Document:

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                                                                  Exhibit 10.13

                        INTEGRATED TELECOM EXPRESS, INC.
             (FORMERLY KNOWN AS INTEGRATED TECHNOLOGY EXPRESS, INC.)

                             1996 STOCK OPTION PLAN

         1. PURPOSES OF THE PLAN. The purposes of this Stock Option Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business. Options granted under the Plan may be incentive stock options (as
defined under Section 422 of the Code) or nonstatutory stock options, as
determined by the Administrator at the time of grant of an option and subject to
the applicable provisions of Section 422 of the Code, as amended, and the
regulations promulgated thereunder.

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

            (a) "ADMINISTRATOR" means the Board or any of its Committees
appointed pursuant to Section 4 of the Plan.

            (b) "APPLICABLE LAWS" means the legal requirements relating to the
administration of stock option plans under United States sate corporate laws,
federal and state securities laws, the Code and the applicale laws of any
foreign country or jurisdiction where Options will be granted under the Plan.

            (c) "BOARD" means the Board of Directors of the Company.

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

            (e) "COMMITTEE" means a Committee appointed by the Board of
Directors in accordance with Section 4 of the Plan.

            (f) "COMMON STOCK" means the Common Stock of the Company.

            (g) "COMPANY" means Integrated Telecom Express, Inc., a California
corporation formerly known as Integrated Technology Express, Inc.

            (h) "CONSULTANT" means any person who is engaged by the Company or
any Parent or Subsidiary to render consulting or advisory services and is
compensated for such services, and any director of the Company whether
compensated for such services or not. If and in the event the Company registers
any class of any equity security pursuant to the Exchange Act, the term
Consultant shall thereafter not include directors who are not compensated for
their services or are paid only a director's fee by the Company.

            (i) "CONTINUOUS STATUS AS AN EMPLOYEE OR CONSULTANT" means that the
employment or consulting relationship with the Company, any Parent, or
Subsidiary, is not interrupted or terminated. Continuous Status as an Employee
or Consultant shall not be considered

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interrupted in the case of (i) any leave of absence approved by the Company or
(ii) transfers between locations of the Company or between the Company, its
Parent, any Subsidiary, or any successor. A leave of absence approved by the
Company shall include sick leave, military leave, or any other personal leave
approved by an authorized representative of the Company. For purposes of
Incentive Stock Options, no such leave may exceed 90 days, unless reemployment
upon expiration of such leave is guaranteed by statute or contract, including
Company policies. If reemployment upon expiration of a leave of absence approved
by the Company is not so guaranteed, on the 181st day of such leave any
Incentive Stock Option held by the Optionee shall cease to be treated as an
Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory
Stock Option.

            (j) "EMPLOYEE" means any person, including Officers and directors,
employed by the Company or any Parent or Subsidiary of the Company. The payment
of a director's fee by the Company shall not be sufficient to constitute
"employment" by the Company.

            (k) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

            (l) "FAIR MARKET VALUE" means, as of any date, the Value of Common
Stock determined as follows:

                 (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day prior to the time of determination, as reported in
THE WALL STREET JOURNAL or such other source as the Administrator deems
reliable;

                (ii) If the Common Stock is quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean between the high bid and low asked prices for the Common Stock
on the last market trading day prior to the day of determination, or;

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

            (m) "INCENTIVE STOCK OPTION" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code.

            (n) "NONSTATUTORY STOCK OPTION" means an Option not intended to
qualify as an Incentive Stock Option.

            (o) "OFFICER" means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

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            (p) "OPTION" means a stock option granted pursuant to the Plan.

            (q) "OPTIONED STOCK" means the Common Stock subject to an Option.

            (r) "OPTIONEE" means an Employee or Consultant who receives an
Option.

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

            (t) "PLAN" means this 1996 Stock Option Plan.

            (u) "SECTION 16(b)" means Section 16(b) of the Securities Exchange
Act of 1934, as amended.

            (v) "SHARE" means a share of the Common Stock, as adjusted in
accordance with Section 11 below.

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

         3. STOCK SUBJECT TO THE PLAN. Subject to the provisions of Section 11
of the Plan, the maximum aggregate number of Shares which may be optioned and
sold under the Plan is 8,000,000 Shares. The Shares may be authorized, but
unissued, or reacquired Common Stock.

            If an Option expires or becomes unexercisable without having been
exercised in full, or is surrendered pursuant to an option exchange program, the
unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated); PROVIDED,
however, that Shares that have actually been issued under the Plan shall not be
returned to the Plan and shall not become available for future distribution
under the Plan, except that if unvested Shares are repurchased by the Company at
their original purchase price, and the original purchaser of such Shares did not
receive any benefits of ownership of such Shares, such Shares shall become
available for future grant under the Plan. For purposes of the preceding
sentence, voting rights shall not be considered a benefit of Share ownership.

         4. ADMINISTRATION OF THE PLAN.

            (a) INITIAL PLAN PROCEDURE. Prior to the date, if any, upon which
the Company becomes subject to the Exchange Act, the Plan shall be administered
by the Board or a committee appointed by the Board.

            (b) PLAN PROCEDURE AFTER THE DATE, IF ANY, UPON WHICH THE COMPANY
BECOMES SUBJECT TO THE EXCHANGE ACT.

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                 (i) ADMINISTRATION WITH RESPECT TO DIRECTORS AND OFFICERS. With
respect to grants of Options to Employees who are also Officers or directors of
the Company, the Plan shall be administered by (A) the Board if the Board may
administer the Plan in compliance with the rules under Rule 16b-3 promulgated
under the Exchange Act or any successor thereto ("Rule 16b-3") relating to the
disinterested administration of employee benefit plans under which Section 16(b)
exempt discretionary grants and awards of equity securities are to be made,
or (B) a Committee designated by the Board to administer the Plan, which
Committee shall be constituted to comply with the rules under Rule 16b-3
relating to the disinterested administration of employee benefit plans under
which Section 16(b) exempt discretionary grants and awards of equity securities
are to be made. Once appointed, such Committee shall continue to serve in its
designated capacity until otherwise directed by the Board. From time to time the
Board may increase the size of the Committee and appoint additional members
thereof, remove members (with or without cause) and appoint new members in
substitution therefor, fill vacancies, however caused, and remove all members of
the Committee and thereafter directly administer the Plan, all to the extent
permitted by the rules under Rule 16b-3 relating to the disinterested
administration of employee benefit plans under which Section 16(b) exempt
discretionary grants and awards of equity securities are to be made.

                (ii) MULTIPLE ADMINISTRATIVE BODIES. If permitted by Rule 16b-3,
the Plan may be administered by different bodies with respect to directors,
non-director Officers and Employees who are neither directors nor Officers.

               (iii) ADMINISTRATION WITH RESPECT TO CONSULTANTS AND OTHER
EMPLOYEES. With respect to grants of Options to Employees or Consultants who are
neither directors nor Officers of the Company, the Plan shall be administered by
(A) the Board or (B) a committee designated by the Board, which committee shall
be constituted in such a manner as to satisfy the Applicable Laws. Once
appointed, such Committee shall continue to serve in its designated capacity
until otherwise directed by the Board. From time to time the Board may increase
the size of the Committee and appoint additional members thereof, remove members
(with or without cause) and appoint new members in substitution therefor, fill
vacancies, however caused, and remove all members of the Committee and
thereafter directly administer the Plan, all to the extent permitted by the
Applicable Laws.

            (c) POWERS OF THE ADMINISTRATOR. Subject to the provisions of the
Plan and, in the case of a Committee, the specific duties delegated by the Board
to such Committee, and subject to the approval of any relevant authorities,
including the approval, if required, of any stock exchange upon which the Common
Stock is listed, the Administrator shall have the authority, in its discretion:

                 (i) to determine the Fair Market Value of the Common Stock, in
accordance with Section 2(l) of the Plan;

                (ii) to select the Consultants and Employees to whom Options may
from time to time be granted hereunder;

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               (iii) to determine whether and to what extent Options
are granted hereunder;

                (iv) to determine the number of shares of Common Stock to be
covered by each such award granted hereunder;

                (v)  to approve forms of agreement for use under the Plan;

               (vi)  to determine the terms and conditions of any award granted
hereunder;

              (vii)  to determine whether and under what circumstances an
Option may be settled in cash under subsection 9(f) instead of Common Stock;

             (viii)  to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock
covered by such Option has declined since the date the Option was granted; and

               (ix)  to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

               (ix)  to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan.

            (d) EFFECT OF ADMINISTRATOR'S DECISION. All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all Optionees and any other holders of any Options.

         5.       ELIGIBILITY.

            (a) Nonstatutory Stock Options may be granted to Employees and
Consultants. Incentive Stock Options may be granted only to Employees. An
Employee or Consultant who has been granted an Option may, if otherwise
eligible, be granted additional Options.

            (b) Each Option shall be designated in the written option agreement
as either an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 5(b), Incentive Stock Options shall be taken into account in the order
in which they were granted. The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

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            (c) The Plan shall not confer upon any Optionee any right with
respect to continuation of employment or consulting relationship with the
Company, nor shall it interfere in any way with his or her right or the
Company's right to terminate his or her employment or consulting relationship at
any time, with or without cause.

            (d) Upon the Company or a successor corporation issuing any class of
common equity securities required to be registered under Section 12 of the
Exchange Act or upon the Plan being assumed by a corporation having a class of
common equity securities required to be registered under Section 12 of the
Exchange Act, the following limitations shall apply to grants of Options to
Employees:

                 (i) No Employee shall be granted, in any fiscal year of the
Company, Options to purchase more than [ ] Shares.

                (ii) In connection with his or her initial employment, an
Employee may be granted Options to purchase up to an additional [ ] Shares which
shall not count against the limit set forth in subsection (i) above.

               (iii) The foregoing limitations shall be adjusted proportionately
in connection with any change in the Company's capitalization as described in
Section 11.

                (iv) If an Option is cancelled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 11), the cancelled Option will be counted against the limit
set forth in subsection (i) above. For this purpose, if the exercise price of an
Option is reduced, the transaction will be treated as a cancellation of the
Option and the grant of a new Option.

            6. TERM OF PLAN. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
shareholders of the Company, as described in Section 17 of the Plan. It shall
continue in effect for a term of ten (10) years unless sooner terminated under
Section 13 of the Plan.

            7. TERM OF OPTION. The term of each Option shall be the term stated
in the Option Agreement; provided, however, that the term shall be no more than
ten (10) years from the date of grant thereof. However, in the case of an
Incentive Stock Option granted to an Optionee who, at the time the Option is
granted, owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the term of
the Option shall be five (5) years from the date of grant thereof or such
shorter term as may be provided in the Option Agreement.

            8. OPTION EXERCISE PRICE AND CONSIDERATION.

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            (a) The per share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be such price as is determined by the
Administrator, but shall be subject to the following:

                 (i) In the case of an Incentive Stock Option

                     (A) granted to an Employee who, at the time of the grant of
such Incentive Stock Option, owns stock representing more than ten percent (10%)
of the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant.

                     (B) granted to any Employee other than an Employee
described in the preceding paragraph, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of grant.

                (ii) In the case of a Nonstatutory Stock Option

                     (A) granted to a person who, at the time of the grant of
such Option, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
per Share exercise price shall be no less than 110% of the Fair Market Value per
Share on the date of the grant.

                     (B) granted to any person, the per Share exercise price
shall be no less than 85% of the Fair Market Value per Share on the date of
grant.

            (b) The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by
the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (1) cash, (2)
check, (3) promissory note, (4) other Shares which (x) in the case of Shares
acquired upon exercise of an Option have been owned by the Optionee for more
than six months on the date of surrender and (y) have a Fair Market Value on the
date of surrender equal to the aggregate exercise price of the Shares as to
which said Option shall be exercised, (5) delivery of a properly executed
exercise notice together with such other documentation as the Administrator and
the broker, if applicable, shall require to effect an exercise of the Option and
delivery to the Company of the sale or loan proceeds required to pay the
exercise price, or (6) any combination of the foregoing methods of payment. In
making its determination as to the type of consideration to accept, the
Administrator shall consider if acceptance of such consideration may be
reasonably expected to benefit the Company.

            9. EXERCISE OF OPTION.

            (a) PROCEDURE FOR EXERCISE; RIGHTS AS A SHAREHOLDER. Any Option
granted hereunder shall be exercisable at such times and under such conditions
as determined by the

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Administrator, including performance criteria with respect to the Company and/or
the Optionee, and as shall be permissible under the terms of the Plan, but in
no case at a rate of less than 20% per year over five (5) years from the date
the Option is granted.

          An Option may not be exercised for a fraction of a Share.

          An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may, as authorized by the Administrator, consist of any
consideration and method of payment allowable under Section 8(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock certificate promptly upon exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 11 of the Plan.

          Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

            (b) TERMINATION OF EMPLOYMENT OR CONSULTING RELATIONSHIP. In the
event of termination of an Optionee's Continuous Status as an Employee or
Consultant with the Company (but not in the event of an Optionee's change of
status from Employee to Consultant (in which case an Employee's Incentive Stock
Option shall automatically convert to a Nonstatutory Stock Option on the date
three (3) months and one day from the date of such change of status) or from
Consultant to Employee), such Optionee may, but only within such period of time
as is determined by the Administrator, of at least thirty (30) days, with such
determination in the case of an Incentive Stock Option not exceeding three (3)
months after the date of such termination (but in no event later than the
expiration date of the term of such Option as set forth in the Option
Agreement), exercise his or her Option to the extent that Optionee was entitled
to exercise it at the date of such termination. To the extent that Optionee was
not entitled to exercise the Option at the date of such termination, or if
Optionee does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate.

            (c) DISABILITY OF OPTIONEE. In the event of termination of an
Optionee's consulting relationship or Continuous Status as an Employee as a
result of his or her disability, Optionee may, but only within twelve (12)
months from the date of such termination (and in no event later than the
expiration date of the term of such Option as set forth in the Option
Agreement), exercise the Option to the extent otherwise entitled to exercise it
at the date of such termination; provided, however, that if such disability is
not a "disability" as such term is defined in Section 22(e)(3) of the Code, in
the

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case of an Incentive Stock Option such Incentive Stock Option shall
automatically convert to a Nonstatutory Stock Option on the day three
months and one day following such termination. To the extent that Optionee is
not entitled to exercise the Option at the date of termination, or if Optionee
does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan.

            (d) DEATH OF OPTIONEE. In the event of the death of an Optionee, the
Option may be exercised at any time within twelve (12) months following the date
of death (but in no event later than the expiration of the term of such Option
as set forth in the Notice of Grant), by the Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but
only to the extent that the Optionee was entitled to exercise the Option at the
date of death. If, at the time of death, the Optionee was not entitled to
exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall immediately revert to the Plan. If, after death, the
Optionee's estate or a person who acquired the right to exercise the Option by
bequest or inheritance does not exercise the Option within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

            (e) RULE 16b-3. Options granted to persons subject to Section 16(b)
of the Exchange Act must comply with Rule 16b-3 and shall contain such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions.

            (f) BUYOUT PROVISIONS. The Administrator may at any time offer to
buy out for a payment in cash or Shares, an Option previously granted, based on
such terms and conditions as the Administrator shall establish and communicate
to the Optionee at the time that such offer is made.

       10.  NON-TRANSFERABILITY OF OPTIONS. Options may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

       11.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR MERGER.

            (a) CHANGES IN CAPITALIZATION. Subject to any required action
by the shareholders of the Company, the number of shares of Common Stock covered
by each outstanding Option, and the number of shares of Common Stock which have
been authorized for issuance under the Plan but as to which no Options have yet
been granted or which have been returned to the Plan upon cancellation or
expiration of an Option, as well as the price per share of Common Stock covered
by each such outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made

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by the Administrator, whose determination in that respect shall be final,
binding and conclusive. Except as expressly provided herein, no issuance by the
Company of shares of stock of any class, or securities convertible into shares
of stock of any class, shall affect, and no adjustment by reason thereof shall
be made with respect to, the number or price of shares of Common Stock subject
to an Option.

            (b) DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify the
Optionee at least fifteen (15) days prior to such proposed action. To the extent
it has not been previously exercised, the Option will terminate immediately
prior to the consummation of such proposed action.

            (c) MERGER. In the event of a merger of the Company with or into
another corporation, the Option may be assumed or an equivalent option may be
substituted by such successor corporation or a parent or subsidiary of such
successor corporation. If, in such event, the Option is not assumed or
substituted, the Option shall terminate as of the date of the closing of the
merger. For the purposes of this paragraph, the Option shall be considered
assumed if, following the merger, the option confers the right to purchase, for
each Share of Optioned Stock subject to the Option immediately prior to the
merger, the consideration (whether stock, cash, or other securities or property)
received in the merger by holders of Common Stock for each Share held on the
effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided, however, that if such consideration received
in the merger was not solely common stock of the successor corporation or its
Parent, the Administrator may, with the consent of the successor corporation,
provide for the consideration to be received upon the exercise of the Option for
each Share of Optioned Stock subject to the Option to be solely common stock of
the successor corporation or its Parent equal in fair market value to the per
share consideration received by holders of Common Stock in the merger.

         12. TIME OF GRANTING OPTIONS. The date of grant of an Option shall, for
all purposes, be the date on which the Administrator makes the determination
granting such Option, or such other date as is determined by the Board. Notice
of the determination shall be given to each Employee or Consultant to whom an
Option is so granted within a reasonable time after the date of such grant.

         13. AMENDMENT AND TERMINATION OF THE PLAN.

            (a) AMENDMENT AND TERMINATION. The Board may at any time amend,
alter, suspend or discontinue the Plan, but no amendment, alteration, suspension
or discontinuation shall be made which would impair the rights of any Optionee
under any grant theretofore made, without his or her consent. In addition, to
the extent necessary and desirable to comply with Rule 16b-3 under the Exchange
Act or with Section 422 of the Code (or any other applicable law or regulation,
including the requirements of the NASD or an established stock exchange), the
Company shall obtain shareholder approval of any Plan amendment in such a manner
and to such a degree as required.

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            (b) EFFECT OF AMENDMENT OR TERMINATION. Any such amendment or
termination of the Plan shall not affect Options already granted, and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Administrator, which agreement must be in writing and signed by the Optionee
and the Company.

        14. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the Shares may
then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

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

        15. RESERVATION OF SHARES. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

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

        16. AGREEMENTS. Options shall be evidenced by written agreements in
such form as the Administrator shall approve from time to time.

        17. SHAREHOLDER APPROVAL. Continuance of the Plan shall be subject to
approval by the shareholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such shareholder approval shall be obtained
in the degree and manner required under applicable state and federal law and the
rules of any stock exchange upon which the Common Stock is listed.

        18. INFORMATION TO OPTIONEES AND PURCHASERS. The Company shall provide
to each Optionee, not less frequently than annually, copies of annual financial
statements. The Company shall also provide such statements to each individual
who acquires Shares pursuant to the Plan while such individual owns such Shares.
The Company shall not be required to provide such statements to key employees
whose duties in connection with the Company assure their access to equivalent
information.

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                         AMENDMENT TO OPTION AGREEMENTS
                             FOR CERTAIN INDIVIDUALS
                                    UNDER THE
                                 1996 STOCK PLAN

As it is in the interests of Integrated Telecom Express, Inc. (the "Company") to
attract and retain the highest quality and caliber members for its board on
terms that are competitive with those offered by other companies who seek the
help of such board members, the Company amends its 1996 Stock Plan to provide
such incentives as described further below.

I.   ACCELERATION OF NSO VESTING AND EXERCISE UNDER STOCK PLAN OF THE COMPANY

     A. Each person whose name is set forth on Exhibit A attached to this
Amendment who is or has been granted an option to purchase non-statutory options
within the meaning of Section 422 of the Internal Revenue Code shall be allowed
to accelerate the vesting of those options, and to purchase them under the
following terms:

The vesting for the nonstatutory stock options shown in Exhibit A shall
accelerate so as to become fully vested throughout the vesting period for the
individual(s) so effected upon the occurrence of the following conditions: (i)
the individual has offered and is willing to continue to serve for the duration
of the vesting period described in the above stock option grant resolution in
the capacity they held with the Company as of the date of this Amendment; and
(ii) the individual involved is not then in default of his/her material
obligations to the Company (for purposes of this provision, an individual is not
in default absent written notice from the Company of the claim of default and a
reasonable opportunity to cure in a prompt manner); and (iii) the Company, its
shareholders or directors do not offer that person a reasonable opportunity to
continue in the capacity held as of the date of this Amendment so as to fully
vest all remaining shares granted such person as shown in Exhibit A.

II.  VESTING

     A. The grants and vesting for the nonstatutory stock options shown in
Exhibit A shall be implemented in a manner that permits each member of the board
receiving such option grants to exercise the relevant options (whether vested or
not) in full at any time following January 1, 2000, under the terms outlined
below:

        (i) With respect to the options which would vest in the second, third
and fourth years of the vesting period, each such director may purchase the
shares involved pursuant to an interest bearing full-recourse secured promissory
note payable to the Company, with the share certificates held by the Company as
security for the note;

        (ii) With respect to all options exercised pursuant to subpart (a)
above, the exercise(s) will be done pursuant to a right to repurchase by the
Company at the Option exercise price, which right will be exercisable upon the
occurrence of any one or more of the following conditions: (i) if, for reasons
other than those for which the Company or its shareholders are responsible, the
individual director involved has failed to offer or is unwilling or unable to
continue

<PAGE>

to serve in the capacity they held with the Company as of the date of this
Amendment for the duration of the vesting period which would otherwise apply;
and/or (ii) if the individual director involved is in default of his/her
material obligations to the Company (for purposes of this provision, an
individual is not in default absent written notice from the Company of the claim
of default and a reasonable opportunity to cure in a prompt manner).

        (iii) With respect to all options exercised pursuant to subpart (a)
above, the Company's right of repurchase will lapse in accordance with the
vesting schedule which would otherwise apply. In order to illustrate the board's
intention, and solely by way of example, consider a hypothetical individual
director who elected early exercise of all years of the grant, with the final
three years exercised pursuant to Section II(A)(i); for such a director, the
Company right to repurchase shall lapse at the rate of 20% of the Shares Subject
to the Option at the end of the 12th month following the Vesting Commencement
Date; 2 1/12% of the Shares Subject to the Option at the end of each of the 13th
through 24th months following the Vesting Commencement Date; at the rate of 2
1/2% of the Shares subject to the Option at the end of each of the 25th through
36th months following the Vesting Commencement Date, and at the rate of 2 1/12%
of the Shares subject to the Option at the end of each of the 37th through 48th
months following the Vesting Commencement Date;

III. ACCELERATION OF VESTING OF STOCK OPTION GRANTS: "CHANGE OF CONTROL"

     A. The agreements under which persons have previously been granted options
to purchase non-statutory options within the meaning of Section 422 of the
Internal Revenue Code are hereby amended to allow for the acceleration of the
vesting of those options.

     B. "Change of Control" shall mean any merger, acquisition, combination,
restructuring and/or reorganization of the Company (other than an offering of
shares on the open market) in which the shareholders of record of the Company
(as a group) immediately prior to the close of such transaction do not, as of
the close of such transaction, hold more than 50% of the then outstanding shares
of the Company (and/or the corporate entity resulting from such transaction).

     C. That in the event of a Change of Control, the Company wishes to
incentives each person named on the attached Exhibit A to work in the interests
of the Company and its shareholders, without regard to the risk of loss of
option rights and/or resulting uncertainty as to potential change in their
particular employment status.

     D. Each person named on the attached Exhibit A and solely as to those
options shown on Exhibit A to purchase shares of common stock of the Company
pursuant to the 1996 Stock Plan of the Company (the "Plan") shall be allowed to
accelerate the vesting of such options for such number of shares under the terms
of this resolution.

     E. Upon a Change in Control, and notwithstanding the vesting provided in
the grant(s) involved, the vesting for the then outstanding options shown in
Exhibit A shall accelerate so as to become fully vested for the individual(s) so
effected upon the occurrence of the following conditions: (i) the individual has
offered in writing and is willing to continue to serve as an employee for the
duration of the vesting period described in the option grant in the general
capacity.

                                      -2-
<PAGE>

that individual held with the Company immediately prior to the Change of
Control; and (ii) the individual involved is not then in default of any material
obligations to the Company (as to which the Company has provided written notice
of default and which default the individual has failed to cure within a
reasonable time after such notice); and (iii) the Company, its shareholders or
directors do not offer that person a reasonable opportunity to continue in such
general capacity following the Change of Control so as to fully vest all
remaining shares in the grants to such person as shown in Exhibit A.

THE COMPANY:                      INTEGRATED TELECOM EXPRESS, INC

                                  By:
                                     ---------------------------------------
                                  Date:
                                       -------------------------------------

                                  OPTION HOLDER

                                  By:
                                     ---------------------------------------
                                  Date:
                                       -------------------------------------

                                      -3-
<PAGE>

                                    EXHIBIT A

                          ITEX EXECUTIVE STOCK OPTIONS
<TABLE>
<CAPTION>
                                                                                    ISO
                        Name              Prior Options to       New Grant           v            Total
                                             date (K's)          (in K's)           NSO           (K's)
----------------------------------------------------------------------------------------------------------
<S>                                       <C>                   <C>                <C>        <C>
Rich Forte                                      600                 600             ISO           1200
----------------------------------------------------------------------------------------------------------
Robert Gardner                                  400                 125             ISO            525
----------------------------------------------------------------------------------------------------------
Ralph Cognac                                    250                 150             ISO            400
----------------------------------------------------------------------------------------------------------
Brian Gillings                                  225                  75             ISO            300
----------------------------------------------------------------------------------------------------------
Max Liu                                         190                 160             ISO            350
----------------------------------------------------------------------------------------------------------
Jow Peng                                        210                 140             ISO            350
----------------------------------------------------------------------------------------------------------
Tim Rogers                                      230                  70             ISO            300
----------------------------------------------------------------------------------------------------------
Wen Chi Chen                                    970                 250             ISO           1220
----------------------------------------------------------------------------------------------------------
Young Way Liu                                   995                 200             ISO           1195
----------------------------------------------------------------------------------------------------------
Peter Courture                                   50                  50             NSO            100
----------------------------------------------------------------------------------------------------------
                               Subtotal                             1820
----------------------------------------------------------------------------------------------------------
Terry Gou                                        50                 n/a             NSO            50
----------------------------------------------------------------------------------------------------------
David Lam                                       100                 n/a             NSO            100
----------------------------------------------------------------------------------------------------------
John Cioffi                                     100                 n/a             NSO            100
----------------------------------------------------------------------------------------------------------
</TABLE>

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