Document:

TI
        / Wintegra Confidential

    

     

    Memorandum
      of Understanding between Wintegra, Inc.

    and
      Texas Instruments Incorporated

     

    This
      Memorandum of Understanding (“MOU”) is entered into as of April 20, 2005,
      (the “Effective Date”), by and between Wintegra, Inc., a Delaware corporation,
      with principal offices located at 6850 Austin Center Blvd., Suite 215, Austin,
      Texas 78731, Wintegra Ltd., a company incorporated under the laws of Israel
      with
      its principal place of business located at 6 Hamasger St. P.O. Box 3048, 43653
      Ra’anana Israel (Wintegra, Inc. and Wintegra, Ltd shall be referred to as
“Wintegra”) and Texas Instruments Incorporated, a Delaware corporation with
      principal offices located at 12500 TI Boulevard, Dallas, Texas 75243
      (“TI”).

     

    TI
      and
      Wintegra agree that, except for this paragraph and paragraphs 9 through 15
      hereof (the “Binding Commitments”), this MOU reflects only a statement of intent
      for TI and Wintegra to grant TI a license to develop products that integrate
      Wintegra IP into TI products and does not constitute a binding agreement. Such
      a
      binding agreement will arise only if and when all material rights, obligations,
      terms and conditions have been set forth in a License Agreement executed by
      both
      parties. If either party chooses to develop any product or technology prior
      to
      execution of a License Agreement, it does so solely at its own risk. All
      agreement drafts, “terms sheets”, memoranda and other communications respecting
      a proposed License Agreement or activities related thereto prepared or exchanged
      in the course of negotiations, even if signed by one party or both parties
      will
      be considered preliminary and will not be legally binding unless expressly
      incorporated into a final License Agreement. Following execution of this MOU
      and
      continuing for its term, TI and Wintegra will promptly undertake to negotiate
      in
      good faith the terms and conditions of a License Agreement. Unless expressly
      noted to the contrary, nothing herein or in such a final executed License
      Agreement shall supercede, preempt or replace any other agreements between
      TI
      and Wintegra, and for clarity and without limitation, the parties hereto agree
      and understand that the licenses and royalty scheme proposed pursuant to this
      MOU shall not apply to any rights that TI has or may gain to Wintegra IP
      pursuant to other agreements between the parties.

     

    
      	
              1.

            	
              Introduction

            

    

     

    This
      MOU
      sets out the common interests of TI and Wintegra in granting TI a license to
      independently develop, manufacture or have manufactured, distribute, offer
      for
      sale and sell TI Devices that incorporate Wintegra IP. The terms of this MOU
      set
      forth TI and Wintegra’s relationship until the details of a complete License
      Agreement are worked out and signed.

     

    
      	
              2.

            	
              Definitions

            

    

     

    2.1           “Average
      Selling Price” shall mean the average price received by TI for the sale of a TI
      Device in the quarter for which royalties are being calculated under this
      Agreement less adjustments for taxes, shipping and handling and any other
      similar adjustments.

     

    2.2           “Intelligent
      Gates” shall mean the number of gates on a device calculated by subtracting the
      memory and I/O pads from the total gate count on such device. Also excluded
      from
      such intelligent gates count are gates to which TI has an independent right
      to
      distribute such gates such as those from MIPS Technologies and other third
      parties that may be part of the TI Device.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TI
      / Wintegra Confidential

     

    2.3           “TI
      Device” shall mean a device manufacture by or for TI that contains proprietary
      Wintegra IP such that [†] on
      such device are proprietary Wintegra IP.

     

    2.4           “Wintegra
      IP” shall mean the circuits and modules designed by and proprietary to Wintegra
      that are provided to TI by Wintegra. The exact scope of the Wintegra IP shall
      be
      scheduled in an exhibit to the Final License Agreement and shall include the
      Wintegra software packages listed in Exhibit 1 to this MOU.

     

    2.5           “Wintegra
      IP Rights” shall mean all applicable patents, mask works, copyrights, trade
      secrets and other intellectual property rights in all countries of the world
      that Wintegra owns or controls during the term of this MOU.

     

    
      	
              3.

            	
              License
                Grant

            

    

     

    Subject
      to Section 4, Wintegra shall grant TI a worldwide, non-exclusive,
      non-transferable license under any and all Wintegra IP Rights to use the
      Wintegra IP to (i) make copies, prepare derivative works, display, and
      otherwise use the Wintegra IP for the purpose of designing, developing, making,
      having made, and supporting TI Devices and (ii) make, use, sell, offer to
      sell, import, export, and otherwise distribute or transfer TI
      Devices.

     

    
      	
              4.

            	
              Royalties

            

    

     

    
      	
              4.1

            	
              Base
                Royalty Rate

            

    

     

    TI
      shall
      pay Wintegra quarterly royalties based on its sales of TI Devices [†] based on
      the following formula:

    

    
      	
              [†]

            	
              =

            	
              [†]

            	
              x

            	
              [†]

            	
              x

            	
              [†]

            

    

     

    
      	
              4.2

            	
              [†]

            

    

     

    [†]

    ________________________

     

    
      [†]
        Information redacted pursuant to a confidential treatment request by Wintegra,
        Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
        Securities and Exchange Commission.

    

     

    
      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      TI
        / Wintegra Confidential

       

    

    
      	
              4.3

            	
              One
                Time Buyout Fee Option

            

    

     

    A
      one
      time “buyout” fee for use of certain intellectual property will also be an
      option to be considered and negotiated in good faith by both Parties should
      the
      economics better fit the business situation.

     

    
      	
              4.4

            	
              Up-Front
                License Fee Option

            

    

     

    [†]

     

    
      	
              5.

            	
              Intellectual
                Property

            

    

     

    5.1           The
      parties agree that Wintegra owns all right, title and interest in and to all
      Wintegra Intellectual Property (patents, copyrights, trade secrets, and other
      intellectual property rights) existing before initiation of this endeavor or
      developed independently of the endeavor by Wintegra and that the Agreement
      will
      not affect or impair Wintegra’s continued ownership of all right, title and
      interest in such Pre-existing Wintegra IP.

     

    5.2           The
      parties agree that TI owns all right, title and interest in and to all TI
      Intellectual Property (patents, copyrights, trade secrets and other intellectual
      property rights) existing before initiation of this endeavor or developed
      independently of the endeavor by TI and that the Agreement will not affect
      or
      impair TI’s continued ownership of all right, title and interest in such
      Pre-existing TI Intellectual Property subject to Wintegra’s interest in the
      Wintegra IP. The parties further agree that TI owns all right, title and
      interest in and to all the intellectual property in the TI Devices except for
      the Wintegra IP in such TI Devices.

     

    5.3           Ownership,
      title, and rights to any Intellectual Property (patents, copyrights, trade
      secrets, and other intellectual property rights) that is to be jointly developed
      by the Parties pursuant to this endeavor (if any), will be addressed by the
      Parties in the final executed License Agreement between the Parties, but it
      is
      contemplated that some form of joint ownership of such items would be
      appropriate.

     

    
      	
              6.

            	
              Indemnification

            

    

     

    Wintegra
      shall defend TI and it customers against any claim, suit or proceeding brought
      against either TI or its customers and shall indemnify and hold TI and its
      customers harmless against all damages, liabilities and costs [†], or [†],
      insofar as such claim, suit or proceeding is based on an allegation that the
      Wintegra IP when used as licensed herein infringes any copyright, mask right,
      or
      patent or constitutes misappropriation of any trade secret; provided that
      Wintegra is promptly notified of such claim, suit or proceeding, given all
      evidence in TI’s possession, custody or control and given reasonable assistance
      in and sole control of the defense and all negotiations for its settlement
      or
      compromise. Notwithstanding the foregoing, TI shall be entitled, at its expense,
      through counsel of its choosing, to participate in the defense and settlement
      of
      any claim, suit, or proceeding, and no settlement adversely affecting TI’s
      rights or activities, or requiring payment by TI, shall be entered into without
      TI’s prior written approval.

     

    _________________________

     

    
      [†]
        Information redacted pursuant to a confidential treatment request by Wintegra,
        Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
        Securities and Exchange Commission.

    

     

    
      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      TI
        / Wintegra Confidential

       

    

    
      	
              7.

            	
              Maintenance
                and Support

            

    

     

    Wintegra
      shall provide TI with maintenance and support on the Wintegra IP [†].
      Such
      maintenance and support shall include the following: (i) providing TI with
      all updates and upgrades to the Wintegra IP as soon as such updates and upgrades
      are first made available to any other party, (ii) making a qualified
      Wintegra engineer available to answer TI’s questions during normal business
      hours, (iii) providing prompt error and bug correction when such errors and
      bugs are reported to Wintegra by TI, and (iv) working with TI to determine
      whether any problems that TI encounters in TI Devices is the result of Wintegra
      IP and working to resolve such issues where identified.

     

    
      	
              8.

            	
              Independent
                Development

            

    

     

    Nothing
      in this Agreement will be construed as a representation or agreement by either
      party that it will not develop or have developed for it products, concepts,
      systems or techniques that are similar to or compete with the products,
      concepts, systems or techniques contemplated by or embodied herein, provided
      that neither party violates any of its obligations under this Agreement in
      connection with such development.

     

    
      	
              9.

            	
              MOU
                Costs and Expenses

            

    

     

    Each
      party will bear its own costs and expenses with regard to all negotiations
      and
      activities relating to the subject of this MOU.

     

    
      	
              10.

            	
              Protection
                of Information

            

    

     

    During
      the term of this MOU, the parties agree to use reasonable efforts (a) to
      avoid public disclosure of the substance of their negotiations, and (b) to
      limit all internal communications of information concerning the subject of
      the
      negotiations to those employees and advisors to whom such information needs
      to
      be disclosed for the negotiations to be properly conducted.

     

    If
      negotiations result in a License Agreement, then the License Agreement may
      contain different terms and conditions respecting confidentiality.

     

    
      
        _________________________

         

        
          [†]
            Information redacted pursuant to a confidential treatment request by
            Wintegra,
            Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
            Securities and Exchange Commission.

        

      

      
        
          
            
            

          

          
            -4-

            
              

            

          

          
            
            

          

        

        TI
          / Wintegra Confidential

         

      

    

    
      	
              11.

            	
              Liability
                Limitations

            

    

     

    11.1         The
      parties agree to use commercially reasonable efforts in their performance of
      this MOU. No guarantees of any kind are made as to the outcome of these
      efforts.

     

    11.2         No
      party will make a claim against, or be liable to, any other party or its
      affiliates or agents for any damages, including (without limitation) lost
      profits or injury to business reputation, resulting from the continuation,
      abandonment or termination of MOU or negotiations related to the subject matter
      of this MOU. Each Party developing information or technology or acquiring
      personnel or capital assets in expectation of execution of a License Agreement
      does so at its own risk and shall not claim against any other party for any
      such
      reliance damages.

     

    
      	
              12.

            	
              Term

            

    

     

    This
      MOU
      will be effective as of the Effective Date and will continue until the earlier
      of [†].
      The
      provisions of the Binding Commitments (i.e., [†]) will survive any expiration or
      termination of this MOU.

     

    
      	
              13.

            	
              Relationship
                of the Parties

            

    

     

    This
      MOU
      is not intended to create a relationship such as a partnership, franchise,
      joint
      venture, agency, or employment relationship. Neither party may represent to
      any
      third party or act in a manner that implies a relationship other than that
      of
      independent contractor. Neither party may enter into a binding agreement on
      behalf of another party.

     

    
      	
              14.

            	
              Choice
                of Law

            

    

     

    Any
      action related to the Binding Commitments set forth in this MOU or
      interpretation of this MOU will be governed by the laws of the state of Texas,
      without reference to that state’s conflict-of-laws principles.

     

    
      	
              15.

            	
              Entire
                Agreement

            

    

     

    This
      MOU,
      to the extent binding, upon the parties, is the parties’ entire agreement
      relating to this subject matter. No modification of this MOU will be binding,
      unless in writing and signed by an authorized representative of each
      party.

     

    In
      witness whereof, the Parties have each caused this MOU to be executed by their
      duly authorized representative as of the date below each of their
      signatures.

    
       

      _________________________

       

      
        [†]
          Information redacted pursuant to a confidential treatment request by Wintegra,
          Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
          Securities and Exchange Commission.

      

       

    

    
      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

      TI
        / Wintegra Confidential

       

    

     

     

    
      	
              Texas
                Instruments Incorporated

            	 	
              Wintegra,
                Inc.

            
	 	 	 
	
              By:   
                /s/                            

            	 	
              By:  
                /s/                                                             
                

            
	
              Print
                Name:     Greg
                Delagi                                    
                

            	 	
              Print
                Name:     Kobi
                Ben-Zvi                         

            
	
              Title:  
                VP,
                DSP
                Systems                                       
                

            	 	
              Title:     
                CEO                                                    
                

            
	
              Date:
                June
                6,
                2005                                                  
                

            	 	
              Date:    
                June
                1,
                2005                                        
                

            
	 
	 	 
	 	 	
              Wintegra,
                Ltd.

            
	 	 	
              By:    
                /s/                                                             

            
	 	 	
              Print
                Name:    Kobi
                Ben-Zvi                            
                

            
	 	 	
              Title:      
                CEO                                                     
                

            
	 	 	
              Date:     
                June
                1,
                2005                                         
                

            

    

     

     

    
      
         

         

      

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    TI
      / Wintegra Confidential

     

    Exhibit
      1

    

    WinPath
      Production Software Packages

    (DPS/WDDI)
      1 of 3

    

      
        	
                Protocol

              	
                Function

              	
                
                  [†]

                

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              
	
                ATM

              
	
                [†]

              	
                [†]

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              
	
                [†]

              	
                x

              	
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                x

              
	
                [†]

              	
                [†]

              	
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                [†]

              	 	 	 	 	 	 	 
	
                [†]

              	
                [†]

              	 	 	 	 	
                x

              	
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                x

              
	
                [†]

              	 	 	 	 	
                x

              	
                x

              	
                x

              
	
                [†]

              	 	 	 	 	 	
                x

              	
                x

              
	
                [†]

              	 	 	 	 	 	
                x

              	
                x

              
	
                [†]

              	
                [†]

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              
	
                [†]

              	
                [†]

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              
	
                [†]

              	
                [†]

              	
                x

              	
                x

              	
                x

              	
                x

              	 	
                x

              	 
	
                [†]

              	
                x

              	
                x

              	
                x

              	
                x

              	 	
                x

              	 
	
                [†]

              	 	 	 	 	 	 	 
	
                [†]

              	
                [†]

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              
	
                [†]

              	
                x

              	
                x

              	
                x

              	
                x

              	 	
                x

              	
                x

              
	
                [†]

              	 	 	 	 	 	
                x

              	
                x

              
	
                [†]

              	
                [†]

              	
                x

              	
                x

              	
                x

              	
                x

              	 	
                x

              	
                x

              

      

      
        
           

        

      

    

    
      
        
          
            
              	 	
                      Notes:

                    	
                      (1)
                        Requires M6 silicon

                    
	 	 	
                      (2)
                        Will not be available in release
                        2.3

                    

            

          

          
            
              	 	 	 
	
                      www.wintegra.com

                    	
                      4Q
                        2004 Page 2

                    	
                      Wintegra
                        Confidential Proprietary

                    

            

             

          

        

      

    

    WinPath
      Production Software Packages

    (DPS/WDDI)
      2 of 3

    

      
        	
                Protocol

              	
                Function

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              
	
                Packet

              
	
                [†]

              	
                [†]

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              
	
                [†]

              	
                [†]

              	 	
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                x

              	
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                [†]

              	 	 	 	 	 	 	 
	
                [†]

              	 	
                x

              	
                x

              	
                x

              	 	 	 
	
                [†]

              	
                [†]

              	 	 	 	 	 	 	 
	
                [†]

              	 	 	
                x

              	 	 	 	 
	
                [†]

              	
                [†]

              	 	
                x

              	 	
                x

              	 	 	 
	
                [†]

              	
                x

              	
                x

              	
                x

              	
                x

              	
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                x

              
	
                [†]

              	 	
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                [†]

              	
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                x

              	
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                x

              
	
                [†]

              	 	
                x

              	 	 	 	 	 
	
                [†]

              	 	 	 	 	 	 	 
	
                [†]

              	 	 	 	 	 	 	 
	
                [†]

              	
                [†]

              	 	 	 	 	 	 	 
	
                
                  [†]

                

              	 	 	 	
                x

              	 	 	 
	
                [†]

              	
                [†]

              	 	 	 	 	 	 	 
	
                [†]

              	 	 	 	 	 	 	 
	
                [†]

              	 	 	 	 	 	
                x

              	
                x

              

      

       

    

    
      
        	 	
                Notes:

              	
                (1)
                  Requires M6 silicon

              
	 	 	
                (2)
                  Will not be available in release
                  2.3

              

      

    

    
      
        	 	 	 
	
                www.wintegra.com

              	
                4Q
                  2004 Page 3

              	
                Wintegra
                  Confidential Proprietary

              

      

    

    _________________________

    
      
         

        
          [†]
            Information redacted pursuant to a confidential treatment request by
            Wintegra,
            Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
            Securities and Exchange Commission.

        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      TI
        / Wintegra Confidential

       
WinPath
      Production Software Packages

    (DPS/WDDI)
      3 of 3

    

      
        	
                Protocol

              	
                Function

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              	
                [†]

              
	
                Interworking

              
	
                [†]

              	
                [†]

              	
                x

              	 	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              
	
                [†]

              	
                [†]

              	
                x

              	 	
                x

              	
                x

              	
                x

              	
                x

              	
                x

              
	
                [†]

              	
                x

              	 	 	
                x

              	
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                x

              	
                x

              
	
                [†]

              	
                x

              	 	 	 	 	 	 
	
                [†]

              	
                [†]

              	
                x

              	
                x

              	 	 	 	 	
                x

              
	
                [†]

              	
                x

              	
                x

              	 	 	 	 	
                x

              
	
                [†]

              	
                x

              	
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                [†]

              	
                [†]

              	
                x

              	
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                x

              	
                x

              	
                x

              	
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                x

              
	
                [†]

              	
                [†]

              	
                x

              	
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                x

              	
                x

              
	
                [†]

              	
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                x

              
	
                [†]

              	
                x

              	 	 	 	 	
                x

              	
                x

              
	
                [†]

              	
                x

              	
                x

              	 	 	 	
                x

              	
                x

              

      

    

     

    
      
        
          	 	
                  Notes:

                	
                  (1)
                    Requires M6 silicon

                
	 	 	
                  (2)
                    Will not be available in release
                    2.3

                

        

      

      
        
          	 	 	 
	
                  www.wintegra.com

                	
                  4Q
                    2004 Page 4

                	
                  Wintegra
                    Confidential Proprietary

                

        

      

       

       

       

       

       

       

       

       

      _________________________

      
        
           

          
            [†]
              Information redacted pursuant to a confidential treatment request by
              Wintegra,
              Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
              Securities and Exchange Commission.

             

            
              
                
                

              

              
                -2-TEXAS
                  INSTRUMENTS	
                  

                

        

      

       

       

       

       

      Texas
        Instruments proposal for:

    

     

    Wintegra

     

    Winpath
      2 ASIC Design

     

    Strictly
      Private, For Wintegra Use Only

     

    

    

    
      	
              Revision

            	
              Date

            	
              Description

            
	
              1.0

            	
              7/19/2004

            	
              Initial
                Version.

            
	
              2.0

            	
              9/22/2004

            	
              Quote
                updated.

            
	
              3.0

            	
              12/9/2004

            	
              Updated
                quote for new inputs from Wintegra and Flip Chip
                packaging.

            
	
              4.0

            	
              6/1/2005

            	
              Updated
                quote for die area changes.

            

    

     

    
 

     

    

     

    

     

    Texas
      Instruments Inc.

     

    

       

       

      
        	 
	
                6/19/2005

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	TEXAS
              INSTRUMENTS	
              

            

    

     

    WINPATH
      2 ASIC Proposal for

     

    Wintegra

     

    Texas
      Instruments is pleased to provide the following quotation for the design and
      implementation of the WINPATH 2 Application Specific Integrated
      Circuit.

     

    I. ASIC
      Product Overview.

     

    TI's
      Communications Infrastructure ASIC organization has the proven technology,
      the
      experienced people, and the management commitment to provide Wintegra with
      timely, low-risk, and cost-effective solutions for the WINPATH
      design.

     

    TI
      is
      quoting our 130nm high performance technology to meet the requirements of the
      design. Please find some key highlights of the full quote listed below that
      TI
      feels are key differentiators and benefits TI is able to offer to
      Wintegra:

     

    Technology

     

    [†]

     

    People

     

    
      	 	
              ·

            	
              TI's
                Comunications Infrastructure has dedicated design and development
                engineering personnel worldwide to assist
                in:

            

    

    · Local
      customer design support

    · High-performance
      ASIC design

    · I/O
      and
      macro creation

    · Package
      development and modeling

    · Signal
      integrity

    · Program
      management

     

    Manufacturing

     

    
      	 	
              ·

            	
              TI
                owned and operated manufacturing
                facilities

            

    

    
      	 	
              ·

            	
              Internal
                dual sourcing

            

    

    · TI
      offers
      [†] owned and operated qualified fabs in the [†] technology node

    
      	 	
              ·

            	
              "Experimental
                Units" prototyped within TI Dallas
                campus

            

    

     

    ______________

    
      [†]
        Information redacted pursuant to a confidential treatment request by Wintegra,
        Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
        Securities and Exchange Commission.

       

      
        
          	 	 	 
	ASIC
                  Quotation 	
                  6/19/2005

                	
                  Page
                    2

                

        

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	TEXAS
              INSTRUMENTS	
              

            

    

     

    II. Design
      Specifications.

     

    TI
      has
      developed a technical proposal for the WINPATH 2 design per our
      understanding of the Wintegra requirements. Below is a summary of the
      proposal.

     

    A. WINPATH 2
      Design Summary

    

    
      	
              ASIC
                Product

            
	
              Name

            	
              SIA
                Node

            	
              L(drawn)

            	
              Metal
                Layers

            	
              Core
                Voltage

            	
              I/O
                Voltage

            
	
              
                [†]

              

            	
              [†]

            	
              [†]

            	
              [†]

            	
              [†]

            	
              [†]

            

    

    

    
      	
              Solution
                Summary

            
	 	
              High
                Performance

            	
              Mid
                Range

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            

    

     

    Notes:

     

    1.
       [†]

    2.
       [†]

    3.
       [†]

    4.
       [†]

     

    B. Package
      Summary

    

    
      	
              Package
                Summary

            	 	 	 
	
              Package
                Type

            	
              Package
                Body Size

            	
              Ball
                Count

            	
              Ball
                Pitch

            
	
              [†]

            	
              [†]

            	
              [†]

            	
              [†]

            

    

     

    The
      package quoted is based on turnkey solution from ASE. TI and ASE continue
      technical discussions on feasibility of the [†] to meet the signal integrity,
      etc... needs of the Winpath 2 design. Discussions could lead to a different
      package requirement.

    
      ______________

      
        [†]
          Information redacted pursuant to a confidential treatment request by Wintegra,
          Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
          Securities and Exchange Commission.

         

        
          
            	 	 	 
	ASIC
                    Quotation 	
                    6/19/2005

                  	
                    Page
                      3

                  

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        	TEXAS
                INSTRUMENTS	
                

              

      

       

    

    C. IP
      Requirements

    

    
      	
              Name

            	 
	
              
                [†]

              

            	
              Custom
                development

            
	
              [†]

            	
              Custom
                development

            
	
              [†]

            	
              Custom
                development

            
	
              [†]

            	
              TI
                IP

            
	
              [†]

            	
              TI
                IP

            
	
              [†]

            	
              TI
                IP

            
	
              [†]

            	
              TI
                IP

            
	
              [†]

            	
              Custom
                development

            

    

     

    D. Custom
      Blocks

     

    TI
      will
      own the physical design of the following Wintegra IP:

     

    [†]

     

    The
      design will be done based on a specification delivered by Wintegra. TI will
      run
      [†] to ensure specification items are met before handing back to Wintegra for
      Signoff Verification. The exact scope of the custom development (i.e. the break
      down of the IP into critical and less critical sub-blocks) is still under
      discussion and will be eventually defined in Wintegra's
      specification.

     

    E. Custom
      I/O

     

    [†]

    
      
        ______________

        
          [†]
            Information redacted pursuant to a confidential treatment request by
            Wintegra,
            Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
            Securities and Exchange Commission.

           

          
            
              	 	 	 
	ASIC
                      Quotation 	
                      6/19/2005

                    	
                      Page
                        4

                    

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	TEXAS
              INSTRUMENTS	
              

            

    

     

    III.
      Design
      Responsibilities, Engagement and Schedule

     

    Texas
      Instruments believes all design requirements can be met using the [ †].
      Please
      reference the technical documentation for recommended design practices and
      considerations, or contact the nearest TI Customer Design Center.

     

    TI
      will
      provide local support through the Freising Germany Customer Design Center (CDC).
      This team will be available to support Wintegra throughout the entire design
      process including synthesis, timing verification, floorplanning, and timing
      closure.

     

    The
      custom blocks will be supported by TI design teams in the [†] and [†] and the
      custom I/O by I/O development team in the US.

     

    A. Design
      Responsibilities

     

    Wintegra
      will implement the design using production-released systems (hardware and
      software) supported by Texas Instruments.

    

    
      	
              Task

            	
              Responsibility

            
	
              [†]

            	
              TI

            
	
              [†]

            	
              Wintegra

            
	
              [†]

            	
              TI/Wintegra

            
	
              [†]

            	
              Wintegra/TI

            
	
              [†]

            	
              TI/Wintegra

            
	
              [†]

            	
              TI/Wintegra

            
	
              [†]

            	
              Wintegra

            
	
              [†]

            	
              Wintegra

            
	
              [†]

            	
              TI/Wintegra

            
	
              [†]

            	
              TI/Wintegra

            
	
              [†]

            	
              Wintegra/TI

            
	
              [†]

            	
              Wintegra

            
	
              [†]

            	
              TI

            
	
              [†]

            	
              Wintegra

            
	
              [†]

            	
              TI

            
	
              [†]

            	
              TI

            
	
              [†]

            	
              TI

            
	
              [†]

            	
              TI/Wintegra

            
	
              [†]

            	
              Wintegra/TI

            
	
              [†]

            	
              Wintegra

            
	
              
                [†]

              

            	
              Wintegra/TI

            
	
              [†]

            	
              TI

            
	
              [†]

            	
              TI

            
	
              [†]

            	
              TI/Wintegra

            
	
              [†]

            	
              TI

            

    

     

    
      
        ______________

        
          [†]
            Information redacted pursuant to a confidential treatment request by
            Wintegra,
            Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
            Securities and Exchange Commission.

           

          
            
              	 	 	 
	ASIC
                      Quotation 	
                      6/19/2005

                    	
                      Page
                        5

                    

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	TEXAS
              INSTRUMENTS	
              

            

    

     

    B.
      Schedule

     

    At
      the
      design kickoff meeting, TI and Wintegra negotiated a detailed development
      schedule, outlining all the critical milestones and deliverables. The schedule
      shown below outlines several of the major milestones. The schedule is updated
      with all the known changes as of June 19 2005.

     

    Schedule

    

    
      	
              Task

            	
              Duration

            	
              Target
                Date

            	
              Responsibility

            
	
              Design
                Kickoff

            	
              
                
                  [†]

                

              

            	
              [†]

            	
              Wintegra/TI

            
	
              [†]

            	
              
                [†]

              

            	
              [†]

            	
              Wintegra

            
	
              [†]

            	
              [†]

            	
              [†]

            	
              Wintegra/TI

            
	
              [†]

            	
              [†]

            	
              [†]

            	
              Wintegra

            
	
              [†]

            	
              [†]

            	
              [†]

            	
              Wintegra/TI

            
	
              [†]

            	
              [†]

            	
              [†]

            	
              TI

            

    

     

    
      
        ______________

        
          [†]
            Information redacted pursuant to a confidential treatment request by
            Wintegra,
            Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
            Securities and Exchange Commission.

           

          
            
              	 	 	 
	ASIC
                      Quotation 	
                      6/19/2005

                    	
                      Page
                        6

                    

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	TEXAS
              INSTRUMENTS	
              

            

    

     

    IV.
      NRE

     

    A. Summary
      of NRE charges for Winpath:

     

    NRE
      Charges

    

    
      	
              Options

            	
              Winpath

            
	
              Baseline
                NRE

            	
              $[†]

            
	
              [†]
                Licensing NRE

            	
              $[†]

            
	
              Total
                NRE

            	
              $[†]

            

    

     

    The
      quoted Baseline NRE includes the following goods and services:

    [†]

     

    As
      an
      additional service to Wintegra, all Test Services are included in the Baseline
      NRE. Included in these services are all Insertion of Test Structures to ensure
      complete testability of the WINPATH design. The Baseline NRE does not include
      any special Design Services.

    
      
        ______________

        
          [†]
            Information redacted pursuant to a confidential treatment request by
            Wintegra,
            Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
            Securities and Exchange Commission.

           

          
            
              	 	 	 
	ASIC
                      Quotation 	
                      6/19/2005

                    	
                      Page
                        7

                    

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	TEXAS
              INSTRUMENTS	
              

            

    

     

    C.
      NRE
      Payment Terms:

    

    
      	
              Milestone

            	
              Amount

            
	
              Design
                Award

            	
              $[†]

            
	
              Release
                to PG

            	
              $[†]

            
	
              Initial
                Verification Unit Shipment

            	
              $[†]

            

    

     

    D. Termination
      of Design Service

     

    Liability
      to TI for work performed prior to termination shall be based on actual costs
      incurred at the time of termination.

     

    VI. Additional
      Engineering Services

     

    A. Customer
      Requested Layout Changes

     

    Charges
      for layout changes for customer design revisions are dependent on the extent
      of
      work required.

     

    B. Redesigns

     

    The
      NRE
      and schedule for a design re-spin is dependent on the nature of the changes
      made
      to the device and will include the entire cost of the masks and any engineering
      effort necessary to support the redesign.

     

    
      
        ______________

        
          [†]
            Information redacted pursuant to a confidential treatment request by
            Wintegra,
            Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
            Securities and Exchange Commission.

           

          
            
              	 	 	 
	ASIC
                      Quotation 	
                      6/19/2005

                    	
                      Page
                        8

                    

            

          

        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	TEXAS
              INSTRUMENTS	
              

            

    

     

    VII.
      Verification
      Devices

     

    TI
      offers
      our customers [†].

     

    A. [†]

     

    Upon
      successful completion and sign-off of the design specification and test vectors,
      TI will manufacture, assemble, test, and deliver [†] are assembled in a local,
      non-production qualified assembly facility, and tested using a limited set
      of
      the test program. In addition to [†] included in the NRE, TI will also support a
      limited number of additional [†]. [†] are assembled in our production facility
      and are also tested with a limited set of the test program. The maximum quantity
      of additional [†] is dependent on die and lot size.

     

    B. Cycletime
      and Pricing

     

    The
      table
      below outlines the cycletime and pricing for [†].

     

    Verification
      Units Cycle time and Pricing 

    

    
      	 	
              Cycle
                time

            	
              Unit
                Price

            
	
              [†]

            	
              Per
                design schedule

            	
              [†]

            
	
              [†]

            	
              7
                days after initial [†]

            	
              [†]

            
	
              [†]

            	
              21
                days after initial [†]

            	
              [†]

            

    

     

    Notes:

     

    · Orders
      must be placed prior to PG release.

    · TDL
      must
      be archived prior to PG release.

    · A
      [†] is
      allowed for all additional [†].

     

    C. Termination
      of Additional Verification Units

     

    Liability
      to TI work in progress for additional verification units orders shall be subject
      to the following cancellation provisions:

    

    
      	
              Section/Stage
                Commenced

            	
              Cancellation
                Charge

            
	
              Release
                to PG

            	
              [†] of
                Order

            
	
              Assembly
                Start

            	
              [†] of
                Order

            

    

     

    
      
        ______________

        
          [†]
            Information redacted pursuant to a confidential treatment request by
            Wintegra,
            Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
            Securities and Exchange Commission.

           

          
            
              	 	 	 
	ASIC
                      Quotation 	
                      6/19/2005

                    	
                      Page
                        9

                    

            

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

      

    

    
      	TEXAS
              INSTRUMENTS	
              

            

    

     

    VIII. Production
      Devices

     

    A. Production
      Unit Pricing

     

    TI
      utilizes a number of qualified manufacturing sites worldwide for fabrication,
      assembly and test of ASIC products. Production devices are manufactured using
      the standard Texas Instruments production flow, and will be tested in accordance
      with the ASIC Design Specifications.

     

    Baseline
      Production Unit Pricing 2006-2007

    

    
      	
              
                [†]

              

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            
	
              [†]

            	
              [†]

            	
              [†]

            

    

    *
      [†]

     

    Notes:

     

    1.
       [†]

    2.
       [†]

    3.
       [†]

     

    B. Termination
      of Production Units

     

    Liability
      to TI work in progress for production orders shall be subject to the following
      cancellation provisions:

    

    
      	
              Section/Stage
                Commenced

            	
              Cancellation
                Charge

            
	
              Wafer
                Start 

            	
              [†]%
                of Order

            
	
              Assembly
                Start 

            	
              [†]%
                of Order

            

    

     

    Customer
      is not entitled to work in progress.

     

    C. Special
      Requirements:

     

    TI
      understands that there are special requirements from a production standpoint
      such [†] required to support Wintegra customer shipments. TI and Wintegra
      continue to work together to align on how TI best supports these
      requirements.

     

    
      
        ______________

        
          [†]
            Information redacted pursuant to a confidential treatment request by
            Wintegra,
            Inc. under 17 CFR §§ 200.80(b)(4) and 230.406 and submitted separately with the
            Securities and Exchange Commission.

           

          
            
              	 	 	 
	ASIC
                      Quotation 	
                      6/19/2005

                    	
                      Page
                        10

                    

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	TEXAS
              INSTRUMENTS	
              

            

    

     

    IX. Terms

     

    This
      proposal is valid for 30 days. TI standard ASIC Business Agreement will
      apply.

     

    

     

    In
      witness whereof,
      TI and
      Customer have caused this Agreement to be executed by their duly authorized
      representatives as of the Effective Date. In the event that the party who is
      the
      last to sign this Agreement does not execute and return to the other party
      a
      fully executed copy of this Agreement within fifteen (15) business days
      after the date this Agreement is executed by the first party to sign this
      Agreement, such first party's signature shall be automatically revoked and
      this
      Agreement shall have no force or effect.

     

    
      	Texas
              Instruments Incorporated 	 	 	Wintegra
              LTD. 
	 	 	 	 
	
              By:

              
                

              

            	 	 	
              By:  /s/ Kobi Ben-Zvi 

              
                

              

            
	Name:	 	 	Name:
Kobi
              Ben-Zvi
	
              
                
  

            	 	 	
              
                
  

            
	Title: 	 	 	Title:   CEO 
	
              
                
  

            	 	 	
              
                
  

            
	Date: 	 	 	Date:   June
              - 19 - 2005 
	
              
                
  

            	 	 	
              
                
  

            

    

    

     

     

    
      
        
          
            
              	 	 	 
	ASIC
                      Quotation 	
                      6/19/2005

                    	
                      Page
                        11

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