Document:

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.

    522 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. 

    
       

    

    /s/ Kobi
      Ben-Zvi

    
      
 

    
      We
        approve the above and shall act accordingly

       

      /s/
        Moshe
        Gringer

      
        
          

        

      

      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 4.1 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 4.1
                    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 SignatureSecond
      Addendum to the Unprotected Rental Agreement Dated July 15,
      2001

    Made
      and
      executed in Raanana, February 7, 2006

    

    Between

    Taya
      Center Ltd., Public Co. 52-002929-9

    Of
      16
      Hecharoshet St., Industrial Zone, Raanana

    Tel:
      09-7481188; Fax: 09-7485588

    (Hereinafter
      - “the
      Lessor”)

     

    First
      Party

    

    And

    Wintegra
      Ltd., Private Co. 51-290107-5

    Of
      14
      Hecharoshet St., Taya Center

    Industrial
      Zone, Raanana

    Tel:
      09-7439998, Fax: 09-7439992

    (Hereinafter
      - “the
      Lessee”)

     

    Second
      Party

    

    
      	
              Whereas

            	
              the
                Lessor and the Lessee are parties to an unprotected rental agreement
                dated
                July 15, 2001, including its various appendices, and an Addendum
                to the
                Agreement dated July 31, 2005, attached to this Addendum and constituting
                an integral part thereof (hereinafter, jointly - “the
                Rental Agreement”).

            
	 	 
	
              And
                whereas

            	
              the
                Lessee is interested in extending the Rental Period in the Premises,
                and
                in renting an additional area (as defined below) from the Lessor,
                all in
                accordance with the conditions of the Rental Agreement and of this
                Addendum.

            
	 	 
	
              And
                whereas 

            	
              the
                Parties are interested in recording these agreements in
                writing.

            
	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Accordingly,
                it has been declared, conditioned, and agreed as
                follows:

            
	 	 
	
              Additional
                Definitions
                -

            	
              In
                this Second Addendum, the following terms shall have the meaning
                recorded
                alongside:

            
	
              “The
                Premises” -

            	
              Offices
                with an area of 1,199.00 sq.m. (one thousand one hundred and ninety
                nine
                sq.m.) situated on the third floor of the Building, defined as unit
                number
                C-3, and as part of unit number C-4, at 6-8 Hamasger St. in Raanana
                (including a proportional part of the public areas and as stated
                in
                Section 2.2 of the Rental Agreement), the net area of which is marked
                in
                red on the diagram (Appendix “A”) (above and hereinafter - “the
                Premises - Area A and Area B”).

            
	 	 
	
              “The
                Additional Premises” -

            	
              Offices
                with an area of 622.00 sq.m. (six hundred twenty two square meters)
                situated on the third floor of the Building, defined as an additional
                part
                of Unit C-4, at 6-8 Hamasger St. in Raanana (including a proportional
                part
                of the public areas and as stated in Section 2.2 of the Rental Agreement),
                the net area of which is marked in red on the diagram (Appendix “A”)
                (above and hereinafter - “the
                Additional Premises - Area C”).

            
	 	 
	
              “The
                Rental Period”-

            	
              The
                rental Period stipulated in Section 4 of this Second
                Addendum.

            
	 	 
	
              “The
                Additional Base Index”
                -

            	
              the
                Index published on January 15, 2006 (for December 2005) - 110.00
                points,
                with the base of the Consumer Price Index for the year
                2000.

            
	 	 
	
              “The
                Dollar Rate”
                -

            	
              The
                representative exchange rate of the dollar as published on February
                6,
                2006 - NIS 4.699 per dollar.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	1.    	
                General

              

      

       

      
        	
              	1.1	
                The
                  Preamble to this Addendum, including the definitions and declarations
                  included therein, as well as the appendices attached thereto, constitute
                  an integral part thereof.

              

      

      

      
        	
              	1.2	
                All
                  terms defined in the Rental Agreement shall have the meaning attributed
                  thereto therein in this Addendum, unless these were amended in
                  this Second
                  Addendum.

              

      

      

      
        	2.    	
                Rental
                  of the Additional Premises

                The
                  Lessee hereby rents from the Lessor the Additional Premises, viz.
                  offices
                  with an area of 622.00 sq.m. (six hundred twenty-two square meters)
                  situated on the third floor of the Building, defined as an additional
                  part
                  of Unit C-4, at 6-8 Hamasger St. in Raanana (including a proportional
                  part
                  of the public areas and as stated in Section 2.2 of the Rental
                  Agreement),
                  the net area of which is marked in red on the diagram (Appendix
“A”)
                  (above and hereinafter - “the
                  Additional Premises - Area C.”)

              

      

      

      
        	3.    	
                Delivery
                  of Possession; Adaptations to the Premises -

                In Section 3 of the Rental
                  Agreement, with
                  respect to the Additional Premises - Area C in accordance with
                  the Second
                  Addendum to the Rental Agreement, the following changes shall be
                  made:

              

      

       

      
        	
              	3.1	
                Section
                  3.3 shall be amended to:

                “The
                  Premises shall be available for the Lessee’s possession “as is,” not later
                  than February 16, 2006, and, if necessary, immediately after the
                  signing
                  of this Addendum by the Parties, and after payment of the Rental
                  Fee as
                  detailed in Section 5.4 below.

                The Lessee declares that it
                  is aware and
                  expressly agrees that, in any case, the Lessor is not liable for
                  the
                  quality of any of the items and adaptations to the Premises, including
                  the
                  quality of carpeting, the quality of the acoustic ceilings, the
                  quality of
                  the lighting or the lack of lights, electricity infrastructure,
                  telephones, communication, etc”.

                
                  Notwithstanding
                    the above, the Lessor hereby undertakes, on the delivery of possession
                    of
                    the Premises on the above-mentioned date, the air-conditioning
                    and
                    electricity systems and the fire detection system installed in
                    the
                    Premises shall function properly.

                  As
                    stated, the Premises shall be delivered to the Lessee “as is,” and with
                    the proper functioning of the systems stated above, and in accordance
                    with
                    the procedure agreed by the Parties and as attached to this Second
                    Addendum as Appendix
                    B-3
                    below.

                

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      
        	
              	3.2	
                Sections
                  3.5.1 through 3.5.6 in Section 3.5 of the Rental Agreement are
                  hereby
                  nullified with regard to the Additional Premises - Area C in accordance
                  with this Second Addendum.

                The Parties hereby agree that,
                  upon
                  delivery of the possession of the Premises to the Lessee, the liability
                  for all the systems installed in the Premises shall transfer to
                  the
                  Lessee.

              

      

       

      
        	
              	3.3	
                All
                  adaptation works of any type and kind (construction, electricity,
                  air-conditioning, communications, etc.) required in order to attach
                  and
                  connect the Additional Premises to the Premises also serving the
                  Lessee in
                  accordance with the Rental Agreement shall be executed solely by
                  the
                  Lessee and at its expense, through prior coordination with the
                  Lessor, as
                  required in Section 14 of the Rental
                  Agreement.

              

      

      

      
        	4.    	
                Rental
                  Period

              

      

       

      
        	
              	4.1	
                The
                  Lessor hereby lets to the Lessee, and the Lessee hereby rents from
                  the
                  Lessor, the Additional Premises - Area C, for a rental period of
                  twenty
                  two and a half (22.5) months, commencing on February 16, 2006 and
                  ending
                  on December 31, 2007 (hereinafter - “the
                  Rental Period of the Additional Premises - Area C”).

              

      

      

      
        	
              	4.2	
                The
                  Lessee hereby exercises, by its signature below, part of the optional
                  period granted to it in accordance with Section 4.2 of the Rental
                  Agreement, and undertakes to extend the Rental Agreement between
                  the
                  Parties through December 31, 2007, in accordance with all the conditions
                  as detailed in the Rental Agreement, and with the changes detailed
                  below
                  (hereinafter - “the
                  Updated Rental Period of the Three Premises Areas”).

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      
        	
              	
                4.3

              	
                At
                  the end of the Updated Rental Period, the Lessor shall have the
                  option to
                  extend the rental in accordance with the Rental Agreement and in
                  accordance with this Second Addendum for an additional rental period
                  -
                  Areas A and B of the Premises together with the Additional Area
                  of the
                  Premises - Area C - by two years, viz. from January 1, 2008 through
                  December 31, 2009 (hereinafter - “the
                  Additional Rental Period”),
                  provided that:

              

      

      
        	
              	(A)	
                through
                  the said date, the Lessee has complied fully and completely with
                  all its
                  obligations in accordance with the rental agreement, and
                  -

              

      

      
        	
              	(B)	
                the
                  Lessee has not informed the Lessor in writing of its desire not
                  to renew
                  and extend this rental agreement for the Additional Period, not
                  later than
                  six (6) months prior to the end of the preceding Rental Period,
                  viz.
                  through June 30, 2007.

              

      

      

      
        	
              	4.4	
                If
                  the validity of this Second Addendum to the Rental Agreement is
                  extended
                  on the basis of the content of Section 4.3 above, the term “Rental
                  Period,” wherever this appears in the Rental Agreement, shall include the
                  Rental Period, the Updated Rental Period, and the Additional Rental
                  Period
                  (if the option on account thereof is exercised), with those changes
                  expressly stated in this Addendum (for example, regarding the
                  determination of the Updated Rental Fee as stated in Section 5
                  below,
                  including its subsections), and with those changes as required
                  in
                  accordance with the matter, and all the provisions of the Rental
                  Agreement
                  and of the Second Addendum to the Rental Agreement (with the exception
                  of
                  the granting of the option - in accordance with Section 4.3 above)
                  shall
                  also apply to the Additional Period as stated, with those changes
                  as
                  required in accordance with the
                  matter.

              

      

      

      
        	
              	4.5	
                Notwithstanding
                  the above, the Parties hereby agree that the Lessee has the option,
                  with
                  prior notice of six (6) months, to shorten the Updated Rental Period
                  by
                  three (3) months, through September 30, 2007, or later, or to extend
                  the
                  Updated Rental Period by a period of up to three (3) months, through
                  March
                  31, 2008, or less.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                5.

              	
                Rental
                  Fee for the Areas of the Premises, and Manner of Payment
                  Thereof

              

      

      
        	
              	5.1	
                The
                  Parties hereby establish that the Rental Fee that shall be paid
                  by the
                  Lessee to the Lessor for the rental of the Additional Premises
                  - Area C
                  for the Updated Rental Period, as stated in Section 4.1 and 4.2
                  of this
                  Second Addendum, shall be in the sum of NIS 46.99 (forty-six new
                  Israeli
                  shekels and 99 agorot) (equivalent to USD 10.- US dollars) per
                  month, for
                  each square meter of the Premises, for the period between February
                  16,
                  2006 and December 31, 2007 (hereinafter - “the
                  Basic Rental Fee”).

              

      

      

      
        	
              	5.2	
                The
                  Parties further establish that the Rental Fee that shall be paid
                  by the
                  Lessee to the Lessor for the rental of Areas A and B of the Premises
                  shall
                  be in the amount of:

              

      

      
        	
              	5.2.1	
                NIS
                  61.09 (sixty one new shekels and 9 agorot) (equivalent to USD 13.-
                  US),
                  per month per square meter of the Premises, for the period between
                  February 16, 2006 and August 31, 2006 (hereinafter “the
                  Basic Rental Fee”)
                  for the period between February 16, 2006 and August 31,
                  2006;

              

      

      
        	
              	5.2.2	
                NIS
                  46.99 (forty-six new shekels and 99 agorot) (equivalent to USD
                  10.- US),
                  per month per square meter of the Premises, for the period between
                  September 1, 2006 and December 31, 2007 (hereinafter “the
                  Basic Rental Fee”)
                  for the period between September 1, 2006, and December 31,
                  2007.

              

      

      

      
        	
              	5.3	
                The
                  sum of NIS 49.34 (forty-nine new shekels and 34 agorot) (equivalent
                  to USD
                  10.50 US dollars- an addition of 5%), for the period between January
                  1,
                  2008 and December 31, 2009 (a period of two years out of the Updated
                  Rental Period), per month, for each square meter of Areas A, B
                  and C of
                  the Premises (hereinafter “the
                  Basic Rental Fee for the Additional Period”),
                  between January 1, 2008 and December 31,
                  2009.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
              	5.4	
                The
                  payments shall continue to be made quarterly, in advance. The first
                  payment, for a period of three months for the Additional Premises
                  - Area
                  C, from February 16, 2006 through May 15, 2006, is made on the
                  occasion of
                  signing this Addendum, and all remaining payments shall be made
                  as
                  aforesaid, once quarterly in advance, as stated in Section 6.5
                  of the
                  Rental Agreement between the
                  Parties.

              

      

      

      
        	
              	5.5	
                The
                  Basic Rental Fee in accordance with the content of Section 5 above
                  (including its subsections) shall be linked to changes in the Index
                  as
                  stated in Section 6.4 of the Rental Agreement. The Base Index for
                  the
                  purposes of the Rental Agreements, with its Addendums, is the Index
                  published on January 15, 2006 (for December 2005) - 110.00 points,
                  for the
                  index base from the year 2000, as stated in the definitions to
                  this Second
                  Addendum.

              

      

      

      
        	
              	5.6	
                Collection
                  of the above Rental Fee, with the addition of the maintenance fee
                  and the
                  remaining payments mentioned in the Rental Agreement, shall be
                  in
                  accordance with the content of Section 6.5 of the Rental Agreement,
                  and
                  the “standing order” for the charging of the Lessor’s account shall also
                  serve for collection of all payments required in accordance with
                  this
                  Second Addendum.

              

      

      

      
        	6.    	
                Maintenance
                  Fee / Maintenance Services Fee

                The maintenance / maintenance
                  services fee
                  and other payments that shall be made by the Lessee to the Lessor
                  for the
                  area of the Additional Premises shall be at the level and in accordance
                  with the calculation of the maintenance / maintenance services
                  fee per
                  square meter, as stated in Sections 16.1 and 16.2 (regarding maintenance
                  /
                  maintenance services fee), and Section 7.3 (regarding participation
                  toward
                  insurance fees) of the Rental
                  Agreement.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	7.    	
                Securities
                  and Guarantees

                
                  The
                    bank guarantee held by the Lessor shall be renewed for the Updated
                    Rental
                    Period in accordance with this Second Addendum, as stated in
                    Section 32 of
                    the Rental Agreement, viz. through March 31, 2008 or March 31,
                    2010,
                    insofar as the option for the Additional Rental Period is
                    exercised.

                  If
                    the bank guarantee is forfeited due to the breach of the Rental
                    Agreement
                    by the Lessee, the Lessee undertakes, by way of a fundamental
                    undertaking,
                    to furnish the Lessor with another bank guarantee, in the amount
                    of the
                    forfeited bank guarantee (linked to the Base Index in accordance
                    with the
                    Rental Agreement), not later than 7 business days after the date
                    of
                    notification of the Lessor of the forfeiting of the bank
                    guarantee.

                   

                

              

      

      
      

      
        	8.    	
                With
                  the exception of the express content of this Addendum, there is
                  not and
                  shall not be any amendment or addition or change to the Rental
                  Agreement,
                  and all the provisions of the Agreement shall apply to the Additional
                  Premises in accordance with this Second Addendum, with the changes
                  expressly stated therein, and with such changes as required in
                  accordance
                  with the matter.

              

      

      

      Witnessed
        by the signing of this Addendum

      

        
          	
                  Taya
                    Center Ltd.

                	 	
                  Wintegra
                    Ltd.

                
	 	 	 
	
                  [Signature
                    and Stamp}

                	 	
                  [Signature
                    and Stamp]

                

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Appendix
        B-3

      (Section
        3.1 of the Agreement)

      

      Specifications
        for the Delivery of the Premises to Wintegra Ltd.

      

      Area
        Defined as “the Additional Premises” on Floor 3 Is Delivered As Is and
        Includes

      

      
        	1.    	
                Gross
                  area of 622.00 sq.m., divided into -

                
                  11
                    rooms;

                  2
                    small rooms - computers and communications;

                  1
                    conference room;

                  2
                    kitchenettes, as described below;

                  Open
                    space work corners in the remaining area of the Premises as stated
                    in the
                    Divisions Plan prepared by Architect Ilan Eisen and attached
                    to the
                    agreement.

                

              

      

      

      
        	2.    	
                Secretaries
                  Corners

                Two secretarial
                  desks.

              

      

      

      
        	3.    	
                Carpeting
                  -
                  wall-to-wall carpeting throughout the
                  Premises.

              

      

      

      
        	4.    	
                Ceilings
                  -
                  acoustic ceilings from modular mineral plates, 60/60 cm, throughout
                  the
                  Premises.

              

      

      

      
        	5.    	
                Lighting
                  / lighting units
                  -
                  sunken light units (louvers) throughout the Premises, and dual
                  purpose
                  emergency / routine lighting as per the standard, in accordance
                  with as
                  made plan no. 439-102 as prepared by Engineer Yitzhak Vatnik, attached
                  to
                  the agreement.

              

      

      

      
        	6.    	
                Doors
                  -
                  painted wooden doors on all rooms; double glass entrance door.
                  Steel
                  “Pladelet” doors on the rear emergency exit and in the storeroom by the
                  small desk - opposite the executive
                  rooms.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	7.     	
                Windows
                  -
                  windows according to the standard in the building, as currently
                  comprised
                  - 50% for “dry keep” opening.

              

      

      

      
        	8.     	
                Venetian
                  blinds
                  on
                  all windows in the rooms of the
                  Premises.

              

      

      

      
        	9.     	
                Bathrooms
                  -
                  (in the public floor areas) -  3
                  units of women’s bathrooms;

                                      
3
                  units of men’s
                  bathrooms + 2 men’s
                  urinals.

              

      

       

      

      
        	10.    	
                Two
                  (2) kitchenettes
                  -
                  comprising lower utensils closet and upper utensils closet, sink,
                  and
                  marble counter in each kitchenette.

              

      

      

      
        	11.    	
                Power
                  and communications facility
                  -
                  according to as made plan no. 439-103, prepared by Engineer Vatnik,
                  attached to the agreement.

                
                  Electrical
                    board
                    -
                    according to as made plan no. 439-104, prepared by Engineer Vatnik,
                    attached to the agreement.

                  Alarm
                    system - wiring for an alarm system, including detectors, throughout
                    the
                    Premises, not connected to any central call center.

                  Power
                    outlets for UPS system in most of the area of the Premises as
                    currently
                    installed.

                

              

      

      

      
        	12.    	
                Safety
                  and PA
                  -
                  two detection and smoke systems in accordance with the fire department
                  requirements, also connected to the main coordinator in the Taya
                  Center,
                  and to PA system (??) in accordance with as made plan no.
                  _____,
                  prepared by Engineer Yitzhak Vatnik, attached to the
                  agreement.

              

      

      

      
        	13.    	
                Air-conditioning
                  (for heating and cooling)
                  10
                  split units, with a total capacity of 12 tons of refrigeration
                  (Electra-Elco) for air-conditioning of the rooms facing Hamasger
                  St., and
                  5 mini-central units (4 with double condensers) with a capacity
                  of 31 tons
                  of refrigeration (Unique) for air-conditioning the remaining areas
                  of the
                  Premises. Air-conditioning Plan No. 388-2-1 prepared by Engineer
                  Yaacov
                  Bar-Lev is attached here.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      List
        of Air-conditioning Units 

      

      
        	
                Premises

              	
                Type

              	
                Model

              	
                HP
                  BTV

              
	 	 	 	
                Ton
                  of refrigeration (TR)

              
	
                1

              	
                Mini
                  central

              	
                Unique
                  - M 3-1 - rooms 12,13,14

              	
                3.75
                  TR - MS 450

                3.3
                  TR - MS 400

              
	
                2

              	
                Mini
                  central

              	
                Unique
                  - M4-1 - corridor + rooms 15,16,17,24,25,38,39 

              	
                3.75
                  TR - MS 450

                3.3
                  TR - MS 400

              
	
                3

              	
                Mini
                  central

              	
                Unique
                  - M4-2 - corridor + rooms 18,19,20,29,30,31

              	
                3.75
                  TR - MS 450

                3.3
                  TR - MS 400

              
	
                4

              	
                Mini
                  central

              	
                Unique
                  - M4-3 - 21,22,23,26,27,28,34,35,36

              	
                3.3
                  TR - MS 400

                3.3
                  TR - MS 400

              
	
                5

              	
                Mini
                  central

              	
                Unique
                  - M6-1 - 32,87

                All
                  air conditioners are model 14 - one is slightly larger

              	
                3.3
                  TR - MS 400

              
	
                1

              	
                Split
                  - upper

              	
                Electra-Elco
                  - room 3 - M2-1

              	
                1.33
                  tons of refrigeration 

              
	
                2

              	
                Split
                  - upper

              	
                Electra-Elco
                  - room 4 - M2-2

              	
                1.16
                  tons of refrigeration 

              
	
                3

              	
                Split
                  - upper

              	
                Electra-Elco
                  - room 5 - M2-3

              	
                1.16
                  tons of refrigeration 

              
	
                4

              	
                Split
                  - upper

              	
                Electra-Elco
                  - room 6 - M2-4

              	
                1.16
                  tons of refrigeration 

              
	
                5

              	
                Split
                  - upper

              	
                Electra-Elco
                  - room 7 - M2-5

              	
                1.16
                  tons of refrigeration 

              
	
                6

              	
                Split
                  - upper

              	
                Electra-Elco
                  - room 8 - M2-6

              	
                1.16
                  tons of refrigeration 

              
	
                7

              	
                Split
                  - upper

              	
                Electra-Elco
                  - room 9 - M2-7

              	
                1.16
                  tons of refrigeration 

              
	
                8

              	
                Split
                  - upper

              	
                Electra-Elco
                  - room 10 - M2-8

              	
                1.16
                  tons of refrigeration 

              
	
                9

              	
                Split
                  - upper

              	
                Electra-Elco
                  - room 11 - M2-9

              	
                1.16
                  tons of refrigeration 

              
	
                10

              	
                Split
                  - upper

              	
                Electra-Elco
                  - room 86 (communications)

              	
                1.16
                  tons of refrigeration 

              

      

       

      
 

      
        

          
            	
                    Taya
                      Center Ltd.

                  	 	
                    Wintegra
                      Ltd.

                  
	 	 	 
	
                    [Signature
                      and Stamp}

                  	 	
                    [Signature
                      and Stamp]

                  

          

        

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

          

            TRANSLATION
              FOR CONVINIENCE 

             

            Addendum
              to the Unprotected Rental Agreement Dated July 15,
              2001

            Made
              and
              executed in Raanana, July 31, 2004

            

            Between

            Taya
              Center Ltd., Public Co. 52-002929-9

            Of
              16
              Hecharoshet St., Industrial Zone, Raanana

            Tel:
              09-7481188; Fax: 09-7485588

            (Hereinafter
              - “the
              Lessor”)

            First
              Party

            

            And

            Wintegra
              Ltd., Private Co. 51-290107-5

            Of
              9
              Hataasiya St., Taya Center

            Industrial
              Zone, Raanana

            Tel:
              09-7439998, Fax: 09-7439992

            (Hereinafter
              - “the
              Lessee”)

            Second
              Party

            

            
              	
                      Whereas

                    	
                      the
                        Lessor and the Lessee are parties to an unprotected rental
                        agreement dated
                        July 15, 2001, including its various appendices, attached
                        to this Addendum
                        and constituting an integral part thereof (hereinafter, jointly
                        -
                        “the
                        Rental Agreement”).

                    
	 	 
	
                      And
                        whereas

                    	
                      the
                        Lessee is interested in renting an additional area (as defined
                        below) from
                        the Lessor, all in accordance with the conditions of the
                        Rental Agreement
                        and of this Addendum.

                    
	 	 
	
                      And
                        whereas 

                    	
                      the
                        Parties are interested in recording these agreements in
                        writing.

                    

            

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

               

            

            Accordingly,
              it has been declared, conditioned, and agreed as
              follows:

            

            
              	1.     	
                      The
                        Preamble to this Addendum, including the definitions and
                        declarations
                        included therein, as well as the appendices attached thereto,
                        constitute
                        an integral part thereof.

                    

            

            

            
              	2.     	
                      All
                        the terms defined in the Rental Agreement shall have the
                        meaning
                        attributed thereto therein in this
                        Addendum.

                    

            

            

            
              	3.     	
                      The
                        Additional Premises
                        Offices
                          with an area of 80.00 square meters (eighty square meters)
                          situated on the
                          third floor of the Building, defined as part of Unit C-4,
                          adjacent to the
                          Premises already in use by the Lessee in accordance with
                          the Rental
                          Agreement as above - at 6-8 Hamasger St., Industrial Zone,
                          Raanana
                          (including a proportionate part of the public areas as
                          stated in Section
                          2.2 of the Rental Agreement), the net area of which is
                          marked in red on
                          the Diagram (“Appendix
                          A”)
                          (above and hereinafter - “the
                          Additional Premises”).

                      

                    

            

            

            
              	4.     	
                      Delivery
                        of Possession; Adaptations to the Premises

                      InSection
                        3 of the Rental Agreement, and regarding the Additional Premises
                        in
                        accordance with the Addendum to the Rental Agreement, the
                        following
                        changes shall be made:

                    

            

            
              
                	
                      	4.1	
                        Section
                          3.3 shall be amended to:

                        
                          The
                            Premises shall be available for the Lessee’s possession “as is,” not later
                            than August 1, 2005, and, if necessary, immediately after
                            the signing of
                            this Addendum by the Parties, and after payment of the
                            Rental Fee as
                            detailed in Section 6.2 below.

                          The
                            Lessee declares that it is aware and expressly agrees
                            that, in any case,
                            the Lessor is not liable for the quality of any of the
                            items and
                            adaptations to the Premises, including the quality of
                            carpeting, the
                            quality of the acoustic ceilings, the quality of the
                            lighting or the lack
                            of lights, electricity infrastructure, telephones, communication,
                            etc.

                        

                      

              

            

            

            
              	
                    	4.2	
                      Sections
                        3.5.1 through 3.5.5 in Section 3.5 of the Rental Agreement
                        are hereby
                        nullified with regard to the Additional Premises in accordance
                        with this
                        Addendum.

                    

            

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            
              	
                    	4.3	
                      All
                        adaptation works of any type and kind (construction, electricity,
                        air-conditioning, communications, etc.) required in order
                        to attach and
                        connect the Additional Premises to the Premises also serving
                        the Lessee in
                        accordance with the Rental Agreement shall be executed solely
                        by the
                        Lessee and at its expense, with prior coordination with the
                        Lessor.

                    

            

            

            
              	5.     	
                      Rental
                        Period

                    

            

            
              	
                    	5.1	
                      The
                        Lessor hereby lets to the Lessee, and the Lessee hereby rents
                        from the
                        Lessor, the Additional Premises for a period of rental of
                        thirteen (13)
                        months, commencing on August 1, 2005 and ending on August
                        31, 2006
                        (hereinafter - “the
                        Rental Period of the Additional Premises”).

                    

            

            

            
              	
                    	5.2	
                      At
                        the end of the Rental Period, the Lessor shall have the option
                        to extend
                        the rental in accordance with the Rental Agreement and in
                        accordance with
                        this Addendum for an additional rental period - the area
                        of the Premises
                        and the area of the Additional Premises together - as stated
                        in Section
                        4.2 of the Rental Agreement, viz. from September 1, 2006
                        through August
                        31, 2009 (hereinafter - “the
                        Additional Rental Period of the Additional Premises”).

                    

            

            

            
              	6.     	
                      Rental
                        Fee for the Additional Premises and Manner of Payment
                        Thereof

                    

            

            
              	
                    	6.1	
                      The
                        Parties hereby establish that the rental fee to be paid to
                        the Lessor by
                        the Lessee for rental of the Additional Premises, for the
                        Rental Period
                        and the Additional Rental Period, as stated in Section 4.2
                        of the Rental
                        Agreement, shall be:

                    

            

            
              	
                    	6.1.1	
                      NIS
                        46.00 (forty-six new Israeli shekels), for the period between
                        August 1,
                        2005 and August 31, 2006 (a period of 13 months, from the
                        date of
                        commencement of the rental), linked to the Base Index as
                        shall be detailed
                        below, and in accordance with the provisions of the Rental
                        Agreement - per
                        month, and for each square meter of the Additional Premises
                        (hereinafter -
                        “the
                        Basic Rental Fee”).

                    

            

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

             

            
              	
                    	6.1.2	
                      During
                        the Additional Rental Period, if and insofar as this is realized,
                        the
                        Lessee shall pay a Rental Fee to the Lessor in accordance
                        with the
                        evaluation of a surveyor as detailed in Section 7 of the
                        Rental
                        Agreement.

                    

            

            

            
              	
                    	6.2	
                      The
                        payments shall be made once quarterly in advance. The first
                        payment, for
                        the period of two months only, from August 1, 2005 through
                        September 30,
                        2005, is made on the occasion of the signing of this Addendum,
                        and all the
                        remaining payments shall be made, as stated, once quarterly
                        in advance, as
                        stipulated in Section 6.5 of the Rental
                        Agreement.

                    

            

            

            
              	
                    	6.3	
                      The
                        Basic Rental Fee in accordance with the content of Section
                        6.1.1 shall be
                        linked to changes in the Index as stated in Section 6.4 of
                        the Rental
                        Agreement. The Base Index for the purposes of the Rental
                        Fee for the
                        Additional Premises is the Index published on June 15, 2005
                        (for May 2005)
                        - 107.87 points, for the index base from the year
                        2000.

                    

            

            

            
              	
                    	6.4	
                      Collection
                        of the above Rental Fee, with the addition of the maintenance
                        fee and the
                        remaining payments mentioned in the Rental Agreement, shall
                        be in
                        accordance with the content of Section 6.5 of the Rental
                        Agreement, and
                        the “standing order” for the charging of the Lessor’s account shall also
                        serve for collection of all payments required in accordance
                        with this
                        Addendum.

                    

            

            

            
              	5.     	
                      Maintenance
                        Fee / Maintenance Services

                      The maintenance / maintenance
                        services fee
                        and other payments that shall be made by the Lessee to the
                        Lessor for the
                        area of the Additional Premises shall be at the level and
                        in accordance
                        with the calculation of the maintenance / maintenance services
                        fee per
                        square meter, as stated in Sections 16.1 and 16.2 (regarding
                        maintenance /
                        maintenance services fee), and in Section 7.3 (regarding
                        participation
                        toward insurance fees) of the Rental
                        Agreement.

                    

            

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            
              	7.     	
                      With
                        the exception of the express content of this Addendum, there
                        is not and
                        shall not be any amendment or addition or change to the Rental
                        Agreement,
                        and all provisions of the Agreement shall apply to the Additional
                        Premises
                        in accordance with this Addendum, with the changes expressly
                        stated
                        therein, and with such changes as required in accordance
                        with the
                        matter.

                    

            

            

            Witnessed
              by the signing of this Addendum

            
               

              
 

              
                

                  
                    	
                            Taya
                              Center Ltd.

                          	 	
                            Wintegra
                              Ltd.

                          
	 	 	 
	
                            [Signature
                              and Stamp]

                          	 	
                            [Signature
                              and Stamp]

                          

                  

                   

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  

                    TRANSLATION
                      FOR CONVINIENCE 

                    

                    Unprotected
                      Rental Agreement

                    

                    Made
                      and executed in Tel Aviv, July 15th,
                      2001

                    

                    Between

                    Taya
                      Center Ltd., Public Co. 52-002929-9

                    Of
                      14
                      Hecharoshet St., Industrial Zone, Raanana

                    Tel:
                      09-7481188; Fax: 09-7485588

                    (Hereinafter
                      - “the
                      Lessor”)

                    First
                      Party

                    

                    And

                    Wintegra
                      Ltd., Private Co. 51-290107-5

                    Of
                      9
                      Hataasiya St., Taya Center

                    Industrial
                      Zone, Raanana

                    Tel:
                      09-7439998, Fax: 09-7439992

                    (Hereinafter
                      - “the
                      Lessee”)

                    Second
                      Party

                    

                    Part
                      One: Definitions and Preamble

                    

                    Definitions

                    In
                      this
                      agreement, the following terms shall have the meaning recorded
                      alongside:

                    
                      	
                              “The
                                Industrial Compound” -

                            	
                              An
                                area of approximately 13 dunams situated in the Industrial
                                Zone of
                                Raanana, known as plots 17, 18, 19, and 24 in block
                                8981, marked in brown
                                on the diagram attached to this agreement as Appendix
                                “A.”

                            
	 	 
	
                              “The
                                Building” -

                            	
                              Part
                                of a building of 4 (four) floors, with a total area
                                of approximately 9,500
                                square meters, situated in the area of the Industrial
                                Compound, and marked
                                in green on the diagram (Appendix “A.”)

                            
	 	 

                    

                     

                    
                      
                        
                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                    
                      	
                              “The
                                Premises” -

                            	
                              Offices
                                with an area of 1,119.00 sq.m. (one thousand one
                                hundred and nineteen
                                sq.m.) situated on the third floor of the Building,
                                defined as unit number
                                C-3, and as part of unit number C-4, at 6-8 Hamasger
                                St. in Raanana
                                (including a proportional part of the public areas
                                and as stated in
                                Section 2.2 below), the net area of which is marked
                                in red on the diagram
                                (Appendix “A.”)

                            
	 	 
	
                              “The
                                Rental Period” -

                            	
                              The
                                rental period as stipulated in Section 4 of this
                                agreement.

                            
	 	 
	
                              “The
                                Index”
                                -

                            	
                              The
                                Consumer Price Index as published by the Central
                                Bureau of Statistics, and
                                any index as stated that shall be published by any
                                body or official
                                institution coming in place of this index, whether
                                this shall be based on
                                the same components and/or data or not, all provided
                                that if another index
                                shall replace the Consumer Price Index, and the Central
                                Bureau of
                                Statistics, or any other body or official institution
                                that shall publish
                                this index shall not determine the relationship between
                                it and the
                                Consumer Prices Index, this relationship shall be
                                determined by the
                                Lessor’s accountant.

                            
	 	 
	
                              “The
                                Base Index” -

                            	
                              The
                                Index published on April 15, 2001 (for March 2001)
                                - 99.7
                                points.

                            
	 	 

                    

                     

                    
                      
                        
                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                    
                      	
                              “Dollar”
                                -

                            	
                              The
                                representative exchange rate of the US dollar as
                                published on May 9, 2001
                                - NIS 4.145 to the dollar.

                            
	 	 
	
                              “Month”
                                -

                            	
                              A
                                period beginning on the 1st
                                day of a month in the Gregorian calendar and ending
                                on the last day of
                                that same month in the Gregorian calendar.

                            
	 	 
	
                              “Quarter”
                                -

                            	
                              Three
                                consecutive months.

                            
	 	 
	
                              “Rate
                                of Change in the Index” -

                            	
                              The
                                relationship between the last known Index at the
                                time of any payment in
                                accordance with this agreement and the Base Index.

                            
	 	 
	
                              “The
                                Implementation Plans” -

                            	
                              Plans
                                for the planning and implementation of the works
                                to adapt the Premises to
                                meet the Lessee’s requirements, in accordance with the specifications
                                of
                                requirements for infrastructure as forwarded by the
                                Lessee to the Lessor,
                                including plans for the installation of an airconditioning
                                system,
                                electric plans, plumbing plans, and plans for the
                                internal division of the
                                Premises, to be prepared by the Lessee’s consultants and/or by consultants
                                made available to the Lessee by the Lessor at the
                                Lessee’s responsibility.
                                It is clarified that all the plans prepared by the
                                Lessee are subject to
                                the authorization of the representative of the Lessor
                                - the architect of
                                the Industrial Compound, the electric and communications
                                consultants, the
                                airconditioning consultants, and the project manager
                                on behalf of the
                                Lessor. After authorization of the Implementation
                                Plans by the project
                                manager, who shall be appointed by the Lessor (as
                                described below), and in
                                coordination with the Lessee, these shall be referred
                                to as “the
                                Authorized Implementation Plans.”

                            

                    

                     

                    
                      
                        
                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                    
                      	 	
                              It
                                is clarified that the fees of all the consultants
                                to be appointed by the
                                Lessor for the Lessee, including the fee of the project
                                manager, shall be
                                included in the price of the cost of the works that
                                are the subject of the
                                Authorized Implementation Plans, and as stated in
                                Section 2 of Appendix
                                B-2 below.

                            

                    

                    

                    Part
                      One: Preamble

                    
                      	
                              Whereas

                            	
                              the
                                Lessor is the owner and/or the long-term lessee of
                                the rights to the real
                                estate situated in the Industrial Compound, and is
                                the sole lawful
                                possessor of the Premises, and is eligible and entitled
                                to let these in
                                accordance with this agreement, without any impediment
                                or restriction, and
                                after the Lessor has declared to the Lessee that
                                the Premises are
                                permitted for use within the framework of the Urban
                                Building Plan
                                pertaining thereto, for the purpose of the rental
                                in accordance with this
                                agreement;

                            
	 	 
	
                              And
                                whereas 

                            	
                              the
                                Lessee wishes to rent the Premises for such period,
                                purpose, and
                                remuneration, and on such conditions, as detailed
                                below in this agreement,
                                and the Lessor agrees to let the Premises in accordance
                                with the
                                above;

                            
	 	 
	
                              And
                                whereas

                            	
                              the
                                Parties wish to associate in this unprotected rental
                                agreement, and to
                                determine therein the purpose of the rental, the
                                period thereof, the
                                remuneration to be paid on account thereof, the conditions
                                thereof, and
                                all their remaining mutual rights and obligations,
                                all as detailed in this
                                agreement above and below;

                            

                    

                  

                   

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                    

                      The
                        Parties have therefore declared, conditioned, and agreed
                        as
                        follows:

                      

                      
                        
                          	1.     	
                                   

                                

                        

                         

                        
                          	
                                	1.1	
                                  The
                                    Preamble to this agreement - including the definitions
                                    contained therein -
                                    as well as the appendices attached thereto constitute
                                    an integral part
                                    thereof.

                                

                        

                      

                      

                      
                        	
                              	1.2	
                                The
                                  names of the parts and the titles of the sections
                                  were included in this
                                  agreement solely by way of guidelines, and these
                                  are not to be used in
                                  interpreting this agreement or any of its
                                  provisions.

                              

                      

                      

                      
                        	
                              	1.3	
                                Each
                                  of the Parties hereby declares that no consent
                                  or authorization is
                                  required for its association in this agreement,
                                  and for the execution of
                                  its duties accordingly, and that the signatories
                                  on behalf of each side
                                  are empowered to bind it, as the case may be and
                                  respectively, in
                                  accordance with the provisions of any
                                  law.

                              

                      

                      

                      Part
                        Two: Purpose of Rental; Period of Rental and Delivery of
                        Possession

                      

                      
                        	2.     	
                                The
                                  Purpose of Rental and the Areas of the
                                  Premises

                              

                      

                      
                        	
                              	2.1	
                                The
                                  purpose of the rental, subject to all the remaining
                                  provisions relating to
                                  this matter in this agreement, is the use and management
                                  in the Premises,
                                  by the Lessee alone, of the operation of the offices
                                  of Wintegra
                                  Ltd.
                                  and its commercial operations, which relate to
                                  the field of high-tech -
                                  and for this purpose alone.

                                To prevent
                                  doubt, the Parties hereby
                                  expressly agree that all the Lessee’s operations, in accordance with the
                                  purposes of the rental as stated above, shall be
                                  effected solely in the
                                  area of the Premises; that the Lessee shall at
                                  all times maintain the
                                  cleanliness of the yard and shall not remove any
                                  merchandise and/or
                                  objects from inside the Premises for the purpose
                                  of sale and/or display
                                  and/or for any other purpose not expressly permitted
                                  in accordance with
                                  this agreement.

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                       

                      
                        	
                              	2.2	
                                The
                                  Parties hereby declare and agree that the area
                                  of the Premises as stated
                                  in the Definitions in Part One of this agreement
                                  is calculated in
                                  accordance with the total (gross) area thereof,
                                  i.e. including the area of
                                  the external walls, with the addition of 15% of
                                  the public areas in the
                                  building of which the Building forms an integral
                                  part, and that the
                                  measurement of the said area shall be made together
                                  with the authorized
                                  representatives of the Lessee and shall be with
                                  its
                                  accord.

                              

                      

                      

                      
                        	3.     	
                                Delivery
                                  of Possession: Adaptations to the Premises
                                  -

                              

                      

                      
                        	
                              	3.1	
                                The
                                  Lessor declares that the Premises were constructed
                                  in accordance with all
                                  laws, and have received all the authorizations
                                  and permits from the
                                  authorities for the purpose of the rental as defined
                                  in this agreement;
                                  that no demolition order has been issued pertaining
                                  to or in connection
                                  with the Building, and that the Lessor is not aware
                                  of any grounds
                                  therefore; that a proper certificate of completion
                                  has been received
                                  pertaining to the Building, and that there is no
                                  contractual or other
                                  impediment to the association in this
                                  agreement.

                              

                      

                      

                      
                        	
                              	3.2	
                                The
                                  Lessee hereby declares that it is thoroughly familiar
                                  with the Industrial
                                  Compound and its environs; the Building and the
                                  Premises; and all the
                                  rights connected and/or relating to the rental
                                  in accordance with this
                                  agreement, and having examined all these as stated,
                                  the Lessee declares
                                  that it has found the Premises to be to its satisfaction,
                                  in a fit state,
                                  good and proper for its needs in all details. The
                                  Lessee hereby further
                                  declares that the Lessor has not furnished it with
                                  any description of the
                                  Industrial Compound and/or the Building and/or
                                  the Premises, and that it
                                  is associating in this rental agreement on the
                                  basis of its own
                                  inspections and impressions, and hereby waives,
                                  expressly and in advance,
                                  any claim regarding unsuitability, and, subject
                                  to the content of this
                                  agreement, any other claim of any type and kind
                                  relating to the Industrial
                                  Compound and/or the Building and/or the Premises,
                                  the possible uses
                                  thereof, and its association in this agreement,
                                  excepting a concealed
                                  defect that cannot be discovered in a reasonable
                                  and usual
                                  examination.

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                      

                      
                        	
                              	3.3	
                                The
                                  Premises shall be available for the Lessee’s possession “as is,” and in
                                  proper condition in accordance with the procedure
                                  for the delivery as
                                  agreed by the Parties and as attached thereby as
Appendix
                                  B-1,
                                  dated September 1, 2001, as stated in Section 4.1
                                  below.

                                
                                  The
                                    Lessee declares that it is aware and expressly
                                    agrees that, in any case,
                                    the Lessor is not liable for the quality of any
                                    of the items and
                                    adaptations to the Premises, including the quality
                                    of carpets, the quality
                                    of the acoustic ceilings, the quality of the
                                    lighting or the lack of
                                    lights, electricity infrastructure, telephones,
                                    communication
                                    etc.

                                  The
                                    Lessor must ensure the proper operation of the
                                    airconditioning systems as
                                    of the delivery of possession in the Premises
                                    - September 1, 2001, as
                                    stated in Section 3.3 above (however, the responsibility
                                    for the
                                    maintenance of the airconditioning systems, the
                                    insurance thereof, and the
                                    return thereof on completion of the Rental Period
                                    in proper condition is
                                    borne by the Lessee and at its expense), as well
                                    as the maintenance of the
                                    firefighting system as detailed in Section 14.6
                                    below. The Lessee shall
                                    ensure association (at its expense) with a qualified
                                    body for the purpose
                                    of obtaining maintenance and repair services
                                    for the airconditioning
                                    system and the firefighting system as
                                    stated.

                                

                              

                      

                      

                      
                        	
                              	3.4	
                                The
                                  Premises shall be delivered to the Lessee in proper
                                  condition for the
                                  Lessee’s purposes, in accordance with the procedure for
                                  delivery agreed by
                                  the Parties and attached thereby as Appendix B-2
                                  below.

                              

                      

                      

                      
                        	
                              	3.5	
                                Implementation
                                  of the works for the adaptation of the Premises
                                  to the Lessee’s needs, and
                                  the attention to the Implementation Plans, shall
                                  be as
                                  follows:

                              

                      

                      
                        	
                              	3.5.1	
                                On
                                  July 1, 2001 (“the
                                  Date of Delivery of the Plans”),
                                  the Lessee forwarded that part of the Implementation
                                  Plans for which it is
                                  responsible, in writing, for the authorization
                                  of the Lessor and/or the
                                  project manager, including specifications and statements
                                  of quantities.
                                  Upon receipt of these plans by the Lessor, the
                                  latter forwarded these to
                                  the various consultants appointed thereby for the
                                  Lessee (airconditioning
                                  consultant, electric consultant, safety consultant,
                                  and plumbing
                                  consultant), and ensured that these written plans
                                  for the implementation
                                  of the works would be forwarded for the authorization
                                  of the Lessee, the
                                  Lessor, and the project manager by July 10, 2001,
                                  and that these would
                                  discuss and (insofar as required) amend the plans.
                                  On the authorization of
                                  the plans by the Lessee, the Lessor, and the project
                                  manager, authorized
                                  Implementation Plans, including specifications
                                  and statements of
                                  quantities for each work, shall be presented by
                                  the various consultants to
                                  the project manager and/or the Lessor, by July
                                  19,
                                  2001.

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                       

                      
                        	
                              	3.5.2	
                                Within
                                  ten (10) days from the authorization of the Implementation
                                  Plans (but not
                                  later than July 29, 2001), tenders shall be issued
                                  for the execution of
                                  the necessary works. Estimates on behalf of various
                                  executors and/or
                                  contractors that shall be submitted relating to
                                  the execution of the works
                                  that are the subject of the Authorized Implementation
                                  Plans shall be
                                  forwarded to the Lessee in advance (by Tuesday,
                                  August 7, 2001), and
                                  shall, in any case, be authorized not later than
                                  seven (7) business days
                                  after their receipt (August 14, 2001). Without
                                  derogating from the above,
                                  it is agreed that, insofar as no comments are received
                                  on behalf of the
                                  Lessee regarding the estimates that shall be forwarded
                                  to its
                                  notification, within three (3) days from the date
                                  of transfer thereto,
                                  this shall be considered tantamount to the Lessee’s agreement to the
                                  execution of the specific work at the price stated
                                  in the estimate
                                  forwarded for its review, and the Lessee shall
                                  be prevented from making
                                  any claim regarding the price of execution and
                                  the identity of the
                                  executor.

                              

                      

                      

                      
                        	
                              	3.5.3	
                                The
                                  Lessor undertakes that the Lessee shall receive
                                  the Premises when these
                                  are ready for the Lessee’s activities in the Premises, according to the
                                  Authorized Implementation Plans, and in accordance
                                  with the purpose of the
                                  rental, not later than October 16, 2001. The actual
                                  date of receipt of the
                                  Premises shall be referred to above and below as
“the
                                  Actual Date of Delivery of Possession.”
                                  It is hereby agreed by the Parties that a delay
                                  of one week in the Actual
                                  Date of Delivery of Possession, viz. through October
                                  23, 2001, shall not
                                  constitute a breach of this agreement by the Lessor.

                                As of September
                                  1, 2001, the Lessee shall
                                  be enabled to enter the Premises for the purpose
                                  of preparing these for
                                  its needs, all at the Lessee’s expense and liability, provided that this
                                  is possible, in the Lessor’s opinion, and in coordination with the
                                  Lessor’s project manager.

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                      

                      
                        	
                              	3.5.4	
                                Notwithstanding
                                  the above, it is emphasized that any changes required
                                  to the Authorized
                                  Implementation Plans (as defined in the Preamble
                                  to this agreement) are
                                  liable to cause a delay (relatively) in the Date
                                  of Delivery of
                                  Possession. The Lessee shall be required, in the
                                  said case, to pay rental
                                  fee even for the period of the delay caused due
                                  to changes requested by
                                  the Lessee after the authorization of the Implementation
                                  Plans, provided
                                  that the delay was not caused by the Lessor, or
                                  due to delays in the
                                  renovation works themselves not under the Lessee’s control.

                                It is clarified
                                  and emphasized that the
                                  entire content of the sub-sections of Section 3.5
                                  above is conditioned and
                                  subject to full, precise, and prompt compliance
                                  with the Lessee’s
                                  obligations relating to the specifications, the
                                  authorization of the
                                  Implementation Plans, and other assistance as shall
                                  be required thereof in
                                  connection with the execution of the works that
                                  are the subject of the
                                  Authorized Implementation Plans.

                              

                      

                      

                      
                        	
                              	3.5.5	
                                To
                                  prevent doubt, it is hereby clarified that the
                                  Lessee shall not be liable
                                  for any damage caused to the Premises during the
                                  period of adaptation of
                                  the Premises to its needs, insofar as these works
                                  were not executed by it,
                                  as stated at the end of Section 3.5.3, and, in
                                  any case, it does not have
                                  any employer-employee relations with those engaged
                                  in the work of adapting
                                  the Premises to its needs.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	
                                3.5.6

                              	
                                The
                                  Parties agree that, on delivery of possession of
                                  the Premises to the
                                  Lessee, responsibility for all the systems installed
                                  in the Premises shall
                                  be transferred to the Lessee, after completion
                                  of the customary period of
                                  warranty, regarding each specific issue, all according
                                  to the inspection
                                  periods as detailed in the Addendum to the Sales
                                  Law (Apartments), and in
                                  accordance with the content of Section 3.3
                                  above.

                              

                      

                      

                      
                        	
                              	3.6	
                                The
                                  Lessee confirms that it is aware that the western
                                  passage of the Building
                                  and of the Premises (Core 1) shall also serve as
                                  an escape corridor for
                                  the adjacent premises, subject to the requirements
                                  of the various
                                  authorities, the Municipality of Raanana, the fire
                                  department, police,
                                  etc.

                              

                      

                      

                      
                        	4.     	
                                Rental
                                  Period

                              

                      

                      
                        	
                              	4.1	
                                The
                                  Lessor hereby lets the Premises to the Lessee,
                                  and the Lessee hereby rents
                                  the Premises from the Lessor, for a rental period
                                  of five (5) years
                                  commencing on September 1, 2001, and ending on
                                  August 31, 2006
                                  (hereinafter - “the
                                  Rental Period.”)

                              

                      

                      

                      
                        	
                              	4.2	
                                Upon
                                  completion of the Rental Period, the Lessee shall
                                  have the option of
                                  extending the rental of the Premises in accordance
                                  with this agreement for
                                  an additional rental period of 36 months, commencing
                                  on September 1, 2006,
                                  and ending on August 31, 2009 (hereinafter - “the
                                  Additional Period,”)
                                  subject to the following:

                              

                      

                      
                        	
                              	(A)	
                                That,
                                  through the said date, the Lessee has complied
                                  fully and completely with
                                  all its obligations in accordance with the rental
                                  agreement, and
                                  -

                              

                      

                      
                        	
                              	(B)	
                                That
                                  the Lessee has not informed the Lessor in writing
                                  of its desire not to
                                  renew and extend this rental agreement for the
                                  Additional Period, not
                                  later than nine (9) months prior to the end of
                                  the preceding Rental
                                  Period.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	
                                4.3

                              	
                                If
                                  the validity of this rental agreement is extended
                                  on the basis of the
                                  content of Section 4.2 above, the term “Rental Period,” wherever this
                                  appears in this agreement, shall include both the
                                  Rental Period and the
                                  Additional Period (if the option on account thereof),
                                  with those changes
                                  expressly stated in this agreement (for example,
                                  regarding the
                                  determination of the Updated Rental Fee as stated
                                  in Section 7 below), and
                                  with those changes as required in accordance with
                                  the matter, and all the
                                  provisions of this agreement (with the exception
                                  of the granting of the
                                  option - in accordance with Section 4.2 above)
                                  shall also apply to the
                                  Additional Period as stated, with those changes
                                  as required in accordance
                                  with the matter.

                              

                      

                      

                      
                        	5.     	
                                If
                                  the Lessee ceases to use and/or vacates the Premises
                                  prior to the end of
                                  the Rental Period and for any reason, this shall
                                  not release the Lessee
                                  from all its obligations in accordance with this
                                  agreement and, in
                                  particular - but without derogating from the generality
                                  of the above - its
                                  obligations to pay the Lessor the full Rental Fee
                                  and the remaining
                                  payments pertaining to this agreement through the
                                  end of the Rental
                                  Period.

                              

                      

                      

                      Part
                        Three: Rental Fee and Manner of Payment Thereof

                      
                        	6.     	
                                 

                              

                      

                      
                        	
                              	6.1	
                                The
                                  Parties hereby establish that the Rental Fee that
                                  shall be paid by the
                                  Lessee to the Lessor pertaining to the rental of
                                  the Premises in
                                  accordance with this agreement shall
                                  be:

                              

                      

                      
                        	
                              	6.1.1	
                                During
                                  the period between September 1, 2001 and August
                                  31, 2004, the Rental Fee
                                  shall be in the sum of USD 17.16 (seventeen US
                                  dollars and an additional
                                  16 cents) per month, in new shekels, for each square
                                  meter of the Premises
                                  (hereinafter - “the
                                  Basic Rental Fee.”)

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	
                                6.1.2

                              	
                                In
                                  the period between September 1, 2004 and August
                                  21, 2006, the Rental Fee
                                  shall be at the level of the Rental Fee actually
                                  current as of August 31,
                                  2004, with the real addition of three percent (3%)
                                  (hereinafter -
                                  “the
                                  Updated Rental Fee.”)

                              

                      

                      

                      
                        	
                              	6.1.3	
                                During
                                  the Additional Rental Period, if and insofar as
                                  this is realized, the
                                  Lessee shall pay the Lessor a Rental Fee in accordance
                                  with the evaluation
                                  of a assessor as detailed in Section 7
                                  below.

                              

                      

                      

                      
                        	
                              	6.2	
                                Upon
                                  the signing of this agreement, the Lessee paid
                                  the Lessor Rental Fees
                                  quarterly in advance. All remaining payments shall
                                  be effected once
                                  quarterly, in advance, at the beginning of each
                                  calendar quarter, during
                                  the course of the Rental Period. At the beginning
                                  of each quarter, a tax
                                  invoice shall be issued to the Lessee including
                                  Index and/or Updating
                                  increments in accordance with this agreement, and
                                  payment shall be subject
                                  to receipt of the invoice as stated by the 5th
                                  day of the month of the beginning of each
                                  quarter.

                              

                      

                      

                      
                        	
                              	6.3	
                                Notwithstanding
                                  the content of Section 6.2 above, the Lessee shall
                                  be exempt from payment
                                  of Rental Fee for the period between December 1,
                                  2001 and March 31,
                                  2002.

                              

                      

                      

                      
                        	
                              	6.4	
                                The
                                  sums detailed in Sections 6.1.1 through 6.1.3 shall
                                  be converted in
                                  accordance with the representative exchange rate
                                  of the Dollar as of May
                                  9, 2001 (NIS 4.145 to one dollar), and shall be
                                  linked to changes in the
                                  Index, so that in each payment occurring in accordance
                                  with this
                                  agreement, the due Rental Fee shall be readjusted
                                  in accordance with the
                                  rate of change in the Index, and the adjusted Rental
                                  Fee shall, at that
                                  time, and for every matter and purpose, be considered
                                  the Basic Rental Fee
                                  in the framework of this agreement.

                              

                      

                      

                      
                        	
                              	6.5	
                                With
                                  the goal of facilitating the collection of the
                                  Rental Fee and the payments
                                  pertaining to maintenance, parking, and charges
                                  for electricity, the
                                  Lessee shall, on the signing of this agreement,
                                  sign a “standing order”
                                  for the charging of the Lessee’s bank account, this once a Quarter (in
                                  advance) as stated. The Lessee undertakes to sign
                                  any additional
                                  documents, if required, relating to the regulation
                                  of the payment by
                                  standing order as stated above, at the first request
                                  of the
                                  Lessor.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	
                                6.6

                              	
                                Value
                                  Added Tax paid by the Lessee to the Lessor shall
                                  be added to the Rental
                                  Fee and the other payments, together with the Rental
                                  Fee and the other
                                  payments, in a standing order as detailed in Section
                                  6.5 above, and in
                                  such amount as shall be required by law, and against
                                  a lawful tax
                                  invoice.

                              

                      

                      

                      
                        	7.     	
                                Rental
                                  Fees during the Additional
                                  Period

                              

                      

                      
                        	
                              	7.1	
                                120
                                  days prior to the end of the Rental Period, and
                                  subject to the content of
                                  Section 4 above, the Parties shall appoint a qualified
                                  assessor to
                                  determine the Rental Fee from September 1, 2006
                                  through August 31, 2009
                                  (in this section - “the Rental Fee in the Additional Period.”) In the
                                  event of disagreements regarding the identity of
                                  the assessor that shall
                                  not be resolved within 15 days from May 1, 2006
                                  (“the Appointment Date,”)
                                  each Party shall appoint a assessor on its behalf
                                  who shall act in
                                  accordance with the content below.

                              

                      

                      

                      
                        	
                              	7.2	
                                The
                                  Parties (jointly or severally, as the case may
                                  be) shall instruct the
                                  assessor to offer an opinion on the determining
                                  of the Updated Rental Fee,
                                  and shall cause the said opinion to be presented
                                  not later than 30 days
                                  after the Appointment Date.

                              

                      

                      

                      
                        	
                              	7.3	
                                The
                                  Parties (jointly or severally, as the case may
                                  be) shall instruct the
                                  assessor to base his opinion on the rental fees
                                  current at that time in
                                  similar premises (in area, location, environmental
                                  conditions, and the
                                  internal and external quality of the building,
                                  including any improvements
                                  made by the Lessee, but excluding improvements
                                  that are tantamount to
                                  chattel and which the Lessee is entitled to take
                                  at the end of the Rental
                                  Period in accordance with the provisions of this
                                  agreement) situated in
                                  the same area and serving similar purposes as those
                                  served by the
                                  Building, subject to all adjustments as shall be
                                  required, in accordance
                                  with the content of Section 7.5
                                  below.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	
                                7.4

                              	
                                If
                                  the Rental Fee determined in the opinion of the
                                  assessor appointed by the
                                  Lessor shall be higher than the Rental Fee determined
                                  in the opinion of
                                  the assessor appointed by the Lessee in a rate
                                  of up to 10%, then the
                                  Updated Rental Fee shall be set to the amount determined
                                  by the assessor
                                  appointed by the Lessor, less half the difference
                                  between this amount and
                                  the amount of Rental Fee determined by the assessor
                                  appointed by the
                                  Lessee (for example, if the Lessor’s assessor determined USD 30 and the
                                  Lessee’s assessor determined USD 27, the Updated Rental
                                  Fee shall be USD
                                  28.50). If the said difference is greater than
                                  the proportion of ten
                                  percent (10%) as stated, the two assessors shall
                                  then be required, not
                                  later than 15 days from the date on which the latter
                                  of the two furnished
                                  its opinion as stated above, to decide on a third
                                  assessor who shall
                                  determine the Updated Rental Fee, subject to all
                                  the provisions relating
                                  to this matter in this agreement, and the opinion
                                  of this assessor, which
                                  shall be delivered not later than 30 days after
                                  the two said assessors
                                  have contacted him as stated above, shall be final
                                  and binding for this
                                  matter.

                                If either Party
                                  shall refrain from
                                  performing its obligations in accordance with this
                                  Section 7 (including
                                  its sub-sections), then, in addition to the provisions
                                  of any law, this
                                  action or fault shall be considered as consent
                                  to the charging and
                                  determination of the Updated Rental Fee in accordance
                                  with the
                                  determination of the Party observing this
                                  agreement.

                              

                      

                      

                      
                        	
                              	7.5	
                                The
                                  Parties agree that, in any case, the Rental Fee
                                  in the Additional Period
                                  shall not be lower than the Updated Rental Fee
                                  as current at the time of
                                  granting of the opinion of the assessor/s as relevant
                                  to this
                                  matter.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	7.6	
                                The
                                  Rental Fee in the Additional Period as determined
                                  in accordance with the
                                  content above and as introduced and applied as
                                  of September 1, 2006, shall
                                  be linked to the Index, provided that the Base
                                  Index constituting the
                                  Index for the determining of the Updated Rental
                                  Fee shall be that Base
                                  Index known at the time of the granting of the
                                  opinion in accordance with
                                  which the Rental Fee shall be determined for the
                                  Additional Period, in
                                  accordance with the content above.

                              

                      

                      

                      
                        	
                              	7.7	
                                Expenses
                                  for an agreed assessor appointed by both Parties
                                  shall be borne by the
                                  Parties, in equal parts. Each Party shall bear
                                  the expenses of the
                                  assessor appointed by it alone (if any). Expenses
                                  of the assessor
                                  appointed by the Parties, in accordance with the
                                  content of Section 7.4
                                  above, shall be borne by the Parties in equal
                                  parts.

                              

                      

                      

                      Part
                        Four: Additional Payments Incumbent on the Lessee

                      
                        	8.     	
                                In
                                  addition to the Rental Fee to be paid by the Lessee
                                  to the Lessor, as
                                  stated in Part Three of this agreement, the Lessee
                                  hereby undertakes to
                                  pay all the following payments to the relevant
                                  authorities and/or to the
                                  Lessor:

                              

                      

                      
                        	
                              	8.1	
                                All
                                  taxes, levies, municipal taxes, licenses, compulsory
                                  loans, and other
                                  obligatory payments, government and municipal,
                                  which are and/or which
                                  shall be imposed - on the lessee or the possessor
                                  of premises - for the
                                  current maintenance of the Premises themselves
                                  and/or for the use thereof
                                  and/or for the business that shall be pursued therein
                                  (all the above shall
                                  henceforth, for the sake of abbreviation, be referred
                                  to as “the
                                  Taxes”),
                                  as these shall be determined by the above authorities
                                  pertaining to the
                                  area of these Premises.

                                The Lessor
                                  shall bear all taxes, levies
                                  (including betterment levy for exceptional use),
                                  municipal taxes,
                                  licenses, compulsory loans, and other obligatory
                                  payments, government and
                                  municipal, which are and/or which shall be imposed
                                  on the owner of the
                                  Premises.

                              

                      

                       

                      
                        	
                              	8.2	
                                All
                                  licenses and payments relating to current consumption
                                  uses, including
                                  consumption of water, electricity, and telephones
                                  in the Premises,
                                  provided that - 

                              

                      

                      
                         

                        
                          
                            
                            

                          

                          
                            
                            

                            
                              

                            

                          

                          
                            
                            

                          

                           

                        

                        
                          	
                                	 	
                                  The
                                    Lessor shall ensure the installation of sub-meters
                                    for the Premises, at
                                    the Lessor’s expense. 

                                  
                                    The
                                      Lessor shall pay, directly to the Electric
                                      Company, the charges received
                                      for the use made by the Lessee of the electric
                                      grid. Without derogating
                                      from the above, insofar as the electric meters
                                      shall not be in the
                                      Lessee’s name or shall not reflect the use made of
                                      the electric grid, the
                                      Lessor shall pay the said charges for the Lessee
                                      and shall charge the
                                      Lessee for their said use (in accordance with
                                      the display on the said
                                      meters), once a Quarter, in accordance with
                                      the current tariff of the
                                      Electric Company, and the collection shall
                                      be effected by means of the
                                      “standing order” (subject to the content of Section 6.5
                                      above).

                                    If,
                                      at any time, the Electric Company shall decide
                                      to connect the Lessee
                                      directly to the electric grid, and shall request
                                      this of the Lessor or of
                                      the Lessee, as the case may be, then the Lessee
                                      undertakes to take all
                                      actions as shall be required thereof in this
                                      context; to make all the
                                      payments required in this matter to the Electric
                                      Company, and to release
                                      the Lessor from any liability in connection
                                      with the charges for the
                                      consumption of electricity and/or the connection
                                      to the electric grid,
                                      which shall be borne by it as stated. The Lessee
                                      undertakes not to contact
                                      the Electric Company and request the connection
                                      of the Premises directly
                                      to the electric grid.

                                    Notwithstanding
                                      the above, the Parties hereby agree that the
                                      direct expenses for the
                                      direct connection of the Premises to the Electric
                                      Company, if any, shall
                                      be divided between the Parties in equal
                                      parts.

                                  

                                

                        

                      

                       

                      
                        	
                              	
                                8.3

                              	
                                An
                                  appropriate proportionate part of the insurance
                                  expenses and fees as these
                                  shall be calculated by the Lessor, and as paid
                                  thereby, for the insurance
                                  of the Building of which the Premises form an integral
                                  part, and of the
                                  systems thereof (when the insurance does not include
                                  the contents of the
                                  Premises and the repair thereof, changes and additions
                                  to the Premises
                                  made by and/or for the Lessee), against loss or
                                  damage due to fire risks,
                                  explosion, earthquake, storm and hurricane, flood
                                  and water damage,
                                  strikes and malicious damage, and against any additional
                                  risk required in
                                  the Lessor’s opinion.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	8.4	
                                It
                                  is expressly agreed that the preparation of insurance
                                  as stated above
                                  shall not derogate from the Lessee’s liability, whether in accordance with
                                  this agreement or in accordance with law, and shall
                                  not impose any
                                  liability on the Lessor regarding loss or damage,
                                  or other damage caused
                                  to a third party in the Industrial Compound and/or
                                  in any other
                                  place.

                              

                      

                      

                      
                        	
                              	8.5	
                                Subject
                                  to the Lessor’s right not to rebuild a building or a part of
                                  a building
                                  damaged beyond repair, it is hereby agreed that
                                  if damage covered by the
                                  insurance as stated in this section above is caused,
                                  the insurance
                                  payments received from the insurer shall be used
                                  to repair the damages on
                                  account of which the insurance payments as stated
                                  shall be
                                  made.

                              

                      

                      

                      
                        	
                              	8.6	
                                Payments
                                  for maintenance services as detailed in Section
                                  16
                                  below.

                              

                      

                      

                      
                        	
                              	8.7	
                                Insofar
                                  as any of the amounts the Lessee shall be liable
                                  to pay to the Lessor in
                                  accordance with Section 8 above shall be based
                                  on an account relating to
                                  the Industrial Compound and/or the Building of
                                  which the Premises form an
                                  integral part, the Lessee shall pay the Lessor
                                  an appropriate relative
                                  part of the total amount of the account, provided
                                  that, for the purpose of
                                  calculating the Lessee’s proportional part in the said payments, the
                                  relationship between the area of the Premises and
                                  the total area of the
                                  Industrial Compound, and/or of the Building of
                                  which the Premises for an
                                  integral part, as the case may be, shall be taken
                                  into account, without
                                  reference to the extent to which these are occupied
                                  by other
                                  tenants.

                              

                      

                       

                      

                      Part
                        Five: Lessee’s Obligations

                      
                        	9.     	
                                 

                              

                      

                      
                        	
                              	9.1	
                                The
                                  Lessee hereby undertakes to comply with all laws,
                                  regulations, and by-laws
                                  applying and/or which shall apply to the Premises,
                                  to the use thereof, and
                                  to the Lessee’s business in accordance with the purpose of the
                                  rental
                                  (Section 2 above) during the Rental Period, regarding
                                  all works and
                                  actions that shall be undertaken by the Lessee
                                  in the
                                  Premises.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                        
                          	
                                	 	
                                  The
                                    Lessee hereby undertakes to receive a business
                                    license from the local
                                    authority for the management of its business
                                    and operations in the
                                    Premises, and to comply with all the conditions
                                    of the said license for
                                    the entire duration of the Rental Period. The
                                    Lessee expressly declares
                                    that the relevant authorities have informed it
                                    that it is eligible to
                                    receive a business license as stated in accordance
                                    with the purpose of the
                                    rental, and that it undertakes to present the
                                    business license to the
                                    Lessor as stated at any time as it is requested
                                    by the
                                    Lessor.

                                  
                                    In
                                      addition, the Lessee releases the Lessor with
                                      regard to any liability
                                      accruing from obtaining of the business license
                                      as stated, and undertakes
                                      to indemnify the Lessor for any damage caused
                                      to the Premises due to the
                                      breach of the Lessee’s obligations as mentioned in this Section
                                      9.1

                                  

                                

                        

                         

                      

                      
                        	
                              	9.2	
                                The
                                  Lessee hereby undertakes not to use the Premises,
                                  or any part thereof, in
                                  a manner that will cause noise, odors, vibrations,
                                  and/or smoke that are
                                  greater than is reasonable, with attention to the
                                  character of the area as
                                  a whole, and the character of the immediate vicinity
                                  in particular, as
                                  well as the purpose of the rental in accordance
                                  with this agreement, and
                                  shall ensure that its use of the Premises - in
                                  accordance with the purpose
                                  of the rental as stated - shall not disturb and/or
                                  harm the use and
                                  activities of the remaining holders in the Industrial
                                  Compound, and/or
                                  that it shall not violate the provisions of any
                                  law. The Lessee hereby
                                  further undertakes not to place equipment of any
                                  type outside the internal
                                  area of the Premises, including the removal of
                                  merchandise and such like,
                                  and to pay strict attention to the collection of
                                  waste and
                                  boxes.

                              

                      

                      

                      
                        	
                              	9.3	
                                The
                                  Lessee hereby undertakes not to discharge into
                                  the sewage system, and not
                                  to cause to be discharged therein, waste that is
                                  not suitable in its
                                  profile to the instructions of the Ministry of
                                  Health and the local
                                  authority and to the provisions of any
                                  law.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	9.4	
                                If,
                                  for any reason relating to the Lessee, a prohibition
                                  or an impediment in
                                  accordance with any law is imposed on the Lessee
                                  to use the Premises for
                                  any of the purposes of rental as established in
                                  this agreement, including
                                  as the result of the non-receipt or the nullification
                                  or the failure to
                                  display a permit or license the Lessee is required
                                  to hold in accordance
                                  with this agreement and in accordance with any
                                  law, or for the issuing by
                                  a judicial authority or by any other empowered
                                  authority (hereinafter -
                                  “the
                                  Impediment,”)
                                  the Lessee shall immediately cease to make any
                                  use of the Premises for the
                                  entire duration of the period in which the Impediment
                                  shall be extant. The
                                  Parties expressly agree that the creation of the
                                  Impediment as stated
                                  shall not grant the Lessee the right to nullify
                                  this agreement and shall
                                  not release it from its obligation to observe,
                                  fully and promptly, all its
                                  obligations (including, without derogating from
                                  the generality of the
                                  above, the execution of all payments due in accordance
                                  with this
                                  agreement) for the entire duration of the period
                                  of the
                                  Impediment.

                                The Lessor
                                  declares that it is aware that,
                                  as of the date of signing this agreement, the procedures
                                  by which the
                                  Lessee is required to secure a permit or a license
                                  as stated in this
                                  section have not yet been
                                  completed.

                              

                      

                      

                      
                        
                          	10.   	
                                  In
                                    coordination with the signs consultant on behalf
                                    of the Lessor, the Lessee
                                    is entitled to erect signs (bearing its name)
                                    at the entrance to the
                                    Premises, and by way of orientation to the Premises,
                                    all at its liability
                                    and expense, and in addition to the signs to
                                    be erected by the Lessor for
                                    all the tenants in the
                                    Compound.

                                

                        

                      

                      

                      
                        	11.    	
                                Without
                                  derogating from the content of Section 14 below,
                                  the Lessee shall be
                                  entitled, at its liability and expense, to furnish
                                  the Premises and to
                                  install equipment therein, provided that the furnishing
                                  of the Premises
                                  and the installation of equipment therein shall
                                  not damage the
                                  Premises.

                                The Lessee
                                  undertakes that, in any case,
                                  at the end of the Rental Period or on the actual
                                  termination of the
                                  rental, it shall leave in the Premises for the
                                  ownership of the Lessor,
                                  without any request for payment or otherwise, all
                                  renovations,
                                  adaptations, and/or changes, and/or additions it
                                  shall undertake as
                                  stated, excluding additional airconditioning systems
                                  it shall install in
                                  the Premises, and removable
                                  furniture.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	12.   	
                                Parking

                              

                      

                      
                        	
                              	12.1	
                                The
                                  Lessor undertakes to make available to the Lessee
                                  50 unmarked
                                  (non-specific) parking places in the parking lot
                                  of the Building, and the
                                  Lessee hereby undertakes to rent from the Lessor
                                  the right of use of 50
                                  parking places as stated, on such levels and in
                                  such parking places as
                                  shall be dedicated for this purpose by the Lessor,
                                  and as shall be
                                  allocated by the Lessor from time to time, in return
                                  for the sum of USD 60
                                  (sixty US Dollars) per parking place (covered or
                                  uncovered) per month, or
                                  at such price as shall be current in the same period
                                  for the remaining
                                  tenants in the Taya Center.

                              

                      

                      

                      
                        	
                              	12.2	
                                Notwithstanding
                                  the above, the Parties agree that, for 40 of the
                                  above-mentioned parking
                                  places, the Lessee shall, through December 31,
                                  2001, be charged by the
                                  Lessor by a total of USD 50 (fifty US Dollars)
                                  only for one parking place
                                  (covered or uncovered).

                              

                      

                      

                      
                        	
                              	12.3	
                                The
                                  Lessee is granted the option to increase the number
                                  of parking places
                                  beyond that stated above, in accordance with the
                                  number of parking places
                                  remaining in the parking lot (if any); on the basis
                                  of actual
                                  availability, and at a monthly cost (for one parking
                                  place) in the sum of
                                  USD 60, or at such price as shall be current in
                                  that period for the
                                  remaining tenants in the Taya Center.

                                After such
                                  increase of the number of
                                  parking places, as aforesaid, a decrease of parking
                                  places down to only 50
                                  places, as set forth in Section 12.1, if the Lessee
                                  wishes to do so, shall
                                  require at least a one-month prior notice to the
                                  Lessor.
                                  

                              

                      

                      

                      
                        	
                              	12.4	
                                The
                                  sums detailed in this Section 12 (including the
                                  sub-sections thereof)
                                  shall be converted in accordance with the representative
                                  exchange rate of
                                  the US dollar as known on May 9, 2001, as stated
                                  with regard to the Rental
                                  Fee, and shall be linked to the Consumer Price
                                  Index as stated above. VAT
                                  by law shall be added to the payments due for the
                                  parking. The payments
                                  shall also be effected on a quarterly basis, in
                                  advance, and in accordance
                                  with the procedures for collection as detailed
                                  in Section 6.5
                                  above.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	12.5	
                                The
                                  Lessee undertakes not to use the parking lots situated
                                  at the front of the
                                  Building on Haharoshet St. and Hataasiya
                                  St.

                              

                      

                      

                      
                        	13.   
	
                                 

                              

                      

                      
                        	
                              	13.1	
                                The
                                  Lessee hereby undertakes to use the Premises in
                                  a cautious and reasonable
                                  manner, to refrain from noises, to maintain the
                                  cleanliness of the
                                  Premises, the Building, and the Industrial Compound,
                                  to refrain from
                                  impairing the cleanliness of the Building and the
                                  Industrial Compound, and
                                  to refrain from causing damage and/or spoilage
                                  to the Premises and to the
                                  Building (with the exception of spoilages caused
                                  as the result of
                                  wear-and-tear accruing from ordinary and reasonable
                                  use).

                              

                      

                      

                      
                        	
                              	13.2	
                                The
                                  Lessee shall be obliged to repair immediately -
                                  and at its expense - any
                                  damage and/or harm that shall be caused to the
                                  Premises and/or the
                                  Building, by itself and/or its employees and/or
                                  those using it and/or
                                  those acting on its behalf, excluding reasonable
                                  and ordinary
                                  wear-and-tear.

                                The Lessor
                                  undertakes that any harm
                                  deriving from its faulty construction or use of
                                  poor materials, or other
                                  damages the Lessor is required to repair, shall
                                  be repaired by it promptly
                                  and at its expense, in such manner that the Lessee
                                  shall be able to use
                                  the Premises in a reasonable and normal
                                  manner.

                              

                      

                      

                      
                        	
                              	13.3	
                                If
                                  either Party is obliged to perform a repair under
                                  this agreement, and
                                  fails to perform the said repair within 14 days
                                  from the date on which it
                                  received written notification from the other Party,
                                  the other Party shall
                                  be entitled - but not obliged - to undertake the
                                  said repair, at the
                                  expense of the Party that failed to do so, and
                                  the latter shall be
                                  required to reimburse the Party undertaking the
                                  repair for any amount it
                                  shall expend for the implementation of the repair,
                                  with the addition of
                                  interest in the amount stated in Section 29.3 below,
                                  which shall be
                                  calculated from the date of the expenditure of
                                  the sum and through to its
                                  actual reimbursement.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	14.   
	
                                The
                                  Lessee hereby undertakes not to effect and not
                                  to execute any changes
                                  and/or addition and/or construction works, of any
                                  type and kind (all of
                                  which shall hereinafter be referred to as “Works”)
                                  in the Premises, without obtaining the Lessor’s prior and written consent
                                  thereto:

                              

                      

                      
                        	
                              	14.1	
                                If
                                  the Lessee executes Works without obtaining the
                                  Lessor’s consent thereto,
                                  then the Lessor shall be entitled - without derogating
                                  from its right to
                                  consider this tantamount to a breach of the agreement
                                  as stated in Part
                                  Eleven below (with all this entails)
                                  -

                              

                      

                      
                        	
                              	14.1.1	
                                To
                                  instruct the Lessee to demolish the Works, and
                                  the Lessee shall be
                                  obliged, at its expense, to demolish and execute
                                  as required in order to
                                  restore the Premises to their condition prior to
                                  the execution of the
                                  Works, within 14 days from the date of the Lessor’s instruction.
                                  

                                Provided that
                                  - 

                                If the Lessee
                                  shall fail to respond to the
                                  Lessor’s instruction as stated in this paragraph, the
                                  Lessor shall be
                                  entitled - but not obliged - to execute the demolition
                                  and the actions
                                  required to restore the Premises to their previous
                                  state, at the Lessee’s
                                  expense, and the Lessee shall be obliged to reimburse
                                  the Lessor for any
                                  amount it shall expend to this end, against presentation
                                  of tax invoices
                                  for the works executed, and with the addition of
                                  interest in the amount as
                                  stipulated in Section 29.3 below, which shall be
                                  calculated from the date
                                  of expenditure of the sum by the Lessor and through
                                  their actual
                                  reimbursement to the Lessor.

                              

                      

                      
                        	
                              	14.1.2	
                                To
                                  retain the Works, as its property, and the Lessee
                                  hereby expressly agrees
                                  that the Works shall constitute the exclusive property
                                  of the Lessor, from
                                  the date of their execution, without the Lessor’s being required to pay
                                  any amounts to the Lessee
                                  therefore.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	14.2	
                                Subject
                                  to the prior written consent of the Lessor, the
                                  Lessee shall be entitled
                                  to execute, at its liability and expense, actions
                                  to adapt the Premises to
                                  the Lessee’s needs, which actions shall be effected subject
                                  to all the
                                  content of this agreement, at the Lessee’s expense and liability. It is
                                  clarified that all adaptations present in the Premises
                                  as of the date of
                                  signing the agreement are not included in the definition
                                  of the additional
                                  adaptations, and that all these as stated are agreeable
                                  to the Lessor in
                                  advance, and it does not and shall not have any
                                  claim against the Lessee
                                  with regard thereto.

                              

                      

                      

                      
                        	
                              	14.3	
                                If
                                  the adaptations were made to the Premises or to
                                  meet the Lessee’s needs
                                  (as stated, subject to the express, prior, and
                                  written consent of the
                                  Lessor), all these, including their sundry details,
                                  shall, at the end of
                                  the Rental Period for any reason, be the property
                                  of the Lessor, with the
                                  exception of airconditioning systems installed
                                  (with the Lessor’s
                                  permission) by the Lessee. To prevent doubt, it
                                  is hereby expressly
                                  clarified that even if the Works shall be executed
                                  with the Lessor’s
                                  consent, it shall be entitled to instruct the Lessee,
                                  at the end of the
                                  rental in accordance with this agreement, to remove
                                  all or any of the
                                  Works, and to do anything required in order to
                                  restore the Premises to
                                  their prior condition, and the Lessee shall be
                                  obliged to do so within 14
                                  days from receipt of the Lessor’s notification. If the Lessee shall fail
                                  to respond to the Lessor’s instructions as stated above, the provisions
                                  in
                                  the end of Section 14.1.1 in this section shall
                                  apply, mutatis
                                  mutandis and
                                  in accordance with the circumstances of the
                                  matter.

                              

                      

                      

                      
                        	
                              	14.4	
                                Prior
                                  to the execution of all the said adaptations in
                                  the Premises (Section 14.2
                                  above), the Lessee shall furnish the Lessor with
                                  copies of the plans and
                                  diagrams (as the case may be) pertaining to the
                                  execution of all the
                                  adaptations. 

                              

                      

                      

                      
                        	
                              	14.5	
                                The
                                  Parties expressly agree that the Lessor shall be
                                  entitled at any time to
                                  execute changes in the front of the Building, provided
                                  that these (or any
                                  thereof) shall not substantively impair the Lessee’s use of the Premises
                                  in accordance with the purpose of the rental and
                                  in accordance with this
                                  agreement.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	14.6	
                                Any
                                  expense required for the adaptation of the fire
                                  detection system inside
                                  the Premises, in accordance with the requirements
                                  of the Lessor’s safety
                                  consultant, the fire department, the Municipality
                                  of Raanana, and/or any
                                  other body, and/or for the reconnection of the
                                  system inside the Premises
                                  to the central system of the Building, and/or adaptation
                                  to Israeli
                                  Standard 1220, or any other binding standard as
                                  shall be introduced in the
                                  future, shall be executed, applied, and included
                                  in the general costs for
                                  the preparation of the Premises for the Lessee’s needs as stated in
                                  Section 2 of Appendix B-2 below.

                              

                      

                      

                      
                        	
                              	14.7	
                                It
                                  is hereby agreed that any internal change that
                                  shall be constructed by the
                                  Lessee by means of detachable plaster divisions
                                  shall not require the
                                  prior consent of the Lessor, provided that the
                                  Lessee shall furnish the
                                  Lessor with plans as stated in Section 14.4 above,
                                  and that it shall
                                  restore the state to its prior condition in accordance
                                  with the content of
                                  Section 14.3 above.

                              

                      

                      

                      
                        	15.   
	
                                 

                              

                      

                      
                        	
                              	15.1	
                                The
                                  Lessee shall be liable for any damage to person
                                  and/or property or any
                                  type or kind that shall be caused within the areas
                                  of the Building, to the
                                  Lessor and/or to any third party, including - but
                                  without derogating from
                                  the generality of the above - to the employees
                                  of the Lessee itself,
                                  pertaining to the Lessee’s use of the Building, including the defective
                                  maintenance of the Premises by the Lessee and/or
                                  by or through the
                                  equipment installed in the Premises and/or the
                                  Works, improvements, and
                                  additions executed therein by the Lessee, and/or
                                  by any person on its
                                  behalf, and/or pursuant to an action or omission
                                  of its employees and/or
                                  those serving it and/or its agents and/or its suppliers
                                  and/or its clients
                                  and/or any person executing services for it and/or
                                  any person present in
                                  the Premises, in the Building, and/or in the Industrial
                                  Compound with the
                                  permission of the Lessee, provided that the damages
                                  as stated were not
                                  caused by the Lessor, its employees, its agents,
                                  its authorized persons,
                                  and/or any person on its behalf.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	15.2	
                                Without
                                  derogating from the Lessee’s liability, whether in accordance with the law
                                  or in accordance with this agreement, the Lessee
                                  undertakes to maintain,
                                  at its expense and for the duration of the rental,
                                  the following
                                  insurance:

                              

                      

                      
                        	
                              	15.2.1	
                                Insurance
                                  of the contents of the Premises, including the
                                  Works, the additions, and
                                  the improvements, including the furniture added
                                  by the Lessor and/or for
                                  the Lessor, in their full value, against all usual
                                  risks, by means of a
                                  policy known as an “extended fire” insurance policy.

                                Said insurance
                                  shall include a clause
                                  regarding the waiver of the right of substitution
                                  toward the Lessor
                                  pertaining to damage caused thereby, otherwise
                                  than
                                  deliberately.

                              

                      

                      
                        	
                              	15.2.2	
                                Insurance
                                  of all the Lessee’s activities in the Premises and in the environs
                                  thereof
                                  with employer’s liability insurance and third party liability
                                  insurance.

                                The Lessee
                                  undertakes to add the Lessor’s
                                  name to the said insurance as a beneficiary, jointly
                                  with the Lessee or
                                  separately therefrom, pertaining to the Lessor’s liability as the owner of
                                  the rights to the Industrial Compound as detailed
                                  above, and pertaining to
                                  its management of the Premises, and to annul the
                                  right of indemnification
                                  vis-à-vis the Lessor.

                                The Lessee
                                  undertakes to present to the
                                  Lessor, within 30 days from the date of signing
                                  this agreement, and
                                  without need for any further request, the insurance
                                  policies as detailed
                                  in this section above. The said insurance policies
                                  shall provide insurance
                                  coverage to the satisfaction of the Lessor’s insurance consultant, and the
                                  Lessee undertakes to amend and/or adapt these in
                                  accordance with the
                                  Lessor’s requirements as stated, if any. Without derogating
                                  from the
                                  generality of the above, the said insurance policies
                                  shall include a cross
                                  liability clause, and the limit of liability therein
                                  shall be in the sum
                                  of USD 500,000 (five hundred thousand US Dollars)
                                  per event and per
                                  period.

                                If the Lessee
                                  fails to maintain the
                                  insurance coverage as detailed in this Section
                                  15 above, the Lessor shall
                                  be entitled - but not obliged - to maintain this
                                  insurance coverage at the
                                  Lessee’s expense, and the Lessee shall be obliged to reimburse
                                  the Lessor
                                  for any amount it shall incur for this purpose,
                                  with the addition of
                                  interest in the rate stipulated in Section 29.3,
                                  to be calculated from the
                                  date of expenditure of the sum as stated by the
                                  Lessor and through their
                                  actual reimbursement thereto.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	15.3	
                                Without
                                  derogating from the provisions of Sections 15.1
                                  and 15.2 above, the Lessee
                                  hereby undertakes to take all steps that shall
                                  be required in order to
                                  nullify any request directed to the Lessor and/or
                                  any claim filed against
                                  the Lessor relating to any of the damages stated
                                  in Section 15.1 above,
                                  and to indemnify the Lessor for all sums it shall
                                  be required to expend
                                  under the terms of a verdict or arbitration ruling
                                  that shall be granted
                                  in such a claim, immediately upon the Lessor’s first request. The Lessee
                                  shall be given the opportunity to participate,
                                  at its expense, in the
                                  legal defense against any claim against the Parties
                                  pertaining to the
                                  rental in accordance with this agreement, together
                                  with the Lessor and
                                  with mutual cooperation between the
                                  two.

                              

                      

                      

                      
                        	
                              	15.4	
                                The
                                  Lessee undertakes that all the said policies shall
                                  include a clause
                                  providing for nullification with 60 days prior
                                  notice, and that the
                                  insurer in accordance with the said policies shall
                                  be required to inform
                                  the Lessor of the intention to nullify these, in
                                  writing, with advance
                                  warning of at least 60 days.

                              

                      

                      

                      Part
                        Six: Maintenance Services

                      
                        	16.   	
                                 

                              

                      

                      
                        	
                              	16.1	
                                The
                                  Lessor hereby undertakes to provide, and the Lessee
                                  hereby undertakes to
                                  purchase from the Lessor and/or from another third
                                  party, at Lessor’s
                                  discretion, maintenance services as detailed in
                                  the Maintenance Services
                                  Appendix attached to this agreement as Appendix
                                  C
                                  (which shall not be connected to the construction
                                  works to be undertaken
                                  in the Building and/or in the Industrial Compound
                                  by the Lessor), this at
                                  a reasonable and professional standard, and in
                                  accordance with the
                                  reasonable needs as required for the proper maintenance
                                  of the Building
                                  and/or the Industrial
                                  Compound.

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	
                              	
                                As
                                  remuneration for these maintenance services, the
                                  Lessee shall pay the
                                  Lessor the sum of USD 2.50 per square meter per
                                  month. Payment for
                                  maintenance shall be made quarterly (in advance)
                                  with the Rental Fee, by
                                  standing order, as in Section 6.5 above. The maintenance
                                  fee shall be
                                  converted by the representative exchange rate of
                                  the dollar as stated
                                  above (USD 1.00 equals NIS 4.145), and shall be
                                  linked to the Consumer
                                  Price Index. VAT by law shall be added to the maintenance
                                  fee, to be paid
                                  by the Lessee together with the payment for the
                                  maintenance fee and
                                  against a lawful tax invoice.

                              

                      

                      

                      
                        	
                              	16.2	
                                As
                                  of September 1, 2006, (the date of commencement
                                  of the Additional Period),
                                  the maintenance fee to be paid by the Lessee shall
                                  be updated, such that
                                  this shall be adjusted to the monthly amount per
                                  square meter to be paid
                                  by the majority of the tenants in the Southern
                                  Wing of the
                                  Building.

                              

                      

                      

                      
                        	
                              	16.3	
                                The
                                  Lessor shall be entitled to undertake the execution
                                  of the said
                                  maintenance services by means of any body as it
                                  shall determine, at its
                                  absolute and exclusive discretion, and it shall
                                  be entitled to associate
                                  with the above-mentioned body by itself (and to
                                  collect from the Lessee
                                  the service fee due therefrom), or to instruct
                                  the Lessee to associate
                                  with that body in a services agreement, in such
                                  format as shall be current
                                  at this point with the Lessor or with the actual
                                  provider of the services
                                  (and to pay the service fee due therefrom directly
                                  to this body), provided
                                  that the service fee the Lessee shall be required
                                  to pay the Lessor or the
                                  body as stated shall not exceed that stated in
                                  Section 16.1 and/or 16.2
                                  above.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      Part
                        Seven: The Lessor’s Rights

                      
                        	17.   	
                                The
                                  Parties condition and agree that the Lessor and/or
                                  its representative
                                  and/or any person acting in its name and/or on
                                  its behalf shall be
                                  entitled to convey through (or on) the Premises
                                  pipes, channels, and other
                                  conduits, water, sewage, gas, electricity, telephone,
                                  and/or for any other
                                  purpose, and to execute works and/or installations
                                  and/or other repairs in
                                  the Premises for the purpose of the use of the
                                  property adjacent to the
                                  Premises, or for any similar purpose, all provided
                                  that
                                  -

                              

                      

                      
                        	
                              	17.1	
                                The
                                  Lessor shall use the authorities granted to it
                                  in this Section 17 in a
                                  form and manner that shall not harm the reasonable
                                  use of the Premises,
                                  and that the inconvenience and/or disruptions caused
                                  to the Lessee shall
                                  be as slight as possible.

                              

                      

                      

                      
                        	
                              	17.2	
                                The
                                  Lessor shall execute all repairs required to restore
                                  the state of the
                                  Premises to their prior condition in those parts
                                  of the Premises -
                                  including parts in which the works, improvements,
                                  and repairs were
                                  executed as stated above - injured by the execution
                                  of works as stated in
                                  Section 17 above.

                              

                      

                      

                      
                        	
                              	17.3	
                                The
                                  Lessor shall coordinate with the Lessee, insofar
                                  as possible, the dates on
                                  which the works as stated shall be
                                  executed.

                              

                      

                      

                      
                        	18.   	
                                The
                                  Lessor shall be eligible and entitled to execute
                                  all construction and
                                  development works it shall see fit in the Building
                                  and/or in the
                                  Industrial Compound, and the Lessee shall not be
                                  entitled to object to the
                                  execution of the works as stated and/or to intervene
                                  in the execution
                                  thereof.

                                The Lessor
                                  shall act so that the execution
                                  of the works mentioned in Section 17 above, and
                                  in this Section 18, shall
                                  not unreasonably and for a protracted period impair
                                  the Lessee’s
                                  activities and its possibility to use the
                                  Premises.

                              

                      

                      

                      
                        	19.   	
                                The
                                  Lessor and/or its representative have the right
                                  to enter the Premises,
                                  during the Lessee’s regular working hours, and after coordinating
                                  therewith reasonably in advance, in order -

                              

                      

                      
                        	
                              	19.1	
                                To
                                  examine whether the Lessee is complying with the
                                  conditions of this
                                  agreement.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	
                                19.2

                              	
                                To
                                  execute repairs as required for the purpose of
                                  the Building, or of any
                                  part thereof, within the area of the
                                  Premises.

                              

                      

                      

                      
                        	
                              	19.3	
                                To
                                  execute construction and/or demolition works it
                                  is entitled to execute in
                                  accordance with Part Seven of this agreement and
                                  Sections 17 and 18
                                  above.

                              

                      

                      

                      
                        	
                              	19.4	
                                To
                                  demonstrate the Premises to potential buyers and/or
                                  tenants, with prior
                                  coordination with the Lessee.

                              

                      

                      

                      
                        	20.   	
                                The
                                  Parties condition and agree that -

                              

                      

                      
                        	
                              	20.1	
                                The
                                  Industrial Compound, as well as the public areas
                                  in the Building,
                                  including roofs, security rooms, shelters, basements,
                                  entrance rooms,
                                  etc., shall remain in the sole legal possession
                                  of the Lessor, and the
                                  Lessee shall not be entitled to use these (otherwise
                                  than as described in
                                  Section 12 above), unless it has received prior
                                  and written authorization
                                  therefore from the Lessor, and within the framework
                                  of such restrictions
                                  as shall be established in such
                                  authorization.

                              

                      

                      

                      
                        	
                              	20.2	
                                The
                                  Lessor shall be entitled to use the Industrial
                                  Compound, the Building
                                  (with the exception of the Premises), and the joint
                                  areas in the Building,
                                  and/or to grant others permission to use these,
                                  in accordance with its
                                  absolute and exclusive discretion, provided that
                                  the Lessee’s reasonable
                                  use of the Premises, and its access thereto, shall
                                  not be disrupted, and
                                  that the empowered authorities shall authorize
                                  such use when such
                                  authorization is required.

                              

                      

                      

                      Part
                        Eight: Transfers; Replacement Lessee

                      
                        	21.   	
                                The
                                  Parties expressly condition and agree that the
                                  Lessor shall be entitled to
                                  sell and to transfer its rights in the Industrial
                                  Compound and/or the
                                  Building, and/or the Premises, and/or to execute
                                  therein (or not to oppose
                                  the execution therein) of any other disposition,
                                  to any person as it shall
                                  see fit, without its being required to receive
                                  the Lessee’s consent
                                  thereto, all provided that the Lessee’s rights in accordance with this
                                  rental agreement shall not be
                                  impaired.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	22.   	
                                 

                              

                      

                      
                        	
                              	22.1	
                                The
                                  Lessee hereby undertakes not to transfer the rental
                                  of the Premises to
                                  another, not to deliver or let the Premises to
                                  another, not to permit
                                  another to use the Premises, and not to include
                                  another in the possession
                                  and/or use of the Premises, or in the business
                                  managed therein, and not to
                                  grant another any right in the Premises, all these
                                  whether with or without
                                  remuneration, whether permanently or
                                  temporarily.

                              

                      

                      

                      
                        	
                              	22.2	
                                Notwithstanding
                                  the above, the Lessee shall be entitled to transfer
                                  or to assign its full
                                  rights in accordance with this agreement to another
                                  lessee, similar in its
                                  economic resilience and character to the Lessee
                                  or to the remaining
                                  tenants in the Building, provided that the following
                                  conditions are
                                  maintained:

                              

                      

                      
                        	
                              	22.1.1	
                                The
                                  identity of the other lessee has been authorized
                                  in advance by the Lessor.
                                  To prevent doubt, it is hereby clarified that the
                                  Lessor shall not refuse
                                  to grant its consent otherwise than on reasonable
                                  grounds.

                              

                      

                      
                        	
                              	22.1.2	
                                The
                                  other lessee shall furnish the Lessor with suitable
                                  securities to the
                                  Lessor’s satisfaction, and shall associate with the Lessor
                                  in a rental
                                  agreement as shall be current at that time with
                                  the
                                  Lessor.

                              

                      

                      
                        	
                              	22.1.3	
                                The
                                  other lessee shall request to use the entire Premises
                                  for the purpose of
                                  rental as stated in Section 2.1 above.  

                              

                      

                      

                      
                        	
                              	22.3	
                                It
                                  is agreed that Article 22 of the Rental and Loans
                                  Law, 5731-1971, or
                                  similar legal provisions enacted at any point in
                                  the future, shall not
                                  apply to the relations between the Parties in accordance
                                  with this
                                  agreement.

                                In this Section
                                  22 (including its
                                  sub-sections), “Premises” includes only part
                                  thereof.

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                      

                      Section
                        Nine: Vacating the Premises

                      
                        	23.   	
                                The
                                  Lessor hereby undertakes that, not later than the
                                  end of the Rental
                                  Period, or at another date on which this agreement
                                  shall be terminated in
                                  accordance with the provisions of this agreement
                                  (either of which dates
                                  shall be referred to hereinafter as “the
                                  Vacating Date,”)
                                  it shall vacate the Premises of any person and
                                  object, with the exception
                                  of objects remaining in the Premises in accordance
                                  with this agreement,
                                  and shall deliver the Premises to the Lessor in
                                  a good, proper, clean, and
                                  orderly condition as it received them, with the
                                  exception of wear-and-tear
                                  accruing from reasonable use and in accordance
                                  with the purpose of the
                                  rental.

                              

                      

                      

                      
                        	24.   	
                                 

                              

                      

                      
                        	
                              	24.1	
                                Ninety
                                  (90) days prior to the return of the Premises to
                                  the Lessor by the Lessee,
                                  an inspection of the Premises shall be undertaken
                                  by the Lessor and/or a
                                  representative on its behalf, who shall, together
                                  with the Lessee, prepare
                                  a list of repairs the Lessee is required to execute,
                                  including repairs of
                                  damages and spoilages, and/or repairs and changes
                                  relating to the
                                  restitution of the Premises to its former state
                                  and condition in
                                  accordance with the state of the Premises at the
                                  time of delivery of
                                  possession (Section 3.4.3 above), and excluding
                                  reasonable wear-and-tear
                                  (hereinafter - “the
                                  Repairs;”)
                                  the above-mentioned list shall also determine the
                                  value of the
                                  Repairs.

                              

                      

                      

                      
                        	
                              	24.2	
                                The
                                  Lessee undertakes to execute all the Repairs, if
                                  required, in accordance
                                  with the above-mentioned list, by the Vacating
                                  Date of the Premises in
                                  accordance with the provisions of this
                                  agreement.

                              

                      

                      

                      
                        	
                              	24.3	
                                In
                                  any case in which the Lessee shall fail to execute
                                  the Repairs, these
                                  shall be executed by the Lessor at the expense
                                  of the Lessee, and the
                                  Lessor shall commence execution on the date on
                                  which this shall
                                  practically be possible in accordance with the
                                  state of possession of the
                                  Premises (hereinafter - “the
                                  Date of Commencement of the Repairs”).
                                  In such case, the period of repairs shall be considered
                                  to have begun from
                                  the Date of Commencement of the Repairs, and insofar
                                  as this period shall
                                  extend beyond the period of the duration of the
                                  rental in accordance with
                                  the provisions of this agreement, the Lessee shall
                                  be considered not to
                                  have vacated the Premises promptly for the duration
                                  of this period of
                                  excess, and the provisions of Section 25 pertaining
                                  to the failure
                                  promptly to vacate the Premises shall apply to
                                  this period of excess, and,
                                  in addition thereto, the Lessee shall be obliged
                                  to reimburse the Lessor,
                                  immediately upon first request, for all the Lessor’s expenses, and to
                                  reimburse the Lessor for any damage, loss, or prevention
                                  of profit
                                  accruing from the state of the Premises and/or
                                  the need to bring these to
                                  a proper and good condition.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	25.   	
                                 

                              

                      

                      
                        	
                              	25.1	
                                If
                                  the Lessee fails to vacate the Premises promptly
                                  on the Vacating Date,
                                  contrary to the provisions of this agreement, then,
                                  without derogating
                                  from the Lessor’s right to exercise its right to receive the Premises
                                  by
                                  any lawful means as it shall see fit, the Lessee
                                  shall be obliged to pay
                                  the Lessor agreed and predetermined compensation,
                                  in an amount equal at
                                  that time to double (200%) the daily Updated Rental
                                  Fee for each square
                                  meter of the Premises, for each day after the Vacating
                                  Date on which it
                                  shall continue to hold the Premises.

                                
                                  
                                    The
                                      Parties
                                      hereby expressly declare that the agreed and
                                      predetermined sum of
                                      compensation stated above was determined after
                                      a balanced and cautious
                                      evaluation of the damages that shall be caused
                                      to the Lessor pursuant to
                                      the non-vacating of the Premises by the Lessee
                                      as of the Vacating Date,
                                      and that the Lessee shall accordingly be prevented
                                      from claiming that the
                                      compensation was determined without reasonable
                                      proportion to the damage
                                      the could have been predicted at the time of
                                      execution of this agreement,
                                      as the probable result of the failure promptly
                                      to vacate the Premises on
                                      the Vacating Date.

                                  

                                  The
                                    said sum of compensation in Section 25.1 shall
                                    be linked to the Base Index
                                    and updated in accordance with the rate of change
                                    between the Base Index
                                    and the Index known as of the Vacating
                                    Date.

                                

                              

                      

                      
                        	
                              	
                                25.2

                              	
                                The
                                  Parties hereby expressly condition and agree that
                                  the content of Section
                                  25.1 above shall not release the Lessee from its
                                  undertakings in
                                  accordance with Section 23 above, and/or grant
                                  the Lessee the right to
                                  continue to hold the Premises (against payment
                                  of the agreed and
                                  predetermined compensation), and/or constitute
                                  consent on the part of the
                                  Lessor to the extension of the Rental Period, and/or
                                  constitute waiver on
                                  the part of the Lessor of any of its rights, and/or
                                  impair the Lessor’s
                                  right to receive any other remedy and relief, including
                                  - but without
                                  derogating from the generality of the above- the
                                  removal of the Lessee
                                  from the Premises (by a claim to be filed in asummary
                                  procedure) and
                                  compensation in an amount higher than that stated
                                  in the above-mentioned
                                  Section 25.1.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      Part
                        Ten: Inapplicability of the Tenant Protection Laws

                      
                        	26.   	
                                The
                                  Lessee hereby expressly declares that it has not
                                  paid, and shall not pay,
                                  to the Lessor any amount that is for its consent
                                  to let the Premises to
                                  it, whether by way of key money or otherwise, and
                                  that the construction of
                                  the Premises was completed after August 20, 1968,
                                  and, accordingly, it is
                                  hereby agreed that -

                              

                      

                      
                        	
                              	26.1	
                                The
                                  provisions of the Tenant Protection Law (Combined
                                  Version), 5732-1972, and
                                  the provisions of any other law granting and/or
                                  that shall grant
                                  protection in the Premises, do not and shall not
                                  apply to the rental in
                                  accordance with this agreement.

                              

                      

                      

                      
                        	
                              	26.2	
                                The
                                  Lessee shall not be eligible to receive any payment
                                  upon vacating the
                                  Premises in accordance with Section Four of the
                                  Tenant Protection Law
                                  (Combined Version), 5732-1972.

                              

                      

                      

                      Part
                        Eleven: Breaches

                      
                        	27.   	
                                Either
                                  Party that shall breach and/or fail to observe
                                  any of its obligations in
                                  accordance with this agreement shall be required
                                  to compensate the
                                  observing Party for all damages and losses it incurs
                                  pursuant thereto,
                                  without derogating from the right of the observing
                                  Party to receive any
                                  other and/or additional relief and/or remedy, including
                                  the enforcement of
                                  the provisions of this agreement and/or the obtaining
                                  of injunctions
                                  pertaining to its breach.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	28.   	
                                 

                              

                      

                      
                        	
                              	28.1	
                                The
                                  Parties hereby state that a breach of any term
                                  and/or undertaking
                                  stipulated in sections 2, 3, 4, 5, 6, 7, 8, 9,
                                  11, 13, 14, 15, 16, 22, and
                                  23, including non-compliance with the dates stated
                                  therein, shall be
                                  considered a fundamental breach of this agreement.

                                To remove any
                                  doubt - even if the Lessor
                                  takes upon himself the Lessee’s obligations, or some of the Lessee’s
                                  obligations, this shall not detract from its constituting
                                  a breach
                                  relating to a fundamental breach.

                              

                      

                      

                      
                        	
                              	28.2	
                                If
                                  either Party committed a fundamental breach of
                                  this agreement, and failed
                                  to rectify this breach within 14 days, the observing
                                  Party shall be
                                  entitled, at the end of the period stated above,
                                  to inform the other
                                  Party, in writing, of the nullification of the
                                  rental in accordance with
                                  this agreement, and, if it shall do so, the Lessee
                                  shall vacate the
                                  Premises and return these to the Lessor, in the
                                  condition as stated in
                                  Section 23 above, within 14 days from the date
                                  of the notification. To
                                  prevent doubt, the said period above (14 days from
                                  the remedy of the
                                  breach, and/or 14 days from the breach), shall
                                  not, in any case, be
                                  considered as periods in which the Lessee has been
                                  excused interest on its
                                  arrears in payment.

                                The content
                                  of this section shall not
                                  derogate from the right of the observing Party
                                  to claim and receive,
                                  together with the nullification of the agreement
                                  or instead thereof, any
                                  other lawful relief, including compensation and/or
                                  a decree nisi and/or an
                                  injunction.

                              

                      

                      

                      
                        	29.   	
                                Without
                                  derogating from the provisions of Section 27 and
                                  28 above, the Parties
                                  hereby condition and agree as
                                  follows:

                              

                      

                      
                        	
                              	29.1	
                                Without
                                  derogating from other provisions in this agreement,
                                  if the Lessee fails to
                                  pay any amount it is required to pay in accordance
                                  with the provisions of
                                  this agreement, the Lessor shall be entitled -
                                  but not obliged - to pay
                                  the above-mentioned amount, or any part thereof,
                                  after granting the Lessee
                                  prior notification of 48 hours of its intention
                                  so to do, and, if it does
                                  so, the Lessee shall be obliged to pay the Lessor,
                                  immediately upon being
                                  so required thereby, any amount expended by the
                                  Lessor as stated, with the
                                  addition of interest as stated in Section 29.3
                                  below, calculated from the
                                  date of expenditure of the sum by the Lessor and
                                  through their actual
                                  reimbursement thereto.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	29.2	
                                If
                                  the Lessee is in arrears in paying any amount it
                                  shall be required to pay
                                  the Lessor in accordance with the provisions of
                                  this agreement, then,
                                  without derogating from the Lessor’s right to request and receive any
                                  right granted thereto in this agreement and/or
                                  by law, it shall be
                                  entitled to receive from the Lessee interest in
                                  the rate as stated in
                                  Section 29.3 below, calculated from the date of
                                  applicability of the
                                  payment as stated and through its actual payment,
                                  or Index linkage, for
                                  the duration of the said period as above, as the
                                  Lessor shall
                                  choose.

                              

                      

                      

                      
                        	
                              	29.3	
                                The
                                  interest the Lessee shall be required to pay the
                                  Lessor in accordance with
                                  the provisions of this agreement shall be the bank
                                  interest for ordinary
                                  unauthorized credit as this shall be at the time
                                  of the payment, at Bank
                                  Hapoalim Ltd. - with the addition of 1% per month
                                  or any part thereof. The
                                  authorization in writing of the director of a branch
                                  of Bank Hapoalim Ltd.
                                  regarding the bank interest rate for ordinary unauthorized
                                  credit
                                  collected at this bank, at the given time, shall
                                  constitute conclusive
                                  proof for this matter.

                              

                      

                      

                      
                        	30.   	
                                 

                              

                      

                      
                        	
                              	30.1	
                                It
                                  is hereby agreed that if the Lessee shall be in
                                  arrears in any payment
                                  incumbent on it in accordance with this agreement,
                                  including the Rental
                                  Fee, maintenance expenses, and/or fees for usage
                                  of the electric grid,
                                  and/or any other consumption and usage charges,
                                  and the Lessee shall fail
                                  to regulate these arrears within 14 days from the
                                  date on which it shall
                                  be required to do so in writing by the Lessor,
                                  the Lessor shall be
                                  entitled, in addition to any other relief granted
                                  in accordance with this
                                  agreement and/or in accordance with any law, to
                                  take any or all of the
                                  following steps:

                              

                      

                      
                        	
                              	30.1.1	
                                To
                                  disconnect the electricity and/or water supply
                                  to the
                                  Premises;

                              

                      

                      
                        	
                              	30.1.2	
                                To
                                  discontinue all the other maintenance services
                                  for the
                                  Premises;

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	30.1.3	
                                To
                                  delay the removal of equipment, raw materials,
                                  and products belonging to
                                  the Lessee and present in the Premises pending
                                  payment of all amounts not
                                  yet paid by the Lessee up to that
                                  date;

                              

                      

                      
                        	
                              	30.1.4	
                                To
                                  remove the equipment, raw materials, and products
                                  from the Premises, store
                                  them at the Lessee’s expense, and take possession of the Premises
                                  or let
                                  them to another;

                              

                      

                      
                        	
                              	30.1.5	
                                To
                                  sell the equipment, raw materials, and products
                                  in the Premises for the
                                  purpose of payment of the debt, and to transfer
                                  these for storage at the
                                  Lessee’s expense and liability.

                              

                      

                      

                      
                        	
                              	30.2	
                                Without
                                  derogating from the provisions of Section 30 above
                                  (including its
                                  subsections), the Lessee hereby expressly agrees,
                                  by way of an irrevocable
                                  consent and undertaking on which third party rights
                                  depend, that insofar
                                  as it shall violate the rental agreement and fail
                                  to rectify the breach
                                  (as described in Section 30.1 above), it hereby
                                  agrees, irrevocably as
                                  stated, to the appointment of the Lessor’s representative as a receiver
                                  for the business and equipment in the Premises
                                  (or for the Lessee itself,
                                  as the case shall be), and it further hereby permits
                                  the Lessor (or its
                                  representative) to any action required - without
                                  any opposition on the
                                  part of the Lessee - to remove the Lessee and its
                                  chattels from the
                                  Premises and to store the Lessee’s chattels at the Lessee’s
                                  expense.

                              

                      

                      

                      
                        	31.   	
                                Without
                                  derogating from the content of Sections 29 and
                                  30 above, the Parties
                                  condition and agree that, in any case in which
                                  a temporary or permanent
                                  receiver, and/or a pre-liquidator, is appointed
                                  for the Lessee, and/or a
                                  liquidation order and/or order for the appointment
                                  of a temporary
                                  liquidator, is issued against it, and the said
                                  order shall not be
                                  cancelled within 21 days, the act of appointment
                                  and/or the order and its
                                  non-cancellation within the said period, shall
                                  constitute a fundamental
                                  breach of the provisions of this agreement, and
                                  the Lessor shall be
                                  entitled to activate, in the said circumstances,
                                  the provisions of
                                  Sections 29 and 30 above against the Lessee and/or
                                  the receiver and/or the
                                  pre-liquidator, and/or the liquidator and/or the
                                  temporary
                                  liquidator.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                       

                      Part
                        Twelve: Securities

                      
                        	32.   	
                                Bank
                                  Guarantee

                              

                      

                      
                        	
                              	32.1	
                                As
                                  partial security for the payment of the Rental
                                  Fee and other payments,
                                  including payments pertaining to maintenance, use,
                                  parking, consumption,
                                  and the other charges of the Lessee in accordance
                                  with this agreement, the
                                  Lessee shall, on the occasion of signing this agreement,
                                  submit an
                                  autonomous bank guarantee to the Lessor’s satisfaction, valid from the
                                  date of signing the agreement and through the end
                                  of three (3) months
                                  after the end of the Rental Period, in an amount
                                  in new Israeli shekels
                                  equal to the sum of USD 180,000 (one hundred eighty
                                  thousand dollars) (NIS
                                  746,000), linked to the Consumer Price Index in
                                  accordance with this
                                  agreement.

                              

                      

                      

                      
                        	
                              	32.2	
                                The
                                  Parties agree that, subject to compliance with
                                  all the Lessee’s
                                  obligations in accordance with this agreement,
                                  the amount of the guarantee
                                  shall be reduced by USD 12,500, each year through
                                  November 30, 2005. It is
                                  clarified that, as of November 30, 2005, and through
                                  the end of the Rental
                                  Period, the amount of the guarantee shall remain
                                  in the sum of USD
                                  120,000.

                              

                      

                      

                      
                        	
                              	32.3	
                                An
                                  essential condition for the realization of the
                                  right to rent the Premises
                                  for an Additional Period is the extension of the
                                  validity of the bank
                                  guarantee through to November 30, 2009, in the
                                  sum of USD
                                  120,000.

                                To prevent
                                  doubt, it is clarified and
                                  emphasized that the bank guarantee shall also apply
                                  to the Lessee’s
                                  charges in accordance with Appendix B-2 to the
                                  rental agreement, including
                                  its various sub-sections.

                              

                      

                      

                      Part
                        Thirteen: Miscellaneous

                      
                        	33.   	
                                With
                                  the signing of this rental agreement, the contractual
                                  association between
                                  the Parties in accordance with the rental agreement
                                  dated March 10, 2000,
                                  including the two appendices to the rental agreement,
                                  is terminated by
                                  consent, as of the Date of Actual Delivery of Possession,
                                  as stated in
                                  Section 3.5.3 of this agreement, viz. October 16,
                                  2001 or October 23,
                                  2001, whichever is the later, provided that that
                                  Lessee has complied with
                                  all its undertakings relating to these Premises
                                  and vacated by the
                                  above-mentioned date.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	34.   	
                                The
                                  cost of stamp duty for this agreement shall be
                                  borne by the Parties in
                                  equal parts.

                              

                      

                      

                      
                        	35.   	
                                The
                                  Parties expressly condition and agree that the
                                  execution of each of the
                                  Lessor’s obligations in accordance with this agreement
                                  is conditioned on
                                  the preceding observance by the Lessee of its obligations,
                                  and that the
                                  Lessor is entitled - in addition to any other right
                                  accruing from this
                                  agreement and/or from any law - to delay execution
                                  of any of its
                                  obligations pending compliance by the Lessee with
                                  all its obligations for
                                  which the date of execution has occurred as of
                                  that
                                  time.

                              

                      

                      

                      
                        	36.   	
                                If
                                  the date for the execution of any obligation in
                                  accordance with this
                                  agreement falls on the Sabbath, a festival, or
                                  any other day of rest, the
                                  said obligation shall be performed on the next
                                  business day after the said
                                  date, and the actual date of the obligation shall
                                  be considered the
                                  original date of obligation for every
                                  purpose.

                              

                      

                      

                      
                        	37.   	
                                This
                                  agreement reflects the full and exhaustive agreement
                                  between the Parties
                                  regarding the matters and issues discussed therein,
                                  and it replaces and
                                  nullifies any presentation, agreement, negotiation,
                                  custom, memorandum,
                                  proposals, summaries of discussions, letters of
                                  intent and/or undertaking,
                                  and any other document, that pertained or was exchanged
                                  (whether in
                                  writing or verbally) on the said matters and issues
                                  between the Parties
                                  prior to the signing of this
                                  agreement.

                              

                      

                      

                      
                        	38.   	
                                The
                                  Parties shall take all additional actions (including
                                  execution of
                                  payments, bearing of costs, signing additional
                                  documents, and furnishing
                                  any authorization) required of them for the purpose
                                  of the application and
                                  execution of the letter and spirit of this
                                  agreement.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	39.   	
                                The
                                  agreement of either of the Parties to deviate from
                                  any condition in this
                                  agreement, in a specific instance or in a series
                                  of instances, shall not
                                  constitute a precedent and shall not be used for
                                  comparison by analogy for
                                  any other instance in the future.

                              

                      

                      

                      
                        	40.   	
                                If
                                  either Party did not enforce, or enforced in arrears,
                                  any of the rights
                                  accruing to it in accordance with this agreement
                                  and/or by law, in a given
                                  instance or in a series of instances, this shall
                                  not be considered a
                                  waiver of the said right or of any other
                                  rights.

                              

                      

                      

                      
                        	41.   	
                                The
                                  Parties hereby waive any right of offsetting granted
                                  to them in accordance
                                  with any law and/or agreement, all with regard
                                  to their obligations and
                                  rights in accordance with this
                                  agreement.

                              

                      

                      

                      
                        	42.   	
                                The
                                  Parties hereby expressly agree that this agreement
                                  and its upholding by
                                  the Parties shall be determined, interpreted, and
                                  regulated in accordance
                                  with the laws of the State of Israel. The authorized
                                  courts in Tel Aviv,
                                  and these alone, shall have exclusive judicial
                                  authority in any dispute
                                  relating to this agreement.

                              

                      

                      

                      
                        	43.   	
                                Notifications
                                  relating to this agreement shall be sent by registered
                                  mail or facsimile,
                                  or shall be delivered by hand in accordance with
                                  the Parties’ addresses as
                                  stated in the above Preamble (or any other address
                                  as shall be the subject
                                  of appropriate written notification), and any notification
                                  as stated shall
                                  be considered to have been delivered to its destination
                                  at the earliest of
                                  the following times: on its dispatch by facsimile,
                                  or on its actual
                                  delivery (or its offering to the addressee, in
                                  the even of refusal to
                                  accept), or after three (3) business days from
                                  the date on which it was
                                  delivered for dispatch by registered
                                  mail.

                              

                      

                      

                      

                      Witnessed
                        by the Parties’ signatures:

                      
                         

                        
                          

                            
                              	
                                      Taya
                                        Center Ltd.

                                    	 	
                                      Wintegra
                                        Ltd.

                                    
	 	 	 
	
                                      By:
                                        [Signature and Stamp]

                                    	 	
                                      
                                        By:
                                          [Signature and Stamp]

                                      

                                    

                            

                             

                            
                              
                                
                                

                              

                              
                                
                                

                                
                                  

                                

                              

                              
                                
                                

                              

                            

                          

                        

                      

                      

                      Appendix
                        B-1 - Section 3.3 of the Agreement

                      

                      Specifications
                        for the Delivery of the Premises As Is to Wintegra Ltd.

                      

                      
                        	1.     	
                                Gross
                                  area of 1,119 sq.m., divided into -

                                
                                  10
                                    rooms;

                                  3
                                    conference rooms, each with mini-closet and sink;

                                  6
                                    laboratories, electric, computer, and communications
                                    rooms;

                                  Kitchenette,
                                    as describe below;

                                  Open
                                    space work corners in the remaining area of the
                                    Premises as stated in the
                                    Divisions Plan prepared by Architect Ilan Eisen
                                    and attached to the
                                    agreement.

                                

                              

                      

                       

                      

                      
                        	2.     	
                                Carpeting
                                  -
                                  wall-to-wall carpeting throughout the Premises,
                                  with the exception of the
                                  laboratories, electricity and computer rooms, which
                                  are covered with
                                  antistatic tiling, and the kitchenette, which is
                                  tiled in
                                  ceramics.

                              

                      

                      

                      
                        	3.     	
                                Ceilings
                                  -
                                  acoustic ceilings from modular mineral plates,
                                  60/60, throughout the
                                  Premises.

                              

                      

                      

                      
                        	4.     	
                                Lighting
                                  units
                                  -
                                  sunken light units (louvers) throughout the Premises,
                                  and dual purpose
                                  emergency / routine lighting as per the standard,
                                  in accordance with as
                                  made plan no. 439-102 and 439-___ prepared
                                  by Engineer Yitzhak Vatnik, attached to the
                                  agreement.

                              

                      

                      

                      
                        	5.     	
                                Doors
                                  -
                                  painted wooden doors on all rooms; double glass
                                  entrance door. Steel
                                  “Pladelet” doors on the rear emergency exit and in the storeroom
                                  by the
                                  small desk - opposite the executive
                                  rooms.

                              

                      

                      

                      
                        	6.     	
                                Windows
                                  -
                                  windows according to the standard in the building,
                                  as currently comprised
                                  - 50% for “dry keep” opening.

                              

                      

                      

                      
                        	7.     	
                                Bathrooms
                                  -
                                  (in the public floor areas) - 3
                                  units of women’s bathrooms;

                                3 units of
                                  men’s bathrooms + 3 men’s
                                  urinals.

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                      

                      
                        	8.     	
                                Kitchenette
                                  -
                                  lower utensils closet and upper utensils closet,
                                  sink, and marble
                                  counter.

                              

                      

                      

                      
                        	9.     	
                                Power
                                  and communications facility
                                  -
                                  according to as made plan no. 439-103, 108, prepared
                                  by Engineer Vatnik,
                                  attached to the agreement.

                                
                                  Electrical
                                    board
                                    -
                                    according to as made plan no. N:SL119, prepared
                                    by E.M.I. - Electric Works
                                    Ltd., dated February 4, 1997, and attached to
                                    the agreement.

                                  Alarm
                                    system
                                    -
                                    wiring for an alarm system, including detectors,
                                    throughout the
                                    Premises.

                                  UPS
                                    system
                                    -
                                    wiring for a UPS system in most of the area of
                                    the
                                    Premises.

                                

                              

                      

                       

                      
                        	
                                10.   

                              	
                                Safety
                                  and PA
                                  -
                                  two detection and smoke systems in accordance with
                                  the fire department
                                  requirements, also connected to the main coordinator
                                  in the Taya Center,
                                  and a PA system in accordance with as made plan
                                  no. 439-106, 107, prepared
                                  by Engineer Yitzhak Vatnik, attached to the
                                  agreement.

                              

                      

                      

                      
                        	11.   	
                                Air-conditioning
                                  (for heating and cooling)
                                  in
                                  accordance with as made plan 388-2-1 (new, prepared
                                  by Engineer Yaacov
                                  Bar-Lev - 5 split units (Elco) for air-conditioning
                                  of the rooms facing
                                  the parking lot on the third floor, and 10 mini-central
                                  units (Unique) for
                                  air-conditioning the remaining areas of the Premises.

                                The list of
                                  the air-conditioning units is
                                  detailed below:

                              

                      

                      

                      
                        	
                                Premises

                              	
                                Type

                              	
                                Model

                              	
                                HP
                                  BTV

                              	
                                Date

                              	
                                By

                              	
                                Warranty
                                  until

                              
	 	 	 	
                                Ton
                                  of refrigeration

                              	
                                Installed

                              	 	 
	
                                Webaccess

                              	
                                Mini
                                  central

                              	
                                Unique
                                  - area 2-3 - 40,41,42 + 54,55 

                              	
                                6
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                Former

                              	
                                Mini
                                  central

                              	
                                Unique
                                  - area 5 - room 37

                              	
                                4
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                3

                              	
                                Mini
                                  central

                              	
                                Unique
                                  - area 1-7, rooms 68-77

                              	
                                9
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                4

                              	
                                Mini
                                  central

                              	
                                Unique
                                  - area 2-7, r. 45-48, 59-63

                              	
                                9
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                5

                              	
                                Mini
                                  central

                              	
                                Unique
                                  - area 3-7 - 51-58, 82-84

                              	
                                9
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                6

                              	
                                Mini
                                  central

                              	
                                Unique
                                  - area 8 - room 67

                              	
                                2.5
                                  tr - MS300

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                7

                              	
                                Mini
                                  central

                              	
                                Unique
                                  - area 10 - rooms 49,50,85

                              	
                                5
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                8

                              	
                                Mini
                                  central

                              	
                                Unique
                                  - area 11 - rooms 89,90

                              	
                                6
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                9

                              	
                                Mini
                                  central

                              	
                                Unique
                                  - area 12 - room 88 (lab)

                              	
                                6
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                10
                                  - addition by Webaccess

                              	
                                Mini
                                  central

                              	
                                 

                              	 	
                                Sept.
                                  98

                              	
                                Thermodor

                              	
                                Sept.
                                  98

                              
	
                                1

                              	
                                Split
                                  - upper

                              	
                                Electra-Elco
                                  - room 43

                              	
                                1.6
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                2

                              	
                                Split
                                  - upper

                              	
                                Electra-Elco
                                  - room 78

                              	
                                1.4
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                3

                              	
                                Split
                                  - upper

                              	
                                Electra-Elco
                                  - room 79

                              	
                                1.4
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                4

                              	
                                Split
                                  - upper

                              	
                                Electra-Elco
                                  - room 80

                              	
                                1.4
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              
	
                                5

                              	
                                Split
                                  - upper

                              	
                                Electra-Elco
                                  - room 81

                              	
                                1.4
                                  ton refrig.

                              	
                                March
                                  97

                              	
                                Thermodor

                              	
                                March
                                  98

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                                12.   

                              	
                                List
                                  of items left in the Premises:

                              

                      

                       

                      
                        	
                              	1.	
                                In
                                  the Conference Room
                                  -
                                  large table, 1.83 x 6.00, and wall board 2.00 x
                                  1.00 sq.m.
                                  

                              

                      

                       

                      
                        	
                              	2.	
                                Secretaries’
                                  Corner
                                  -
                                  secretaries desk, closet including lower and upper
                                  closet - width 2.60 m -
                                  8 doors, and mini-closet, width 0.53m and height
                                  0.77
                                  m.

                              

                      

                       

                      
                        	
                              	3.	
                                Second
                                  executive room
                                  -
                                  2 closets, width 2.40 m, height 2.12 - 6 doors
                                  each.

                              

                      

                       

                      
                        	
                              	4.	
                                Vertical
                                  curtains
                                  -
                                  25 vertical curtain units on windows, and 6 (long)
                                  on glass doors facing
                                  the parking lot on Hataasiya St.

                              

                      

                       

                       

                      
                        	
                                [Signature
                                  and Stamp}

                              	 	
                                [Signature
                                  and Stamp]

                              
	
                                Taya
                                  Center Ltd.

                              	 	
                                Wintegra
                                  Ltd.

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                      Appendix
                        B-2

                      

                      Procedure
                        for the Delivery of the Premises

                      

                      
                        	1.     	
                                The
                                  delivery of the Premises shall be executed in accordance
                                  with the
                                  Authorized Implementation Plans, as these shall
                                  be determined by the
                                  project manager and the Lessee. The Parties shall
                                  fully cooperate in order
                                  to complete the Adaptation Works promptly and to
                                  the Lessee’s
                                  satisfaction.

                              

                      

                      

                      
                        	2.     	
                                All
                                  works deriving from the Authorized Implementation
                                  Plans shall be executed
                                  by the Lessor and at its expense, provided and
                                  on condition that all the
                                  expenses on account thereof, including all fees
                                  for consultants of all
                                  types - including the electrical engineer, the
                                  air-conditioning engineer,
                                  the plumbing engineer, the safety engineer, the
                                  acoustics engineer, the
                                  project manager for the management and supervision
                                  of all the works that
                                  are the subject of the Authorized Implementation
                                  Plans, and all the
                                  remaining as stated above, shall not exceed the
                                  sum of one hundred fifty
                                  (USD 150.-) dollars, per net square meter, in accordance
                                  with the net area
                                  of the Premises of 973.04 sq.m. (nine hundred seventy
                                  three square
                                  meters), and, in total, USD 145,956 (one hundred
                                  forty five thousand nine
                                  hundred fifty six US dollars).

                                It is clarified,
                                  to prevent doubt, and
                                  without derogating from the generality of the above,
                                  that the fees of all
                                  the consultants stated in this Section 2 above
                                  were determined at the
                                  Lessor and the Lessee’s request (with the exception of the project manager
                                  and the safety consultant, with whom the association
                                  was made by the
                                  Lessor), subject to the Lessor’s
                                  authorization.

                              

                      

                      

                      
                        	3.     	
                                The
                                  Parties agree that the project manager shall examine
                                  and authorize, in
                                  full coordination with the Lessee’s representatives, accounts from the
                                  implementation contractors and consultants, as
                                  well as the conformity of
                                  the works and the Authorized Work Plans, provided
                                  that, in this matter, he
                                  shall act in accordance with accepted professional
                                  standards and in good
                                  faith.

                              

                      

                      

                      
                        	4.     	
                                Any
                                  expense that shall be required in connection with
                                  the execution of the
                                  works that are the subject of these specifications
                                  and the cost of which
                                  shall be above
                                  the sum of USD 150.- per square meter as stated
                                  (in accordance with the
                                  net area of the Premises of 973.04 square meters),
                                  shall be borne and paid
                                  by the Lessee, or shall be paid by the Lessor and
                                  reimbursed by the Lessee
                                  to the Lessor not later than the Actual Date of
                                  Delivery of Possession.
                                  For this purpose, it is agreed that no expense
                                  beyond the USD 150 per
                                  square meter as stated shall be incurred otherwise
                                  than by coordination
                                  with the Lessee and subject to its
                                  consent.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	5.     	
                                The
                                  Lessee agrees that if it fails to meet its undertaking
                                  to rent the
                                  Premises for the Rental Period in accordance with
                                  this agreement, and
                                  fails to pay the Rental Fee for the period of at
                                  least
                                  fifty six months, it then hereby undertakes, in
                                  any case as stated, and
                                  irrevocably, to repay the Lessor an amount constituting
                                  the return of the
                                  discount in the Rental Fee (granted on the assumption
                                  of fifty six full
                                  months of rental), in accordance with a repayment
                                  of 21.43% a year (viz.
                                  21.43% of the total of USD 145,956.-, with the
                                  addition of VAT), or the
                                  appropriate relative part (for a part of a year)
                                  (for example only, if the
                                  actual rental is for a period of only thirty two
                                  months, the amount to be
                                  paid to the Lessor by the Lessee shall be 42.86%
                                  of the discount amount
                                  granted as stated, viz. USD 62,557, with the addition
                                  of VAT, and if the
                                  actual rental shall be for a period of only 20
                                  months, then the amount to
                                  be paid to the Lessor by the Lessee shall be 21.43%
                                  of the discount amount
                                  in the Rental Fee as stated, viz. USD 31,278.50,
                                  with the addition of VAT
                                  (“the
                                  Restitution Amount”).

                                The Restitution
                                  Amount shall be converted
                                  in accordance with the representative exchange
                                  rate of the dollar as
                                  stated above (USD 1.00 equals NIS 4.145), shall
                                  be linked to the Consumer
                                  Price Index in accordance with the rental agreement,
                                  with the addition of
                                  annual interest at the rate of 7%, and shall be
                                  paid immediately upon
                                  notification by the Lessee of its intention to
                                  vacate the Premises prior
                                  to the end of 5 years’ rental.

                              

                      

                       

                      

                      
                        	
                                 Taya
                                  Center Ltd.

                              	 	
                                Wintegra
                                  Ltd.

                              
	 	 	 
	
                                 [Signature
                                  and Stamp}

                              	 	
                                [Signature
                                  and Stamp]

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                      

                      Appendix
                        C - Maintenance Appendix

                      (Section
                        16 of the Agreement)

                      

                      
                        	1.    	
                                The
                                  Lessor hereby undertakes to provide, and the Lessee
                                  hereby undertakes to
                                  purchase from the Lessor and/or from an other third
                                  party, as decided by
                                  the Lessor, the maintenance services detailed below,
                                  at a reasonable and
                                  professional level, and in accordance with reasonable
                                  needs as shall be
                                  required for the purpose of the proper maintenance
                                  of the Building and/or
                                  the Industrial Compound. In return for these maintenance
                                  services, the
                                  Lessee shall pay the Lessor USD 2.5 per square
                                  meter per month. The
                                  payment for maintenance services shall be made
                                  on a Quarterly basis (in
                                  advance) with the Rental Fee.

                              

                      

                      

                      
                        	2.    	
                                Beginning
                                  September 1, 2006, (the date of commencement of
                                  the Additional Period),
                                  the maintenance fee to be paid by the Lessee to
                                  the Lessor shall be
                                  according to the maintenance fee (per square meter)
                                  that shall be paid by
                                  most of the tenants in the Industrial Compound,
                                  as detailed in Section
                                  16.2 of the agreement.

                              

                      

                      

                      
                        	3.    	
                                To
                                  prevent doubt, it is clarified that the maintenance
                                  fee shall also be
                                  linked to the Index (in accordance with the manner
                                  of linkage of the
                                  Rental Fee).

                              

                      

                      

                      
                        	4.    	
                                In
                                  this appendix, the following terms shall have the
                                  meaning recorded
                                  alongside:

                                
                                  “Built
                                    Areas” - the areas on which buildings are erected, including
                                    the areas
                                    adjacent to each building.

                                  “Public
                                    Built Areas” - those parts of the buildings serving all the
                                    tenants of the
                                    building.

                                  Terms
                                    not expressly defined in this appendix shall
                                    have the same meaning as in
                                    the rental agreement to which this appendix is
                                    attached.

                                

                              

                      

                      
                         

                      

                      
                        	5.    	
                                The
                                  maintenance services as detailed in this appendix
                                  are the minimum
                                  maintenance services the Lessor undertakes to
                                  provide.

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	6.    	
                                The
                                  Lessor shall not be obliged to provide and/or execute
                                  and/or cause to be
                                  provided or executed additional maintenance services,
                                  but it shall be
                                  entitled, at its discretion, to do
                                  so.

                              

                      

                      

                      
                        	7.    	
                                The
                                  maintenance services as detailed in this appendix
                                  shall be provided or
                                  executed to a reasonable professional standard,
                                  efficiently, and on an
                                  ongoing basis, with the goal of maintaining the
                                  Built Areas and the Public
                                  Built Areas and enabling quality of life for the
                                  Lessee, for its employees
                                  and its guests, for the entire duration of the
                                  Rental
                                  Period.

                              

                      

                      

                      
                        	8.     	
                                The
                                  maintenance services that shall be provided and/or
                                  executed by the Lessor,
                                  and/or which it shall cause to be provided or executed,
                                  shall be as
                                  follows:

                              

                      

                      
                        	
                              	8.1	
                                Cleaning
                                  of the Built Areas and the Public Built Areas (with
                                  the exception of the
                                  parts of those areas held directly by the Lessee),
                                  including cleaning of
                                  internal non-municipal streets roads, and sidewalks,
                                  parking lots,
                                  stairwells, and corridors (excluding corridors
                                  and stairwells held by the
                                  Lessee).

                              

                      

                      

                      
                        	
                              	8.2	
                                Gardening
                                  works in the decorative areas adjacent to the
                                  Building.

                              

                      

                      

                      
                        	
                              	8.3	
                                Maintenance
                                  of the parking lots, and the parking areas maintained
                                  and/or which shall
                                  be installed in the area.

                              

                      

                      

                      
                        	
                              	8.4	
                                Attention
                                  (including financing) in all matters relating to
                                  the supply of electricity
                                  (on the basis of the cost of electricity for residential
                                  use).

                              

                      

                      

                      
                        	
                              	8.5	
                                Installation
                                  and maintenance of environmental signs in the Industrial
                                  Compound and
                                  adjacent to the Building. 

                              

                      

                      

                      
                        	
                              	8.6	
                                Installation
                                  and maintenance of the lighting installed in the
                                  Industrial Compound and
                                  which shall be installed therein in the future,
                                  including installation and
                                  maintenance of lighting in the Building and in
                                  the public areas (but
                                  excluding municipal lighting).

                              

                      

                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                         

                      

                      
                        	
                              	8.7	
                                Maintenance
                                  of elevators and power systems in the
                                  Building.

                              

                      

                      

                      
                        	
                              	8.8	
                                Preservation
                                  and maintenance of the water pipes.

                              

                      

                      

                      
                        	
                              	8.9	
                                Maintenance
                                  of the roof and maintenance of the shell (to prevent
                                  damp).

                              

                      

                      

                      
                        	9.     	
                                It
                                  is declared that the maintenance components stated
                                  in this appendix do not
                                  restrict or derogate from the Lessor’s obligations in accordance with the
                                  rental agreement.

                              

                      

                      
                        

                        
                          	
                                   Taya
                                    Center Ltd.

                                	 	
                                  Wintegra
                                    Ltd.

                                
	 	 	 
	
                                   [Signature
                                    and Stamp}

                                	 	
                                  [Signature
                                    and Stamp]

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