  of the
Company any  unpublished  document or proprietary  information  belonging to any
such employer, person or entity unless consented to in writing by such employer,
person or entity.

                  C. Third Party  Information.  I recognize that the Company has
received and in the future will receive from third parties their confidential or
proprietary  information subject to a duty on the Company's part to maintain the
confidentiality  of such  information  and to use it only  for  certain  limited
purposes.  I agree to hold all such  confidential or proprietary  information in
the  strictest  confidence  and  not to  disclose  it to  any  person,  firm  or
corporation  or to use it except as  necessary  in carrying  out my work for the
Company consistent with the Company's agreement with such third party.

         3. Inventions.

                  A. Inventions  Retained and Licensed.  I have attached hereto,
as Exhibit A-1, a list describing all inventions,  original works of authorship,
developments,  improvements, and trade secrets which were made by me prior to my
employment with the Company  (collectively  referred to as "Prior  Inventions"),
which belong to me, which relate to the Company's proposed business, products or
research and development,  and which are not assigned to the Company  hereunder;
or,  if no such list is  attached,  I  represent  that  there are no such  Prior
Inventions.  If in the course of my employment  with the Company,  I incorporate
into a Company  product,  process or service a Prior Invention owned by me or in
which  I have an  interest,  I  hereby  grant  to the  Company  a  nonexclusive,
royalty-free, fully paid-up, irrevocable,  perpetual, worldwide license to make,
have made, modify, use and sell such Prior Invention as part of or in connection
with such  product,  process or  service,  and to  practice  any method  related
thereto.

<PAGE>

                  B. Assignment of Inventions. I agree that I will promptly make
full written  disclosure  to the Company,  will hold in trust for the sole right
and benefit of the Company,  and hereby assign to the Company,  or its designee,
all my right,  title,  and interest in and to any and all  inventions,  original
works of authorship, developments, concepts, improvements, designs, discoveries,
ideas,  trademarks or trade  secrets,  whether or not  patentable or registrable
under  copyright  or similar  laws,  which I may solely or jointly  conceive  or
develop or reduce to practice,  or cause to be conceived or developed or reduced
to  practice,  during  the  period  of time I am in the  employ  of the  Company
(collectively  referred to as  "Inventions"),  except as provided in Section 3.F
below. I further  acknowledge  that all original  works of authorship  which are
made by me (solely or jointly  with  others)  within the scope of and during the
period of my employment  with the Company and which are protectible by copyright
are  "works  made for  hire,"  as that  term is  defined  in the  United  States
Copyright  Act.  I  understand  and agree  that the  decision  whether or not to
commercialize  or market any  invention  developed  by me solely or jointly with
others is within  the  Company's  sole  discretion  and for the  Company's  sole
benefit  and  that no  royalty  will be due to me as a result  of the  Company's
efforts to commercialize or market any such invention.

                  C. Inventions Assigned to the United States. I agree to assign
to the United States government all my right,  title, and interest in and to any
and all  Inventions  whenever  such full title is  required  to be in the United
States by a contract  between the  Company  and the United  States or any of its
agencies.

                  D.  Maintenance  of  Records.  I agree  to keep  and  maintain
adequate and current  written  records of all  Inventions  made by me (solely or
jointly  with others)  during the term of my  employment  with the Company.  The
records will be in the form of notes,  sketches,  drawings, and any other format
that may be  specified  by the  Company.  The records  will be  available to and
remain the sole property of the Company at all times.

                  E. Patent and Copyright  Registrations.  I agree to assist the
Company,  or its  designee,  at the  Company's  expense,  in every proper way to
secure the Company's rights in the Inventions and any copyrights,  patents, mask
work rights or other  intellectual  property rights relating  thereto in any and
all  countries,  including  the  disclosure  to the  Company  of  all  pertinent
information and data with respect  thereto,  the execution of all  applications,
specifications,  oaths,  assignments and all other instruments which the Company
shall deem  necessary  in order to apply for and obtain such rights and in order
to assign and convey to the Company,  its successors,  assigns, and nominees the
sole and exclusive rights, title and interest in and to such Inventions, and any
copyrights,  patents,  mask work rights or other  intellectual  property  rights
relating  thereto.  I further agree that my obligation to execute or cause to be
executed,  when it is in my power to do so, any such  instrument or papers shall
continue  after the  termination  of this  Agreement.  If the  Company is unable
because of my mental or physical incapacity or for any other reason to secure my
signature  to apply for or to pursue any  application  for any United  States or
foreign patents or copyright registrations covering Inventions or original works
of  authorship  assigned  to the  Company  as above,  then I hereby  irrevocably
designate and appoint the Company and its duly authorized officers and agents as
my agent and attorney in fact,  to act for and in my behalf and stead to execute
and file any such  applications  and to do all other lawfully  permitted acts to
further  the   prosecution   and   issuance  of  letters   patent  or  copyright
registrations thereon with the same legal force and effect as if executed by me.

                  F. Exception to Assignments.  I understand that the provisions
of this Agreement requiring assignment of Inventions to the Company do not apply
to any invention which qualifies fully under the provisions of California  Labor
Code Section 2870  (attached  hereto as Exhibit  A-2). I will advise the Company
promptly  in writing  of any  inventions  that I believe  meet the  criteria  in
California Labor Code Section 2870 and not otherwise disclosed on Exhibit A-1.

         4.  Conflicting  Employment.  I  agree  that,  during  the  term  of my
employment  with  the  Company,  I will  not  engage  in any  other  employment,
occupation or consulting  directly  related to the business in which the Company
is now involved or becomes involved during the term of my employment, nor will I
engage in any other activities that conflict with my obligations to the Company.

         5. Returning  Company  Documents.  I agree that, at the time of leaving
the employ of the  Company,  I will deliver to the Company (and will not keep in
my possession, recreate or deliver to anyone else) any and all devices, records,
data, notes, reports, proposals, lists, correspondence, specifications, drawings
blueprints,  sketches,  materials,  equipment,  other documents or property,  or
reproductions  of  any  aforementioned  items  developed  by me  pursuant  to my
employment  with  the  Company  or  otherwise  belonging  to  the  Company,  its
successors or assigns, including,  without limitation,  those records maintained
pursuant to paragraph 3.D. In the event of the  termination of my employment,  I
agree to sign and deliver the  "Termination  Certification"  attached  hereto as
Exhibit A-3.

         6.  Notification of New Employer.  In the event that I leave the employ
of the Company,  I hereby grant consent to notification by the Company to my new
employer about my rights and obligations under this Agreement.

                                      -2-
<PAGE>

         7. Solicitation of Employees. I agree that during my employment and for
a period of twelve (12)  months  immediately  following  the  termination  of my
relationship  with the Company for any reason,  whether with or without cause, I
shall not either directly or indirectly  solicit,  induce,  recruit or encourage
any of the  Company's  employees  to leave their  employment,  or take away such
employees,  or attempt  to  solicit,  induce,  recruit,  encourage  or take away
employees of the Company, either for myself or for any other person or entity.

         8. Conflict of Interest Guidelines. I agree to diligently adhere to the
Conflict of Interest Guidelines attached as Exhibit A-4 hereto.

         9.  Representations.  I agree to execute  any proper oath or verify any
proper document  required to carry out the terms of this Agreement.  I represent
that my  performance  of all the terms of this  Agreement  will not  breach  any
agreement  to keep  in  confidence  proprietary  information  acquired  by me in
confidence or in trust prior to my employment by the Company. I hereby represent
and warrant that I have not entered into, and I will not enter into, any oral or
written agreement in conflict herewith.

         10.  Arbitration  and Equitable  Relief.  I agree to read,  execute and
adhere to the Arbitration and Equitable  Relief  provisions  attached as Exhibit
A-5 hereto.

         11. General Provisions.

                  A.  Governing  Law;  Consent to  Personal  Jurisdiction.  This
Agreement  will be  governed  by the laws of the State of  California.  I hereby
expressly  consent to the personal  jurisdiction of the state and federal courts
located in  California  for any lawsuit  filed  there  against me by the Company
arising from or relating to this Agreement.

                  B.  Entire  Agreement.  This  Agreement,  along with the offer
letter provide to me and any  application I have submitted to the Company,  sets
forth the entire agreement and understanding between the Company and me relating
to  the  subject  matter  herein  and   supersedes  all  prior   discussions  or
representations  between us,  whether  written or oral.  No  modification  of or
amendment to this Agreement,  nor any waiver of any rights under this Agreement,
will be effective  unless in writing  signed by the President of the Company and
me. Any subsequent  change or changes in my duties,  salary or compensation will
not affect the validity or scope of this Agreement.

                  C.  Severability.  If one or  more of the  provisions  in this
Agreement are deemed void by law, then the remaining provisions will continue in
full force and effect.

                  D. Successors and Assigns. This Agreement will be binding upon
my heirs, executors,  administrators and other legal representatives and will be
for the benefit of the Company, its successors, and its assigns.

         I ACKNOWLEDGE  AND AGREE THAT I AM EXECUTING THIS AGREEMENT AND EACH OF
ITS  EXHIBITS  VOLUNTARILY  AND  WITHOUT  ANY DURESS OR UNDUE  INFLUENCE  BY THE
COMPANY OR ANYONE ELSE. I FURTHER  ACKNOWLEDGE  AND AGREE THAT I HAVE  CAREFULLY
READ  THIS  AGREEMENT  AND THAT I HAVE  ASKED  ANY  QUESTIONS  NEEDED  FOR ME TO
UNDERSTAND  THE TERMS,  CONSEQUENCES  AND BINDING  EFFECT OF THIS  AGREEMENT AND
FULLY  UNDERSTAND  IT,  INCLUDING  THAT I AM WAIVING  MY RIGHT TO A JURY  TRIAL.
FINALLY,  I AGREE THAT I HAVE BEEN PROVIDED AN OPPORTUNITY TO SEEK THE ADVICE OF
AN ATTORNEY OF MY CHOICE BEFORE SIGNING THIS AGREEMENT.

Date:  August 31, 2004                   /s/ Peretz Tzanotzky
       ---------------------------       ---------------------------------------
                                         Peretz Tzarnotzky

Witness:

/s/ Paul Katawicz
----------------------------------------
Signature

Paul Katawicz
----------------------------------------
Name (typed or printed)

                                      -3-
<PAGE>

                                   EXHIBIT A-1

                            LIST OF PRIOR INVENTIONS
                        AND ORIGINAL WORKS OF AUTHORSHIP

       Title                 Date        Identifying Number or Brief Description
--------------------------------------------------------------------------------

[X]  No inventions or improvements
___  Additional Sheets Attached

Signature of Employee:  /s/ Peretz Tzanotzky
                        -------------------------------------------

Print Name of Employee:  Peretz Tzanotzky
                         ------------------------------------------

Date:  August 31, 2004
       ---------------------------

<PAGE>

                                   EXHIBIT A-2

                       CALIFORNIA LABOR CODE SECTION 2870
                 INVENTION ON OWN TIME-EXEMPTION FROM AGREEMENT

"(a) Any provision in an employment  agreement  which  provides that an employee
shall  assign,  or offer to assign,  any of his or her rights in an invention to
his or her employer shall not apply to an invention that the employee  developed
entirely  on his  or her  own  time  without  using  the  employer's  equipment,
supplies,  facilities,  or trade secret  information except for those inventions
that either:

                  (1) Relate at the time of  conception or reduction to practice
of  the  invention  to  the  employer's  business,  or  actual  or  demonstrably
anticipated research or development of the employer; or

                  (2) Result from any work  performed  by the  employee  for the
employer.

(b) To the extent a provision in an employment  agreement purports to require an
employee to assign an invention  otherwise  excluded  from being  required to be
assigned  under  subdivision  (a), the provision is against the public policy of
this state and is unenforceable."

<PAGE>

                                   EXHIBIT A-3

                     COMPUTER ACCESS TECHNOLOGY CORPORATION
                            TERMINATION CERTIFICATION

         This is to  certify  that I do not  have in my  possession,  nor have I
failed to return, any devices, records, data, notes, reports,  proposals, lists,
correspondence,   specifications,  drawings,  blueprints,  sketches,  materials,
equipment,  other documents or property,  or reproductions of any aforementioned
items belonging to Computer Access  Technology  Corporation,  its  subsidiaries,
affiliates, successors or assigns (together, the "Company").

         I  further  certify  that I have  complied  with  all the  terms of the
Company's At-Will Employment, Confidential Information, Invention Assignment and
Arbitration  Agreement  signed by me,  including the reporting of any inventions
and original works of authorship (as defined  therein),  conceived or made by me
(solely or jointly with others) covered by that agreement.

         I further  agree  that,  in  compliance  with the  At-Will  Employment,
Confidential  Information,  Invention Assignment,  and Arbitration  Agreement, I
will preserve as confidential all trade secrets, confidential knowledge, data or
other  proprietary  information  relating  to  products,  processes,   know-how,
designs,  formulas,  developmental or experimental work, computer programs, data
bases,  other original  works of authorship,  customer  lists,  business  plans,
financial  information or other subject matter pertaining to any business of the
Company or any of its employees, clients, consultants or licensees.

         I further  agree that for twelve (12) months from this date, I will not
solicit,  induce,  recruit or encourage any of the Company's  employees to leave
their employment.

Date: August 31, 2004
     ---------------------------------------------

/s/ Peretz Tzanotzky
--------------------------------------------------
(Employee's Signature)

Peretz Tzanotzky
--------------------------------------------------
(Type/Print Employee's Name)

<PAGE>

                                   EXHIBIT A-4

                     COMPUTER ACCESS TECHNOLOGY CORPORATION
                         CONFLICT OF INTEREST GUIDELINES

         It is the policy of Computer Access  Technology  Corporation to conduct
its  affairs in strict  compliance  with the letter and spirit of the law and to
adhere to the highest principles of business ethics. Accordingly,  all officers,
employees,  advisors and independent  contractors must avoid activities that are
in conflict, or give the appearance of being in conflict,  with these principles
and  with  the  interests  of  the  Company.   The  following  are   potentially
compromising situations that must be avoided. Any exceptions must be reported to
the President and written approval for continuation must be obtained.

1.  Revealing  confidential  information  to outsiders or misusing  confidential
information. Unauthorized divulging of information is a violation of this policy
whether  or not for  personal  gain and  whether  or not harm to the  Company is
intended.   (The  At-Will  Employment,   Confidential   Information,   Invention
Assignment  and  Arbitration  Agreement  elaborates  on this  principle and is a
binding agreement.)

2. Accepting or offering substantial gifts, excessive  entertainment,  favors or
payments  which may be deemed to  constitute  undue  influence  or  otherwise be
improper or embarrassing to the Company.

3.  Participating  in civic or  professional  organizations  that might  involve
divulging confidential information of the Company.

4. Initiating or approving  personnel  actions affecting reward or punishment of
employees or applicants where there is a family relationship or is or appears to
be a personal or social involvement.

5.  Initiating  or  approving  any form of  personal  or  social  harassment  of
employees.

6.  Investing  or holding  outside  directorship  in  suppliers,  customers,  or
competing companies, including financial speculations,  where such investment or
directorship might influence in any manner a decision or course of action of the
Company.

7. Borrowing from or lending to employees, customers or suppliers.

8. Acquiring real estate of interest to the Company.

9. Improperly using or disclosing to the Company any proprietary  information or
trade  secrets of any former or  concurrent  employer or other  person or entity
with whom obligations of confidentiality exist.

10.  Unlawfully  discussing  prices,  costs,  customers,  sales or markets  with
competing companies or their employees.

11. Making any unlawful agreement with distributors with respect to prices.

12.  Improperly  using or  authorizing  the use of any  inventions  that are the
subject of patent claims of any other person or entity.

13. Engaging in any conduct that is not in the best interest of the Company.

         Each  officer,  employee  and  independent  contractor  must take every
necessary action to ensure compliance with these guidelines and to bring problem
areas to the  attention  of higher  management  for review.  Violations  of this
conflict of interest policy may result in discharge without warning.

<PAGE>

                                   EXHIBIT A-5

                     COMPUTER ACCESS TECHNOLOGY CORPORATION
                        ARBITRATION AND EQUITABLE RELIEF

               1.  Arbitration.  IN  CONSIDERATION  OF MY  EMPLOYMENT  WITH  THE
COMPANY, ITS PROMISE TO ARBITRATE ALL EMPLOYMENT-RELATED DISPUTES AND MY RECEIPT
OF THE COMPENSATION, PAY RAISES AND OTHER BENEFITS PAID TO ME BY THE COMPANY, AT
PRESENT AND IN THE FUTURE, I AGREE THAT ANY AND ALL  CONTROVERSIES,  CLAIMS,  OR
DISPUTES WITH ANYONE (INCLUDING THE COMPANY AND ANY EMPLOYEE, OFFICER, DIRECTOR,
SHAREHOLDER  OR  BENEFIT  PLAN  OF THE  COMPANY  IN  THEIR  CAPACITY  AS SUCH OR
OTHERWISE) ARISING OUT OF, RELATING TO, OR RESULTING FROM MY EMPLOYMENT WITH THE
COMPANY OR THE  TERMINATION  OF MY  EMPLOYMENT  WITH THE COMPANY,  INCLUDING ANY
BREACH OF THIS  AGREEMENT,  SHALL BE SUBJECT TO  BINDING  ARBITRATION  UNDER THE
ARBITRATION  RULES SET FORTH IN CALIFORNIA CODE OF CIVIL PROCEDURE  SECTION 1280
THROUGH  1294.2,  INCLUDING  SECTION  1283.05  (THE  "RULES")  AND  PURSUANT  TO
CALIFORNIA LAW. DISPUTES WHICH I AGREE TO ARBITRATE,  AND THEREBY AGREE TO WAIVE
ANY  RIGHT TO A TRIAL BY JURY,  INCLUDE  ANY  STATUTORY  CLAIMS  UNDER  STATE OR
FEDERAL LAW, INCLUDING,  BUT NOT LIMITED TO, CLAIMS UNDER TITLE VII OF THE CIVIL
RIGHTS  ACT OF 1964,  THE  AMERICANS  WITH  DISABILITIES  ACT OF  1990,  THE AGE
DISCRIMINATION  IN EMPLOYMENT ACT OF 1967, THE OLDER WORKERS BENEFIT  PROTECTION
ACT, THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, THE CALIFORNIA  LABOR CODE,
CLAIMS OF HARASSMENT,  DISCRIMINATION OR WRONGFUL  TERMINATION AND ANY STATUTORY
CLAIMS.  I FURTHER  UNDERSTAND  THAT THIS AGREEMENT TO ARBITRATE ALSO APPLIES TO
ANY DISPUTES THAT THE COMPANY MAY HAVE WITH ME.

               2. Procedure.  I AGREE THAT ANY ARBITRATION  WILL BE ADMINISTERED
BY THE AMERICAN ARBITRATION  ASSOCIATION ("AAA") AND THAT THE NEUTRAL ARBITRATOR
WILL BE  SELECTED  IN A  MANNER  CONSISTENT  WITH  ITS  NATIONAL  RULES  FOR THE
RESOLUTION OF EMPLOYMENT  DISPUTES.  I AGREE THAT THE ARBITRATOR  SHALL HAVE THE
POWER TO DECIDE ANY MOTIONS BROUGHT BY ANY PARTY TO THE  ARBITRATION,  INCLUDING
MOTIONS  FOR SUMMARY  JUDGMENT  AND/OR  ADJUDICATION  AND MOTIONS TO DISMISS AND
DEMURRERS,  PRIOR TO ANY ARBITRATION  HEARING.  I ALSO AGREE THAT THE ARBITRATOR
SHALL HAVE THE POWER TO AWARD ANY REMEDIES, INCLUDING ATTORNEYS' FEES AND COSTS,
AVAILABLE  UNDER  APPLICABLE  LAW. I  UNDERSTAND  THE  COMPANY  WILL PAY FOR ANY
ADMINISTRATIVE  OR HEARING FEES CHARGED BY THE  ARBITRATOR  OR AAA EXCEPT THAT I
SHALL PAY THE FIRST $200.00 OF ANY FILING FEES ASSOCIATED WITH ANY ARBITRATION I
INITIATE.  I  AGREE  THAT  THE  ARBITRATOR  SHALL  ADMINISTER  AND  CONDUCT  ANY
ARBITRATION  IN A MANNER  CONSISTENT  WITH THE RULES AND THAT TO THE EXTENT THAT
THE AAA'S NATIONAL RULES FOR THE RESOLUTION OF EMPLOYMENT DISPUTES CONFLICT WITH
THE RULES,  THE RULES SHALL TAKE  PRECEDENCE.  I AGREE THAT THE  DECISION OF THE
ARBITRATOR SHALL BE IN WRITING.

               3.  Remedy.  EXCEPT AS PROVIDED BY THE RULES AND THIS  AGREEMENT,
ARBITRATION  SHALL BE THE SOLE,  EXCLUSIVE  AND  FINAL  REMEDY  FOR ANY  DISPUTE
BETWEEN ME AND THE COMPANY. ACCORDINGLY, EXCEPT AS PROVIDED FOR BY THE RULES AND
THIS  AGREEMENT,  NEITHER I NOR THE COMPANY  WILL BE  PERMITTED  TO PURSUE COURT
ACTION  REGARDING CLAIMS THAT ARE SUBJECT TO ARBITRATION.  NOTWITHSTANDING,  THE
ARBITRATOR  WILL NOT HAVE THE  AUTHORITY  TO  DISREGARD OR REFUSE TO ENFORCE ANY
LAWFUL COMPANY POLICY, AND THE ARBITRATOR SHALL NOT ORDER OR REQUIRE THE COMPANY
TO ADOPT A POLICY  NOT  OTHERWISE  REQUIRED  BY LAW  WHICH THE  COMPANY  HAS NOT
ADOPTED.

               4.  Availability of Injunctive  Relief.  IN ADDITION TO THE RIGHT
UNDER THE RULES TO PETITION THE COURT FOR PROVISIONAL  RELIEF,  I AGREE THAT ANY
PARTY MAY ALSO  PETITION  THE COURT FOR  INJUNCTIVE  RELIEF  WHERE  EITHER PARTY
ALLEGES  OR CLAIMS A  VIOLATION  OF THE  EMPLOYMENT,  CONFIDENTIAL  INFORMATION,
INVENTION ASSIGNMENT AGREEMENT BETWEEN ME AND THE COMPANY OR ANY OTHER AGREEMENT
REGARDING TRADE SECRETS, CONFIDENTIAL INFORMATION, NONSOLICITATION OR LABOR CODE
ss.2870.  I UNDERSTAND THAT ANY BREACH OR THREATENED BREACH OF SUCH AN AGREEMENT
WILL  CAUSE  IRREPARABLE  INJURY  AND THAT  MONEY  DAMAGES  WILL NOT  PROVIDE AN
ADEQUATE  REMEDY  THEREFOR AND BOTH PARTIES HEREBY CONSENT TO THE ISSUANCE OF AN
INJUNCTION.  IN THE EVENT EITHER PARTY SEEKS INJUNCTIVE  RELIEF,  THE PREVAILING
PARTY SHALL BE ENTITLED TO RECOVER REASONABLE COSTS AND ATTORNEYS FEES.

<PAGE>

               5.  Administrative  Relief. I UNDERSTAND THAT THIS AGREEMENT DOES
NOT PROHIBIT ME FROM  PURSUING AN  ADMINISTRATIVE  CLAIM WITH A LOCAL,  STATE OR
FEDERAL  ADMINISTRATIVE  BODY  SUCH AS THE  DEPARTMENT  OF FAIR  EMPLOYMENT  AND
HOUSING,   THE  EQUAL   EMPLOYMENT   OPPORTUNITY   COMMISSION  OR  THE  WORKERS'
COMPENSATION  BOARD.  THIS AGREEMENT  DOES,  HOWEVER,  PRECLUDE ME FROM PURSUING
COURT ACTION REGARDING ANY SUCH CLAIM.

Date: August 31, 2004
     -----------------------------------------

/s/ Peretz Tzanotzky
----------------------------------------------
Peretz Tzanotzky

                                      -2-

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