Document:

EXHIBIT 10.31

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THE SECURITIES
      MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF
      COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN
      COMPARABLE TRANSACTIONS THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S UNDER SAID ACT.

                         CALLABLE SECURED CONVERTIBLE NOTE

New York, New York
_______, 2005                                                         $_______

            FOR VALUE RECEIVED, Astrata Group Incorporated, a Nevada corporation
(hereinafter called the "Borrower"), hereby promises to pay to the order of
___________ or registered assigns (the "Holder") the sum of $________ , on
___________, 200_ (the "Maturity Date"). Any amount of principal on this Note
which is not paid when due shall bear interest at the rate of fifteen percent
(15%) per annum from the due date thereof until the same is paid ("Default
Interest"). All payments due hereunder (to the extent not converted into common
stock, $0.0001 par value per share (the "Common Stock") in accordance with the
terms hereof) shall be made in lawful money of the United States of America. All
payments shall be made at such address as the Holder shall hereafter give to the
Borrower by written notice made in accordance with the provisions of this Note.
Whenever any amount expressed to be due by the terms of this Note is due on any
day which is not a business day, the same shall instead be due on the next
succeeding day which is a business day. As used in this Note, the term "business
day" shall mean any day other than a Saturday, Sunday or a day on which
commercial banks in the city of New York, New York are authorized or required by
law or executive order to remain closed. Each capitalized term used herein, and
not otherwise defined, shall have the meaning ascribed thereto in that certain
Securities Purchase Agreement, dated October 7, 2005, pursuant to which this
Note was originally issued (the "Purchase Agreement").

      This Note is free from all taxes, liens, claims and encumbrances with
respect to the issue thereof and shall not be subject to preemptive rights or
other similar rights of stockholders of the Borrower and will not impose
personal liability upon the holder thereof. The obligations of the Borrower
under this Note shall be secured by that certain Security Agreement and
Intellectual Property Security Agreement, each dated October 7, 2005 by and
between the Borrower and the Holder.
<PAGE>

      The following terms shall apply to this Note:

                          ARTICLE I. CONVERSION RIGHTS

      1.1 Conversion  Right.  The Holder shall have the right from time to time,
and at any time on or prior to the earlier of (i) the Maturity Date and (ii) the
date of payment of the Default  Amount (as defined in Article  III)  pursuant to
Section  1.6(a) or Article III, the  Optional  Prepayment  Amount (as defined in
Section 5.1 in respect of the  remaining  outstanding  principal  amount of this
Note to convert all or any part of the outstanding and unpaid  principal  amount
of this Note into fully paid and non-assessable  shares of Common Stock, as such
Common Stock exists on the Issue Date,  or any shares of capital  stock or other
securities  of the  Borrower  into which such Common  Stock shall  hereafter  be
changed  or  reclassified  at the  conversion  price  (the  "Conversion  Price")
determined as provided herein (a "Conversion");  provided,  however,  that in no
event shall the Holder be entitled to convert any portion of this Note in excess
of that portion of this Note upon  conversion of which the sum of (1) the number
of shares of Common Stock  beneficially  owned by the Holder and its  affiliates
(other  than  shares of Common  Stock  which  may be deemed  beneficially  owned
through the ownership of the unconverted portion of the Notes or the unexercised
or unconverted portion of any other security of the Borrower (including, without
limitation,  the  warrants  issued  by the  Borrower  pursuant  to the  Purchase
Agreement)  subject to a limitation on  conversion or exercise  analogous to the
limitations  contained  herein)  and (2) the  number of  shares of Common  Stock
issuable  upon the  conversion of the portion of this Note with respect to which
the  determination  of this proviso is being made,  would  result in  beneficial
ownership by the Holder and its affiliates of more than 4.99% of the outstanding
shares of  Common  Stock  and  provided  further  that the  Holder  shall not be
entitled  to  convert  any  portion of this Note  during  any month  immediately
succeeding a Determination  Date on which the Borrower  exercises its prepayment
option  pursuant to Section 5.1 of this Note. For purposes of the proviso to the
immediately  preceding  sentence,  beneficial  ownership  shall be determined in
accordance  with  Section  13(d) of the  Securities  Exchange  Act of  1934,  as
amended,  and  Regulations  13D-G  thereunder,  except as otherwise  provided in
clause (1) of such  proviso.  The number of shares of Common  Stock to be issued
upon each conversion of this Note shall be determined by dividing the Conversion
Amount (as defined below) by the applicable  Conversion  Price then in effect on
the date specified in the notice of conversion,  in the form attached  hereto as
Exhibit A (the "Notice of Conversion"),  delivered to the Borrower by the Holder
in accordance with Section 1.4 below;  provided that the Notice of Conversion is
submitted by facsimile (or by other means  resulting in, or reasonably  expected
to result in, notice) to the Borrower  before 6:00 p.m., New York, New York time
on such conversion date (the "Conversion  Date").  The term "Conversion  Amount"
means, with respect to any conversion of this Note, the sum of (1) the principal
amount  of this  Note  to be  converted  in such  conversion  plus  (2)  Default
Interest, if any, on the amounts referred to in the immediately preceding clause
(1) plus (3) at the Holder's option,  any amounts owed to the Holder pursuant to
Sections  1.3 and 1.4(g)  hereof or  pursuant  to Section  2(c) of that  certain
Registration  Rights  Agreement,  dated  as of  October  7,  2005,  executed  in
connection with the initial  issuance of this Note and the other Notes issued on
the Issue Date (the "Registration  Rights  Agreement").  The term "Determination
Date" means the last business day of each month after the Issue Date.

      1.2 Conversion Price.

                                       2
<PAGE>

      (a)  Calculation of Conversion  Price.  The Conversion  Price shall be the
lesser of (i) the  Variable  Conversion  Price (as defined  herein) and (ii) the
Fixed Conversion Price (as defined herein) (subject,  in each case, to equitable
adjustments  for  stock  splits,  stock  dividends  or rights  offerings  by the
Borrower  relating  to  the  Borrower's  securities  or  the  securities  of any
subsidiary of the Borrower, combinations,  recapitalization,  reclassifications,
extraordinary  distributions  and similar events);  but, in no event,  shall the
Conversion  Price  be less  than  $.78  per  share  (subject  to such  equitable
adjustments).   The  "Variable  Conversion  Price"  shall  mean  the  Applicable
Percentage  (as  defined  herein)  multiplied  by the Market  Price (as  defined
herein).  "Market Price" means the average of the lowest five (5) Trading Prices
(as  defined  below) for the Common  Stock  during the twenty  (20)  Trading Day
period ending one Trading Day prior to the date the Conversion Notice is sent by
the Holder to the Borrower  via  facsimile  (the  "Conversion  Date").  "Trading
Price" means, for any security as of any date, the intraday trading price on the
Over-the-Counter  Bulletin  Board  (the  "OTCBB")  as  reported  by  a  reliable
reporting  service  ("Reporting  Service")  mutually  acceptable to Borrower and
Holder and  hereafter  designated  by Holders of a majority  in  interest of the
Notes and the Borrower or, if the OTCBB is not the principal  trading market for
such  security,  the intraday  trading  price of such  security on the principal
securities  exchange or trading  market where such  security is listed or traded
or, if no intraday  trading  price of such  security is  available in any of the
foregoing  manners,  the average of the  intraday  trading  prices of any market
makers for such security that are listed in the "pink sheets" by the Pink Sheets
LLC. If the Trading Price cannot be calculated for such security on such date in
the manner provided  above,  the Trading Price shall be the fair market value as
mutually determined by the Borrower and the holders of a majority in interest of
the Notes being  converted  for which the  calculation  of the Trading  Price is
required in order to determine the Conversion Price of such Notes. "Trading Day"
shall  mean any day on which the  Common  Stock is traded  for any period on the
OTCBB, or on the principal  securities  exchange or other  securities  market on
which the Common Stock is then being traded.  "Applicable Percentage" shall mean
60.0%. The "Fixed Conversion Price" shall mean $2.50.  Notwithstanding  anything
contained  herein to the contrary,  the Conversion  Price shall be not less than
the product of the Applicable Percentage multiplied by the Initial Market Price,
which product may be subject to the provisions of Section 1.6 hereof.

      (b) Conversion Price During Major Announcements.  Notwithstanding anything
contained in Section 1.2(b) to the contrary, in the event the Borrower (i) makes
a public  announcement  that it intends to  consolidate  or merge with any other
corporation  (other  than a merger in which the  Borrower  is the  surviving  or
continuing  corporation  and its capital stock is unchanged) or sell or transfer
all or substantially all of the assets of the Borrower or (ii) any person, group
or entity (including the Borrower) publicly announces a tender offer to purchase
50% or more of the Borrower's  Common Stock (or any other takeover  scheme) (the
date of the  announcement  referred  to in  clause  (i) or  (ii) is  hereinafter
referred  to as the  "Announcement  Date"),  then the  Conversion  Price  shall,
effective  upon  the  Announcement  Date and  continuing  through  the  Adjusted
Conversion Price  Termination Date (as defined below),  be equal to the lower of
(x) the  Conversion  Price which  would have been  applicable  for a  Conversion
occurring  on the  Announcement  Date and (y) the  Conversion  Price  that would
otherwise be in effect. From and after the Adjusted Conversion Price Termination
Date,  the  Conversion  Price shall be  determined  as set forth in this Section
1.2(b). For purposes hereof,  "Adjusted Conversion Price Termination Date" shall
mean,  with  respect to any  proposed  transaction  or tender offer (or takeover
scheme) for which a public  announcement  as contemplated by this Section 1.2(b)
has been  made,  the date upon  which the  Borrower  (in the case of clause  (i)
above)  or the  person,  group or  entity  (in the case of  clause  (ii)  above)
consummates or publicly announces the termination or abandonment of the proposed
transaction  or tender  offer (or  takeover  scheme)  which  caused this Section
1.2(b) to become operative.

                                       3
<PAGE>

      1.3 Authorized  Shares.  The Borrower covenants that during the period the
conversion  right  exists,  the Borrower  will reserve from its  authorized  and
unissued  Common  Stock a  sufficient  number of  shares,  free from  preemptive
rights,  to provide for the issuance of Common Stock upon the full conversion of
this Note and the other Notes  issued  pursuant to the Purchase  Agreement.  The
Borrower is required at all times to have  authorized and reserved two times the
number of shares that is actually  issuable  upon full  conversion  of the Notes
(based  on the  Conversion  Price  of the  Notes  or the  Exercise  Price of the
Warrants  in effect from time to time) (the  "Reserved  Amount").  The  Reserved
Amount shall be increased  from time to time in accordance  with the  Borrower's
obligations  pursuant to Section  4(h) of the Purchase  Agreement.  The Borrower
represents  that upon  issuance,  such shares  will be duly and validly  issued,
fully paid and  non-assessable.  In addition,  if the  Borrower  shall issue any
securities  or make any change to its capital  structure  which would change the
number of shares of Common  Stock into which the Notes shall be  convertible  at
the then current  Conversion  Price,  the  Borrower  shall at the same time make
proper provision so that thereafter there shall be a sufficient number of shares
of Common Stock  authorized  and  reserved,  free from  preemptive  rights,  for
conversion of the outstanding  Notes. The Borrower (i) acknowledges  that it has
irrevocably  instructed its transfer agent to issue  certificates for the Common
Stock  issuable upon  conversion of this Note, and (ii) agrees that its issuance
of this Note shall  constitute full authority to its officers and agents who are
charged with the duty of executing  stock  certificates to execute and issue the
necessary  certificates  for shares of Common Stock in accordance with the terms
and conditions of this Note.

      If, at any time a Holder of this Note submits a Notice of Conversion,  and
the Borrower does not have  sufficient  authorized but unissued shares of Common
Stock  available to effect such  conversion in accordance with the provisions of
this Article I (a  "Conversion  Default"),  subject to Section 4.8, the Borrower
shall  issue to the  Holder  all of the  shares of Common  Stock  which are then
available to effect such  conversion.  The portion of this Note which the Holder
included in its  Conversion  Notice and which  exceeds the amount  which is then
convertible  into available  shares of Common Stock (the "Excess Amount") shall,
notwithstanding  anything to the contrary  contained herein,  not be convertible
into Common Stock in accordance with the terms hereof until (and at the Holder's
option  at any time  after)  the date  additional  shares  of  Common  Stock are
authorized  by the  Borrower  to  permit  such  conversion,  at  which  time the
Conversion  Price in respect  thereof shall be the lesser of (i) the  Conversion
Price on the Conversion  Default Date (as defined below) and (ii) the Conversion
Price on the  Conversion  Date  thereafter  elected  by the  Holder  in  respect
thereof. In addition, the Borrower shall pay to the Holder payments ("Conversion
Default  Payments") for a Conversion Default in the amount of (x) the sum of (1)
the then outstanding principal amount of this Note plus (2) Default Interest, if
any, on the amounts referred to in clause (1), multiplied by (y) .24, multiplied
by (z) (N/365),  where N = the number of days from the day the holder  submits a
Notice of  Conversion  giving  rise to a  Conversion  Default  (the  "Conversion
Default  Date")  to the  date  (the  "Authorization  Date")  that  the  Borrower
authorizes a sufficient number of shares of Common Stock to effect conversion of
the full outstanding  principal balance of this Note. The Borrower shall use its
best efforts to authorize a sufficient  number of shares of Common Stock as soon
as practicable  following the earlier of (i) such time that the Holder  notifies
the  Borrower or that the  Borrower  otherwise  becomes  aware that there are or
likely  will be  insufficient  authorized  and  unissued  shares  to allow  full
conversion thereof and (ii) a Conversion Default. The Borrower shall send notice
to the Holder of the  authorization  of additional  shares of Common Stock,  the
Authorization  Date  and the  amount  of  Holder's  accrued  Conversion  Default
Payments.  The accrued Conversion Default Payments for each calendar month shall
be paid in cash or shall be convertible into Common Stock (at such time as there
are sufficient  authorized shares of Common Stock) at the applicable  Conversion
Price, at the Borrower's option, as follows:

                                       4
<PAGE>

      (a) In the event Holder elects to take such payment in cash,  cash payment
shall be made to Holder by the fifth (5th) day of the month  following the month
in which it has accrued; and

      (b) In the event Holder elects to take such payment in Common  Stock,  the
Holder may convert such payment amount into Common Stock at the Conversion Price
(as in effect at the time of  conversion) at any time after the fifth day of the
month  following the month in which it has accrued in accordance  with the terms
of this  Article I (so long as there is then a sufficient  number of  authorized
shares of Common Stock).

      The Holder's election shall be made in writing to the Borrower at any time
prior to 6:00  p.m.,  New  York,  New York  time,  on the third day of the month
following the month in which  Conversion  Default  payments have accrued.  If no
election is made,  the Holder shall be deemed to have  elected to receive  cash.
Nothing  herein shall limit the Holder's  right to pursue actual damages (to the
extent in excess of the Conversion  Default Payments) for the Borrower's failure
to maintain a sufficient  number of authorized  shares of Common Stock, and each
holder shall have the right to pursue all remedies available at law or in equity
(including degree of specific performance and/or injunctive relief).

      1.4 Method of Conversion.

            (a) Mechanics of  Conversion.  Subject to Section 1.1, this Note may
be  converted  by the  Holder  in whole or in part at any time from time to time
after the Issue Date,  by (A)  submitting to the Borrower a Notice of Conversion
(by  facsimile or other  reasonable  means of  communication  dispatched  on the
Conversion  Date prior to 6:00 p.m., New York, New York time) and (B) subject to
Section 1.4(b), surrendering this Note at the principal office of the Borrower.

            (b) Surrender of Note Upon Conversion.  Notwithstanding  anything to
the contrary set forth herein,  upon  conversion of this Note in accordance with
the terms hereof, the Holder shall not be required to physically  surrender this
Note to the Borrower unless the entire unpaid  principal  amount of this Note is
so converted.  The Holder and the Borrower  shall maintain  records  showing the
principal  amount so converted  and the dates of such  conversions  or shall use
such other method, reasonably satisfactory to the Holder and the Borrower, so as
not to require physical surrender of this Note upon each such conversion. In the
event of any  dispute or  discrepancy,  such  records of the  Borrower  shall be
controlling and determinative in the absence of manifest error.  Notwithstanding
the foregoing, if any portion of this Note is converted as aforesaid, the Holder
may not transfer this Note unless the Holder first  physically  surrenders  this
Note to the Borrower,  whereupon the Borrower will  forthwith  issue and deliver
upon the order of the Holder a new Note of like tenor,  registered as the Holder
(upon  payment  by the Holder of any  applicable  transfer  taxes) may  request,
representing  in the  aggregate the remaining  unpaid  principal  amount of this
Note. The Holder and any assignee,  by acceptance of this Note,  acknowledge and
agree that, by reason of the provisions of this paragraph,  following conversion
of a portion of this Note, the unpaid and unconverted  principal  amount of this
Note  represented  by this Note may be less than the  amount  stated on the face
hereof.

                                       5
<PAGE>

            (c) Payment of Taxes.  The Borrower shall not be required to pay any
tax which may be payable in respect of any  transfer  involved  in the issue and
delivery of shares of Common Stock or other securities or property on conversion
of this Note in a name other than that of the  Holder (or in street  name),  and
the Borrower  shall not be required to issue or deliver any such shares or other
securities  or property  unless and until the person or persons  (other than the
Holder or the  custodian in whose street name such shares are to be held for the
Holder's  account)  requesting  the  issuance  thereof  shall  have  paid to the
Borrower  the  amount  of  any  such  tax  or  shall  have  established  to  the
satisfaction of the Borrower that such tax has been paid.

            (d)  Delivery of Common Stock Upon  Conversion.  Upon receipt by the
Borrower from the Holder of a facsimile  transmission (or other reasonable means
of  communication)  of a Notice  of  Conversion  meeting  the  requirements  for
conversion as provided in this Section 1.4, the Borrower shall issue and deliver
or  cause  to be  issued  and  delivered  to or upon  the  order  of the  Holder
certificates  for the Common Stock issuable upon such conversion  within two (2)
business days after such receipt  (and,  solely in the case of conversion of the
entire  unpaid  principal  amount  hereof,  surrender of this Note) (such second
business day being hereinafter referred to as the "Deadline") in accordance with
the terms hereof and the Purchase Agreement (including,  without limitation,  in
accordance with the requirements of Section 2(g) of the Purchase  Agreement that
certificates for shares of Common Stock issued on or after the effective date of
the  Registration  Statement  upon  conversion  of this Note  shall not bear any
restrictive legend).

            (e) Obligation of Borrower to Deliver Common Stock.  Upon receipt by
the  Borrower of a Notice of  Conversion,  the Holder  shall be deemed to be the
holder  of  record of the  Common  Stock  issuable  upon  such  conversion,  the
outstanding  principal  amount and the amount of accrued and unpaid  interest on
this Note shall be reduced to reflect such conversion,  and, unless the Borrower
defaults on its obligations under this Article I, all rights with respect to the
portion of this Note being so converted  shall  forthwith  terminate  except the
right to receive the Common Stock or other securities,  cash or other assets, as
herein provided, on such conversion.  If the Holder shall have given a Notice of
Conversion as provided  herein,  the Borrower's  obligation to issue and deliver
the  certificates  for  Common  Stock  shall  be  absolute  and   unconditional,
irrespective of the absence of any action by the Holder to enforce the same, any
waiver or consent with  respect to any  provision  thereof,  the recovery of any
judgment  against any person or any action to enforce  the same,  any failure or
delay in the  enforcement of any other  obligation of the Borrower to the holder
of record, or any setoff, counterclaim,  recoupment,  limitation or termination,
or any breach or alleged breach by the Holder of any obligation to the Borrower,
and  irrespective  of any other  circumstance  which might  otherwise limit such
obligation of the Borrower to the Holder in connection with such conversion. The
Conversion  Date  specified in the Notice of Conversion  shall be the Conversion
Date so long as the Notice of Conversion is received by the Borrower before 6:00
p.m., New York, New York time, on such date.

            (f)  Delivery of Common  Stock by  Electronic  Transfer.  In lieu of
delivering  physical  certificates  representing  the Common Stock issuable upon
conversion,  provided the  Borrower's  transfer  agent is  participating  in the
Depository  Trust Company ("DTC") Fast Automated  Securities  Transfer  ("FAST")
program,  upon request of the Holder's  broker and the Holder's  compliance with
the  provisions  contained  in Section 1.1 and in this Section 1.4, the Borrower
shall  use its  best  efforts  to cause  its  transfer  agent to  electronically
transmit the Common Stock  issuable  upon  conversion to the Holder by crediting
the account of  Holder's  Prime  Broker with DTC through its Deposit  Withdrawal
Agent Commission ("DWAC") system.

            (g) Failure to Deliver  Common Stock Prior to  Deadline.  Without in
any way limiting the Holder's right to pursue other remedies,  including  actual
damages  and/or  equitable  relief,  the  parties  agree that if delivery of the
Common Stock issuable upon conversion of this Note is more than two (2) business
days after the Deadline (other than a failure due to the circumstances described
in Section 1.3 above,  which  failure  shall be governed  by such  Section)  the
Borrower  shall pay to the Holder $500 per day in cash,  for each day beyond the
Deadline that the Borrower fails to deliver such Common Stock.  Such cash amount
shall be paid to Holder by the  fifth  day of the month  following  the month in
which it has accrued  or, at the option of the Holder (by written  notice to the
Borrower  by the  first  day of the  month  following  the month in which it has
accrued),  shall be added to the  principal  amount of this Note, in which event
interest shall accrue thereon in accordance with the terms of this Note and such
additional principal amount shall be convertible into Common Stock in accordance
with the terms of this Note.

                                       6
<PAGE>

      1.5  Concerning  the  Shares.  The shares of Common  Stock  issuable  upon
conversion  of this Note may not be sold or  transferred  unless (i) such shares
are sold pursuant to an effective  registration  statement under the Act or (ii)
the Borrower or its transfer  agent shall have been furnished with an opinion of
counsel  (which  opinion  shall be in form,  substance  and scope  customary for
opinions of counsel in comparable transactions) to the effect that the shares to
be sold or transferred may be sold or transferred  pursuant to an exemption from
such registration or (iii) such shares are sold or transferred  pursuant to Rule
144 under the Act (or a  successor  rule)  ("Rule  144") or (iv) such shares are
transferred  to an  "affiliate"  (as  defined in Rule 144) of the  Borrower  who
agrees to sell or  otherwise  transfer the shares only in  accordance  with this
Section  1.5 and who is an  Accredited  Investor  (as  defined  in the  Purchase
Agreement).  Except as otherwise provided in the Purchase Agreement (and subject
to the removal  provisions  set forth  below),  until such time as the shares of
Common Stock issuable upon  conversion of this Note have been  registered  under
the Act as contemplated by the Registration Rights Agreement or otherwise may be
sold pursuant to Rule 144 without any restriction as to the number of securities
as of a particular date that can then be immediately  sold, each certificate for
shares of Common Stock  issuable upon  conversion of this Note that has not been
so included in an  effective  registration  statement  or that has not been sold
pursuant to an effective  registration  statement  or an exemption  that permits
removal of the legend,  shall bear a legend substantially in the following form,
as appropriate:

      "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES MAY NOT BE
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN
      FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE
      TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT UNLESS SOLD
      PURSUANT TO RULE 144 OR REGULATION S UNDER SAID ACT."

                                       7
<PAGE>

      The legend set forth above shall be removed and the  Borrower  shall issue
to the Holder a new certificate  therefor free of any transfer legend if (i) the
Borrower or its  transfer  agent shall have  received an opinion of counsel,  in
form,  substance  and scope  customary  for  opinions  of counsel in  comparable
transactions,  to the effect that a public sale or transfer of such Common Stock
may be made  without  registration  under the Act and the  shares are so sold or
transferred,  (ii) such Holder  provides the Borrower or its transfer agent with
reasonable  assurances  that the Common Stock  issuable upon  conversion of this
Note (to the extent such securities are deemed to have been acquired on the same
date) can be sold  pursuant to Rule 144 or (iii) in the case of the Common Stock
issuable upon  conversion of this Note,  such security is registered for sale by
the Holder  under an  effective  registration  statement  filed under the Act or
otherwise  may be sold  pursuant to Rule 144 without any  restriction  as to the
number of securities as of a particular date that can then be immediately  sold.
Nothing  in this  Note  shall  (i) limit  the  Borrower's  obligation  under the
Registration Rights Agreement or (ii) affect in any way the Holder's obligations
to comply with applicable  prospectus  delivery  requirements upon the resale of
the securities referred to herein.

      1.6 Effect of Certain Events.

            (a) Effect of Merger,  Consolidation,  Etc.  Except as  permitted by
Sections  4(e)  and  4(j)  of  the  Securities  Purchase  Agreement,  the  sale,
conveyance  or  disposition  of all or  substantially  all of the  assets of the
Borrower, the effectuation by the Borrower of a transaction or series of related
transactions  in which  more than 50% of the  voting  power of the  Borrower  is
disposed of, or the consolidation,  merger or other business  combination of the
Borrower  with or into any other  Person (as defined  below) or Persons when the
Borrower is not the survivor shall, at the option of the Holder,  either: (i) be
deemed to be an Event of Default (as defined in Article  III)  pursuant to which
the Borrower shall be required to pay to the Holder upon the consummation of and
as a condition to such  transaction  an amount  equal to the Default  Amount (as
defined in Article III) or (ii) be treated  pursuant to Section  1.6(b)  hereof.
"Person" shall mean any  individual,  corporation,  limited  liability  company,
partnership, association, trust or other entity or organization.

                                       8
<PAGE>

            (b)  Adjustment Due to Merger,  Consolidation,  Etc. If, at any time
when this Note is issued and  outstanding  and prior to conversion of all of the
Notes,   there  shall  be  any  merger,   consolidation,   exchange  of  shares,
recapitalization,  reorganization,  or other similar event, as a result of which
shares of  Common  Stock of the  Borrower  shall be  changed  into the same or a
different number of shares of another class or classes of stock or securities of
the Borrower or another  entity,  or in case of any sale or conveyance of all or
substantially  all of the assets of the Borrower other than in connection with a
plan of complete liquidation of the Borrower, then the Holder of this Note shall
thereafter  have the right to receive  upon  conversion  of this Note,  upon the
basis and upon the  terms and  conditions  specified  herein  and in lieu of the
shares of Common Stock immediately  theretofore  issuable upon conversion,  such
stock, securities or assets which the Holder would have been entitled to receive
in such  transaction had this Note been converted in full  immediately  prior to
such  transaction  (without  regard to any  limitations  on conversion set forth
herein), and in any such case appropriate  provisions shall be made with respect
to the  rights  and  interests  of the  Holder  of this Note to the end that the
provisions hereof (including,  without limitation,  provisions for adjustment of
the Conversion Price and of the number of shares issuable upon conversion of the
Note)  shall  thereafter  be  applicable,  as  nearly as may be  practicable  in
relation to any securities or assets thereafter  deliverable upon the conversion
hereof. The Borrower shall not effect any transaction  described in this Section
1.6(b) unless (a) it first gives,  to the extent  practicable,  thirty (30) days
prior written  notice (but in any event at least fifteen (15) days prior written
notice) of the record date of the special meeting of stockholders to approve, or
if  there  is  no  such  record  date,   the   consummation   of,  such  merger,
consolidation,  exchange of shares,  recapitalization,  reorganization  or other
similar event or sale of assets  (during which time the Holder shall be entitled
to convert this Note) and (b) the  resulting  successor or acquiring  entity (if
not the Borrower) assumes by written  instrument the obligations of this Section
1.6(b). The above provisions shall similarly apply to successive consolidations,
mergers, sales, transfers or share exchanges.

            (c) Adjustment Due to Distribution. If the Borrower shall declare or
make any distribution of its assets (or rights to acquire its assets) to holders
of Common Stock as a dividend, stock repurchase,  by way of return of capital or
otherwise (including any dividend or distribution to the Borrower's stockholders
in cash or shares (or rights to acquire shares) of capital stock of a subsidiary
(i.e.,  a spin-off)) (a  "Distribution"),  then the Holder of this Note shall be
entitled,  upon  any  conversion  of this  Note  after  the date of  record  for
determining stockholders entitled to such Distribution, to receive the amount of
such  assets  which would have been  payable to the Holder  with  respect to the
shares of Common Stock  issuable upon such  conversion  had such Holder been the
holder of such shares of Common  Stock on the record date for the  determination
of stockholders entitled to such Distribution.

            Reserved.

            (d) Purchase  Rights.  If, at any time when any Notes are issued and
outstanding,  the  Borrower  issues  any  convertible  securities  or  rights to
purchase stock,  warrants,  securities or other property (the "Purchase Rights")
pro rata and other  than for fair  consideration  to the  record  holders of any
class of Common Stock, then the Holder of this Note will be entitled to acquire,
upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which such  Holder  could have  acquired  if such  Holder had held the number of
shares of Common Stock acquirable upon complete conversion of this Note (without
regard to any limitations on conversion contained herein) immediately before the
date on which a record is taken for the grant, issuance or sale of such Purchase
Rights or, if no such record is taken,  the date as of which the record  holders
of  Common  Stock  are to be  determined  for the  grant,  issue or sale of such
Purchase Rights.

                                       9
<PAGE>

            (e) Notice of Adjustments. Upon the occurrence of each adjustment or
readjustment of the Conversion Price as a result of the events described in this
Section  1.6,  the  Borrower,  at  its  expense,  shall  promptly  compute  such
adjustment  or  readjustment  and  prepare  and  furnish  to  the  Holder  of  a
certificate  setting forth such adjustment or readjustment and showing in detail
the facts upon which such  adjustment  or  readjustment  is based.  The Borrower
shall,  upon the  written  request  at any time of the  Holder,  furnish to such
Holder a like  certificate  setting forth (i) such  adjustment or  readjustment,
(ii) the  Conversion  Price at the time in effect and (iii) the number of shares
of Common Stock and the amount, if any, of other securities or property which at
the time would be received upon conversion of the Note.

      1.7 Reserved.

      1.8 Status as Stockholder.  Upon submission of a Notice of Conversion by a
Holder,  (i) the shares covered  thereby  (other than the shares,  if any, which
cannot be issued  because their  issuance  would exceed such Holder's  allocated
portion  of the  Reserved  Amount  or  Maximum  Share  Amount)  shall be  deemed
converted  into shares of Common Stock and (ii) the Holder's  rights as a Holder
of such converted portion of this Note shall cease and terminate, excepting only
the right to receive  certificates  for such  shares of Common  Stock and to any
remedies  provided  herein or  otherwise  available  at law or in equity to such
Holder  because of a failure by the  Borrower  to comply  with the terms of this
Note.  Notwithstanding the foregoing,  if a Holder has not received certificates
for all shares of Common Stock prior to the tenth (10th)  business day after the
expiration  of the Deadline  with respect to a conversion of any portion of this
Note for any  reason,  then  (unless the Holder  otherwise  elects to retain its
status as a holder of Common  Stock by so  notifying  the  Borrower)  the Holder
shall  regain  the  rights  of a  Holder  of  this  Note  with  respect  to such
unconverted   portions  of  this  Note  and  the  Borrower  shall,  as  soon  as
practicable,  return such unconverted Note to the Holder or, if the Note has not
been  surrendered,  adjust its records to reflect that such portion of this Note
has not been converted.  In all cases, the Holder shall retain all of its rights
and remedies (including, without limitation, (i) the right to receive Conversion
Default Payments pursuant to Section 1.3 to the extent required thereby for such
Conversion  Default and any subsequent  Conversion Default and (ii) the right to
have the Conversion Price with respect to subsequent  conversions  determined in
accordance with Section 1.3) for the Borrower's failure to convert this Note.

                         ARTICLE II. CERTAIN COVENANTS

      2.1 Distributions on Capital Stock. So long as the Borrower shall have any
obligation  under this Note, the Borrower shall not without the Holder's written
consent (a) pay,  declare or set apart for such  payment,  any dividend or other
distribution  (whether  in cash,  property  or other  securities)  on  shares of
capital stock other than  dividends on shares of Common Stock solely in the form
of  additional  shares of Common Stock or (b) directly or  indirectly or through
any subsidiary  make any other payment or distribution in respect of its capital
stock except for distributions  pursuant to any stockholders'  rights plan which
is approved by a majority of the Borrower's disinterested directors.

                                       10
<PAGE>

      2.2 Restriction on Stock  Repurchases.  So long as the Borrower shall have
any  obligation  under this Note,  the  Borrower  shall not without the Holder's
written consent redeem,  repurchase or otherwise acquire (whether for cash or in
exchange for property or other  securities or otherwise) in any one  transaction
or series of related transactions any shares of capital stock of the Borrower or
any warrants, rights or options to purchase or acquire any such shares.

      2.3  Borrowings.  So long as the Borrower shall have any obligation  under
this Note, the Borrower shall not, without the Holder's written consent, create,
incur,  assume or suffer to exist any liability for borrowed  money,  except (a)
borrowings  in  existence  or  committed  on the date  hereof  and of which  the
Borrower  has  informed  Holder  in  writing  prior  to  the  date  hereof,  (b)
indebtedness  to trade  creditors  or  financial  institutions  incurred  in the
ordinary  course of business or (c)  borrowings,  the proceeds of which shall be
used to repay this Note.

      2.4 Sale of Assets.  So long as the  Borrower  shall  have any  obligation
under this Note, the Borrower  shall not,  except as prescribed in sections 4.e.
and 4.j. of the Securities Purchase Agreement,  sell, lease or otherwise dispose
of any  significant  portion  of its  assets  outside  the  ordinary  course  of
business,  without first obtaining the Holder's written  consent,  which consent
shall not be  unreasonably  denied,  withheld  or  delayed.  Any  consent to the
disposition  of any assets may be conditioned on a specified use of the proceeds
of disposition.

      2.5 Advances and Loans.  So long as the Borrower shall have any obligation
under this Note, the Borrower shall not,  without the Holder's  written consent,
lend money,  give credit or make advances to any person,  firm, joint venture or
corporation,  including,  without limitation,  officers,  directors,  employees,
subsidiaries and affiliates of the Borrower,  except loans,  credits or advances
(a) in  existence  or  committed  on the date hereof and which the  Borrower has
informed  Holder in writing  prior to the date hereof,  (b) made in the ordinary
course of business or (c) not in excess of $50,000.

      2.6  Contingent  Liabilities.  So  long as the  Borrower  shall  have  any
obligation under this Note, the Borrower shall not, without the Holder's written
consent, which shall not be unreasonably withheld,  assume, guarantee,  endorse,
contingently agree to purchase or otherwise become liable upon the obligation of
any person,  firm,  partnership,  joint  venture or  corporation,  except by the
endorsement  of  negotiable  instruments  for deposit or  collection  and except
assumptions,  guarantees,  endorsements  and  contingencies  (a) in existence or
committed  on the date  hereof and which the  Borrower  has  informed  Holder in
writing prior to the date hereof,  and (b) similar  transactions in the ordinary
course of business.

                         ARTICLE III. EVENTS OF DEFAULT

      If any of the following  events of default  (each,  an "Event of Default")
shall occur:

      3.1 Failure to Pay  Principal.  The  Borrower  fails to pay the  principal
hereof  when  due on this  Note,  whether  at  maturity,  upon  acceleration  or
otherwise;

                                       11
<PAGE>

      3.2  Conversion  and the Shares.  The  Borrower  fails to issue  shares of
Common Stock to the Holder (or announces or threatens that it will not honor its
obligation to do so) upon exercise by the Holder of the conversion rights of the
Holder in accordance with the terms of this Note (for a period of at least sixty
(60) days, if such failure is solely as a result of the  circumstances  governed
by  Section  1.3 and the  Borrower  is using its best  efforts  to  authorize  a
sufficient  number of shares of Common Stock as soon as  practicable),  fails to
transfer  or  cause  its  transfer  agent  to  transfer  (electronically  or  in
certificated  form) any  certificate  for shares of Common  Stock  issued to the
Holder  upon  conversion  of or  otherwise  pursuant  to this  Note as and  when
required by this Note or the Registration  Rights Agreement,  or fails to remove
any restrictive legend (or to withdraw any stop transfer instructions in respect
thereof) on any  certificate for any shares of Common Stock issued to the Holder
upon  conversion  of or otherwise  pursuant to this Note as and when required by
this Note or the  Registration  Rights  Agreement  (or  makes any  announcement,
statement or threat that it does not intend to honor the  obligations  described
in  this  paragraph)  and  any  such  failure  shall  continue  uncured  (or any
announcement,  statement  or threat  not to honor its  obligations  shall not be
rescinded  in  writing)  for ten (10) days  after the  Borrower  shall have been
notified thereof in writing by the Holder;

      3.3  Failure  to Timely  File  Registration  or Effect  Registration.  The
Borrower fails to file the Registration  Statement  within  forty-five (45) days
following  the Closing  Date (as defined in the  Purchase  Agreement)  or obtain
effectiveness  with the Securities and Exchange  Commission of the  Registration
Statement  within one hundred and five (105) days following the Closing Date (as
defined in the Purchase  Agreement)  or such  Registration  Statement  lapses in
effect (or sales  cannot  otherwise  be made  thereunder  effective,  whether by
reason of the Borrower's failure to amend or supplement the prospectus  included
therein in accordance with the  Registration  Rights Agreement or otherwise) for
more than ten (10)  consecutive  days or twenty  (20) days in any  twelve  month
period after the Registration Statement becomes effective;

      3.4 Breach of Covenants.  The Borrower  breaches any material  covenant or
other  material term or condition  contained in Sections 1.3, 1.6 or 1.7 of this
Note, or Sections 4(c), 4(e),  4(h),  4(i), 4(j) or 5 of the Purchase  Agreement
and such breach  continues  for a period of ten (10) days after  written  notice
thereof to the Borrower from the Holder;

      3.5  Breach of  Representations  and  Warranties.  Any  representation  or
warranty  of  the  Borrower  made  herein  or in  any  agreement,  statement  or
certificate  given  in  writing  pursuant  hereto  or  in  connection   herewith
(including,  without  limitation,  the Purchase  Agreement and the  Registration
Rights  Agreement),  shall be false or misleading  in any material  respect when
made and the  breach of which  has (or with the  passage  of time  will  have) a
material  adverse  effect on the rights of the Holder with respect to this Note,
the Purchase Agreement or the Registration Rights Agreement;

      3.6 Receiver or Trustee.  The Borrower or any  subsidiary  of the Borrower
shall make an assignment  for the benefit of creditors,  or apply for or consent
to the appointment of a receiver or trustee for it or for a substantial  part of
its  property or  business,  or such a receiver or trustee  shall  otherwise  be
appointed;  provided,  however, that if a receiver or trustee has been appointed
but is discharged within forty-five (45) thereafter,  such appointment shall not
constitute an Event of Default;

      3.7  Judgments.  Any money  judgment,  writ or  similar  process  shall be
entered or filed  against the Borrower or any  subsidiary of the Borrower or any
of its  property  or other  assets  for more  than  $50,000,  and  shall  remain
unvacated,  unbonded  or  unstayed  for a period  of  twenty  (20)  days  unless
otherwise  consented to by the Holder,  which  consent will not be  unreasonably
withheld;

                                       12
<PAGE>

      3.8  Bankruptcy.  Bankruptcy,  insolvency,  reorganization  or liquidation
proceedings or other  proceedings for relief under any bankruptcy law or any law
for the relief of debtors  shall be instituted by or against the Borrower or any
subsidiary of the Borrower;  provided,  however,  that if such  proceedings have
been  instituted  against the  Borrower but  dismissed  within  forty-five  (45)
thereafter, such occurrence shall not constitute an Event of Default;

      3.9  Delisting of Common  Stock.  The Borrower  shall fail to maintain the
listing of the Common  Stock on any of the Nasdaq  National  Market,  the Nasdaq
SmallCap Market, the New York Stock Exchange,  or the American Stock Exchange or
shall fail to file its periodic  reports in accordance with the  requirements of
the Securities  Exchange Act of 1934, as amended,  such that its common stock no
longer  qualifies  to be  quoted  on  the  OTCBB  or an  equivalent  replacement
quotation medium; or

      3.10 Default  Under Other  Notes.  An Event of Default has occurred and is
continuing  under  any  of the  other  Notes  issued  pursuant  to the  Purchase
Agreement, then, upon the occurrence and during the continuation of any Event of
Default  specified in Section 3.1, 3.2, 3.3, 3.4, 3.5, 3.7, 3.9, or 3.10, at the
option of the Holders of a majority  of the  aggregate  principal  amount of the
outstanding Notes issued pursuant to the Purchase Agreement  exercisable through
the delivery of written  notice to the  Borrower by such  Holders (the  "Default
Notice"),  and upon the  occurrence of an Event of Default  specified in Section
3.6 or 3.8, the Notes shall become  immediately due and payable and the Borrower
shall pay to the Holder, in full satisfaction of its obligations  hereunder,  an
amount  equal to the  greater of (i) 130% times the then  outstanding  principal
amount of this Note (the "Mandatory Prepayment Date") plus (y) Default Interest,
if any,  on the  amounts  referred  to in  clauses  (w)  and/or (x) plus (z) any
amounts  owed to the  Holder  pursuant  to  Sections  1.3 and  1.4(g)  hereof or
pursuant  to  Section  2(c)  of the  Registration  Rights  Agreement  (the  then
outstanding  principal  amount  of this  Note to the  date of  payment  plus the
amounts  referred to in clauses (x), (y) and (z) shall  collectively be known as
the "Default  Sum") or (ii) the "parity value" of the Default Sum to be prepaid,
where  parity  value  means (a) the  highest  number  of shares of Common  Stock
issuable  upon  conversion  of or  otherwise  pursuant  to such  Default  Sum in
accordance  with Article I, treating the Trading Day  immediately  preceding the
Mandatory  Prepayment Date as the "Conversion  Date" for purposes of determining
the lowest  applicable  Conversion  Price,  unless the Default Event arises as a
result of a breach in respect of a specific  Conversion  Date in which case such
Conversion  Date shall be the  Conversion  Date),  multiplied by (b) the highest
Closing  Price for the Common Stock  during the period  beginning on the date of
first  occurrence  of the  Event of  Default  and  ending  one day  prior to the
Mandatory  Prepayment Date (the "Default  Amount") and all other amounts payable
hereunder  shall  immediately  become  due  and  payable,  all  without  demand,
presentment or notice,  all of which hereby are expressly waived,  together with
all  costs,  including,   without  limitation,   legal  fees  and  expenses,  of
collection,  and the Holder  shall be entitled to exercise  all other rights and
remedies available at law or in equity. If the Borrower fails to pay the Default
Amount within five (5) business  days of written  notice that such amount is due
and payable,  then the Holder  shall have the right at any time,  so long as the
Borrower  remains  in  default  (and so long and to the  extent  that  there are
sufficient authorized shares), to require the Borrower,  upon written notice, to
immediately issue, in lieu of the Default Amount, the number of shares of Common
Stock of the  Borrower  equal to the Default  Amount  divided by the  Conversion
Price then in effect. Notwithstanding anything to the contrary contained herein,
in the Purchase Agreement,  or in any other agreement between the parties hereto
in respect of any of the transactions contemplated hereby or thereby, no default
in the payment of principal or interest due  hereunder  shall be deemed an Event
of Default  unless and until written  notice thereof shall have been provided in
writing by the Holder to the Maker and,  through  the  expiration  of the 45-day
period immediately  thereafter,  the Maker shall not have tendered to the Holder
all of such unpaid  principal  payment and any accrued and unpaid  interest  due
concurrently with such principal payment.  Further,  upon the expiration of such
45-day  period,  if  uncured,  such  Event  of  Default  shall  not  act  as any
cross-default in respect of any other Callable  Secured  Convertible Note of the
Maker  in  favor  of any  person  or  entity  that  purchased  the  same  in the
transactions contemplated by the Purchase Agreement.

                                       13
<PAGE>

                           ARTICLE IV. MISCELLANEOUS

      4.1 Failure or Indulgence  Not Waiver.  No failure or delay on the part of
the Holder in the  exercise of any power,  right or  privilege  hereunder  shall
operate as a waiver  thereof,  nor shall any single or partial  exercise  of any
such power,  right or privilege preclude other or further exercise thereof or of
any other right, power or privileges. All rights and remedies existing hereunder
are  cumulative  to, and not  exclusive  of, any  rights or  remedies  otherwise
available.

      4.2 Notices.  Any notice herein required or permitted to be given shall be
in  writing  and may be  personally  served or  delivered  by courier or sent by
United  States  mail and  shall be deemed to have been  given  upon  receipt  if
personally served (which shall include telephone line facsimile transmission) or
sent by courier or three (3) days after  being  deposited  in the United  States
mail, certified,  with postage pre-paid and properly addressed, if sent by mail.
For the  purposes  hereof,  the  address of the Holder  shall be as shown on the
records of the Borrower;  and the address of the Borrower  shall be 1801 Century
Park East, Suite 1830, Los Angeles,  CA 90067,  facsimile number:  310-226-8553.
Both the Holder and the  Borrower  may change the address for service by service
of written notice to the other as herein provided.

      4.3 Amendments.  This Note and any provision hereof may only be amended by
an instrument in writing signed by the Borrower and the Holder.  The term "Note"
and all reference thereto,  as used throughout this instrument,  shall mean this
instrument  (and the other Notes issued  pursuant to the Purchase  Agreement) as
originally executed, or if later amended or supplemented,  then as so amended or
supplemented.

      4.4  Assignability.  This Note shall be binding  upon the Borrower and its
successors and assigns,  and shall inure to be the benefit of the Holder and its
successors  and assigns.  Each  transferee  of this Note must be an  "accredited
investor" (as defined in Rule 501(a) of the 1933 Act).  Notwithstanding anything
in this  Note to the  contrary,  this  Note  may be  pledged  as  collateral  in
connection with a bona fide margin account or other lending arrangement.

      4.5 Cost of  Collection.  If default is made in the  payment of this Note,
the  Borrower  shall  pay the  Holder  hereof  costs  of  collection,  including
reasonable attorneys' fees.

                                       14
<PAGE>

      4.6 Governing Law. THIS NOTE SHALL BE ENFORCED,  GOVERNED BY AND CONSTRUED
IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK  APPLICABLE TO AGREEMENTS
MADE AND TO BE  PERFORMED  ENTIRELY  WITHIN  SUCH STATE,  WITHOUT  REGARD TO THE
PRINCIPLES  OF CONFLICT OF LAWS.  THE BORROWER  HEREBY  SUBMITS TO THE EXCLUSIVE
JURISDICTION  OF THE UNITED STATES  FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK
WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS NOTE, THE AGREEMENTS ENTERED INTO
IN CONNECTION HEREWITH OR THE TRANSACTIONS  CONTEMPLATED HEREBY OR THEREBY. BOTH
PARTIES   IRREVOCABLY  WAIVE  THE  DEFENSE  OF  AN  INCONVENIENT  FORUM  TO  THE
MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES FURTHER AGREE THAT SERVICE
OF  PROCESS  UPON A PARTY  MAILED BY FIRST  CLASS  MAIL SHALL BE DEEMED IN EVERY
RESPECT  EFFECTIVE  SERVICE  OF  PROCESS  UPON THE  PARTY  IN ANY  SUCH  SUIT OR
PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN
ANY  OTHER  MANNER   PERMITTED  BY  LAW.   BOTH  PARTIES   AGREE  THAT  A  FINAL
NON-APPEALABLE  JUDGMENT IN ANY SUCH SUIT OR PROCEEDING  SHALL BE CONCLUSIVE AND
MAY BE ENFORCED IN OTHER  JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
LAWFUL  MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE  ARISING  UNDER
THIS NOTE SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES,  INCLUDING  ATTORNEYS'
FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE.

      4.7  Certain  Amounts.  Whenever  pursuant  to this Note the  Borrower  is
required to pay an amount in excess of the outstanding  principal amount (or the
portion thereof  required to be paid at that time),  the Borrower and the Holder
agree that the actual  damages to the Holder from the receipt of cash payment on
this Note may be  difficult  to  determine  and the  amount to be so paid by the
Borrower  represents  stipulated  damages  and not a penalty  and is intended to
compensate  the Holder in part for loss of the  opportunity to convert this Note
and to earn a return  from the sale of  shares  of Common  Stock  acquired  upon
conversion  of this Note at a price in excess of the price paid for such  shares
pursuant to this Note. The Borrower and the Holder hereby agree that such amount
of stipulated  damages is not plainly  disproportionate  to the possible loss to
the Holder from the receipt of a cash payment without the opportunity to convert
this Note into shares of Common Stock.

      4.8 Allocations of Maximum Share Amount and Reserved  Amount.  The Maximum
Share Amount and Reserved  Amount shall be allocated  pro rata among the Holders
of Notes based on the principal amount of such Notes issued to each Holder. Each
increase to the Maximum Share Amount and Reserved  Amount shall be allocated pro
rata among the Holders of Notes based on the principal amount of such Notes held
by each  Holder  at the time of the  increase  in the  Maximum  Share  Amount or
Reserved Amount.  In the event a Holder shall sell or otherwise  transfer any of
such Holder's Notes,  each  transferee  shall be allocated a pro rata portion of
such transferor's  Maximum Share Amount and Reserved Amount.  Any portion of the
Maximum Share Amount or Reserved Amount which remains allocated to any person or
entity which does not hold any Notes shall be allocated to the remaining Holders
of Notes, pro rata based on the principal amount of such Notes then held by such
Holders.

                                       15
<PAGE>

      4.9 Damages Shares. The shares of Common Stock that may be issuable to the
Holder  pursuant to Sections 1.3 and 1.4(g)  hereof and pursuant to Section 2(c)
of the  Registration  Rights  Agreement  ("Damages  Shares") shall be treated as
Common Stock issuable upon  conversion of this Note for all purposes  hereof and
shall be subject to all of the limitations and afforded all of the rights of the
other shares of Common Stock issuable  hereunder,  including without limitation,
the right to be included in the  Registration  Statement  filed  pursuant to the
Registration Rights Agreement.

      4.10  Denominations.  At the request of the Holder, upon surrender of this
Note, the Borrower  shall promptly issue new Notes in the aggregate  outstanding
principal amount hereof, in the form hereof,  in such  denominations of at least
$50,000 as the Holder shall request.

      4.11  Purchase  Agreement.  By its  acceptance  of this Note,  each Holder
agrees to be bound by the applicable terms of the Purchase Agreement.

      4.12 Notice of Corporate Events.  Except as otherwise  provided below, the
Holder of this Note shall have no rights as a Holder of Common  Stock unless and
only to the extent that it converts  this Note into Common  Stock.  The Borrower
shall  provide  the  Holder  with  prior  notification  of  any  meeting  of the
Borrower's  stockholders  (and copies of proxy  materials and other  information
sent to stockholders). In the event of any taking by the Borrower of a record of
its stockholders for the purpose of determining stockholders who are entitled to
receive  payment of any dividend or other  distribution,  any right to subscribe
for, purchase or otherwise acquire  (including by way of merger,  consolidation,
reclassification  or  recapitalization)  any  share of any  class  or any  other
securities  or property,  or to receive any other  right,  or for the purpose of
determining  stockholders  who  are  entitled  to vote in  connection  with  any
proposed sale, lease or conveyance of all or substantially  all of the assets of
the  Borrower  or any  proposed  liquidation,  dissolution  or winding up of the
Borrower,  the Borrower shall mail a notice to the Holder,  at least twenty (20)
days prior to the record  date  specified  therein (or thirty (30) days prior to
the consummation of the transaction or event, whichever is earlier), of the date
on which  any such  record  is to be taken  for the  purpose  of such  dividend,
distribution,  right or other event, and a brief statement  regarding the amount
and character of such dividend, distribution, right or other event to the extent
known at such time. The Borrower shall make a public  announcement  of any event
requiring notification to the Holder hereunder substantially simultaneously with
the  notification  to the Holder in  accordance  with the terms of this  Section
4.12.

      4.13  Remedies.  The  Borrower  acknowledges  that a  breach  by it of its
obligations  hereunder will cause  irreparable harm to the Holder,  by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly,  the
Borrower  acknowledges  that the  remedy at law for a breach of its  obligations
under  this  Note will be  inadequate  and  agrees,  in the event of a breach or
threatened  breach by the  Borrower  of the  provisions  of this Note,  that the
Holder shall be entitled,  in addition to all other available remedies at law or
in equity, and in addition to the penalties  assessable herein, to an injunction
or injunctions restraining,  preventing or curing any breach of this Note and to
enforce specifically the terms and provisions thereof,  without the necessity of
showing economic loss and without any bond or other security being required.

                                       16
<PAGE>

                             ARTICLE V. CALL OPTION

      5.1 Call Option.  Notwithstanding  anything to the  contrary  contained in
this  Article V, so long as (i) no Event of Default  shall have  occurred and be
continuing,  (ii) the Borrower has a sufficient  number of authorized  shares of
Common Stock  reserved for issuance upon full  conversion of the Notes,  then at
any time after the Issue Date, and (iii) the Common Stock is trading at or below
$2.55 per share, the Borrower shall have the right, exercisable on not less than
ten (10)  Trading Days prior  written  notice to the Holders of the Notes (which
notice  may not be sent to the  Holders  of the  Notes  until  the  Borrower  is
permitted to prepay the Notes  pursuant to this Section  5.1),  to prepay all of
the  outstanding  Notes in  accordance  with this  Section  5.1.  Any  notice of
prepayment  hereunder  (an  "Optional  Prepayment")  shall be  delivered  to the
Holders of the Notes at their  registered  addresses  appearing on the books and
records of the Borrower and shall state (1) that the Borrower is exercising  its
right to prepay  all of the Notes  issued on the Issue  Date and (2) the date of
prepayment (the "Optional Prepayment Notice").  On the date fixed for prepayment
(the  "Optional  Prepayment  Date"),  the  Borrower  shall  make  payment of the
Optional  Prepayment  Amount  (as  defined  below)  to or upon the  order of the
Holders as  specified by the Holders in writing to the Borrower at least one (1)
business day prior to the Optional  Prepayment  Date. If the Borrower  exercises
its right to prepay the Notes, the Borrower shall make payment to the holders of
an amount in cash (the  "Optional  Prepayment  Amount") equal to either (i) 125%
(for prepayments occurring within thirty (30) days of the Issue Date), (ii) 130%
for  prepayments  occurring  between  thirty-one (31) and sixty (60) days of the
Issue Date, or (iii) 135% (for  prepayments  occurring after the sixtieth (60th)
day following the Issue Date), multiplied by the sum of (w) the then outstanding
principal amount of this Note plus (y) Default Interest,  if any, on the amounts
referred  to in clause (w) plus (z) any amounts  owed to the Holder  pursuant to
Sections 1.3 and 1.4(g)  hereof or pursuant to Section 2(c) of the  Registration
Rights Agreement (the then outstanding principal amount of this Note to the date
of  payment  plus the  amounts  referred  to in clauses  (x),  (y) and (z) shall
collectively be known as the "Optional Prepayment Sum").  Notwithstanding notice
of an Optional Prepayment,  the Holders shall at all times prior to the Optional
Prepayment Date maintain the right to convert all or any portion of the Notes in
accordance with Article I and any portion of Notes so converted after receipt of
an Optional  Prepayment  Notice and prior to the  Optional  Prepayment  Date set
forth in such notice and payment of the  aggregate  Optional  Prepayment  Amount
shall be deducted from the principal amount of Notes which are otherwise subject
to  prepayment  pursuant to such notice.  If the  Borrower  delivers an Optional
Prepayment  Notice and fails to pay the  Optional  Prepayment  Amount due to the
Holders  of the Notes  within  two (2)  business  days  following  the  Optional
Prepayment  Date,  the Borrower  shall  forever  forfeit its right to redeem the
Notes pursuant to this Section 5.1.

      5.2  Partial  Call  Option.   Notwithstanding  anything  to  the  contrary
contained  in this  Article V, in the event that the Average  Daily Price of the
Common Stock,  as reported by the Reporting  Service,  for each day of the month
ending on any Determination Date is below the Initial Market Price, the Borrower
may, at its option,  prepay a portion of the outstanding principal amount of the
Notes equal to 104% of the principal  amount hereof  divided by thirty-six  (36)
plus one month's interest.  The term "Initial Market Price" means shall mean the
volume weighted  average price of the Common Stock for the five (5) Trading Days
immediately preceding the Closing which is $1.20.

                    [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       17
<PAGE>

      IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name
by its duly authorized officer this ___ day of ___________, 2005.

                                          ASTRATA GROUP INCORPORATED

                                          By:   ______________________________
                                                Martin Euler
                                                Chief Financial Officer

                                       18
<PAGE>

                                     EXHIBIT A

                                NOTICE OF CONVERSION
                      (To be Executed by the Registered Holder
                           in order to Convert the Notes)

      The undersigned hereby irrevocably elects to convert $__________ principal
amount of the Note (defined below) into shares of common stock, par value $.0001
per share ("Common Stock"), of Astrata Group Incorporated,  a Nevada corporation
(the  "Borrower")  according to the conditions of the  convertible  Notes of the
Borrower  dated as of  __________,  2005 (the  "Notes"),  as of the date written
below.  If  securities  are to be issued in the name of a person  other than the
undersigned,  the  undersigned  will pay all transfer taxes payable with respect
thereto and is delivering herewith such certificates.  No fee will be charged to
the Holder for any conversion, except for transfer taxes, if any. A copy of each
Note is attached hereto (or evidence of loss, theft or destruction thereof).

      The Borrower  shall  electronically  transmit  the Common  Stock  issuable
pursuant to this Notice of Conversion to the account of the  undersigned  or its
nominee with DTC through its Deposit  Withdrawal Agent Commission  system ("DWAC
Transfer").

      Name of DTC Prime Broker:
                               -----------------------------------------
      Account Number:
                     ---------------------------------------------------

      In lieu of  receiving  shares of Common  Stock  issuable  pursuant to this
Notice of Conversion by way of a DWAC Transfer,  the undersigned hereby requests
that the Borrower issue a certificate or  certificates  for the number of shares
of  Common  Stock set  forth  below  (which  numbers  are based on the  Holder's
calculation  attached hereto) in the name(s) specified  immediately below or, if
additional space is necessary, on an attachment hereto:

      Name:
           -------------------------------------------------------------
      Address:
              ----------------------------------------------------------

      The  undersigned  represents and warrants that all offers and sales by the
undersigned of the securities issuable to the undersigned upon conversion of the
Notes  shall be made  pursuant  to  registration  of the  securities  under  the
Securities Act of 1933, as amended (the "Act"), or pursuant to an exemption from
registration under the Act.

            Date of Conversion:___________________________
            Applicable Conversion Price:____________________
            Number of Shares of Common Stock to be Issued Pursuant to
            Conversion of the Notes:______________
            Signature:___________________________________
            Name:______________________________________
            Address:____________________________________

                                       19FIFTH
      AMENDED AND RESTATED

    

    INVESTORS’
      RIGHTS AGREEMENT

    

     

    

    January 
       , 2006

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FIFTH
      AMENDED AND RESTATED

     

    INVESTORS’
      RIGHTS AGREEMENT

     

    THIS
      FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT is made as of the
      __th
      day of
      January , 2006, by and among Wintegra, Inc., a Delaware corporation (the
“Company”),
      the
      investors listed on Schedule A
      hereto,
      each of which is herein referred to as a “D-Investor”,
      the
      holders of Series A Preferred Shares listed on Schedule
      B
      hereto,
      each of which is herein referred to as an “A-Investor”,
      the
      holders of Series B Preferred Shares listed on Schedule
      C
      hereto,
      each of which is herein referred to as an “B-Investor”
      and the
      holders of Series C Preferred Shares listed on Schedule
      D
      hereto,
      each of which is referred to as a "C-Investor"
      (the
      D-Investors, C-Investors, B-Investors and the A-Investors shall jointly be
      referred to as the “Investors”)
      and the
      holders of Common Stock listed on Schedule E
      hereto,
      each of whom is herein referred to as a “Founder.”

     

    RECITALS

     

    WHEREAS,
      the Company, the Founders, the C-Investors, the B-Investors and the A-Investors
      are parties to the Fourth Amended and Restated Investors’ Rights Agreement dated
      January, 2005 (the “Previous
      IR Agreement”);
      and

     

    WHEREAS,
      the parties to the Previous IR Agreement wish to amend and restate the Previous
      IR Agreement so that this Agreement shall govern the rights of the Investors
      and
      the Founders to cause the Company to register shares of Common Stock issued
      or
      issuable to them and certain other matters as set forth herein and shall replace
      the Previous IR Agreement;

     

    NOW,
      THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

     

    1.  Registration
      Rights.
      The
      Company covenants and agrees as follows:

     

    1.1  Definitions.
      Capitalized terms used but not defined herein shall have the meanings assigned
      to such terms in the Series D Agreement. For purposes of this
      Agreement:

     

    (i)  The
      term
“Act”
means
      the Securities Act of 1933, as amended.

     

    (ii)  The
      term
“Form S-3”
means
      such form under the Act as in effect on the date hereof or any registration
      form
      under the Act subsequently adopted by the SEC that permits inclusion or
      incorporation of substantial information by reference to other documents filed
      by the Company with the SEC.

     

    (iii)  The
      term
“Holder”
means
      any person owning or having the right to acquire Registrable Securities or
      any
      assignee thereof in accordance with Section 1.11 hereof; provided, however,
      that the Founders shall not be deemed to be Holders for purposes of
      Section 1.2, 1.12 and 1.11.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iv)  The
      term
“Major
      Holder”
means
      a
      Holder that holds at least 3% of the Registrable Securities then outstanding;
      provided however, that each of TI, CDIB and Grindylow Group Ltd. (“Grindylow”)
      shall
      each be considered a Major Holder for so long as it holds at least 2% of the
      Registrable Securities and further provided that PMC-Sierra, Inc. ("PMC-Sierra")
      shall
      be considered a Major Holder for so long as it holds more than 1.5% of the
      Registrable Securities.

     

    (v)  The
      term
“Major
      Investor”
means
      an Investor that holds at least 3% of the Registrable Securities then
      outstanding, provided however, that Grindylow shall be considered a “Major
      Investor” for so long as it holds at least 2% of the Registrable Securities then
      outstanding (on an as-converted basis) and further provided that PMC-Sierra
      shall be considered a Major Investor for so long as it holds more than 1.5%
      of
      the Registrable Securities then outstanding (on an as-converted basis).

     

    (vi)  The
      term
“Initial
      Offering”
means
      the Company’s first firm commitment underwritten public offering of its Common
      Stock under the Act. 

     

    (vii)  The
      term
“1934
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    (viii)  The
      term
“Common
      Stock”
means
      the Company’s Common Stock, par value $0.001 per share.

     

    (ix)  The
      term
“Preferred
      Stock”
means
      the Company’s Series A Preferred Stock, par value $0.001 per share, the
      Company’s Series B Preferred Stock, par value $0.001 per share, the Company’s
      Series C Preferred Stock, par value $0.001 per share and the Company’s Series D
      Preferred Stock, par value $0.001 per share (the “Series
      D Preferred Stock”)
      issued
      to the Investors, as defined in the Series D Agreement.

     

    (x)  The
      term
“register,”
      “registered,”
and
      “registration”
refer
      to a registration effected by preparing and filing a registration statement
      or
      similar document in compliance with the Act, and the declaration or ordering
      of
      effectiveness of such registration statement or document.

     

    (xi)  The
      term
“Preferred
      Registrable Securities”
means
      (i) the Common Stock issuable or issued upon conversion of the Preferred
      Stock, (ii) any Common Stock of the Company issued as (or issuable upon the
      conversion or exercise of any warrant, right or other security that is issued
      as) a dividend or other distribution with respect to, or in exchange for, or
      in
      replacement of, the shares referenced in (i) above, excluding in all cases,
      however, any Registrable Securities sold by a person in a transaction in which
      his rights under this Section 1 are not assigned.

    
    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (xii)  The
      term
“Founder
      Registrable Securities”
means
      (i)  Common Stock held by the Founders as of the date of the signing of
      this Agreement, provided, however, that such shares of Common Stock shall not
      be
      deemed Registrable Securities for the purposes of Section 1.2, 1.11 and
      1.12 and (ii) any Common Stock of the Company issued as (or issuable upon
      the conversion or exercise of any warrant, right or other security that is
      issued as) a dividend or other distribution with respect to, or in exchange
      for,
      or in replacement of, the shares referenced in (i) above, excluding in all
      cases, however, any Registrable Securities sold by a Founder in a transaction
      in
      which his rights under this Section 1 are not assigned.

     

    (xiii)  The
      term
“Registrable
      Securities”
means
      Preferred Registrable Securities and Founder Registrable
      Securities.

     

    (xiv)  The
      term
“Merger
      and Acquisition"
      means
      (A) the
      acquisition of this Company by another entity by means of any transaction or
      series of related trans-actions (including, without limitation, any
      reorganization, merger or consolidation) that results in the transfer of fifty
      percent (50%) or more of the outstanding voting power of this corporation;
      or
      (B) 
a
      sale of all or substantially all of the Company’s assets or shares.

     

    (xv)  The
      number of shares of "Registrable
      Securities then outstanding"
      shall
      be determined by the number of Common Stock outstanding, calculated on an
      as-converted basis, which are Registrable Securities.

     

    (xvi)  “Permitted
      Transferee”
means
      with regards to any shareholder of the Company, any person or entity, directly
      or indirectly, that controls or is controlled by or is under common control
      with
      such shareholder, any corporation wholly owned by such shareholder, the
      shareholders of such shareholder, the spouse or member of such shareholder’s
      immediate family, or a custodian, trustee (including a trustee of a voting
      trust), executor, or other fiduciary for the account of such shareholder’s
      spouse or members of such shareholder’s immediate family, or a trust for such
      shareholder’s own self, or a charitable remainder trust, or, if the shareholder
      is a partnership, any partner of the partnership or any other partnership or
      other entity managed by the same manager, and the general or limited partners
      or
      managing entities of such shareholder, or any affiliate of such shareholder
      or
      partner under common or related management or control with such shareholder,
      and
      in the case of either Genesis Partners II LDC or Genesis Partners II (Israel)
      L.P., either of Genesis Partners I L.P. or Genesis Partners I (Cayman) L.P.,
      provided that each such transferee or assignee, prior to the completion of
      the
      sale, transfer, or assignment shall have executed documents assuming the
      obligations of such shareholder under this Agreement. 

     

    Rights
      to
      transfer shares of the Company to a Permitted Transferee are intended to
      facilitate a shareholder's allocation of such shareholder's shares of the
      Company among commonly controlled or similarly situated persons or entities
      and
      are not intended to be used to facilitate a change in control of the
      Company.

    

    (xvii)  “TI”
means
      Texas Instruments Incorporated, a company incorporated under the laws of the
      state of Delaware.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    1.2  Request
      for Registration.

     

    (i)  Subject
      to the conditions of this Section 1.2, if the Company shall receive within
      the five (5) year period commencing 90 days after the effective date of the
      Initial Offering a written request from the Holders of at least 35% of the
      Preferred Registrable Securities then outstanding (the “Initiating
      Holders”)
      that
      the Company file a registration statement under the Act covering the
      registration of Registrable Securities that requests the registration of shares
      in a minimum amount of five million United States dollars ($5,000,000), then
      the
      Company shall, within twenty (20) days of the receipt thereof, give written
      notice of such request to all Holders, and subject to the limitations of this
      Section 1.2, use best efforts to effect, as soon as practicable, the
      registration under the Act of all Registrable Securities that the Holders
      request to be registered in a written request received by the Company within
      twenty (20) days of the mailing of the Company’s notice pursuant to this
      Section 1.2(i).

     

    (ii)  If
      the
      Initiating Holders intend to distribute the Registrable Securities covered
      by
      their request by means of an underwriting, they shall so advise the Company
      as a
      part of their request made pursuant to this Section 1.2 and the Company
      shall include such information in the written notice referred to in
      Section 1.2(i). In such event the right of any Holder to include its
      Registrable Securities in such registration shall be conditioned upon such
      Holder’s participation in such underwriting and the inclusion of such Holder’s
      Registrable Securities in the underwriting (unless otherwise mutually agreed
      by
      a majority in interest of the Initiating Holders and such Holder) to the extent
      provided herein. All Holders proposing to distribute their securities through
      such underwriting shall enter into an underwriting agreement in customary form
      with the underwriter or underwriters selected for such underwriting by a
      majority in interest of the Initiating Holders which underwriter or underwriters
      shall be reasonably acceptable to a majority in interest of the Initiating
      Holders.

     

    (iii)  If
      the
      underwriter advises the Company that marketing factors require a limitation
      of
      the number of securities underwritten (including Registrable Securities), then
      the Company shall so advise all Holders of Registrable Securities that would
      otherwise be underwritten pursuant hereto, and the number of shares that may
      be
      included in the underwriting shall be allocated to the Holders of such
      Registrable Securities on a pro rata basis based on the number of Registrable
      Securities held by all such Holders (including the Initiating Holders). Any
      Registrable Securities excluded or withdrawn from such underwriting shall be
      withdrawn from the registration.

     

    (iv)  The
      Company shall not be required to effect a registration pursuant to this
      Section 1.2:

     

    (a)
      in
      any particular jurisdiction in which the Company would be required to execute
      a
      general consent to service of process in effecting such registration, unless
      the
      Company is already subject to service in such jurisdiction and except as may
      be
      required under the Act; or

     

    (b)
      after
      the Company has effected two (2) registrations pursuant to this
      Section 1.2, and such registrations have been declared or ordered
      effective; or

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c)
      during the period starting with the date sixty (60) days prior to the
      Company’s good faith estimate of the date of the filing of, and ending on a date
      one hundred eighty (180) days following the effective date of, or, if
      earlier, upon completion of the distribution contemplated by, a
      Company-initiated registration subject to Section 1.3 below, provided that
      the Company is actively employing in good faith all reasonable efforts to cause
      such registration statement to become effective; or

     

    (d)
      if
      the Initiating Holders propose to dispose of Registrable Securities that may
      be
      registered on Form S-3 pursuant to Section 1.4 hereof; or

     

    (e)
      if
      the Company shall furnish to Holders requesting a registration statement
      pursuant to this Section 1.2, a certificate signed by the Chairman of the
      Board stating that in the good faith judgment of the Board of Directors of
      the
      Company, it would be seriously detrimental to the Company and its shareholders
      for such registration statement to be effected at such time, in which event
      the
      Company shall have the right to defer such filing for a period of not more
      than
      ninety (90) days after receipt of the request of the Initiating Holders,
      provided that such right to delay a request shall be exercised by the Company
      not more than once in any twelve (12)-month period.

     

    1.3  Company
      Registration.
      If (but
      without any obligation to do so) the Company proposes to register (including
      for
      this purpose a registration effected by the Company for shareholders other
      than
      the Holders) any of its stock or other securities under the Act in connection
      with the public offering of such securities (other than: (a) a registration
      relating solely to the sale of securities to participants in a Company stock
      plan, (b) a registration relating to a corporate reorganization, merger,
      acquisition or other transaction under Rule 145 of the Act, (c) a
      registration on any form that does not include substantially the same
      information as would be required to be included in a registration statement
      covering the sale of the Registrable Securities which, for the sake of
      clarification, shall not be deemed to include a registration on Form S-3 or
      any
      equivalent form), or (d) a registration in which the only Common Stock being
      registered is Common Stock issuable upon conversion of debt securities that
      are
      also being registered), the Company shall, at such time, promptly give each
      Holder written notice of such registration. Upon the written request of each
      Holder given within twenty (20) days after mailing of such notice by the Company
      in accordance with Section 3.5, the Company shall, subject to the
      provisions of Section 1.3(ii), use all reasonable efforts to cause to be
      registered under the Act all of the Registrable Securities that each such Holder
      has requested to be registered.

     

    (i)  Right
      to Terminate Registration.
      The
      Company shall have the right to terminate or withdraw any registration initiated
      by it under this Section 1.3 prior to the effectiveness of such
      registration whether or not any Holder has elected to include securities in
      such
      registration. The expenses of such withdrawn registration shall be borne by
      the
      Company in accordance with Section 1.7 hereof.

     

    (ii)  Underwriting
      Requirements.
      In
      connection with any offering involving an underwriting of shares of the
      Company’s capital stock, the Company shall not be required under this
      Section 1.3 to include any of the Holders’ securities in such underwriting
      unless they accept the terms of the underwriting, in customary form, as agreed
      upon between the Company and the underwriters selected by it (or by other
      persons entitled to select the underwriters) and enter into an underwriting
      agreement in customary form with an underwriter or underwriters selected by
      the
      Company and approved by majority in interest of holders of Preferred Registrable
      Securities, and then only in such quantity as the underwriters determine in
      their sole discretion will not materially and adversely jeopardize the success
      of the offering by the Company. If the total amount of securities, including
      Registrable Securities, requested by Holders to be included in such offering
      exceeds the amount of securities sold other than by the Company that the
      underwriters determine in their sole discretion could materially and adversely
      jeopardize the success of the offering, then the Company shall be required
      to
      include in the offering only that number of such securities, including
      Registrable Securities, that the underwriters determine in their sole discretion
      will not materially and adversely jeopardize the success of the offering, the
      securities so included to be apportioned among the holders of Registrable
      Securities requested to be included in such offering and among the holders
      of
      the Founder Registrable Securities requested to be included in such offering
      as
      follows: 75% of the shares to be sold by shareholders shall be allocated among
      the holders of Preferred Registrable Securities and 25% shall be allocated
      between the holders of the Founder Registrable Securities, with the internal
      allocation among such groups being on a pro rata basis based on the number
      of
      Registrable Securities held by all the holders requested to be included in
      such
      offering, provided however, that in no event shall the number of Founder
      Registrable Securities sold by any Founder (as a percentage of all shares sold
      in the offering by shareholders) exceed the Founder’s percentage holding in the
      Company. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (iii)  For
      purposes of the preceding parenthetical concerning apportionment, for any
      Stockholder that is a Holder of Registrable Securities that is a partnership
      or
      corporation, the partners, retired partners and stockholders of such Holder,
      or
      the estates and family members of any such partners and retired partners and
      any
      trusts for the benefit of any of the foregoing persons (“Related Party”) shall
      be deemed to be a single “Holder,” as applicable and any pro rata reduction with
      respect to such “Holder” shall be based upon the aggregate amount of Registrable
      Securities owned by all such related entities and individuals.

     

    1.4  Form
      S-3 Registration.
      In case
      the Company shall receive from the (i) Initiating Holders (as such term is
      defined in section 1.2 above) or (ii) the Holders of the majority in interest
      of
      the Founder Registrable Securities ("Initiating
      Founders"),
      a
      written request or requests that the Company effect a registration on
      Form S-3 and any related qualification or compliance with respect to all or
      a part of the Registrable Securities owned by such Holder or Holders, the
      Company shall:

     

    (i)  promptly
      give written notice of the proposed registration, and any related qualification
      or compliance, to all other Holders; and

     

    (ii)  use
      best
      efforts to effect, as soon as practicable, such registration and all such
      qualifications and compliances as may be so requested and as would permit or
      facilitate the sale and distribution of all or such portion of such Holders’
Registrable Securities as are specified in such request, together with all
      or
      such portion of the Registrable Securities of any other Holders joining in
      such
      request as are specified in a written request given within fifteen (15) days
      after receipt of such written notice from the Company, provided, however, that
      the Company shall not be obligated to effect any such registration,
      qualification or compliance, pursuant to this section 1.4:

     

    
      
        
        

      

      
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    (a)
      if
      Form S-3 is not available for such offering by the Holders;

     

    (b)
      if
      the Company shall furnish to the Holders a certificate signed by the Chairman
      of
      the Board of the Company stating that in the good faith judgment of the Board
      of
      Directors of the Company, it would be seriously detrimental to the Company
      and
      its shareholders for such Form S-3 Registration to be effected at such
      time, in which event the Company shall have the right to defer the filing of
      the
      Form S-3 registration statement for a period of not more than ninety (90)
      days after receipt of the request of the Holder or Holders under this
      Section 1.4; provided, however, that the Company shall not utilize this
      right more than once in any twelve month period;

     

    (c)
      in
      any particular jurisdiction in which the Company would be required to qualify
      to
      do business or to execute a general consent to service of process in effecting
      such registration, qualification or compliance.

     

    (iii)  Subject
      to the foregoing, the Company shall file a registration statement covering
      the
      Registrable Securities and other securities so requested to be registered as
      soon as practicable after receipt of the request or requests of the Holders.
      Registrations effected pursuant to this Section 1.4 shall not be counted as
      requests for registration effected pursuant to Sections 1.2.

     

    1.5  Obligations
      of the Company.
      Whenever required under this Section 1 to effect the registration of any
      Registrable Securities, the Company shall, as expeditiously as reasonably
      possible:

     

    (i)  prepare
      and file with the SEC a registration statement with respect to such Registrable
      Securities and use best efforts to cause such registration statement to become
      effective, and, upon the request of the Holders of a majority of the Registrable
      Securities registered thereunder, keep such registration statement effective
      for
      a period of up to one hundred eighty (180) days or, if earlier, until the
      distribution contemplated in the Registration Statement has been
      completed;

     

    (ii)  prepare
      and file with the SEC such amendments and supplements to such registration
      statement and the prospectus used in connection with such registration statement
      as may be necessary to comply with the provisions of the Act with respect to
      the
      disposition of all securities covered by such registration
      statement;

     

    (iii)  furnish
      to the Holders such numbers of copies of a prospectus, including a preliminary
      prospectus, in conformity with the requirements of the Act, and such other
      documents as they may reasonably request in order to facilitate the disposition
      of Registrable Securities owned by them;

     

    
      
        
        

      

      
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    (iv)  use
      best
      efforts to register and qualify the securities covered by such registration
      statement under such other securities or Blue Sky laws of such jurisdictions
      as
      shall be reasonably requested by the Holders, provided that the Company shall
      not be required in connection therewith or as a condition thereto to qualify
      to
      do business or to file a general consent to service of process in any such
      states or jurisdictions;

     

    (v)  in
      the
      event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement, in usual and customary form, with
      the managing underwriter of such offering;

     

    (vi)  notify
      each Holder of Registrable Securities covered by such registration statement
      at
      any time when a prospectus relating thereto is required to be delivered under
      the Act or the happening of any event as a result of which the prospectus
      included in such registration statement, as then in effect, includes an untrue
      statement of a material fact or omits to state a material fact required to
      be
      stated therein or necessary to make the statements therein not misleading in
      the
      light of the circumstances then existing;

     

    (vii)  notify
      each Holder of Registrable Securities covered by such registration statement,
      promptly after the Company shall receive notice thereof, of the time when such
      registration statement becomes effective or when any amendment or supplement
      or
      any prospectus forming a part of such registration has been filed.

     

    (viii)  notify
      each Holder of Registrable Securities covered by such registration statement,
      promptly of any request by the SEC for the amending of supplementing of such
      registration statement or prospectus for additional information.

     

    (ix)  advise
      each Holder whose Registrable Shares are included in such registration statement
      promptly after the Company shall receive notice or otherwise obtain knowledge
      of
      the issuance of any order by the SEC suspending the effectiveness of such
      registration statement or amendment thereto or of the initiation or threatening
      of any proceeding for that purpose; and promptly use its best efforts to prevent
      the issuance of any stop order or to obtain its withdrawal promptly if a stop
      order should be issued.

     

    (x)  use
      its
      best efforts to furnish, at the request of any Holder requesting registration
      of
      Registrable Securities pursuant to this agreement on the date that such
      Registrable Securities are delivered to the underwriters for sale in connection
      with a registration pursuant to this agreement, if such securities are being
      sold through underwriters, on the date that the registration statement with
      respect to such securities becomes effective, (i) an opinion, dated such date,
      of the counsel representing the Company for the purposes of such registration,
      in form and substance as is customarily given to underwriters in an underwritten
      public offering, addressed to the underwriters, if any, and (ii) a letter dated
      such date, from the independent certified public accountants of the Company,
      in
      form and substance as is customarily given by independent certified public
      accountants to underwriters in an underwritten public offering, addressed to
      the
      underwriters, if any.

     

    
      
        
        

      

      
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    (xi)  cause
      all
      such Registrable Securities registered pursuant hereunder to be listed on each
      securities exchange on which similar securities issued by the Company are then
      listed; and

     

    (xii)  provide
      a
      transfer agent and registrar for all Registrable Securities registered pursuant
      hereunder and a CUSIP number for all such Registrable Securities, in each case
      not later than the effective date of such registration.

     

    1.6  Information
      from Holder.
      It
      shall be a condition precedent to the obligations of the Company to take any
      action pursuant to this Section 1 with respect to the Registrable
      Securities of any selling Holder that such Holder shall furnish to the Company
      such information regarding itself, the Registrable Securities held by it, and
      the intended method of disposition of such securities as shall be required
      under
      the Act to effect the registration of such Holder’s Registrable
      Securities.

     

    1.7  Expenses
      of Registration.
      All
      expenses other than underwriting discounts and commissions incurred in
      connection with registrations, filings or qualifications pursuant to
      Sections 1.2, 1.3 and 1.4 including (without limitation) all registration,
      filing and qualification fees, printers’ and accounting fees, fees and
      disbursements of counsel for the Company and the reasonable fees and
      disbursements of one counsel for the selling Holders shall be borne by the
      Company. Notwithstanding the foregoing, the Company shall not be required to
      pay
      for any expenses of any registration proceeding begun pursuant to
      Section 1.2 or Section 1.4 if the registration request is subsequently
      withdrawn at the request of the Holders of a majority of the Registrable
      Securities to be registered (in which case all participating Holders shall
      bear
      such expenses pro rata based upon the number of Registrable Securities that
      were
      to be requested in the withdrawn registration), unless, in the case of a
      registration requested under Section 1.2, the Holders of a majority of the
      Registrable Securities agree to forfeit their right to one demand registration
      pursuant to Section 1.2, provided, however, that if at the time of such
      withdrawal, the Holders have learned of a material adverse change in the
      condition, business, or prospects of the Company that is different from that
      known to the Holders at the time of their request and have withdrawn the request
      with reasonable promptness following disclosure by the Company of such material
      adverse change, then the Holders shall not be required to pay any of such
      expenses and shall retain their rights pursuant to Section 1.2 or 1.4.

     

    1.8  Delay
      of Registration.
      No
      Holder shall have any right to obtain or seek an injunction restraining or
      otherwise delaying any such registration as the result of any controversy that
      might arise with respect to the interpretation or implementation of this
      Section 1.

     

    1.9  Indemnification.
      In the
      event any Registrable Securities are included in a registration statement under
      this Section 1:

     

    
      
        
        

      

      
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    (i)  To
      the
      extent permitted by law, the Company will indemnify and hold harmless each
      Holder, the partners or officers, directors and shareholders of each Holder,
      legal counsel and accountants for each Holder, any underwriter (as defined
      in
      the Act) for such Holder and each person, if any, who controls such Holder
      or
      underwriter within the meaning of the Act or the 1934 Act, against any losses,
      claims, damages or liabilities (joint or several) to which they may become
      subject under the Act, the 1934 Act or any state securities laws, insofar as
      such losses, claims, damages, or liabilities (or actions in respect thereof)
      arise out of or are based upon any of the following statements, omissions or
      violations (collectively a “Violation”): (i) any untrue statement or
      alleged untrue statement of a material fact contained in such registration
      statement, including any preliminary prospectus or final prospectus contained
      therein or any amendments or supplements thereto, (ii) the omission or
      alleged omission to state therein a material fact required to be stated therein,
      or necessary to make the statements therein not misleading, or (iii) any
      violation or alleged violation by the Company of the Act, the 1934 Act, any
      state securities laws or any rule or regulation promulgated under the Act,
      the
      1934 Act or any state securities laws; and the Company will reimburse each
      such
      Holder, underwriter or controlling person for any legal or other expenses
      reasonably incurred by them in connection with investigating or defending any
      such loss, claim, damage, liability or action; provided, however, that the
      indemnity agreement contained in this subsection l.9(i) shall not apply to
      amounts paid in settlement of any such loss, claim, damage, liability or action
      if such settlement is effected without the consent of the Company (which consent
      shall not be unreasonably withheld), nor shall the Company be liable in any
      such
      case for any such loss, claim, damage, liability or action to the extent that
      it
      arises out of or is based upon a Violation that occurs in reliance upon and
      in
      conformity with written information furnished expressly for use in connection
      with such registration by any such Holder, underwriter or controlling person;
      provided further, however, that the foregoing indemnity agreement with respect
      to any preliminary prospectus shall not inure to the benefit of any Holder
      or
      underwriter, or any person controlling such Holder or underwriter, from whom
      the
      person asserting any such losses, claims, damages or liabilities purchased
      shares in the offering, if a copy of the prospectus (as then amended or
      supplemented if the Company shall have furnished any amendments or supplements
      thereto) was not sent or given by or on behalf of such Holder or underwriter
      to
      such person, if required by law so to have been delivered, at or prior to the
      written confirmation of the sale of the shares to such person, and if the
      prospectus (as so amended or supplemented) would have cured the defect giving
      rise to such loss, claim, damage or liability.

     

    (ii)  To
      the
      extent permitted by law, each selling Holder will indemnify and hold harmless
      the Company, each of its directors, each of its officers who has signed the
      registration statement, each person, if any, who controls the Company within
      the
      meaning of the Act, legal counsel and accountants for the Company, any
      underwriter, any other Holder selling securities in such registration statement
      and any controlling person of any such underwriter or other Holder, against
      any
      losses, claims, damages or liabilities (joint or several) to which any of the
      foregoing persons may become subject, under the Act, the 1934 Act or any state
      securities laws, insofar as such losses, claims, damages or liabilities (or
      actions in respect thereto) arise out of or are based upon any Violation, in
      each case to the extent (and only to the extent) that such Violation occurs
      in
      reliance upon and in conformity with written information furnished by such
      Holder expressly for use in connection with such registration; and each such
      Holder will reimburse any person intended to be indemnified pursuant to this
      subsection l.9(ii), for any legal or other expenses reasonably incurred by
      such
      person in connection with investigating or defending any such loss, claim,
      damage, liability or action; provided, however, that the indemnity agreement
      contained in this subsection l.9(ii) shall not apply to amounts paid in
      settlement of any such loss, claim, damage, liability or action if such
      settlement is effected without the consent of the Holder (which consent shall
      not be unreasonably withheld), provided that in no event shall any indemnity
      under this subsection l.9(ii) exceed the gross proceeds from the offering
      received by such Holder.

     

    
      
        
        

      

      
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    (iii)  Promptly
      after receipt by an indemnified party under this Section 1.9 of notice of
      the commencement of any action (including any governmental action), such
      indemnified party will, if a claim in respect thereof is to be made against
      any
      indemnifying party under this Section 1.9, deliver to the indemnifying
      party a written notice of the commencement thereof and the indemnifying party
      shall have the right to participate in, and, to the extent the indemnifying
      party so desires, jointly with any other indemnifying party similarly noticed,
      to assume the defense thereof with counsel selected by the indemnifying party;
      provided, however, that an indemnified party (together with all other
      indemnified parties that may be represented without conflict by one counsel)
      shall have the right to retain one separate counsel, with the fees and expenses
      to be paid by the indemnifying party, if representation of such indemnified
      party by the counsel retained by the indemnifying party would be inappropriate
      due to actual or potential differing interests between such indemnified party
      and any other party represented by such counsel in such proceeding. The failure
      to deliver written notice to the indemnifying party within a reasonable time
      of
      the commencement of any such action, if prejudicial to its ability to defend
      such action, shall relieve such indemnifying party of any liability to the
      indemnified party under this Section 1.9, but the omission so to deliver
      written notice to the indemnifying party will not relieve it of any liability
      that it may have to any indemnified party otherwise than under this
      Section 1.9.

     

    (iv)  If
      the
      indemnification provided for in this Section 1.9 is held by a court of
      competent jurisdiction to be unavailable to an indemnified party with respect
      to
      any loss, liability, claim, damage or expense referred to herein, then the
      indemnifying party, in lieu of indemnifying such indemnified party hereunder,
      shall contribute to the amount paid or payable by such indemnified party as
      a
      result of such loss, liability, claim, damage or expense in such proportion
      as
      is appropriate to reflect the relative fault of the indemnifying party on the
      one hand and of the indemnified party on the other in connection with the
      statements or omissions that resulted in such loss, liability, claim, damage
      or
      expense, as well as any other relevant equitable considerations. The relative
      fault of the indemnifying party and of the indemnified party shall be determined
      by reference to, among other things, whether the untrue or alleged untrue
      statement of a material fact or the omission to state a material fact relates
      to
      information supplied by the indemnifying party or by the indemnified party
      and
      the parties’ relative intent, knowledge, access to information, and opportunity
      to correct or prevent such statement or omission.

     

    (v)  Notwithstanding
      the foregoing, to the extent that the provisions on indemnification and
      contribution contained in the underwriting agreement entered into in connection
      with the underwritten public offering are in conflict with the foregoing
      provisions, the provisions in the underwriting agreement shall
      control.

     

    (vi)  The
      obligations of the Company and Holders under this Section 1.9 shall survive
      the completion of any offering of Registrable Securities in a registration
      statement under this Section 1, and otherwise.

     

    
      
        
        

      

      
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    1.10  Reports
      Under Securities Exchange Act of 1934.
      With a
      view to making available to the Holders the benefits of Rule 144
      promulgated under the Act and any other rule or regulation of the SEC that
      may
      at any time permit a Holder to sell securities of the Company to the public
      without registration or pursuant to a registration on Form S-3, the Company
      agrees to:

     

    (i)  make
      and
      keep public information available, as those terms are understood and defined
      in
      SEC Rule 144, at all times after the effective date of the Initial
      Offering;

     

    (ii)  file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the Act and the 1934 Act; and

     

    (iii)  furnish
      to any Holder, so long as the Holder owns any Registrable Securities, forthwith
      upon request (i) a written statement by the Company that it has complied
      with the reporting requirements of SEC Rule 144 (at any time after ninety
      (90) days after the effective date of the first registration statement filed
      by
      the Company), the Act and the 1934 Act (at any time after it has become subject
      to such reporting requirements), or that it qualifies as a registrant whose
      securities may be resold pursuant to Form S-3 (at any time after it so
      qualifies), (ii) a copy of the most recent annual or quarterly report of
      the Company and such other reports and documents so filed by the Company, and
      (iii) such other information as may be reasonably requested in availing any
      Holder of any rule or regulation of the SEC that permits the selling of any
      such
      securities without registration or pursuant to such form.

     

    1.11  Assignment
      of Registration Rights.
      The
      rights to cause the Company to register Registrable Securities pursuant to
      this
      Agreement may be assigned or transferred (but only with all related obligations)
      by a Holder. In the event that a Holder transfers such right to any person
      or
      entity other than a Permitted Transferee and such transferee is entitled to
      sell
      all of his Preferred Registrable Securities under Rule 144 during any one
      quarter, then such transferee shall not have the rights under and shall not
      be
      bound by Section 1 herein. 

     

    1.12  Limitations
      on Subsequent Registration Rights.
      From
      and after the date of this Agreement, the Company shall not, without the prior
      written consent of the Holders of sixty percent (60%) of the Preferred
      Registrable Securities, enter into any agreement with any holder or prospective
      holder of any securities of the Company that would allow such holder or
      prospective holder (a) to include such securities in any registration filed
      under Section 1.3 and 1.4 hereof, unless under the terms of such agreement,
      such holder or prospective holder may include such securities in any such
      registration only to the extent that the inclusion of such securities will
      not
      reduce the amount of the Registrable Securities of the Holders that are included
      or (b) to demand registration of their securities. 

     

    1.13  “Market
      Stand-Off” Agreement.
      Each
      Holder hereby agrees that it will not, without the prior written consent of
      the
      managing underwriter, during the period commencing on the date of the final
      prospectus relating to the Company’s initial public offering and ending on the
      date specified by the Company and the managing underwriter (such period not
      to
      exceed one hundred eighty (l80) days) (i) lend, offer, pledge, sell,
      contract to sell, sell any option or contract to purchase, purchase any option
      or contract to sell, grant any option, right or warrant to purchase, or
      otherwise transfer or dispose of, directly or indirectly, any shares of Common
      Stock or any securities convertible into or exercisable or exchangeable for
      Common Stock (whether such shares or any such securities are then owned by
      the
      Holder or are thereafter acquired), or (ii) enter into any swap or other
      arrangement that transfers to another, in whole or in part, any of the economic
      consequences of ownership of the Common Stock, whether any such transaction
      described in clause (i) or (ii) above is to be settled by delivery of
      Common Stock or such other securities, in cash or otherwise. The foregoing
      provisions of this Section 1.13 shall apply only to the Company’s initial
      public offering of equity securities, shall not apply to the sale of any shares
      to an underwriter pursuant to an underwriting agreement, and shall only be
      applicable to the Holders if all officers and directors and greater than five
      percent (5%) shareholders of the Company enter into similar agreements. The
      underwriters in connection with the Company’s initial public offering are
      intended third party beneficiaries of this Section 1.13 and shall have the
      right, power and authority to enforce the provisions hereof as though they
      were
      a party hereto. In order to enforce the foregoing covenant, the Company may
      impose stop-transfer instructions with respect to the Registrable Securities
      of
      each Holder (and the shares or securities of every other person subject to
      the
      foregoing restriction) until the end of such period.

     

    
      
        
        

      

      
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    1.14  Limitation
      on Amendment.
      The
      Company shall not adversely amend the registration rights of the Founders
      without the prior written consent of at least one of the Founders. 

     

    2.  Covenants
      of the Company.

     

    2.1  Accounting
      and Delivery of Financial Statements.
      The
      Company shall maintain a standard system of accounting established and
      administered in accordance with generally accepted accounting principles and
      until the Initial Offering shall deliver to each Major Investor:

     

    (i)  as
      soon
      as practicable, but in any event within sixty (60) days after the end of each
      fiscal year of the Company, a consolidated income statement for such fiscal
      year, a consolidated balance sheet of the Company and statement of shareholder’s
      equity as of the end of such year, and a consolidated statement of cash flows
      for such year, such year-end financial reports to be in reasonable detail,
      prepared in accordance with generally accepted accounting principles (“GAAP”),
      and audited and certified by one of the “Big Four” independent public accountant
      firms, selected by the Company.

     

    (ii)  as
      soon
      as practicable, but in any event within thirty (30) days after the end of each
      of the first three (3) quarters of each fiscal year of the Company, an unaudited
      and reviewed income statement, statement of cash flows for such fiscal quarter
      and an unaudited and reviewed balance sheet as of the end of such fiscal
      quarter, in a form acceptable to the majority of the directors nominated by
      the
      holders of Preferred Registrable Securities. The aforesaid reports shall be
      in
      reasonable detail, prepared in accordance with GAAP consistently applied with
      prior practice for earlier periods, unless 75% of the Directors appointed by
      the
      Investors approve otherwise.

     

    
      
        
        

      

      
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    (iii)  within
      fifteen (15) days of the end of each month, a short form report as determined
      by
      the Board of Directors of the Company for and as of the end of such month,
      in
      reasonable detail;

     

    (iv)  as
      soon
      as practicable, but in any event at least fifteen (15) days prior to the end
      of
      each fiscal year, a budget and business plan for the next fiscal year, prepared
      on a monthly basis, including operating budget, balance sheets, income
      statements and statements of cash flows for such months and, as soon as
      prepared, any other budgets or revised budgets prepared by the
      Company;

     

    (v)  with
      respect to the financial statements called for in subsection(ii) of this
      Section 2.1, an instrument executed by the Chief Financial Officer or
      President of the Company certifying that such financials were prepared in
      accordance with the terms of section 2.1(ii) above and fairly present the
      financial condition of the Company and its results of operation for the period
      specified, subject to year-end audit adjustment; and

     

    (vi)  such
      other information relating to the financial condition, business, prospects
      or
      corporate affairs of the Company as the Major Investor or any assignee of the
      Investor may from time to time reasonably request; and

     

    (vii)  prompt
      notice of any litigation or material adverse claims or disputes.

     

    (viii)  Each
      of
      the Founders shall be entitled to receive (i) all the information under this
      Section 2.1 as long as such Founder is employed by the Company and serves as
      a
      director on the Company’s Board of Directors; (ii) the annual report under
      Section 2.1(i) as long as such Founder qualifies as a Major Holder.

     

    2.2  Inspection.
      The
      Company shall permit each Major Investor, at such Major Investor’s expense, to
      visit and inspect the Company’s properties, to examine its books of account and
      records and to discuss the Company’s affairs, finances and accounts with its
      officers, all at such reasonable times as may be requested by the Investor;
      provided, however, that the Company shall not be obligated pursuant to this
      Section 2.2 to provide access to any information that it reasonably
      considers to be a trade secret or similar confidential information of such
      nature that ought not properly be disclosed to such Investor. Notwithstanding
      anything stated herein, inspection and observer rights of PMC-Sierra shall
      be as
      stated in the Board Observation Rights Letter that appears as Exhibit
      F
      to the
      Series D Agreement, unless and until PMC-Sierra and the Company mutually agree
      otherwise.

     

    2.3  Assignment
      of Rights.
      Unless
      specifically provided otherwise, the rights and obligations pursuant to
      subsections 2.1 and 2.2 may be assigned or otherwise conveyed by a Major Holder
      or subsequent transferee only to a holder which holds immediately after such
      transfer more than 5% of the Preferred Registrable Securities, as long as such
      assignment is together with all or any of the Preferred Shares referred to
      in
      such subsection and is not to a party which may compete with the
      Company.
      The
      aforesaid limitation shall not apply to such transfer of rights and obligations
      pursuant to subsections 2.1 and 2.2 to any Permitted Transferee. 

     

    
      
        
        

      

      
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    3.  Pre-emptive
      Rights.

     

    3.1  Subject
      to the terms and conditions specified in this Section 3, the Company hereby
      grants to each Major Investor until the Initial Offering a pre-emptive right
      with respect to future sales by the Company of its Shares. For purposes of
      this
      Section 3, Major Investor includes any general partners and affiliates if a
      Major Investor is a partnership. A Major Investor shall be entitled to apportion
      the right of first offer hereby granted it among itself and its partners and
      affiliates in such proportions as it deems appropriate, provided that such
      Major
      Investor is a partnership.

     

    3.2  Each
      time
      the Company proposes to offer any shares of, or securities convertible into
      or
      exchangeable or exercisable for any shares of, any class of its capital stock
      (“Shares”), the Company shall first make an offering of such Shares to each
      Major Investor in accordance with the following provisions.

     

    (i)  The
      Company shall deliver a notice in accordance with Section 3.5
      (“Notice”)
      to the
      Major Investor stating (i) its bona fide intention to offer such Shares,
      (ii) the number of such Shares to be offered, and (iii) the price and
      terms upon which it proposes to offer such Shares.

     

    (ii)  By
      written notification received by the Company, within twenty (20) calendar days
      after receipt of the Notice, the Major Investor may elect to purchase or obtain,
      at the price and on the terms specified in the Notice, up to two times the
      Major
      Investor’s Pro Rata Portion of the Shares. For purposes of this Section 3,
“Pro
      Rata Portion”
shall
      equal a fraction, the numerator of which is the number of shares of Common
      Stock
      issued or issuable upon conversion of other securities then held by a Major
      Investor, and the denominator of which is the total number of shares of Common
      Stock of the Company then issued and outstanding (assuming full conversion
      of
      all convertible securities; for avoidance of doubt employee options shall not
      be
      viewed as convertible securities) provided however that the right of all the
      Major Investors together under this Section 3.2(ii) shall be in any event
      limited to two thirds (2/3) of the Shares the Company proposes to
      offer.

     

    (iii)  If
      a
      Major Investor does not exercise in full its right under this Section 3.2,
      or if
      such right is limited in accordance with Section 3.2(vii) herein below, the
      other Major Investors shall have the right to purchase that number of Shares
      that were not purchased by such Major Investor by giving written notice of
      their
      intention within three (3) business days after receiving a notice from the
      Company setting forth the amount of unsubscribed shares. Shares subscribed
      for
      under this clause (iii) shall be allocated among the Major Investors based
      on
      each such Major Investor’s Pro-Rata Portion. To the extent that any of the
      Shares that Major Investors are entitled to obtain are not elected to be
      obtained as provided in subsection 3.2 hereof, the Company may, during the
      ninety (90) day period following the expiration of the period provided in
      subsections 3.2(ii) and (iii) hereof, offer the remaining unsubscribed
      portion of such Shares to any person or persons at a price not less than, and
      upon terms no more favorable to the offeree than those specified in the Notice.
      If the Company does not enter into an agreement for the sale of the Shares
      within such period, or if such agreement is not consummated within ninety (90)
      days of the execution thereof, the right provided hereunder shall be deemed
      to
      be revived and such Shares shall not be offered unless first reoffered to the
      Major Investors in accordance herewith.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (iv)  “Shares”
shall
      not include: (i) the issuance or sale of shares of stock (or options
      therefor) to employees, directors and consultants under stock plans approved
      by
      the Company’s Board of Directors; (ii) the issuance of securities pursuant
      to the conversion or exercise of convertible or exercisable securities; (iii)
      any dividend payable in shares of Common Stock or any shares issued upon a
      subdivision or combination of such shares; (iv) the issuance of securities
      in
      connection with acquisitions of assets, businesses or companies, made by the
      Company or settlements of claims involving the Company (v) the issuance of
      securities constituting up to 10% of the outstanding share capital of the
      Company immediately prior to such issuance, to a Strategic Investor, (herein
      defined as an entity that has entered into a material agreement with the Company
      such as an OEM agreement, agreement for purchase and/or sale of goods, or a
      joint project), which Strategic Investor has been designated as a Strategic
      Investor by a majority of the Board of Directors with the affirmative vote
      of at
      least two of the Board members appointed by the holders of Preferred Stock;
      and
      (vi) issuance of securities or warrants to a lending institution in connection
      with a Hybrid Financing, as defined in and subject to subsection 3.2 (v )
      below.

     

    (v)  In
      the
      event the Company desires to obtain any loan or credit facility under a loan
      arrangement from a lending institution stipulating the issuance of a warrant
      or
      an obligation of the Company to issue any securities of the Company to the
      lending institution (a “Hybrid
      Financing”),
      then
      the Major Investors will have the right to provide the Company with such Hybrid
      Financing on the same terms and conditions that were offered to the Company
      by
      such lending institution in the same manner as outlined in Sections 3.2(i)-(iv),
      provided that the Major Investors, in the aggregate, take up the full amount
      of
      the Hybrid Financing. 

     

    (vi)  As
      long
      as a Founder is (i) either employed by the Company or serves as a director
      on
      the Company’s Board of Directors; and (ii) holds more than 5% of the Company’s
      outstanding share capital, such Founder shall have a pre-emptive right with
      respect to the Shares that are not required to be offered to the Major Investors
      under Section 3.2(ii), up to the proportion between the number of shares of
      Common Stock issued and held by such Founder to the total number of shares
      outstanding (on an as converted basis). For the sake of clarity, said Founder
      shall not be entitled to purchase any shares that were not purchased by the
      Major Investors and/or the other Founder under this Section 3. The pre-emptive
      right of the Founders under this Section 3.2(vi) shall lapse with respect to
      any
      issuance of securities by the Company, if the Major Investors have waived fifty
      percent (50%) or more of their pre-emptive right with respect to such round
      of
      share issuances. The pre-emptive right of the Founders shall be exercised
      according to the procedure set forth in Sections 3.2(i)-(iv) and as a part
      thereof.

     

    (vii)  Notwithstanding
      anything to the contrary in this Section 3, Marvell Semiconductor Israel Ltd.’s
      right to pre-emption shall be limited so that its holdings in the Company,
      directly or indirectly, shall not exceed 16.66% of the share capital of the
      Company, on an as-converted, fully-diluted basis. 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    4.  The
      Board of Directors

     

    4.1  Size
      of Board of Directors.
      The
      Board
      of Directors shall consist of up to seven (7) members. Four directors shall
      be
      elected by the holders of a majority of the outstanding shares of Preferred
      Stock (on an as-converted basis), and the outstanding shares of Common Stock,
      voting as a single class and three directors shall be elected by a majority
      of
      the outstanding shares of Common Stock, voting as a single class.
      Notwithstanding the foregoing, each of the stockholders of the Company shall
      vote all of its shares in favor of, and take all action necessary to elect,
      those directors selected in accordance with the provisions of Section 4.2.
      

     

    4.2  Composition
      of the Board of Directors. 

     

    (i)  Each
      of
      the four directors to be elected by the holders of Preferred Stock and Common
      Stock, voting as a single class shall be an individual nominated by a majority
      of the members of the serving Board of Directors. 

     

    (ii)  Each
      of
      the three directors to be elected by the holders of Common Stock (“Common Stock
      Designees") shall be individuals who are nominated by the Holders of at least
      fifty percent (50%) of the voting power of the total number of then outstanding
      Common Stock of the Company (the “Majority
      of Common”),
      considered for the purposes of this Section 4.2(ii) as one group. 

     

    (iii)  Any
      director may be removed by an affirmative vote of the stockholders who appointed
      such director, providing that the respective stockholders, voting separately
      as
      a class, shall vote for the removal of any such director, only upon the written
      request of the entities or individuals that appointed such
      director.

     

    (iv)  
      If any
      vacancy occurs on the Board of Directors because of death, retirement, removal
      or resignation of a director, the person or entity that appointed such director
      shall designate a successor, and the respective stockholders, voting separately
      as a class, shall vote their securities of the Company in favor of the election
      of such successor to the Board of Directors, subject to the provisions of this
      Section 4.2.

     

    (v)  The
      Company shall execute an indemnity letter agreement with each director serving
      on the Board of Directors, in the form to be approved by counsel for the
      Investors.

     

    (vi)  Within
      thirty (30) days of the Closing, the Company shall obtain and maintain Directors
      and Officers Insurance, in an amount to be determined by the Board of Directors
      and approved by the Lead Investor.

     

    4.3  Board
      Observer.
      As long
      as each of TI and CDIB are Major Holders, each of TI and CDIB will be entitled
      to designate an observer to the Company’s Board of Directors and any appointed
      committees thereof who will be entitled to observe all Board and Committee
      discussions, both business and technical, other than private discussions
      relating to the relationship between the Company and TI or discussions of
      matters which the Board determines in good faith are of a highly confidential
      or
      proprietary nature and the disclosure of which could reasonably be expected
      to
      be detrimental to the Company.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    4.4  Termination.
      The
      provisions of this Section 4 shall terminate upon the Initial
      Offering.

     

    5.  Miscellaneous.

     

    5.1  Successors
      and Assigns.
      Except
      as otherwise provided herein, the terms and conditions of this Agreement shall
      inure to the benefit of and be binding upon the respective successors and
      assigns of the parties (including transferees of any shares of Registrable
      Securities). Nothing in this Agreement, express or implied, is intended to
      confer upon any party other than the parties hereto or their respective
      successors and assigns any rights, remedies, obligations, or liabilities under
      or by reason of this Agreement, except as expressly provided in this
      Agreement.

     

    5.2  Effect
      of Change in Company’s Capital Structure.
      If,
      from time to time, there is any stock dividend, stock split or other change
      in
      the character or amount of any of the outstanding stock of the Company, then
      in
      such event any and all new, substituted or additional securities to which a
      shareholder is entitled by reason of the shareholder’s ownership of the stock
      shall be immediately subject to the rights and obligations set forth in this
      Agreement, the Series D Agreement and any documents and agreement referred
      to
      thereto, with the same force and effect as the stock subject to such rights
      immediately before such event.

     

    5.3  Governing
      Law.
      Since
      certain of the Investors are based in Israel, this Agreement shall be governed
      by and construed under the laws of the State of Israel as applied to agreements
      among Israel residents entered into and to be performed entirely within Israel.
      However, corporate law matters will be governed by and construed under the
      laws
      of the State of Delaware.

     

    5.4  Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    5.5  Titles
      and Subtitles.
      The
      titles and subtitles used in this Agreement are used for convenience only and
      are not to be considered in construing or interpreting this
      Agreement.

     

    5.6  Notices.
      Any
      notice required or permitted to be given to a party pursuant to the provisions
      of this Agreement will be in writing and will be effective and deemed given
      to
      such party under this Agreement on the earliest of the following: (a) the date
      of personal delivery; (b) one (1) business day after transmission by facsimile,
      electronic mail or telecopier, addressed to the other party at its facsimile
      number, electronic mail address or telecopier address, with confirmation of
      transmission; (c) one (1) business day after deposit with a return receipt
      express courier for United States deliveries, or three (3) business days after
      such deposit for deliveries outside of the United States; or (d) three (3)
      business days after deposit in the United States mail by registered or certified
      mail (return receipt requested) for United States deliveries. All notices not
      delivered personally, by electronic mail or by facsimile will be sent with
      postage and/or other charges prepaid and properly addressed to the party to
      be
      notified at the address set forth below such party's signature on this Agreement
      or on Schedule A hereto, or at such other address as such other party may
      designate by ten (10) days advance written notice to the other parties hereto.
      All notices for delivery outside the United States will be sent by facsimile
      or
      by express courier. Any notice given hereunder to more than one person will
      be
      deemed to have been given, for purposes of counting time periods hereunder,
      on
      the date effectively given to the last party required to be given such notice.
      Notices to the Company will be marked "Attention: President" with a copy to
      Company counsel.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    5.7  Expenses.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and necessary disbursements in addition to any other relief to
      which
      such party may be entitled.

     

    5.8  Entire
      Agreement: Amendments and Waivers.
      This
      Agreement (including the Exhibits hereto, if any) constitutes the full and
      entire understanding and agreement among the parties with regard to the subjects
      hereof and thereof supersedes all other agreements between or among any of
      the
      parties with respect to the subject matter hereof including the Previous IR
      Agreement. Any term of this Agreement may be amended and the observance of
      any
      term of this Agreement may be waived (either generally or in a particular
      instance and either retroactively or prospectively), only with the written
      consent of the Company, the holders of the Majority of the Preferred Registrable
      Securities and, only if such amendment shall adversely affect the rights of
      the
      Founders, at least one Founder. Any amendment or waiver effected in accordance
      with this paragraph shall be binding upon each holder of any Registrable
      Securities each future holder of all such Registrable Securities, and the
      Company. 

     

    5.9  Severability.
      If one
      or more provisions of this Agreement are held to be unenforceable under
      applicable law, such provision shall be excluded from this Agreement and the
      balance of the Agreement shall be interpreted as if such provision were so
      excluded and shall be enforceable in accordance with its terms.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    5.10  Aggregation
      of Stock.
      All
      shares of Registrable Securities held or acquired by affiliated entities or
      persons which qualify as Permitted Transferees shall be aggregated together
      for
      the purpose of determining the availability of any rights under this Agreement.
      For the avoidance of doubt, all shares of Registrable Securities held or
      acquired by Concord II Venture Fund (Cayman) L.P. and by Concord II Venture
      Fund
      (Israel) L.P. and by any other partnership managed by the same manager as such
      partnerships shall be aggregated together for all means and purposes, including
      for determination of the availability of any rights and for the calculation
      of
      any of such entities' pro rata shares. For the avoidance of doubt, all shares
      of
      Registrable Securities held or acquired by Magnum Communications Fund, L.P
      and
      by any other partnership managed by the same manager as such partnerships shall
      be aggregated together for all means and purposes, including for determination
      of the availability of any rights and for the calculation of any of such
      entities' pro rata shares. For the avoidance of doubt, all shares of Registrable
      Securities held or acquired by Genesis Partners II LDC and by Genesis Partners
      II (Israel) L.P. and by any other partnership managed by the same manager as
      such partnerships and by Genesis Partners I L.P. and Genesis Partners I (Cayman)
      L.P. shall be aggregated together for all means and purposes, including for
      determination of the availability of any rights and for the calculation of
      any
      of such entities' pro rata shares

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    Signature
      page - Fifth Amended and Restated Investors' Rights Agreement -
      Company

     

    

     

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

     

    

    
      
        	
                 

              	 	 
	 COMPANY:
                	WINTEGRA,
                INC.
	 
 	 
 	 
 
	  	By:  	 
	 	
                
Jacob
                Ben-Zvi, President and Chief Executive
                Officer
	 	 

      

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    Signature
      page - Fifth
      Amended and Restated Investors' Rights Agreements

     

    
      	 	 	 	 
	 	
              Magnum
                Communication Fund L.P.

               

            	 
	 	
              By:
                Magnum Communications Management Ltd., its general
                partner

            	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
            	 
	 	 	 

    

     

    
       

      
        	 	 	 	 
	 	
                Magnum
                  Communication Fund (Israel) L.P.

                 

              	 
	 	
                By:
                  Magnum Communications Management Ltd., its general
                  partner 

              	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
              	 
	 	 	 

      

      

         

        
          	 	 	 	 
	 	
                  Magnum
                    Communication Entrepreneurs Fund L.P.

                   

                	 
	 	
                  By:
                    Magnum Communications Management Ltd., its general
                    partner

                	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                	 
	 	 	 

        

        

          
            
              
              

            

            
              22

              
                

              

            

            
              
              

            

          

        

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreements

      

      
         

        
          	 	 	 	 
	 	
                  Concord
                    Ventures II (Israel), L.P.

                   

                	 
	 	
                  By:
                    Concord II Investment Partners Ltd., its general
                    partner

                	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                	 
	 	 	 

        

        

           

          
            	 	 	 	 
	 	
                    Concord
                      Ventures II (Cayman), L.P.

                     

                  	 
	 	
                    By:
                      Concord II Investment Partners Ltd., its general
                      partner

                  	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                  	 
	 	 	 

          

          

            
              
                
                

              

              
                23

                
                  

                

              

              
                
                

              

            

        

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreements

      
         

        
          	 	 	 	 
	 	
                  Concord
                    Venture Advisors II (Cayman), L.P.

                   

                	 
	 	
                  By:
                    Concord II Investment Partners Ltd., its general
                    partner

                	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                	 
	 	 	 

        

        

           

          
            	 	 	 	 
	 	
                    Concord
                      Venture Advisors II-A (Israel), L.P.

                     

                  	 
	 	
                    By:
                      Concord II Investment Partners Ltd., its general
                      partner

                  	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                  	 
	 	 	 

          

          
 

        

      

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreements

      

      
         

        
          	 	 	 	 
	 	Texas
                  Instruments Incorporated.	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                	 
	 	 	 

        

        

           

          
            	 	 	 	 
	 	Marvell
                    Semiconductor Israel Ltd.	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                  	 
	 	 	 

          

          
 

        

      

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreements

      
         

        
          	 	 	 	 
	 	Genesis
                  Partners II LDC	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                	 
	 	 	 

        

        

           

          
            	 	 	 	 
	 	Genesis
                    Partners II (Israel) L.P.	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                  	 
	 	 	 

          

          

             

            
              	 	 	 	 
	 	Marinon
                      Development Inc. (for itself and as proxy)	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                    	 
	 	 	 

            

            
 

          

        

      

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreements

      

         

        
          	 	 	 	 
	 	PMC-Sierra,
                  Inc.	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                	 
	 	 	 

        

        

      

       

      

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreement - Founders

      

      
         

        
          	 	 	 	 
	 FOUNDERS:	Jacob
                  Ben-Zvi	 
	 	 	 
	 	 	 
	 	
                	 
	 	 	 

        

        
           

          
            	 	 	 	 
	 
                    	Robert
                    O’Dell	 
	 	 	 
	 	 	 
	 	
                  	 
	 	 	 

          

          
 

        

      

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreements

      

      
         

        
          	 	 	 	 
	 	Grindylow
                  Group Ltd.	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                	 
	 	 	 

        

        

           

          
            	 	 	 	 
	 	China
                    Development Industrial Bank Inc.	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                  	 
	 	 	 

          

           

        

      

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreements

      

      
         

        
           

          
            	 	 	 	 
	 
                    	Jacob
                    Ben-Zvi, as proxy-holder	 
	 	 	 
	 	 	 
	 	
                  	 
	 	 	 

          

          
 

        

      

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      Signature
        page - Fifth
        Amended
        and Restated Investors' Rights Agreements

      
        
          	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	YZMS
                  Advisory Services Ltd.	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                	 
	 	 	 

        

        

      

      

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreements

      

      
         

        
          	 	 	 	 
	 	Kiernan
                  Family Trust	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                	 
	 	 	 

        

        

 

      

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreements

      

         

        
          	 	 	 	 
	 	Murato
                  Inc, as Trustee of the Elefes Trust	 
	 	 	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	
                	 
	 	 	 

        

         

      

      
        
          	 	 	 	 
	 	Zebulon
                  International Ltd.	 
	 	 	 
	 
 	 
 	 
 	 
	 	By: 	 	 
	 	Title: 	 	 
	 	Name: 	 	 
	 	Address:	 	 
	 	
                	 
	 	 	 
	 	 	 

        

        
 

      

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      Signature
        page - Fifth
        Amended and Restated Investors' Rights Agreements

      

      
         

         

          

          
             

            
              	 	 	 	 
	 
                      	Uzi
                      Zucker	 
	 	 	 
	 	 	 
	 	
                    	 
	 	 	 

            

            
               

              
                	 	 	 	 
	 
                        	FTZ
                        AG	 
	 	 	 
	 	 	 
	 	
                      	 
	 	 	 

              

              
 

            

          

        

      

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

      
        Signature
          page - Fifth
          Amended and Restated Investors' Rights Agreements

      

    

     

    
      
        	 	 	 	 
	 	GCWF
                Investment Partners II	 
	 	 	 
	 	 	 	 
	 	By: 	 	 
	 	 	 

      

      
         

        
          	 	 	 	 
	 	BDA
                  Investment Partners	 
	 	 	 
	 	 	 	 
	 	By: 	 	 
	 	 	 

        

        
           

          
            	 	 	 	 
	 	
                    Tally
                      A. Eitan - Zeev Pearl & Co. Trustees Ltd.

                  	 
	 	 	 
	 	 	 	 
	 	By: 	 	 
	 	 	 

          

          

            
              
                
                

              

              
                35

                
                  

                

              

              
                
                

              

            

        

      

    

    

    Schedule
      A

    

    List
      of D-Investors

    

    
      	
              Name
                and Address

            	 	
              Number
                of Shares

            	 	
              Purchase
                Price

            	 
	
              PMC
                Sierra, Inc.

            	 	 	
              853,024

            	 	
              $

            	
              2,000,000

            	 

    

    

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    Schedule
      D

    

    List
      of C-Investors

    

    

    
      	 	 	 
	
               

              Name
                of Investor

            	
              Address
                for notices

            	
              Number
                of 

              Purchased
                Shares

            
	 	 	 
	
              Magnum
                Communications Fund LP

            	
              P.O.
                Box 309 

              Ugland
                House

              South
                Church Street

              George
                Town, Grand Cayman

            	
              798,522

            
	 	 	 
	
              Magnum
                Communications Fund (Israel) LP

            	 	
              93,977

            
	 	 	 
	
              Magnum
                Communications Entrepreneurs Fund LP

            	
              P.O.
                Box 309 

              Ugland
                House

              South
                Church Street

              George
                Town, Grand Cayman

            	
              16,566

            
	 	 	 
	
              Concord
                Ventures II (Israel),
                L.P.

            	
              PO
                Box 4011, 

              Herzelia
                46140, Israel

            	
              351,808

            
	 	 	 
	
              Concord
                Ventures II (Cayman), L.P.

            	
              PO
                Box 4011, 

              Herzelia
                46140, Israel

            	
              1,400,141

            
	 	 	 
	
              Concord
                Venture Advisors II (Cayman), L.P.

            	
              PO
                Box 4011, 

              Herzelia
                46140, Israel

            	
              43,635

            
	 	 	 
	
              Concord
                Venture Advisors II-A (Israel), L.P.

            	
              PO
                Box 4011, 

              Herzelia
                46140, Israel

            	
              22,545

            
	 	 	 
	
              Texas
                Instruments Incorporated

            	
              7839
                Churchill Way

              M/S
                3992

              Dallas
                Texas 75251

            	
              969,669

            
	
              Texas
                Instruments* Incorporated

            	
              7839
                Churchill Way 

              M/S
                3992

              Dallas
                Texas 75251

            	
              1,454,503

            
	 	 	 
	
              China
                Development Industrial Bank
                Inc.

            	 	
              303,021

            
	 	 	 

    

     

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    
      	 	 	 
	
              Sonostar
                Ventures LLC

            	
              c/o
                Trustco Services Ltd.

              Chamerstrasse
                12c

              P.O
                box 4436

              Zug,
                Switzerland 6304

            	
              45,453

            
	 	 	 
	
              MRVM
                Advisory Services Ltd.

            	
              c/o
                Trustco Services Ltd.

              Chamerstrasse
                12c

              P.O
                box 4436

              Zug,
                Switzerland 6304

            	
              18,181

            
	 	 	 
	
              Stanley
                B. Shopcorn

            	
              c/o
                Trustco Services Ltd. 

              hamerstrasse
                12c 

              P.O
                box 4436

              Zug,
                Switzerland 6304

            	
              30,302

            
	 	 	 
	
              Grindylow
                Group Ltd.

            	
              Pasea
                Estate

              Roadtown
                Tortolla

              BVI

            	
              1,530,259

               

            
	 	 	 
	
              Kiernan
                Family Trust

            	
              c/o
                Trustco Services Ltd.

              Chamerstrasse
                12c

              P.O
                box 4436

              Zug,
                Switzerland 6304

            	
              136,360

            
	 	 	 
	
              Yankee
                Investments Holding Ltd.

               

            	
              3076
                Sir Francis Drake Hwy.

              Roadtown,
                Tortolla,

              BVI

            	
              60,604

               

               

            
	 	 	 
	
              Zebulon
                International Ltd.

            	 	
              60,604

            
	 	 	 
	
              Uzi
                Zucker

            	
              C/o
                Bear Stearns, 

              383
                Madison Ave.

              New
                York, NY 10179

            	
              121,209

            
	 	 	 
	
              YZMS
                Advisory Services Ltd.

               

            	
              127
                Shaughnessy Crescent

              Kanata,
                Onatario,

              Canada
                K2K 2N3

            	
              7,576

               

               

            
	 	 	 
	
              Bela
                Incze

               

               

            	
              127
                Shaughnessy Crescent

              Kanata,
                Ontario, 

              Canada
                K2K
                2N3

            	
              60,604

               

               

               

            
	 	 	 

    

     

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    
      	 	 	 
	
              Shardan
                B Management Services Ltd.

            	
              13A
                Shphinoza St. 

              Herzelia
                46683 Israel

            	
              60,604

            
	 	 	 
	
              Back
                Nine LLC.

            	
              70
                Bradford Road, 

              Weston,
                MA 02193

            	
              48,483

               

               

            
	 	 	 
	
              FTZ
                AG 

               

               

            	
              P.O.Box
                4258, 

              Zug,
                6304 Switzerland

            	
              121,209

               

               

            
	
              TOTAL**

            	 	
              7,755,835

            

    

    

    

    *
      Shares
      to be issued to TI at Additional Closings as defined in the Series C Preferred
      Stock Purchase Agreement. 

    **
      The
      number of shares includes shares to be issued to TI at Additional
      Closings.

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

    Schedule
      B

    

    List
      of A-Investors 

    

    
      	 	 	
              Number
                of

            	 
	
              Name
                and Address

            	 	
              Shares

            	 
	 	 	 	 	 
	
              Magnum
                Communications Fund LP

            	 	 	
              1,464,201

            	 
	 	 	 	 	 
	
              Magnum
                Communications Fund (Israel) LP

            	 	 	
              172,319

            	 
	 	 	 	 	 
	
              Magnum
                Communications Entrepreneurs Fund LP

            	 	 	
              30,147

            	 
	 	 	 	 	 
	
              Concord
                Ventures II (Israel), L.P.

            	 	 	
              322,167

            	 
	 	 	 	 	 
	
              Concord
                Ventures II (Cayman), L.P.

            	 	 	
              1,282,167

            	 
	 	 	 	 	 
	
              Concord
                Ventures Advisors II (Cayman) L.P.

            	 	 	
              40,833

            	 
	 	 	 	 	 
	
              Concord
                Ventures Advisors II-A (Israel), L.P.

            	 	 	
              21,500

            	 
	 	 	 	 	 
	
              Marvell
                Semiconductor Israel Ltd.

            	 	 	
              1,666,667

            	 
	 	 	 	 	 
	
              GCWF
                Investment Partners II

            	 	 	
              22,499

            	 
	 	 	 	 	 
	
              BDA
                Investment Partners

            	 	 	
              2,500

            	 
	 	 	 	 	 
	
              Tally
                A. Eitan - Zeev Pearl & Co. Trustees Ltd.

            	 	 	
              25,000

            	 
	 	 	 	 	 
	
              TOTAL

            	 	 	
              5,050,000

            	 

    

    

    

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    Schedule
      C 

    List
      of B-Investors

    

    

      
        	
                Name
                  of Investor

              	 	
                Address
                  for notices

              	 	
                Number
                  of Shares

              
	 	 	 	 	 
	
                Magnum
                  Communications Fund LP

              	 	
                P.O.
                  Box 309 

                Ugland
                  House

                South
                  Church Street

                George
                  Town, Grand Cayman

              	 	
                1,300,304

              
	 	 	 	 	 
	
                Magnum
                  Communications Fund (Israel) LP

              	 	 	 	
                153,031

              
	 	 	 	 	 
	
                Magnum
                  Communications Entrepreneurs Fund LP

              	 	
                P.O.
                  Box 309 

                Ugland
                  House

                South
                  Church Street

                George
                  Town, Grand Cayman

              	 	
                26,773

              
	 	 	 	 	 
	
                Concord
                  Ventures II (Israel), L.P.

              	 	
                PO
                  Box 4011, 

                Herzelia
                  46140,Israel

              	 	
                286,105

              
	 	 	 	 	 
	
                Concord
                  Ventures II (Cayman), L.P.

              	 	
                PO
                  Box 4011, 

                Herzelia
                  46140, Israel

              	 	
                1,138,647

              
	 	 	 	 	 
	
                Concord
                  Venture Advisors II (Cayman), L.P.

              	 	
                PO
                  Box 4011, 

                Herzelia
                  46140, Israel

              	 	
                36,263

              
	 	 	 	 	 
	
                Concord
                  Venture Advisors II-A (Israel), L.P.

              	 	
                PO
                  Box 4011, 

                Herzelia
                  46140, Israel

              	 	
                19,093

              
	 	 	 	 	 
	
                Marvell
                  Semiconductor Israel Ltd.

              	 	
                Moshav
                  Manof 

                DN
                  Misgav 20184

              	 	
                241,847

              
	 	 	 	 	 
	
                Texas
                  Instruments Incorporated

              	 	
                7839
                  Churchill Way 

                M/S
                  3992

                Dallas
                  Texas 75251

              	 	
                725,542

              
	 	 	 	 	 

      

       

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

      
        	
                Genesis
                  Partners II LDC

              	 	
                Top
                  Tower, 50 Dizengoff Street, 

                Tel
                  Aviv 61236, Israel

              	 	
                2,117,128

              
	
                China
                  Development Industrial Bank Inc.

              	 	 	 	
                544,156

              
	 	 	 	 	 
	
                Genesis
                  Partners II (Israel) L.P.

              	 	
                Top
                  Tower, 50 Dizengoff Street, 

                Tel
                  Aviv 61236, Israel

              	 	
                
                  313,438             
                    

                

              
	
                Marinon
                  Development Inc.

              	 	
                c/o
                  Trustco Services Ltd.

                Chamerstrasse
                  12c

                P.O
                  box 4436

                Zug,Switzerland
                  6304

              	 	
                598,572

              
	
                MRVM
                  Advisory Services Ltd.

              	 	
                c/o
                  Trustco Services Ltd.

                Chamerstrasse
                  12c

                P.O
                  box 4436

                Zug,
                  Switzerland 6304

              	 	
                18,139

              
	
                Sonostar
                  Ventures LLC

              	 	
                c/o
                  Trustco Services Ltd.

                Chamerstrasse
                  12c

                P.O
                  box 4436

                Zug,Switzerland
                  6304

              	 	
                108,831

              
	
                Stanley
                  B. Shopkorn

              	 	
                c/o
                  Trustco Services Ltd.

                Chamerstrasse
                  12c

                P.O
                  box 4436

                Zug,Switzerland
                  6304

              	 	
                72,554

              
	
                TOTAL

              	 	 	 	
                7,700,423      
                  

              

      

      
 

    

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    

     

    Schedule
      E

     

    Founders

     

    
      	
              Founder

            	 	
              Class/Series
                of Stock

            	 	
              Number
                of Shares

            
	 	 	 	 	 
	
              Jacob
                Ben-Zvi.

            	 	
              Common
                Stock

            	 	
              4,294,500

            
	 	 	 	 	 
	
              Robert
                O’Dell

            	 	
              Common
                Stock

            	 	
              2,705,500

            
	 	 	 	 	 

    

    

     

    
      
        
        

      

      
        43

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]