Document:

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                                                                   Exhibit 10.9

                    Computer Access Technology Corporation
                             DISTRIBUTOR AGREEMENT

     This Distributor Agreement (the "Agreement") is entered into in Santa
Clara, California, as of 13 August, 1997, by and between Computer Access
Technology Corporation, a California corporation with offices at 2403 Walsh
Avenue, Santa Clara, CA 95051-1302 ("Manufacturer"), and Toyo Corporation with
offices at 1-2, Hongokucho 1-chome, Nihonbashi, Chuo-ku, Tokyo 103 Japan.
("Distributor").

     IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN, THE PARTIES AGREE
     AS FOLLOWS:

1.   DEFINITIONS
     -----------

  1.1.   "Product" shall mean all of Manufacturer's products listed in Appendix
         A attached hereto, including "Software", "Software Copy", and
         "Hardware" as defined herein.

  1.2.   "Software" shall mean the most current version of the software products
         listed in Appendix A attached hereto.

  1.3.   "Software Copy" or "Software Copies" shall mean an object code copy or
         copies of any of the Software products, together with a copy or copies
         of any user manual or other documentation customarily supplied to End-
         Users by Manufacturer with the Software Copy.

  1.4.   "Hardware" shall mean any non-Software products, together with a copy
         or copies of any user manual or other documentation customarily
         supplied to End-Users by Manufacturer with the Hardware.

  1.5.   "End-User" shall mean any third party which obtains Hardware, Software,
         or a Software Copy solely in order to fulfill its own needs.

  1.6.   "End-User License" shall, at any time during the term of this
         Agreement, mean Manufacturer's then standard license agreement pursuant
         to which End-Users are granted the right to utilize Hardware, Software,
         or a Software Copy.

  1.7.   "Territory" shall mean that geographic area(s) known as "Japan".

  1.8.   All references in this Agreement to the "sale" of or "selling" of
         Software or Software Copy shall mean the granting of a license to use
                                                                -------
         such Software or Software Copies. All references in this Agreement to
         the "purchase" of Software or Software Copies shall mean the obtaining
         of a license to use such Software or Software Copy.
              -------
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CATC/Toyo                1997 Distribution Agreement                     Page 2

2.     APPOINTMENT AND AUTHORITY OF DISTRIBUTOR
       ----------------------------------------

     2.1.  Appointment. Subject to the terms and conditions set forth herein,
           -----------
           Manufacturer hereby appoints Distributor as Manufacturer's
           distributor for the Product in the Territory, and Distributor
           hereby accepts such appointment. As distributor, Distributor shall
           have the right to obtain Product from Manufacturer and to market and
           distribute such Product for delivery to End-Users. The Territory
           appointment, shall be reviewed at the end of each 12 month period
           following the inception of this agreement. This review is to
           determine any or all Distributor Territory additions, deletions,
           changes in status, or modifications and to review Distributor
           performance in the Territory.

     2.2.  Sub-distributor. Distributor may exercise its distribution rights
           ---------------
           through the use of third party sub-distributors, resellers, dealers
           or sales representatives ("Sub-distributors") subject (i) to the
           written agreement by each such Sub-distributor to the restrictions
           on Distributor contained in this Agreement and (ii) Manufacturer's
           written approval of the Sub-distributor. Distributor may only grant
           sub-distributors the right to make sales directly to End Users.

     2.3.  Territorial Responsibility. Distributor shall pursue aggressive sales
           --------------------------
           policies and procedures to realize the maximum sales potential for
           the Product in the Territory. Distributor shall not advertise, market
           or promote the Product outside the Territory or establish a repair or
           maintenance facility outside the Territory without the prior written
           consent of Manufacturer.

     2.4.  Conflict of Interest. The parties acknowledge that any efforts by
           --------------------
           Distributor to sell competing products would constitute a conflict of
           interest with respect to Distributor's obligations to market the
           Product. If Distributor chooses to distribute products that compete
           with the Product, Distributor shall notify Manufacturer of its intent
           at least sixty (60) days prior to commencing such activity. In the
           event Distributor promotes, markets or distributes a product which
           Manufacturer, in its sole judgement, determines is competitive with
           any of the Product, Manufacturer shall have the right to terminate
           this Agreement upon thirty (30) days notice to Distributor. Failure
           to so notify Manufacturer shall be deemed to be a breach of this
           Agreement.

     2.5.  Independent Contractors. The relationship of Manufacturer and
           -----------------------
           Distributor established by this Agreement is that of independent
           contractors, and nothing contained in this Agreement shall be
           construed to (i) give either party the power to direct and control
           the day-to-day activities of the other, (ii) constitute the parties
           as partners, joint venture's, co-owners or otherwise as participants
           in a joint or common undertaking, or (iii) allow Distributor to
           create or assume any obligation on behalf of Manufacturer for any
           purpose whatsoever. All financial obligations associated with
           Distributor's business are the sole responsibility of Distributor.
           All sales and other agreements between Distributor and its Sub-
           distributors and customers are Distributor's exclusive responsibility
           and shall have no effect on Distributor's obligations under this
           Agreement. Distributor shall be solely responsible for, and shall
           indemnify and hold Manufacturer

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CATC/Toyo                1997 Distribution Agreement                      Page 3

              free and harmless from, any and all claims, damages or lawsuits
              (including Manufacturer's attorneys' fees) arising out of the acts
              of Distributor or its employees, agents or Sub-distributors.

3.   PRODUCT DISTRIBUTION
     --------------------

   3.1. Packaging. Each Product shall be delivered to Distributor in a shipping
        ---------
        package (the "Package") containing the Product including the End-User
        License and/or user manual for such Product. Distributor may open the
        Package to inspect and test the Product before delivering it to its
        customers. Distributor will be responsible to re-package the Product
        before delivering it to the End-User.

   3.2. Demonstration Copies. Distributor shall have the right to order Product
        --------------------
        to be used for demonstration purposes by Distributor ("Demonstration
        Product") provided Distributor shall pay Manufacturer's then current
        charges for any such Demonstration Product, and provided that the right
        to use such Demonstration Product will be governed by the terms of the
        End-User License.

   3.3. Title to Software and Related Matters. Title to the Product (including
        -------------------------------------
        the user manual, diskette and software contained herein) shall remain
        with Manufacturer. Distributor shall not (and shall require that its
        Sub-distributors do not) remove, alter, cover or obfuscate any copyright
        notices or other proprietary rights notices placed or embedded by
        Manufacturer on or in any Package or any of the items contained therein.

4.   TERMS OF PURCHASE OF PRODUCT BY DISTRIBUTOR
     -------------------------------------------

   4.1. Terms and Conditions. All orders of Product by Distributor from
        --------------------
        Manufacturer during the term of this Agreement shall be subject to the
        terms and conditions of this Agreement. Nothing contained in any
        purchase order or like document submitted by Distributor to
        Manufacturer shall in any way modify or add to the terms and conditions
        contained in this Agreement.

   4.2. Prices. All prices are F.O.B. Manufacturer's facility currently located
        ------
        at the address listed for Manufacturer at the beginning of this
        Agreement ("F.O.B. Point"). Manufacturer may, upon thirty (30) days
        notice to Distributor, designate another Manufacturer or other facility
        as the F.O.B. Point. The price to Distributor for each of the Product
        (the "Discount Price") shall be as set forth in Appendix A attached
        hereto. The difference between Distributor's Discount Price and
        Distributor's selling price to its customers shall be Distributor's sole
        remuneration for distribution of the Product.

  4.3.  Distributor Product Discount Schedule (Appendix A). Manufacturer may
        --------------------------------------------------
        from time to time, at its sole discretion, with thirty (30) days advance
        written notice to Distributor, issue new revisions to the Distributor
        Product Discount Schedule. These new revisions of Distributor Product
        Discount Schedule will replace Appendix A and will become part of this
        agreement. Manufacturer has the right at any time to add Products, to
        remove Products, to revise Products version and description, and to
        revise the Product prices in
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CATC / Toyo                1997 Distribution Agreement                    Page 4

           Appendix A. Such revisions shall apply to all orders received after
           the effective date of revision. Price changes shall not affect
           unfulfilled orders accepted by Manufacturer prior to the effective
           date of the price change. Distributor may purchase at any time only
           the Products that are listed in the latest revision of Appendix A.

     4.4.  Taxes. Distributor's Discount Prices are payable in full to
           -----
           Manufacturer without deduction and are net of taxes (including
           any withholding tax) and customs duties. In addition to such amounts,
           Distributor shall pay sums equal to taxes (including, without
           limitation, sales, withholding, value-added and similar taxes) and
           customs duties paid or payable, however designated, levied, or based
           on amounts payable to Manufacturer hereunder or on an end user's use
           or possession of the Product under or in accordance with the
           provisions of this Agreement, but exclusive of United States federal,
           state, and local taxes based on Manufacturer's net income.

     4.5.  Order and Acceptance. All orders for Product submitted by Distributor
           --------------------
           shall be initiated by written orders mailed or faxed to Manufacturer
           and requesting a delivery date during the term of this Agreement. To
           facilitate Manufacturer's production scheduling, Distributor shall
           submit purchase orders to Manufacturer at least fifteen (15) days
           prior to the requested day of delivery. No order shall be binding
           upon Manufacturer until accepted by Manufacturer in writing, and
           Manufacturer shall have no liability to Distributor with respect to
           purchase orders that are not accepted. Manufacturer shall use its
           reasonable efforts to notify Distributor of the acceptance or
           rejection of an order and of the assigned delivery date for accepted
           orders within two (2) days of receipt of the order. No partial
           shipment of an order shall constitute the acceptance of the entire
           order, absent the written acceptance of such entire order.
           Manufacturer shall use its reasonable efforts to deliver Product at
           the times specified either in its quotation or in its written
           acceptance of Distributor's orders.

     4.6.  Payment. Manufacturer shall submit an invoice to Distributor upon
           -------
           shipment of each Product ordered by Distributor and as set forth
           below. The invoice shall cover Distributor's Discount Price for the
           Product in a given shipment plus any freight, taxes or other
           applicable costs initially paid by Manufacturer but to be borne by
           Distributor. The full invoiced amount shall be due for payment within
           sixty (60) days of the date of invoice. Any invoiced amount not
           received within sixty (60) days of the date of invoice shall be
           subject to a service charge of two and one-half percent (2.5%) per
           month. Distributor shall pay all of Manufacturer's costs and expenses
           (including reasonable attorneys' fees) to enforce and preserve
           Manufacturer's rights under this Subsection 4.6.

     4.7.  Shipping. All Product delivered pursuant to the terms of this
           --------
           Agreement shall be suitably packed for shipment in Manufacturer's
           standard shipping cartons, marked for shipment at Distributor's
           address set forth above, and delivered to Distributor or its carrier
           agent at the F.O.B. Point, at which time risk of loss shall pass to
           Distributor. Unless otherwise instructed in writing by Distributor,
           Manufacturer shall select the carrier. Distributor agrees to
           undertake all import formalities required to import the Product into
           the Territory. All customs, freight, insurance, and other shipping
           expenses,

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CATC/Toyo                 1997 Distribution Agreement                     Page 5

          as well as any special packing expense, shall be paid by Distributor.
          Distributor shall also bear all applicable taxes, duties, and similar
          charges that may be assessed against the Product after delivery to the
          carrier at the F.O.B. Point.

5.   TRAINING, INSTALLATION, AND SERVICE
     -----------------------------------

   5.1.   Sub-distributor and End-User Inquiries. Distributor is responsible for
          --------------------------------------
          supporting all Product it distributes to End-Users. Distributor shall
          maintain onsite staff support personnel sufficiently knowledgeable
          with respect to the Product to answer Sub-distributor, End-User and
          other customer questions regarding the use and operation of Product
          marketed by Distributor. Distributor shall ensure that all questions
          regarding the use or operation of Product marketed by Distributor are
          initially addressed to and answered by Distributor. Any Sub-
          distributor or End-User service questions resulting from Distributor's
          sales will be referred by Manufacturer back to Distributor.

   5.2.   Training. Distributor shall arrange with Manufacturer, for at least
          --------
          two (2) qualified employees of Distributor to attend Manufacturer's
          training program in the use and operation of the Product. This
          training is to be performed semi-annually, although additional
          training sessions may be arranged. Manufacturer will arrange to
          provide, and Distributor will receive one training session at the
          Distributor appointed facility and Manufacturer will arrange to
          provide, and Distributor will receive one training session at the
          Manufacturer's appointed facility. In the event of termination of the
          employment of any such trained employee, Distributor shall notify
          Manufacturer in writing of such termination, and of the name of
          another qualified employee, who shall, at Distributor's expense,
          attend and complete Manufacturer's training program within Thirty (30)
          days of the date of such termination.

   5.3.   Manufacturer Support. Manufacturer will provide consultation to
          ----------------------
          Distributor, via all possible communications means, to include
          telephone, fax, mail, personal visits and other electronic means to be
          mutually defined between Distributor and Manufacturer, with respect to
          any Sub-distributor or End-User questions which Distributor cannot
          adequately answer. Distributor will not represent to any third party
          that Manufacturer is available to answer questions from any Sub-
          distributor, End-User or other customer directly. It shall be
          considered a breach of this Agreement if Distributor fails to support
          its customers with technical assistance.

6.   WARRANTY TO DISTRIBUTOR'S CUSTOMERS
     -----------------------------------

    6.1.  Standard Limited Warranty. Pursuant to the End-User, Manufacturer
          -------------------------
          makes a limited warranty to the End-User regarding the Product
          obtained by such End-User (the "Limited Warranty"). The End-User
          Limited Warranty warrants the Product to be free from defects in
          material, content, and workmanship, agrees to repair or replace any
          part of the Product that proves defective and specifically disclaims
          all other warranties relating to the Product, including all warranties
          with respect to the performance of the Product. DISTRIBUTOR SHALL NOT
          MAKE OR PASS ON TO ANY PARTY (AND SHALL REQUIRE THAT ITS SUB-
          DISTRIBUTORS DO NOT MAKE OR
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CATC/Toyo                  1997 Distribution Agreement                    Page 6

          PASS ON TO END-USERS) ANY WARRANTY OR REPRESENTATION ON BEHALF OF
          MANUFACTURER OTHER THAN OR CONSISTENT WITH THE LIMITED WARRANTY.

    6.2.  No Other Warranty. EXCEPT FOR THE EXPRESS WARRANTY SET FORTH ABOVE,
          -----------------
          MANUFACTURER GRANTS NO OTHER WARRANTIES, EXPRESS OR IMPLIED, BY
          STATUTE OR OTHERWISE, REGARDING THE PRODUCT, THE FITNESS FOR ANY
          PURPOSE, THE QUALITY, THE MERCHANTABILITY, OR OTHERWISE.

    6.3.  Warranty Period. Manufacturer's End-User Limited Warranty is in effect
          ---------------
          for a period of time specified in the Product manual or warranty card.
          The warranty period starts at the delivery of the Product to the
          carrier at the F.O.B. Point.

    6.4.  Warranty Product Returns. In the event a Manufacturer Product under
          ------------------------
          warranty is found to be defective by the End-User and reported to the
          Distributor, the following procedure will be used to assure proper
          tracking and handling of the defective goods and the replacement
          Product.

          6.4.1.  The Distributor will notify Manufacturer about the occurrence
                  of defective or non-operational product via FAX to the
                  attention of the Customer Support Manager.

          6.4.2.  The Distributor will test and confirm the defective or non-
                  operational status of the product as instructed by
                  Manufacturer.

          6.4.3.  Manufacturer will issue to the Distributor a Return
                  Merchandise Authorization (RMA) number for each confirmed
                  defective or non-operational product. This RMA number is to be
                  used for all correspondence and shipping documents that relate
                  to the associated product.

          6.4.4.  The Distributor will ship and defective or non-operational
                  products to Manufacturer monthly, or after accumulating a
                  minimum of 10 RMAs. Distributor is responsible for shipping
                  cost of RMA products to Manufacturer.

          6.4.5.  With each RMA shipment, the Distributor will send to the
                  attention of the Manufacturer Customer Service Manager an
                  itemized list of all products returned in that shipment,
                  including the associated RMA number(s).

          6.4.6.  Both Manufacturer and the Distributor are to maintain the RMA
                  number(s) in a RMA database itemizing the customer from who
                  the product is returned together with the date and the problem
                  description of the returned products.

          6.4.7.  Upon receipt of the returned product, Manufacturer will verify
                  the RMA shipment with the Distributor, and test the product to
                  assure the defective or non-operational status. The
                  Distributor will maintain a No Problem Found (NPF) percentage
                  for all RMAs not to exceed 20%. NPFs in excess of 20% will be
                  billed to the Distributor for Manufacturer testing time.

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CATC/Toyo                   1997 Distribution Agreement                   Page 7

          6.4.8.  Manufacturer will either send replacement product, or credit
                  the product cost to the Distributor upon receipt the RMA. All
                  product returned to the Distributor will be referenced to the
                  original RMA for which it is replacing. Manufacturer is
                  responsible for shipping costs of replacement products to the
                  Distributor.

7.     ADDITIONAL OBLIGATIONS OF DISTRIBUTOR
       -------------------------------------

   7.1.   Sales and Inventory Reports. Distributor agrees to provide
          ---------------------------
          Manufacturer with a quarterly point-of-sale and inventory report
          showing, at a minimum, date sold, quantity of each type of Product
          sold, serial number, and the buyers' names and addresses, as well as
          the quarter-end inventory position on hand for each type of Product.
          This report must be forwarded to Manufacturer within twenty (20) days
          of the close of each quarter.

   7.2.   Demonstrations and Staff Training. Distributor agrees to provide its
          ---------------------------------
          staff and Sub-distributors with adequate training regarding the use
          and operation of the Product, and to also provide its staff and Sub-
          distributors with regular training regarding updates of the Product.
          Distributor further agrees to cause Sub-distributors to provide their
          staff with adequate training regarding the use and operation of the
          Product and updates of the Product. Distributor agrees, and further
          agrees to cause Sub-distributors to agree to dedicate a computer
          workstation for supplementary staff training, demonstrations and
          support of Product.

   7.3.   Forecasts. On or before the first day of every month, Distributor
          ---------
          shall provide Manufacturer with a four (4) month rolling forecast
          showing prospective orders by Product and intended submittal date.

   7.4.   Promotion of the Product. Distributor shall, at its own expense,
          ------------------------
          vigorously promote the distribution of the Product within the
          Territory. Such promotion shall include but not be limited to
          advertising the Product in trade publications within the Territory,
          participating in appropriate trade shows, and directly soliciting
          orders from customers for the Product.

   7.5.   Finances and Personnel. Distributor shall maintain a net worth and
          ----------------------
          working capital sufficient, in Manufacturer's reasonable judgment, to
          allow Distributor to perform fully and faithfully its obligations
          under this Agreement. Distributor shall devote sufficient financial
          resources and technically qualified sales and service personnel to the
          Product to fulfill its responsibilities under this Agreement.

   7.6.   Customer and Sales Reporting. Distributor shall, at its own expense
          ----------------------------
          and consistent with the marketing and distribution policies of
          Manufacturer:

          7.6.1.  place the Product marketing and distribution in Distributor's
                  catalogues as soon as possible and feature the Product in any
                  applicable trade show that it attends;

          7.6.2.  provide adequate contact with existing and potential customers
                  within the Territory on a regular basis, consistent with good
                  business practice;
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CATC/Toyo                   1997 Distribution Agreement                  Page 8

               7.6.3.  assist Manufacturer in assessing customer requirements
                       for the Product, including modifications and improvements
                       thereto, in terms of quality, design, functional
                       capability, and other features; and

               7.6.4.  submit market research information, as reasonably
                       requested by Manufacturer, regarding competition and
                       changes in the market within the Territory.

   7.7.   Standard of Business Practices. Distributor shall establish and
          ------------------------------
          maintain, and shall cause its Sub-distributors, employees, consultants
          and agents to establish and maintain a high standard of ethical
          business practices in connection with its distribution of Product in
          the Territory.

8.     ADDITIONAL OBLIGATIONS OF MANUFACTURER
       --------------------------------------

   8.1.   Marketing Materials. Manufacturer shall promptly provide Distributor
          -------------------
          with marketing and technical information concerning the Product as
          well as reasonable quantities of brochures, instructional material,
          advertising literature, and other Product data.

   8.2.   Response to Inquiries. Manufacturer shall promptly respond to all
          ---------------------
          inquiries from Distributor concerning matters pertaining to this
          Agreement.

   8.3.   Delivery Time. Manufacturer shall minimize delivery time as much as
          -------------
          possible and use its reasonable best efforts to fulfill delivery
          obligations as committed in acceptances.

   8.4.   New Developments. Manufacturer shall inform Distributor of new product
          ----------------
          developments.

   8.5.   Product Upgrade/Maintenance. Manufacturer will provide Distributor
          ---------------------------
          with appropriate Product upgrades and maintenance, and Distributor
          will incorporate any and all Manufacturer provided Product upgrades
          and maintenance, such that the Distributor Product inventory is
          representative of the latest Product offerings or revisions available
          from the Manufacturer.

9.     TERM AND TERMINATION
       --------------------

   9.1.   Term. This Agreement shall continue in force for a fixed term of two
          ----
          (2) years from the Effective Date hereof unless terminated earlier
          under the provisions of this Section 9. At the end of the fixed term,
          this agreement shall terminate automatically without notice unless
          prior to that time the term of the agreement is extended by mutual
          written consent of the parties.

   9.2.   Termination for Convenience. This Agreement may be canceled by either
          ---------------------------
          party for any reason or no reason, whether or not extended beyond the
          first year, by giving the other party written notice ninety (90) days
          in advance.
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                         1997 Distribution Agreement                   Page 9

     9.3. Termination for Cause. If either party defaults in the performance of
          ---------------------
          any provision of this Agreement, then the non-defaulting party may
          give written notice to the defaulting party that if the default is not
          cured within thirty (30) days the Agreement will be terminated. If the
          non-defaulting party gives such notice and the default is not cured
          during the thirty-day period, then the Agreement shall automatically
          terminate at the end of that period.

     9.4. Termination for Insolvency. This Agreement shall terminate, without
          --------------------------
          notice, (i) upon the institution by or against Distributor of
          insolvency, receivership or bankruptcy proceedings or any other
          proceedings for the settlement of Distributor's debts, (ii) upon
          Distributor's making an assignment for the benefit of creditors, or
          (iii) upon Distributor's dissolution.

     9.5. Fulfillment of Orders upon Termination. Upon termination of this
          --------------------------------------
          Agreement, Manufacturer may, but shall not be obligated to, fulfill,
          subject to the terms of Sections 3 and 4 above and subject to
          Manufacturer's right to require prepayment, all orders accepted by
          Manufacturer prior to the date of termination.

     9.6. Return of Materials. All trademarks, trade names, patents,
          -------------------
          copyrights, designs, drawings, formulas or other data, photographs,
          samples, literature, and sales aids of every kind shall remain the
          property of Manufacturer. Within thirty (30) days after the
          termination of the Agreement, Distributor shall prepare all such items
          in its possession for shipment, as Manufacturer may direct, at
          Manufacturer's expense. Distributor shall suitably package the
          materials for shipment in accordance with standard shipment practice
          for the type and size of the Product(s) to be returned. Distributor
          shall not return product to Manufacturer without prior receipt of a
          Return Merchandise Authorization. Distributor shall not make or retain
          any copies of any confidential items or information which may have
          been entrusted to it. Effective upon the termination of this
          Agreement, Distributor shall cease to use all trademarks, marks, and
          trade names of Manufacturer.

     9.7. Limitation on Liability. In the event of termination by either party
          -----------------------
          in accordance with any of the provisions of this Agreement, neither
          party shall be liable to the other, because of such termination, for
          compensation, reimbursement or damages on account of the loss of
          prospective profits or anticipated sales or on account of
          expenditures, inventory, investments, leases or commitments in
          connection with the business or goodwill of Manufacturer or
          Distributor. Termination shall not, however, relieve either party of
          obligations incurred prior to the termination.

     9.8. Inventory Disposition. Upon termination, Manufacturer will purchase
          ---------------------
          back from Distributor, at the current Distributor price as defined in
          Appendix A less any credits or Product price adjustments, all Product
          in Distributor inventory that is in unopened, unused, and in otherwise
          like new condition. Distributor shall suitably package the Product for
          return shipment to the Manufacturer in accordance with standard
          shipment practice for the type and size of the Product(s) to be
          returned. Distributor shall not

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CATC/Toyo                   1997 Distribution Agreement                  Page 10

          return product to Manufacturer without prior receipt of a Return
          Merchandise Authorization. Distributor will bear all transportation,
          duties and other costs associated with the Product return to
          Manufacturer.

     9.9. Survival of Certain Terms. The provisions of Sections 2.5, 3.3, 6, 9,
          -------------------------
          10, 11 and 13 shall survive the termination of this Agreement for any
          reason. All other rights and obligations of the parties shall cease
          upon termination of this Agreement.

10.               LIMITED LIABILITY TO DISTRIBUTOR AND OTHERS
                  -------------------------------------------

    10.1. MANUFACTURER'S LIABILITY UNDER ANY CAUSE OF ACTION ARISING UNDER THIS
          AGREEMENT OR UNDER ANY INDEMNITY CONTAINED IN THIS AGREEMENT SHALL NOT
          EXCEED THE AMOUNTS RECEIVED BY MANUFACTURER FROM DISTRIBUTOR DURING
          THE IMMEDIATELY PRECEDING TWELVE (12) MONTH PERIOD.

    10.2. IN NO EVENT SHALL MANUFACTURER HAVE ANY LIABILITY TO DISTRIBUTOR OR TO
          END USERS OR ANY OTHER THIRD PARTY, FOR ANY LOST PROFITS OR COSTS OF
          PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, OR FOR ANY OTHER
          INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM THE USE OF
          THE PRODUCTS, OR THE FAILURE OF THE PRODUCTS TO PERFORM, OR FOR ANY
          OTHER REASON. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING THE
          FAILURE OF THE ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

11.  PROPERTY RIGHTS AND CONFIDENTIALITY
     -----------------------------------

    11.1. Property Rights. Distributor agrees that Manufacturer owns all right,
          ---------------
          title, and interest in the Product and in each Product now or
          hereafter subject to this Agreement and in all of Manufacturer's
          patents, trademarks, trade names, inventions, copyrights, know-how,
          and trade secrets relating to the design, manufacture, operation or
          service of the Product. The use by Distributor of any of these
          property rights is authorized only for the purposes herein set forth,
          and upon termination of this Agreement for any reason such
          authorization shall cease, except to the extent necessary for
          Distributor to provide maintenance to its existing Product customers.

    11.2. Confidentiality. Manufacturer and Distributor each acknowledge that by
          ---------------
          reason of the relationship hereunder each entity will have access to
          certain information and materials concerning the other entity's
          business, plans, customers, technology, and products that are
          confidential and of substantial value to each, which value would be
          impaired if such information were disclosed to third parties.
          Manufacturer and Distributor agree that each will not use in any way
          for their own account or the account of any third party, nor disclose
          to any third party, any such confidential information revealed as a
          result of this Agreement. Manufacturer and Distributor shall take
          every reasonable precaution to protect the confidentiality of such
          information. Upon request by either Manufacturer or Distributor, each
          shall advise whether or not it considers any particular information or

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CATC / Toyo                    1997 Distribution Agreement               Page 11

          materials to be confidential. Both Manufacturer and Distributor shall
          designate confidential information by clear marking on such
          information that denotes the information as confidential. Both
          Manufacturer and Distributor shall not publish any technical
          description of the Product or information beyond the description
          published by Manufacturer or Distributor. In the event of termination
          of this Agreement, there shall be no use or disclosure by Manufacturer
          or Distributor of any confidential information of Manufacturer and
          Distributor, and Manufacturer and Distributor shall not manufacture or
          have manufactured any products utilizing any of each other's
          confidential information. This confidentiality clause shall survive
          the termination of this Agreement and extend a minimum of three (3)
          years beyond the date termination.

    11.3. Patent Information. Manufacturer has no patents for the Product,
          ------------------
          either granted or pending, at this time.

12.    TRADEMARKS AND TRADE NAMES
       --------------------------

    12.1. Use. During the term of this Agreement, Distributor shall have the
          ---
          right to indicate to the public that it is an authorized distributor
          of Manufacturer's Product and to advertise (within the Territory) such
          Product under the trademarks, marks, and trade names that Manufacturer
          may adopt from time to time ("Trademarks"). Distributor shall not
          alter or remove any Trademarks applied at the factory to the Product,
          Packages, or other materials contained therein. Nothing herein shall
          grant to Distributor any right, title or interest in the Trademarks.
          At no time during or after the term of this Agreement shall
          Distributor challenge or assist others to challenge the Trademarks or
          the registration thereof or attempt to register any trademarks, marks
          or trade names confusingly similar to the Trademarks.

    12.2. Approval of Representations. All representations of the Trademarks
          ---------------------------
          that Distributor intends to use shall first be submitted to
          Manufacturer for approval (which shall not be unreasonably withheld)
          of design, color, and other details or shall be exact copies of those
          used by Manufacturer. Upon receipt of Distributors plans and designs
          for use of Manufacturer Trademarks, the Manufacturer shall have
          twenty-one (21) days to review and approve or reject such
          representation(s). If any of the Trademarks are to be used in
          conjunction with another trademark on or in relation to the Product,
          then Manufacturer's mark shall be presented equally legibly, equally
          prominently, and of greater size than the other but nevertheless
          separated from the other so that each appears to be a mark in its own
          right, distinct from the other mark.

13.    PATENT, COPYRIGHT, AND TRADEMARK INDEMNITY
       ------------------------------------------

    13.1. Indemnification. Distributor agrees that Manufacturer has the right
          ---------------
          to defend, or at its option to settle, and Manufacturer agrees, at its
          own expense, to defend or at its option to settle, any claim, suit or
          proceeding brought against Distributor or its customer on the issue of
          infringement of any patent, copyright or trademark by the Product
          distributed hereunder or the use thereof, subject to the limitations
          hereinafter set forth. Manufacturer shall have sole control of any
          such action or settlement negotiations, and

<PAGE>

CATC/Toyo                      1997 Distribution Agreement               Page 12

       Manufacturer agrees to pay, subject to the limitations hereinafter set
       forth, any final judgement entered against Distributor or its customer on
       such issue in any such suit or proceeding defended by Manufacturer.
       Distributor agrees that Manufacturer at its sole option shall be relieved
       of the foregoing obligations unless Distributor or its customer notifies
       Manufacturer promptly in writing of such claim, suit or proceeding and
       gives Manufacturer authority to proceed as contemplated herein, and, at
       Manufacturer's expense, gives Manufacturer proper and full information
       and assistance to settle and/or defend any such claim, suit or
       proceeding. If the Product, or any part thereof, are, or in the opinion
       of Manufacturer may become, the subject of any claim, suit or proceeding
       for infringement of any United States patent, copyright or trademark, or
       if it is adjudicatively determined that the Product, or any part thereof,
       infringe any patent, copyright or trademark, or if the distribution or
       use of the Product, or any part thereof, is, as a result, enjoined, then
       Manufacturer may, at its option and expense: (i) procure for Distributor
       and its customers the right under such patent, copyright or trademark to
       distribute or use, as appropriate, the Product or such part thereof; of
       (ii) replace the Product, or part thereof, with other suitable Product or
       parts; or (iii) suitably modity the Product, or part thereof; or (iv) if
       the use of the Product, or part thereof, is prevented by injunction,
       remove the Product, or part thereof, and refund the aggregate payments
       paid therefor by Distributor within Sixty (60) days upon receipt or
       written notice, less a reasonable sum for use and damage. Manufacturer
       shall not be liable for any costs or expenses incurred without its prior
       written authorization.

13.2   Limitation. Notwithstading the provisions of Subsection 13.1 above,
       ----------
       Manufacturer assumes no liability for (i) any infringement claims with
       respect to any product in or with which any of the Product may be used
       but not covering the Product standing alone; (ii) any trademark
       infringements involving any marking or branding not applied by
       Manufacturer or involving any marking or branding applied at the request
       of Distributor; or (iii) the modification of the Product, or any part
       thereof, unless such modification was made by Manufacturer.

13.3.  Entire Liability. THE FOREGOING PROVISIONS OF THIS SECTION 13 STATE THE
       ----------------
       ENTIRE LIABILITY AND OBLIGATION OF MANUFACTURER AND THE EXCLUSIVE REMEDY
       OF DISTRIBUTOR AND ITS CUSTOMERS, WITH RESPECT TO ANY ALLEGED
       INFRINGEMENT OF PATENTS, COPYRIGHTS, TRADEMARKS OR OTHER INTELLECTUAL
       PROPERTY RIGHTS BY THE PRODUCT, OR ANY PART THEREOF.

13.4.  Notification of Unauthorized Use. Distributor shall promptly notify
       --------------------------------
       Manufacturer in writing upon its discovery of any unauthorized use or
       infringement of the Product or Manufacturer's patent, copyright,
       trademark or other intellectual property rights with respect thereto.
       Manufacturer shall have the sole and exclusive right to bring an
       infringement action or proceeding against a third party, and, in the
       event that Manufacturer brings such an action or proceeding, Distributor
       shall cooperate and provide full information and assistance to
       Manufacturer and its counsel in connection with any such action or
       proceeding.

<PAGE>

CATC/Toyo                    1997 Distribution Agreement                 Page 13

14.  GENERAL PROVISIONS
     ------------------

   14.1.  Governing Law. The rights and obligations of the parties under this
          -------------
          Agreement shall not be governed by the 1980 U.N. Convention on
          Contracts for the International Sale of Goods; rather such rights and
          obligations shall be governed by and construed under the laws of the
          State of California, including its Uniform Commercial Code, without
          reference to conflict of laws principles.

   14.2.  Arbitration. Any dispute or claim arising out of or in connection with
          -----------
          this Agreement shall be finally settled by binding arbitration in
          Santa Clara, California under the commercial Arbitration Rules of the
          American Arbitration Association by one arbitrator appointed in
          accordance with said rules. Judgment on the award rendered by the
          arbitrator may be entered in any court having jurisdiction thereof.
          Notwithstanding the foregoing, the parties may apply to any court of
          competent jurisdiction for injunctive relief without breach of this
          arbitration provision.

   14.3.  Entire Agreement. This Agreement sets forth the entire agreement and
          ----------------
          understanding of the parties relating to the subject matter herein and
          merges all prior discussions between them. No modification of or
          amendment to this Agreement, nor any waiver of any rights under this
          Agreement, shall be effective unless in writing signed by the party to
          be charged.

   14.4.  Notices. Any notice required or permitted by this Agreement shall be
          -------
          in writing and shall be sent by prepaid registered or certified mail,
          or other courier, return receipt requested, addressed to the other
          party at the address shown at the beginning of this Agreement or at
          such other address for which such party gives notice hereunder. Such
          notice shall be deemed to have been given ten (10) days after deposit
          in the mail, except that notice of change of address shall be
          effective only upon receipt.

   14.5.  Force Majeure. Nonperformance of either party shall be excused to the
          -------------
          extent that performance is rendered impossible by strike, fire, flood,
          governmental acts or orders or restrictions, failure of suppliers,
          lack of transportation, or any other reason where failure to perform
          is beyond the control and not caused by the negligence of the non-
          performing party.

   14.6.  Nonassignability and Binding Effect. A mutually agreed consideration
          -----------------------------------
          for Manufacturer's entering into this Agreement is the reputation,
          business standing, and goodwill already honored and enjoyed by
          Distributor under its present ownership, and, accordingly, Distributor
          agrees that its rights and obligations under this Agreement may not be
          transferred or assigned directly or indirectly without the prior
          written consent of Manufacturer. Subject to the foregoing sentence,
          this Agreement shall be binding upon and inure to the benefit of the
          parties hereto, their successors and assigns.

<PAGE>

CATC/Toyo                     1997 Distribution Agreement              Page 14

14.7.  Legal Expenses.   The prevailing party in any legal action brought by one
       --------------
       party against the other and arising out of this Agreement shall be
       entitled, in addition to any other rights and remedies it may have, to
       reimbursement for its expenses, including court costs and reasonable
       attorneys' fees.

<PAGE>

                               1997 Distribution Agreement               Page 15

     14.8. Counterparts. This Agreement may be executed in two or more
           ------------
           counterparts, each of which shall be deemed an original and all
           of which together shall constitute on instrument.

-------------------------------------------------------------------------------

            "Manufacturer":                               "Distributor":

-------------------------------------------------------------------------------

     Computer Access Technology Corp.                    Toyo Corporation

-------------------------------------------------------------------------------

 Signed: /s/ Dan Wilnai                               Signed: /s/ Kohzo Yumoto

-------------------------------------------------------------------------------

 By (name): Dan Wilnai                                By (name): Kohzo Yumoto

-------------------------------------------------------------------------------

 Title: PRESIDENT                                     Title: PRESIDENT

-------------------------------------------------------------------------------

 Date:   7 Nov. 1997                                  Date: 7 Nov. 1997

-------------------------------------------------------------------------------<PAGE>

                      Albert F. Lee Employment Agreement

                                                                   Exhibit 10.10
                             EMPLOYMENT AGREEMENT

Computer Access Technology Corporation, a corporation, (hereinafter known as
"CATC"), having its principal place of business at 2403 Walsh Avenue, Santa
Clara, California 95051-1302, is hiring Mr. Albert F. Lee, whose social security
number is ###-##-#### (hereinafter referred to as "Employee"), located at 1362
Merrivale West Square, San Jose, CA 95117, as a full time employee under the
following conditions.

1.    JOB DESCRIPTION

Employee shall perform all functions required by CATC to manage and grow our
manufacturing operations, including but not limited to:

 .     Direct all aspects of internal operations including material planning and
      procurement, cost control, document control, inventory management, cycle-
      time, scheduling & logistics, shipping & receiving, production, test &
      rework, QA.

 .     Establish a Management Information System and develop processes and
      procedures to support efficient and cost-effective manufacturing.

 .     Manage new product development projects from product definition to market
      launch to ensure smooth transition from prototypes to volume production.

 .     Review development projects from inception for cost, manufacturability,
      testability, manufacturing technology, and ability to meet schedules.

 .     Develop strategic partnership relationships with vendors and contract
      manufacturers to improve CATC time-to-market, cycle-time, schedule
      attainment, quality, and cost performance.

 .     Establish performance goals and monitor our partners progress towards
      meeting these goals.

2.    COMPENSATION

2.1.  Salary:

Employee is paid a monthly salary starting at $10,416 ($125,000 per year) and
is exempt from overtime pay. CATC's pay-day is the last day of the month.

2.2.  Bonus:

CATC will pay Employee a $10,000 achievement bonus upon successfully meeting the
jointly developed goals for the first 6 months of employment. CATC may
periodically pay Employee additional achievement bonuses based on the company
financial performances and on Employee's meeting certain objectives as defined
by CATC's management.

2.3.  Performance Reviews:

Employee will have two performance-reviews per year (every 6 months). Changes in
the compensation package will be determined by CATC's management once a year and
will be related to Employee's job performance and to the company revenues and
profits.

                                -CONFIDENTIAL-

<PAGE>

                      Albert F. Lee Employment Agreement

3.    BENEFITS

3.1.  Stock Option:

When joining the company, Employee will have an option to purchase 120,000 of
CATC's common shares in accordance with CATC's Stock Option plan, subject to
CATC Board of Directors' approval. Upon successfully meeting the jointly
developed goals for the first 6 months of employment, Employee will be offered
an option to purchase additional 30,000 of CATC's common shares in accordance
with CATC's Stock Option plan, subject to CATC Board of Directors' approval.
Additional shares may be granted as part of the performance review process.

3.2.  Health Care:

Medical, Dental and Vision insurance plans are fully paid by CATC for Employee
and dependents

3.3.  Pension Plan:

CATC offers its employees a 401K retirement saving plan. The company provides
matching contributions to the plan (currently at 100%) at the discretion of its
Board of Directors.

3.4.  Time Off:

CATC recognizes the need for employees to enjoy time away from work to relax and
pursue personal activities. Employee is entitled to the following time off:

 .  16 days paid PET (Personal Excused Time) for the first year of service (1.33
   days per month accrual). One additional day per year of service up to maximum
   of 20 days per year.

 .  Paid Holidays for all Holidays that CATC's offices are closed.

Employee should schedule his time off with his supervisor, providing reasonable
notice so that both company and personal needs can be met.

4.    EXPENSES

CATC shall reimburse Employee for actual travel expenses incurred while in a
travel status authorized in writing by CATC for reasonable amounts. Said
reimbursement to cover all proper expenses including motel bills, meals, and:

      (1)  Either the cost of transportation by common carriers; or

      (2)  A per-mile amount (following Government regulations) when Employee's
           automobile is used; and

      (3)  Other incidental expenses

5.    INVENTIONS, PATENT RIGHTS AND COPYRIGHTS

(a)   Employee agrees that he will communicate to CATC's management all
inventions made or conceived by him in connection with the performance of the
work contemplated by this Agreement and that he will, without further
consideration, assign all right, title and interest in such inventions to CATC
and will assist CATC and its nominees in every proper way (entirely at CATC
expense) to obtain for its own benefit patents for such inventions in any and
all countries, the invention to be and remain the property of CATC and its
nominees, whether patented or not.

(b)   Inventions referred to in the above paragraph means any invention,
improvement, or discovery (whether or not patentable) conceived or actually
reduced to practice either in the performance of the experimental,
developmental, or research work contemplated by this Agreement.

                                -CONFIDENTIAL-

<PAGE>

                      Albert F. Lee Employment Agreement

(c)  Employee agrees that all writings produced by Employee under this contract
shall be the sole property of CATC and CATC shall have the exclusive right to
copyright such writings in any country or countries.

6.   CATC'S TRADE SECRETS

Employee agrees he will not, either during or subsequent to the term of this
Agreement, directly or indirectly, divulge to unauthorized persons any secret or
confidential know-how or other information acquired through his association with
CATC, including work in connection with any contract for any department of the
United States Government or other customer, and not known to the industry or
recognized as standard practice, whether acquired or developed by him during the
term of this Agreement or obtained from other employees; and that he will not,
either during or subsequent to the term of this Agreement, directly or
indirectly, publish or disclose to any third party any such information without
written authorization from CATC to do so, nor will he use such information apart
from CATC's business without the approval of CATC.

7.   TRADE SECRETS OF OTHERS

Employee represents that his performance of all of the terms of this Agreement
and as a Employee to CATC does not and will not breach any agreement to keep in
confidence proprietary information, knowledge or data acquired by him in
confidence or in trust prior to his execution of this Agreement with CATC, and
he will not disclose to CATC, or induce CATC to use, any confidential or
proprietary information or material belonging to any previous employer or
others.  Employee agrees not to enter into any agreement either written or oral
in conflict herewith.

8.   EMPLOYMENT TERMS

8.1  At-will Employment

The Company and Employee acknowledge that Employee's employment will be at-will,
as defined under applicable law.  If Employee's employment terminates for any
reason, including (without limitation) any termination prior to a Change of
Control, Employee shall not be entitled to any payments, benefits, damages,
awards or compensation other than as provided by this Agreement, or as may
otherwise be available in accordance with the Company's established employee
plans and practices or pursuant to other agreements with the Company.

8.2. Severance Benefits

     (a)  Termination Following a Change of Control. If Employee's employment
terminates at any time within twelve (12) months following a Change of Control,
then Employee shall be entitled to receive the following severance benefits:

          (i)  Termination other than for Cause; Good Reason. If Employee's
employment is terminated by the Company other than for Cause or if Employee
terminates his employment due to a Good Reason, then Employee shall be entitled
to receive severance pay from the Company in an amount equal to Employee's base
salary for the six calendar month period immediately preceding the Termination
Date. Any severance payment to which Employee is entitled pursuant to this
Section shall be paid by the Company to Employee in cash and in full not later
than thirty (30) calendar days following the Termination Date.

               (A)  Procedures. In the event Employee believes that the Company
has taken an action that constitutes Good Reason as defined in Section 9. (d),
Employee shall give written notice to the Company in writing setting forth the
basis for such belief. The Company shall have 30 days in which to take action
restoring Employee to the position he was in prior to the Company taking the
action that constituted Good Reason. If the Company takes such action, Employee
shall not thereafter have the right to terminate employment for Good Reason on
account of the actions previously taken by Employee. If

                                -CONFIDENTIAL-

<PAGE>

                      Albert F. Lee Employment Agreement

Employee fails to notify the Company within 30 days of the events that
constitute Good Reason, Employee shall not thereafter have the right to
terminate his employment for Good Reason based on those events.

          (ii)   Voluntary Resignation; Termination For Cause. If Employee's
employment terminates by reason of Employee's voluntary resignation (and not for
Good Reason), or if Employee is terminated for Cause, then Employee shall not be
entitled to receive severance or other benefits except for those (if any) as may
then be established under the Company's then existing severance and benefits
plans and practices or pursuant to other agreements with the Company.

          (iii)  Disability; Death. If the Company terminates Employee's
employment as a result of Employee's Disability, or such Employee's employment
is terminated due to the death of Employee, then Employee shall not be entitled
to receive severance or other benefits except for those (if any) as may then be
established under the Company's then existing severance and benefits plans and
practices or pursuant to other agreements with the Company.

     (b)  Termination Apart from Change of Control. In the event Employee's
employment is terminated for any reason, either prior to the occurrence of a
Change of Control or after the six (6) month period following a Change of
Control, then Employee shall be entitled to receive severance and any other
benefits only as may then be established under the Company's existing severance
and benefits plans and practices or pursuant to other agreements with the
Company.

9.   DEFINITION OF TERMS

The following terms referred to in this Agreement shall have the following
meanings:

     (a)  Cause. For purposes of this Agreement, the term "Cause" is defined as
any one or more of the following occurrences:

          (i)    Employee's continued failure to perform his duties and
responsibilities commensurate with the scope and stature of Employee's position
in good faith and to the best of his ability for a period of 30 days after
written notice thereof from the Company to Employee; or

          (ii)   Employee's conviction by, or entry of a plea of guilty or nolo
contendere in, a court of competent and final jurisdiction for any crime which
constitutes a felony in the jurisdiction involved; or

          (iii)  Employee's commission of an act of fraud or misappropriation of
funds, whether prior or subsequent to the date hereof, upon the Company; or

          (iv)   Employee's breach of a material provision of this Agreement or
Employee's Confidential Information and Invention Assignment Agreement with the
Company; or

          (v)    Gross negligence by Employee in the scope of his services to
the Company; or

          (vi) Employee's commencement of employment (as an employee or a
consultant) with another employer while he is an employee of the Company,
without the prior written consent of the Company; or

          (vii)  Material nonconformance with the Company's standard business
practices and policies generally, including but not limited to policies against
racial or sexual discrimination or harassment, delivered in writing to Employee.

     (b)  Change of Control. "Change of Control" means the occurrence of any of
the following events:

          (i)    Any "person" (as such term is used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, as amended) other than Dan Wilnai,
Peretz Tzarnotzky or Philips Semiconductors

                                -CONFIDENTIAL-

<PAGE>

                      Albert F. Lee Employment Agreement

(or any affiliate of any such person) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under said Act), directly or indirectly, of securities of
the Company representing 75% or more of the total voting power represented by
the Company's then outstanding voting securities; or

          (ii) The shareholders of the Company approve a merger or consolidation
of the Company with any other corporation, other than a merger or consolidation
which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity) at least fifty percent (50%) of the total voting power represented by
the voting securities of the Company, such surviving entity or the entity that
controls such surviving entity outstanding immediately after such merger or
consolidation, or the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all the Company's assets.

     (c)  Disability. "Disability" shall mean that Employee has been unable to
perform his Company duties as the result of his incapacity due to physical or
mental illness, and such inability, at least 26 weeks after its commencement, is
determined to be total and permanent by a physician selected by the Company or
its insurers and acceptable to Employee or Employee's legal representative (such
Agreement as to acceptability not to be unreasonably withheld). Termination
resulting from Disability may only be effected after at least 30 days' written
notice by the Company of its intention to terminate Employee's employment. In
the event that Employee resumes the performance of substantially all of his
duties hereunder before the termination of his employment becomes effective, the
notice of intent to terminate shall automatically be deemed to have been
revoked.

     (d)  Good Reason. "Good Reason" shall mean (i) without Employee's express
written consent, the significant reduction of Employee's duties, authority or
responsibilities, relative to Employee's duties, authority or responsibilities
as in effect immediately prior to such reduction, or the assignment to Employee
of such reduced duties, authority or responsibilities; (ii) a reduction by the
Company in the base salary of Employee as in effect immediately prior to such
reduction; or (iii) the relocation of Employee to a facility or a location more
than sixty (60) miles from Employee's then present location, without Employee's
express written consent.

     (e)  Termination Date. "Termination Date" shall mean (i) if Employee's
employment is terminated by the Company for Disability, thirty (30) days after
notice of termination is given to Employee (provided that Employee shall not
have returned to the performance of Employee's duties on a full-time basis
during such thirty (30)-day period), (ii) if Employee's employment is terminated
by the Company for any other reason, the date on which a notice of termination
is given; provided, however, that if within thirty (30) days after the Company
gives Employee notice of termination, Employee notifies the Company that a
dispute exists concerning the termination or the benefits due pursuant to this
Agreement, then the Termination Date shall be the date on which such dispute is
finally determined, either by mutual written agreement of the parties, or a by
final judgment, order or decree of a court of competent jurisdiction (the time
for appeal therefrom having expired and no appeal having been perfected), or
(iii) subject to Section 8.2 (a)(i)(A), if Employee's employment is terminated
by Employee for Good Reason, the date on which Employee delivers the notice of
termination required by such Section to the Company.

10.  MISCELLANEOUS PROVISIONS

     (a)  Waiver. No provision of this Agreement shall be modified, waived or
discharged unless the modification, waiver or discharge is agreed to in writing
and signed by Employee and by an authorized officer of the Company (other than
Employee). No waiver by either party of any breach of, or of compliance with,
any condition or provision of this Agreement by the other party shall be
considered a waiver of any other condition or provision or of the same condition
or provision at another time.

     (b)  Whole Agreement. No agreements, representations or understandings
(whether oral or

                                -CONFIDENTIAL-
<PAGE>

                      Albert F. Lee Employment Agreement

written and whether express or implied) which are not expressly set forth in
this Agreement have been made or entered into by either party with respect to
the subject matter hereof.

     (c)  Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
California as applied to agreements entered into and performed within California
solely by residents of that state.

     (d)  Withholding. All payments made pursuant to this Agreement will be
subject to withholding of applicable income and employment taxes.

11.  EFFECTIVE DATE

This Agreement is effective as of 5 December 1997.

12.  ENTIRE AGREEMENT

This Agreement embodies the entire agreement and understanding which exists
among and between the parties relating to the subject matter. There are no
agreements, representations, warranties or statements with respect to the
subject matter hereof except as expressly set forth herein.

--------------------------------------------------------------------------------
     Computer Access Technology Corp.                       Employee
--------------------------------------------------------------------------------
Signature  /s/ Dan Wilnai                    Signature  /s/ Albert F. Lee
--------------------------------------------------------------------------------
               Dan Wilnai, President         Name  Albert F. Lee
--------------------------------------------------------------------------------
               5 December 1997               Date  12/5/97
--------------------------------------------------------------------------------

                                -CONFIDENTIAL-

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