Document:

Exhibit 10.8

                            INDEMNIFICATION AGREEMENT

       This  INDEMNIFICATION  AGREEMENT  (this  "AGREEMENT") is made and entered
into this ____ day of _____________,  ____ (the "EFFECTIVE DATE") by and between
Passave,   Inc.,  a  Delaware   corporation  (the  "COMPANY"),   and  [  ]  (the
"INDEMNITEE").

       WHEREAS, the Company believes it is essential to retain and attract
qualified directors and officers;

       WHEREAS, the Indemnitee is a director and/or officer of the Company;

       WHEREAS, both the Company and the Indemnitee recognize the increased risk
of litigation and other claims being asserted against directors and officers of
public companies;

       WHEREAS, the Company's Amended and Restated Certificate of Incorporation
(the "CERTIFICATE OF INCORPORATION") and Bylaws (the "BYLAWS") authorize the
Company to indemnify and advance expenses to its directors and officers to the
extent permitted by the DGCL (as hereinafter defined);

       WHEREAS, the Indemnitee has been serving and intends to continue serving
as a director and/or officer of the Company in part in reliance on the
Certificate of Incorporation and Bylaws, or is relying upon the rights afforded
under this Agreement in accepting the Indemnitee's position as a director,
officer or employee of the Company; and

       WHEREAS, in recognition of the Indemnitee's need for (i) substantial
protection against personal liability based on the Indemnitee's reliance on the
Certificate of Incorporation and Bylaws, (ii) specific contractual assurance
that the protection promised by the Certificate of Incorporation and Bylaws will
be available to the Indemnitee, regardless of, among other things, any amendment
to or revocation of the Bylaws or any change in the composition of the Company's
Board of Directors (the "BOARD") or acquisition transaction relating to the
Company and (iii) an inducement to continue to provide effective services to the
Company as a director and/or officer thereof, the Company wishes to provide for
the indemnification of the Indemnitee and to advance expenses to the Indemnitee
to the fullest extent permitted by law and as set forth in this Agreement, and,
to the extent insurance is maintained by the Company, to provide for the
continued coverage of the Indemnitee under the Company's directors' and
officers' liability insurance policies.

       NOW, THEREFORE, in consideration of the premises contained herein and for
the Indemnitee continuing to serve the Company directly or, at its request, with
another enterprise, and intending to be legally bound hereby, the parties hereto
agree as follows:

       1.     CERTAIN DEFINITIONS.

              (a)    A "CHANGE IN CONTROL" shall be deemed to have occurred if:

                     (i)    any "person," as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder (the "EXCHANGE ACT"), other than (a) a trustee or other
fiduciary holding securities under an employee

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benefit plan of the Company; (b) a corporation owned, directly or indirectly, by
the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company; or (c) any current beneficial stockholder or
group, as defined by Rule 13d-5 under the Exchange Act, including the heirs,
assigns and successors thereof, of beneficial ownership, within the meaning of
Rule 13d-3 under the Exchange Act, of securities possessing more than 50% of the
total combined voting power of the Company's outstanding securities; hereafter
becomes the "beneficial owner," as defined in Rule 13d-3 under the Exchange Act,
directly or indirectly, of securities of the Company representing 20% or more of
the total combined voting power represented by the Company's then outstanding
Voting Securities;

                     (ii)   during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board and any new
director whose election by the Board or nomination for election by the Company's
stockholders was approved by a vote of at least two-thirds of the directors then
in office who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved, cease for any
reason to constitute a majority thereof; or

                     (iii)  the stockholders 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 80% of the total voting power represented by the
Voting Securities of the Company or 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, in one transaction or a series of
transactions, of all or substantially all of the Company's assets.

              (b)    "DGCL" shall mean the General Corporation Law of the State
of Delaware, as the same exists or may hereafter be amended or interpreted;
PROVIDED, HOWEVER, that in the case of any such amendment or interpretation,
only to the extent that such amendment or interpretation permits the Company to
provide broader indemnification rights than were permitted prior thereto.

              (c)    "EXPENSE" shall mean attorneys' fees and all other costs,
expenses and obligations paid or incurred in connection with investigating,
defending, being a witness in or participating in (including on appeal) or
preparing for any of the foregoing, any Proceeding relating to any Indemnifiable
Event.

              (d)    "INDEMNIFIABLE EVENT" shall mean any event or occurrence
that takes place either prior to or after the execution of this Agreement,
related to the fact that the Indemnitee is or was a director or officer of the
Company, or is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation or of a partnership, joint
venture, trust or other enterprise, including service with respect to employee
benefit plans, or by reason of anything done or not done by the Indemnitee in
any such capacity.

              (e)    "PROCEEDING" shall mean any threatened, pending or
completed action, suit, investigation or proceeding, and any appeal thereof,
whether civil, criminal, administrative

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or investigative and/or any inquiry or investigation, whether conducted by the
Company or any other party, that the Indemnitee in good faith believes might
lead to the institution of any such action.

              (f)    "REVIEWING PARTY" shall mean any appropriate person or body
consisting of a member or members of the Company's Board or any other person or
body appointed by the Board (including the special independent counsel referred
to in Section 6) who is not a party to the particular Proceeding with respect to
which the Indemnitee is seeking indemnification.

              (g)    "VOTING SECURITIES" shall mean any securities of the
Company which vote generally in the election of directors.

       2.     INDEMNIFICATION. In the event the Indemnitee was or is a party to
or is involved (as a party, witness or otherwise) in any Proceeding by reason of
(or arising in part out of) an Indemnifiable Event, whether the basis of the
Proceeding is the Indemnitee's alleged action in an official capacity as a
director or officer or in any other capacity while serving as a director or
officer, the Company shall indemnify the Indemnitee to the fullest extent
permitted by the DGCL against any and all Expenses, liabilities and losses
(including judgments, fines, ERISA excise taxes or penalties, and amounts paid
or to be paid in settlement, and any interest, assessments or other charges
imposed thereon, and any federal, state, local or foreign taxes imposed on any
director or officer as a result of the actual or deemed receipt of any payments
under this Agreement) (collectively, "LIABILITIES") reasonably incurred or
suffered by such person in connection with such Proceeding. The Company shall
provide indemnification pursuant to this Section 2 as soon as practicable, but
in no event later than 30 days after it receives written demand from the
Indemnitee. Notwithstanding anything in this Agreement to the contrary and
except as provided in Section 5 below, the Indemnitee shall not be entitled to
indemnification pursuant to this Agreement (i) in connection with any Proceeding
initiated by the Indemnitee against the Company or any director or officer of
the Company unless the Company has joined in or consented to the initiation of
such Proceeding or (ii) on account of any suit in which judgment is rendered
against the Indemnitee pursuant to Section 16(b) of the Exchange Act for an
accounting of profits made from the purchase, sale or other transaction by the
Indemnitee of securities of the Company (or derivatives thereof).

       3.     ADVANCEMENT OF EXPENSES. The Company shall advance Expenses to the
Indemnitee within 30 business days of such request (an "EXPENSE ADVANCE");
PROVIDED, HOWEVER, that if required by applicable corporate laws, such Expenses
shall be advanced only upon delivery to the Company of an undertaking by or on
behalf of the Indemnitee to repay such amount if it is ultimately determined
that the Indemnitee is not entitled to be indemnified by the Company; PROVIDED,
FURTHER, that the Company shall make such advances only to the extent permitted
by applicable law. Expenses incurred by the Indemnitee while not acting in
his/her capacity as a director or officer, including service with respect to
employee benefit plans, may be advanced upon such terms and conditions as the
Board, in its sole discretion, deems appropriate.

       4.     REVIEW PROCEDURE FOR INDEMNIFICATION. Notwithstanding the
foregoing, (i) the obligations of the Company under Sections 2 and 3 above shall
be subject to the condition that the Reviewing Party shall not have determined
(in a written opinion, in any case in which the special independent counsel
referred to in Section 6 hereof is involved) that the Indemnitee

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would not be permitted to be indemnified under applicable law and (ii) the
obligation of the Company to make an Expense Advance pursuant to Section 3 above
shall be subject to the condition that, if, when and to the extent that the
Reviewing Party determines that the Indemnitee would not be permitted to be so
indemnified under applicable law, the Company shall be entitled to be reimbursed
by the Indemnitee (who hereby agrees to reimburse the Company) for all such
amounts theretofore paid; PROVIDED, HOWEVER, that if the Indemnitee has
commenced legal proceedings in a court of competent jurisdiction pursuant to
Section 5 below to secure a determination that the Indemnitee should be
indemnified under applicable law, any determination made by the Reviewing Party
that the Indemnitee would not be permitted to be indemnified under applicable
law shall not be binding and the Indemnitee shall not be required to reimburse
the Company for any Expense Advance until a final judicial determination is made
with respect thereto (as to which all rights of appeal therefrom have been
exhausted or have lapsed). The Indemnitee's obligation to reimburse the Company
for Expense Advances pursuant to this Section 4 shall be unsecured and no
interest shall be charged thereon. If there has not been a Change in Control,
the Reviewing Party shall be selected by the Board, and if there has been such a
Change in Control, other than a Change in Control which has been approved by a
majority of the Company's Board who were directors immediately prior to such
Change in Control, the Reviewing Party shall be the special independent counsel
referred to in Section 6 hereof.

       5.     ENFORCEMENT OF INDEMNIFICATION RIGHTS. If the Reviewing Party
determines that the Indemnitee substantively would not be permitted to be
indemnified in whole or in part under applicable law, or if the Indemnitee has
not otherwise been paid in full pursuant to Sections 2 and 3 above within 30
days after a written demand has been received by the Company, the Indemnitee
shall have the right to commence litigation in any court in the State of New
York having subject matter jurisdiction thereof and in which venue is proper to
recover the unpaid amount of the demand (an "ENFORCEMENT PROCEEDING") and, if
successful in whole or in part, the Indemnitee shall be entitled to be paid any
and all Expenses in connection with such Enforcement Proceeding. The Company
hereby consents to service of process for such Enforcement Proceeding and to
appear in any such Enforcement Proceeding. Any determination by the Reviewing
Party otherwise shall be conclusive and binding on the Company and the
Indemnitee.

       6.     CHANGE IN CONTROL. The Company agrees that if there is a Change in
Control of the Company, other than a Change in Control which has been approved
by a majority of the Company's Board who were directors immediately prior to
such Change in Control, then with respect to all matters thereafter arising
concerning the rights of the Indemnitee to indemnity payments and Expense
Advances under this Agreement or any other agreement or under applicable law or
the Certificate of Incorporation or Bylaws now or hereafter in effect relating
to indemnification for Indemnifiable Events, the Company shall seek legal advice
only from special independent counsel selected by the Indemnitee and approved by
the Company, which approval shall not be unreasonably withheld. Such special
independent counsel shall not have otherwise performed services for the Company
or the Indemnitee, other than in connection with such matters, within the last
five years. Such independent counsel shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a
conflict of interest in representing either the Company or the Indemnitee in an
action to determine the Indemnitee's rights under this Agreement. Such counsel,
among other things, shall render its

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written opinion to the Company and the Indemnitee as to whether and to what
extent the Indemnitee would be permitted to be indemnified under applicable law.
The Company agrees to pay the reasonable fees of the special independent counsel
referred to above and to indemnify fully such counsel against any and all
expenses (including attorneys' fees), claims, liabilities and damages arising
out of or relating to this Agreement or the engagement of special independent
counsel pursuant to this Agreement.

       7.     PARTIAL INDEMNITY. If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of the Expenses and Liabilities, but not, however, for all of the total
amount thereof, the Company shall nevertheless indemnify the Indemnitee for the
portion thereof to which the Indemnitee is entitled. Moreover, notwithstanding
any other provision of this Agreement, to the extent that the Indemnitee has
been successful on the merits or otherwise in defense of any or all Proceedings
relating in whole or in part to an Indemnifiable Event or in defense of any
issue or matter therein, including dismissal without prejudice, the Indemnitee
shall be indemnified against all Expenses incurred in connection therewith. In
connection with any determination by the Reviewing Party or otherwise as to
whether the Indemnitee is entitled to be indemnified hereunder, the burden of
proof shall be on the Company to establish that the Indemnitee is not so
entitled.

       8.     NON-EXCLUSIVITY. The rights of the Indemnitee hereunder shall be
in addition to any other rights the Indemnitee may have under any statute,
provision of the Certificate of Incorporation or Bylaws, vote of stockholders or
disinterested directors or otherwise, both as to action in an official capacity
and as to action in another capacity while holding such office. To the extent
that a change in the DGCL permits greater indemnification by agreement than
would be afforded currently under the Company's Certificate of Incorporation and
Bylaws and this Agreement, it is the intent of the parties hereto that the
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by
such change.

       9.     LIABILITY INSURANCE. To the extent the Company maintains an
insurance policy or policies providing directors' and officers' liability
insurance, the Indemnitee shall be covered by such policy or policies, in
accordance with its or their terms, to the maximum extent of the coverage
available for any director or officer of the Company.

       10.    SETTLEMENT OF CLAIMS. The Company shall not be liable to indemnify
the Indemnitee under this Agreement (a) for any amounts paid in settlement of
any action or claim effected without the Company's written consent, which
consent shall not be unreasonably withheld; or (b) for any judicial award if the
Company was not given a reasonable and timely opportunity, at its expense, to
participate in the defense of such action.

       11.    NO PRESUMPTION. For purposes of this Agreement, to the fullest
extent permitted by law, the termination of any Proceeding, action, suit or
claim, by judgment, order, settlement (whether with or without court approval)
or conviction, or upon a plea of nolo contendere, or its equivalent, shall not
create a presumption that the Indemnitee did not meet any particular standard of
conduct or have any particular belief or that a court has determined that
indemnification is not permitted by applicable law.

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       12.    PERIOD OF LIMITATIONS. No legal action shall be brought and no
cause of action shall be asserted by or on behalf of the Company or any
affiliate of the Company against the Indemnitee, the Indemnitee's spouse, heirs,
executors or personal or legal representatives after the expiration of two years
from the date of accrual of such cause of action, or such longer period as may
be required by state law under the circumstances, and any claim or cause of
action of the Company or its affiliate shall be extinguished and deemed released
unless asserted by the timely filing of a legal action within such period;
PROVIDED, HOWEVER, that if any shorter period of limitations is otherwise
applicable to any such cause of action, such shorter period shall govern.

       13.    CONSENT AND WAIVER BY THIRD PARTIES. The Indemnitee hereby
represents and warrants that he or she has obtained all waivers and/or consents
from third parties which are necessary for his or her employment with the
Company on the terms and conditions set forth herein and to execute and perform
this Agreement without being in conflict with any other agreement, obligation or
understanding with any such third party. The Indemnitee represents that he or
she is not bound by any agreement or any other existing or previous business
relationship which conflicts with, or may conflict with, the performance of his
or her obligations hereunder or prevent the full performance of his or her
duties and obligations hereunder.

       14.    AMENDMENT OF THIS AGREEMENT. No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar), nor shall such waiver constitute a continuing waiver.
Except as specifically provided herein, no failure to exercise or any delay in
exercising any right or remedy hereunder shall constitute a waiver thereof.

       15.    SUBROGATION. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of the Indemnitee, who shall execute all papers required and shall
do everything that may be necessary to secure such rights, including the
execution of such documents necessary to enable the Company effectively to bring
suit to enforce such rights.

       16.    NO DUPLICATION OF PAYMENTS. The Company shall not be liable under
this Agreement to make any payment in connection with any claim made against
Indemnitee to the extent the Indemnitee has otherwise actually received payment
(under any insurance policy, Bylaw, vote, agreement or otherwise) of the amounts
otherwise indemnifiable hereunder.

       17.    BINDING EFFECT. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their respective
successors, assigns, including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
and/or assets of the Company, spouses, heirs and personal and legal
representatives. The Company shall require and cause any successor (whether
direct or indirect by purchase, merger, consolidation or otherwise) to all,
substantially all, or a substantial part, of the business and/or assets of the
Company, by written agreement in form and substance satisfactory to the
Indemnitee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if
no such succession had taken place. This Agreement shall continue in effect
regardless of whether the

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Indemnitee continues to serve as a director or officer of the Company or of any
other enterprise at the Company's request.

       18.    SEVERABILITY. The provisions of this Agreement shall be severable
in the event that any of the provisions hereof (including any provision within a
single section, paragraph or sentence) is held by a court of competent
jurisdiction to be invalid, void or otherwise unenforceable, and the remaining
provisions shall remain enforceable to the fullest extent permitted by law.
Furthermore, to the fullest extent possible, the provisions of this Agreement
(including, without limitation, each portion of this Agreement containing any
provision held to be invalid, void or otherwise unenforceable, that is not
itself invalid, void or unenforceable) shall be construed so as to give effect
to the intent manifested by the provision held invalid, illegal or
unenforceable.

       19.    GOVERNING LAW. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Delaware applicable to
contracts made and to be performed in such State without giving effect to the
principles of conflicts of laws.

       20.    CONSENT TO JURISDICTION; APPOINTMENT OF AGENT FOR SERVICE OF
PROCESS. The Indemnitee pursuant to this Agreement has legally, validly,
effectively and irrevocably submitted to the personal jurisdiction of any
federal or state court in the State of New York, County of New York, and
pursuant to this Agreement has legally, validly and effectively designated,
appointed and empowered, an agent for service of process in any suit of
proceeding based on or arising under this Agreement in any federal or state
court in the State of New York, County of New York.

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

       22.    NOTICES. All notices, demands, and other communications required
or permitted hereunder shall be made in writing and shall be deemed to have been
duly given if delivered by hand, against receipt, or mailed, postage prepaid,
certified or registered mail, return receipt requested, and addressed to the
Company at:

                                        Passave, Inc.
                                        2900 Lakeside Drive, Suite 229
                                        Santa Clara, California 95054

       and to the Indemnitee at:

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

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

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

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

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       Notice of change of address shall be effective only when done in
accordance with this Section. All notices complying with this Section shall be
deemed to have been received on the date of delivery or on the third business
day after mailing.

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       IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Agreement as of the day first set forth above.

                                        THE COMPANY:

                                        PASSAVE, INC.

                                        By:_____________________________________

                                        Name:___________________________________

                                        Title:__________________________________

                                        INDEMNITEE:

                                        ________________________________________
                                                       Signature

                                        Print Name:_____________________________

                                       9Exhibit 10.9

                           STOCK REPURCHASE AGREEMENT

         This Stock Repurchase Agreement (the "AGREEMENT") is made and entered
into effective as of June 4, 2002, by and between Passave Inc., a Delaware
corporation (separately or collectively with its subsidiary, Passave Ltd., as
applicable, "PASSAVE" or the "COMPANY"), Ariel Maislos ("AM") and Blue Orange
Ventures, LLC ("BLUE Orange" or the "SHAREHOLDER").

                                    RECITALS

         A. Passave and certain investors (the "INVESTORS"), have entered into a
Stock Purchase Agreement and related agreements (the "INVESTMENT AGREEMENTS"),
pursuant to which the Investors shall purchase Series B Preferred Stock of the
Company (the "INVESTMENT"), under the terms set forth therein.

         B. Following the consummation of the Investment (the "CLOSING"), AM
(holding his Shares via Blue Orange will be the beneficial owner of such amount
of shares of Common Stock of Passave as set forth opposite his signature herein
(the "SHARES").

         C. Following the Closing, AM will continue to be employed by Passave.

         D. As an inducement for the Investors to consummate the Investment, the
Investors desire AM to, and AM is willing to, subject the Unvested Shares (as
defined below) to repurchase by the Company, subject to the terms and conditions
provided herein.

         NOW, THEREFORE, in consideration of the premises and mutual covenants
and agreements hereinafter set forth, the parties hereto, intending to be
legally bound, hereby agree as follows:

1. VESTING; COMPANY RIGHT TO REPURCHASE.

         1.1 VESTING. Upon the Closing, twenty-five percent (25%) of the Shares
will be deemed "Vested" and fully owned by the Shareholder, and the Company
shall have no right with respect thereto. The remaining seventy-five percent
(75%) of the Shares will be deemed "Unvested." Although all of the Shares
(whether Vested or Unvested) will entitle the Shareholder to all of the rights
accorded to a holder of Common Stock of Passave Inc. (including the right to
cash dividends, if any, and the right to vote such Shares), the Unvested Shares
(as defined in Section 1.5 below) will remain subject to repurchase pursuant to
Section 1.3. The Unvested Shares shall become Vested Shares in equal portions on
a quarterly basis over the forty-eight (48) month period following the Closing,
beginning on June 4, 2002.

         1.2 ESCROW. As security for the faithful performance of this Agreement,
Shareholder agrees to deliver such certificate(s) together with stock power in
the form attached hereto as EXHIBIT A, executed by Stockholder (with the date
and number of Shares left blank), to Naschitz, Brandes & Co., Israeli counsel to
the Company ("ESCROW AGENT"); said documents are to be held by the Escrow Agent
pursuant to the Joint Escrow Instructions of the Company and the Stockholder as
set forth in EXHIBIT B hereto and incorporated herein by this reference, which
instructions shall also be delivered to the Escrow Agent.

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         1.3 PASSAVE'S RIGHT TO REPURCHASE UNVESTED SHARES.

                  (a) In the event that (i) The Company terminates AM's
employment with the Company for Cause; or (ii) AM resigns or voluntarily departs
from his employment with Passave for any reason other than Good Reason (each, a
"TRIGGER EVENT"), then, for a period of thirty (30) days after the Trigger
Event, the Company shall have the right, but not an obligation, to repurchase
all of the Shares owned or held by AM and/or the Shareholder or any Permitted
Transferee thereof that remain Unvested as of the date of such Trigger Event,
for a price equal to the par value of such Unvested Shares.

                  (b) In the event that the Company terminates AM's employment
with the Company for any reason other than for Cause, then, for a period of
thirty (30) days after the date of termination of employment, the Company shall
have a right, but not an obligation, to repurchase fifty percent (50%) of the
Unvested Shares owned or held by the Shareholder, and/or AM, or any Permitted
Transferee thereof, that remain Unvested on the date of such termination, for a
price equal to the par value of such Unvested Shares (such exercise by the
Company of its right to repurchase Shares pursuant to this Sections 1.3(a) and
1.3.(b) herein, a "REPURCHASE") and the balance of the shares (i.e., the Shares
that are not subject to a Repurchase) shall immediately and automatically vest,
PROVIDED that the Repurchase right granted under this Subsection 1.3(b) is
approved by at least five (5) out of the six (6) members of the Board of
Directors of the Company.

                  (c) The Repurchase shall be performed by the Company by
written notice to AM. The Company shall become the legal and beneficial owner of
the Shares being repurchased and all rights and interest therein or related
thereto, and the Company shall have the right to transfer to its own name the
number of Unvested Shares being repurchased by the Company, without further
action by AM.

         1.4 ACCELERATED VESTING OF SHARES. All of AM's Unvested Shares shall
immediately and automatically Vest and no longer be subject to repurchase by the
Company pursuant to Section 1.3 of this Agreement, upon the termination of AM's
employment with the Company (i) by the Company, for any reason other than for
Cause, and other than as set forth in Section 1.3(b), (ii) by AM for Good
Reason, at any time within thirty (30) days of the occurrence of the event that
constitutes such Good Reason, or (iii) due to death or disability.

         1.5 CHANGE OF CONTROL.

                  1.5.1 In the event of a Change of Control, in which the
consideration received by the stockholders of the Company is OTHER THAN (i)
cash, or (ii) stock of a corporation which is actively traded on an active
public market, any Unvested Shares which are assumed or substituted by shares
covering the stock of a successor entity, or a parent or subsidiary thereof,
with appropriate adjustments as to the number and kinds of shares or units and
exercise prices, shall continue in the manner and under the terms so provided.
The Unvested Shares shall be considered assumed if, the surviving entity assumes
this agreement and if following consummation of the Change of Control, the
Unvested Shares immediately prior to the consummation of the Change of Control,
are replaced by the consideration (whether shares, or other securities or
property) received in the transaction by the Shareholder of the Company for

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each share held on the effective date of the transaction (and if shareholders
were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding shares);

                  1.5.2 In the event of a Change of Control in which the
consideration received by the stockholders of the Company is OTHER THAN (i)
cash, or (ii) stock of a corporation which is actively traded on an active
public market, AND AM's employment is terminated by the Company for any reason
other than Cause within nine (9) months after the Change of Control, then All of
AM's Unvested Shares shall immediately and automatically Vest and no longer be
subject to repurchase by the Company pursuant to Section 1.3 of this Agreement.

                  1.5.3 In the event of a Change of Control in which the
consideration received by the stockholders of the Company is (i) cash, or (ii)
stock of a corporation which is actively traded on an active public market, then
All of AM's Unvested Shares shall immediately and automatically Vest and no
longer be subject to repurchase by the Company pursuant to Section 1.3 of this
Agreement.

                  1.5.4 "Change of Control" shall mean (A) the acquisition of
the Company by another entity by means of any transaction or series of related
transactions (including, without limitation, any reorganization, merger or
consolidation); or (B) a sale of all or substantially all of the assets of the
Corporation; unless in each case, the Company's stockholders of record as
constituted immediately prior to such acquisition or sale will, immediately
after such acquisition or sale (by virtue of securities issued as consideration
for the Corporation's acquisition or sale or otherwise) hold at least fifty
percent (50%) of the voting power of the surviving or acquiring entity.

         1.6 STOCK SPLITS, STOCK DIVIDENDS, ETC. Any shares of capital stock of
Passave received by AM with respect to the Unvested Shares as the result of any
stock dividend, stock split, recapitalization or other similar event, shall be
considered "Unvested Shares" for all purposes of this Agreement and shall be
subject to the same vesting schedule as AM's Unvested Shares with respect to
which they were received.

2. TRANSFER OF UNVESTED SHARES.

         2.1 PROHIBITED AND PERMITTED TRANSFERS. In addition to any other
limitation on Transfer (as defined below), AM may not Transfer any Unvested
Shares, or any interest therein, except to a Permitted Transferee and as
expressly provided in this Section 2, and in any event only after compliance
with the specific limitations and conditions set forth in this Section 2 and all
applicable securities laws. Any purported Transfer other than a Permitted
Transfer is void and is of no effect, and no purported transferee thereof will
be recognized as a holder of the Unvested Shares for any purpose whatsoever.
Should such a Transfer purport to occur, Passave may refuse to carry out the
Transfer on its books, set aside the Transfer, or exercise any other legal or
equitable remedy.

         2.2 CONDITIONS TO TRANSFER. It shall be a condition to any Permitted
Transfer that:

                  (1) The transferee of the Unvested Shares shall execute all
         such documents as Passave reasonably may require to ensure that
         Passave's rights under this

                                       3
<PAGE>

          Agreement are adequately protected with respect to such Unvested
          Shares, including, without limitation, the transferee's agreement to
          be bound by all terms and conditions of this Agreement, as if he, she
          or it were the original holder of such Unvested Shares; and

                    (2) Passave is reasonably satisfied that such Transfer
          complies in all respects with the requirements imposed by applicable
          securities laws and regulations.

3.       CERTAIN DEFINITIONS. For purposes of this Agreement:

          3.1 "Cause" shall mean the existence of:

                    (1) AM's conviction of or pleading guilty to any felony
          which the board of directors of the Company reasonably believes had or
          will have a material detrimental effect on the company's reputation or
          business; or

                    (2) AM's willful breach of his fiduciary duties to Passave
          (it being understood that an action taken by AM which AM reasonably
          believes is in the best interests of Passave shall not be deemed a
          "willful breach") or any act of personal dishonesty in connection with
          his responsibilities to the Company that is intended to result in
          substantial, direct or indirect, personal enrichment of AM; or

                    (3) any material breach by AM of his Confidentiality and Non
          Disclosure Agreement that is capable of being cured and is not so
          cured within 30 days following written notice by the Company
          specifying the breach; or (4) continued non performance of AM's duties
          under his Employment Agreement that is not cured within 30 days
          following receipt of notice by the Company specifying such material
          non performance.

          3.2 "Good Reason" shall mean:

                    (1) without AM's express written consent, a significant
          reduction of AM's duties, position or responsibilities (as compared to
          the position he currently holds at Passave), or the removal of AM from
          such position and responsibilities unless he is provided with a
          comparable position (i.e., a position of equal or greater
          organizational level, duties, authority, compensation and status);
          provided that in the event that the Company hires a new President or
          CFO, removal of AM from his position to a suitable position or a
          change of title that comply with the above shall not be deemed a
          significant reduction in AM's position and responsibilities; or

                    (2) a material reduction in AM's level of compensation,
          other than a reduction due to lack of financial resources of the
          Company that is effected with respect to all Company employees.

          3.3 "Permitted Transfer" shall mean (i) a Transfer by will or under
laws of descent and distribution; or (ii) a Transfer by a holder of the Shares
or AM (the "Transferor") to his ancestors, descendants, siblings or spouse, or
to a trust, partnership, limited liability company, custodianship or other
fiduciary account for the benefit of the Transferor and/or such ancestors,
descendants or spouse, including any Transfer in the form of a distribution from
any such trust,

                                       4

<PAGE>

partnership, limited liability company, custodianship or other fiduciary account
to any of the foregoing permitted beneficial owners or beneficiaries thereof.

          3.4 "Permitted Transferee" shall mean the recipient of a Permitted
Transfer.

          3.5 "Transfer" shall mean a voluntary or involuntary sale, assignment,
transfer, conveyance, pledge, hypothecation, encumbrance, disposal, loan, gift,
attachment or levy of the Unvested Shares.

4. STOP-TRANSFER NOTICES. Stockholder agrees that, in order to ensure compliance
with the restrictions referred to herein, the Company may issue appropriate
"stop transfer" instructions to its transfer agent, if any, and that, if the
Company transfers its own securities, it may make appropriate notations to the
same effect in its own records.

5. REFUSAL TO TRANSFER. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of
any of the provisions of this Agreement or (ii) to treat as owner of such Shares
or to accord the right to vote or pay dividends to any purchaser or other
transferee to whom such Shares shall have been so transferred.

6. MISCELLANEOUS.

          6.1 ENTIRE AGREEMENT. This Agreement contains the entire understanding
of the parties in respect of the subject matter hereof, and supersedes all prior
negotiations and understandings between the parties with respect to such subject
matter.

          6.2 LEGENDS. Any stock certificates representing the Unvested Shares
shall be legended at the request of Passave with the following legend:

              THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
              RESTRICTIONS UPON TRANSFER AND RIGHTS OF REPURCHASE AS SET FORTH
              IN AN AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER, A COPY OF
              WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

          6.3 REPRESENTATIONS AND WARRANTIES. Shareholder represents and
warrants that this Agreement is a legal, valid and binding obligation,
enforceable against the Shareholder in accordance with its terms.

          6.4 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by
and construed according to the laws of the State of Israel, without regard to
the conflict of laws provisions thereof. Any dispute arising under or in
relation to this Agreement shall be resolved in the competent court for the Tel
Aviv-Jaffa district, and each of the parties hereby submits irrevocably to the
exclusive jurisdiction of such court.

          6.5 INVESTMENT. In the event the Investment is not consummated and the
Investment Agreements are terminated for any reason in accordance with their
terms, this Agreement shall be null and void.

                                       5
<PAGE>

          6.6 SEVERABILITY. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, then the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

          6.7 BINDING EFFECT AND ASSIGNMENT. This Agreement and all of the
provisions hereof shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns, but, except as
otherwise specifically provided herein, neither this Agreement nor any of the
rights, interests or obligations of the parties hereto may be assigned by either
of the parties hereto without prior written consent of the other party hereto.

          6.8 AMENDMENTS AND MODIFICATION. This Agreement may not be modified,
amended, altered or supplemented except upon the execution and delivery of a
written agreement executed by the parties hereto.

          6.9 COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be an original, but all of which together
shall constitute one and the same agreement.

          6.10 EFFECT OF HEADINGS. The section headings herein are for
convenience only and shall not affect the construction or interpretation of this
Agreement.

          6.11 NOTICES. All notices, requests, claims, demands and other
communications hereunder shall be in writing and sufficient if delivered in
person, by cable, telegram, telex or telecopy, or sent by mail (registered or
certified mail, postage prepaid, return receipt requested) or overnight courier
(prepaid) to the respective parties as follows:

               If to Passave:        Passave Inc., C/o Passave Ltd.
                                     7 Rival St., Tel Aviv Israel
                                     Fax:
                                     Tel:

               If to AM:             Ariel Maislos or Blue Orange Ventures, LLC
                                     25 Ben Gurion St., Or Yehuda, Israel

               With a copy to:       Naschitz, Brandes & Co.
                                     5 Tuval Street
                                     Tel Aviv, Israel 67897
                                     Facsimile No.: (972-3) 623-5000
                                     Attn: Sharon Amir

                                       6

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Stock Repurchase
Agreement to be duly executed on the date and year first above written.

Passave Inc.

By: /S/  ARIEL MAISLOS
------------------------
Name:    Ariel Maislos
Title:   President

Ariel Maislos                                  Number of Shares of Common Stock
                                               of Passave Inc.:

/S/ ARIEL MAISLOS                              10,510
------------------------

Blue Orange Ventures, LLC

By: /S/ ARIEL MAISLOS
------------------------
Name:   Ariel Maislos
Title:  President

                                       7

<PAGE>

                                    EXHIBIT A

                      ASSIGNMENT SEPARATE FROM CERTIFICATE

FOR VALUE RECEIVED I, __________________________, hereby sell, assign and
transfer unto __________________________________________________________,
(______) shares of the Common Stock of Passave Inc. standing in my name of the
books of said corporation represented by Certificate No. _________ herewith and
do hereby irrevocably constitute and appoint _________________ to transfer the
said stock on the books of the within named corporation with full power of
substitution in the premises.

This Stock Assignment may be used only in accordance with the Stock Repurchase
Agreement between Passave Inc. and the undersigned dated as of May 30, 2002.

Dated:
        ------------------------------------
        Signature:  /S/ ARIEL MAISLOS

INSTRUCTIONS: Please do not fill in any blanks other than the signature line.
The purpose of this assignment is to enable the Company to exercise its
Repurchase Option as set forth in the Agreement, without requiring additional
signatures on the part of the Stockholder.

                                    EXHIBIT B

                            JOINT ESCROW INSTRUCTIONS

Naschitz, Brandes & Co.,
Israeli counsel to Passave Inc.
Attn.  Sharon Amir, Adv.

Dear Sir:

As Escrow Agent for both Passave Inc. (the "Company") and the undersigned
purchaser of stock of the Company (the "Purchaser"), you are hereby authorized
and directed to hold the documents delivered to you pursuant to the terms of
that certain Restricted Stock Purchase Agreement ("Agreement") between the
Company and the undersigned, in accordance with the following instructions:

In the event the Company and/or any assignee of the Company (referred to
collectively for convenience herein as the "Company") exercises the Company's
repurchase option set forth in the Agreement (the "Repurchase Option"), the
Company shall give to Purchaser and you a written notice specifying the number
of shares of stock to be purchased, the purchase price, and the time for a
closing hereunder, which shall not be prior to 21 days from the delivery of such

                                       8

<PAGE>

notice, at the principal office of the Company. Purchaser and the Company hereby
irrevocably authorize and direct you to close the transaction contemplated by
such notice in accordance with the terms of said notice, subject only to the
provisions below with respect to dispute resolution.

At the closing, you are directed (a) to date the stock assignments necessary for
the transfer in question, (b) to fill in the number of shares being transferred,
and (c) to deliver same, together with the certificate evidencing the shares of
stock to be transferred, to the Company or its assignee, against the
simultaneous delivery to you of the purchase price (by cash, a check, or some
combination thereof) for the number of shares of stock being purchased pursuant
to the exercise of the Company's Repurchase Option.

Purchaser irrevocably authorizes the Company to deposit with you any
certificates evidencing shares of stock to be held by you hereunder and any
additions and substitutions to said shares as defined in the Agreement.
Purchaser does hereby irrevocably constitute and appoint you as Purchaser's
attorney-in-fact and agent for the term of this escrow to execute with respect
to such securities all documents necessary or appropriate to make such
securities negotiable and to complete any transaction herein contemplated,
including but not limited to the filing with any applicable state blue sky
authority of any required applications for consent to, or notice of transfer of,
the securities. Subject to the provisions of this paragraph 3, Purchaser shall
exercise all rights and privileges of a shareholder of the Company while the
stock is held by you.

Upon written request of the Purchaser, but no more than once per calendar year,
unless the Company's Repurchase Option has been exercised, you will deliver to
Purchaser a certificate or certificates representing so many shares of stock as
are not then subject to the Company's Repurchase Option. Within ninety (90) days
after cessation of Purchaser's continuous employment by or services to the
Company, or any parent or subsidiary of the Company, you will deliver to
Purchaser a certificate or certificates representing the aggregate number of
shares held or issued pursuant to the Agreement and not purchased by the Company
or its assignees pursuant to exercise of the Company's Repurchase, Option.

If at the time of termination of this escrow you should have in your possession
any documents, securities, or other property belonging to Purchaser, you shall
deliver all of the same to Purchaser and shall be discharged of all further
obligations hereunder.

Your duties hereunder may be altered, amended, modified or revoked only by a
writing signed by all of the parties hereto.

You shall be obligated only for the performance of such duties as are
specifically set forth herein and may rely and shall be protected in relying or
refraining from acting on any instrument reasonably believed by you to be
genuine and to have been signed or presented by the proper party or parties. You
shall not be personally liable for any act you may do or omit to do hereunder as
Escrow Agent or as attorney-in-fact for Purchaser while acting in good faith,
and any act done or omitted by you pursuant to the advice of your own attorneys
shall be conclusive evidence of such good faith.

You are hereby expressly authorized to disregard any and all warnings given by
any of the parties hereto or by any other person or corporation, excepting only
orders or process of courts of

                                       9

<PAGE>

law and are hereby expressly authorized to comply with and obey orders,
judgments or decrees of any court. In case you obey or comply with any such
order, judgment or decree, you shall not be liable to any of the parties hereto
or to any other person, firm or corporation by reason of such compliance,
notwithstanding any such order, judgment or decree being subsequently reversed,
modified, annulled, set aside, vacated or found to have been entered without
jurisdiction.

You shall not be liable in any respect on account of the identity, authorities
or rights of the parties executing or delivering or purporting to execute or
deliver the Agreement or any documents or papers deposited or called for
hereunder.

You shall not be liable for the outlawing of any rights under the Statute of
Limitations with respect to these Joint Escrow Instructions or any documents
deposited with you.

Your responsibilities as Escrow Agent hereunder shall terminate if you shall
cease to be an agent of the Company or if you shall resign by written notice to
each party. In the event of any such termination, the Company shall appoint a
successor Escrow Agent.

If you reasonably require other or further instruments in connection with these
Joint Escrow Instructions or obligations in respect hereto, the necessary
parties hereto shall join in furnishing such instruments.

In the event that during the 21 day period described above, the Purchaser
notifies you that it disputes the Company's exercise of the Repurchase Option,
or should you otherwise learn of any dispute with respect to the delivery and/or
ownership or right of possession of the securities held by you hereunder, you
are authorized and directed to retain in your possession without liability to
anyone all or any part of said securities until such disputes shall have been
settled either by mutual written agreement of the parties concerned or by a
final order, decree or judgment of a court of competent jurisdiction after the
time for appeal has expired and no appeal has been perfected, but you shall be
under no duty whatsoever to institute or defend any such proceedings.

Any notices, requests, claims, demands and other communications hereunder shall
be in writing and sufficient if delivered in person, by cable, telegram, telex
or telecopy, or sent by mail (registered or certified mail, postage prepaid,
return receipt requested) or overnight courier (prepaid) to the respective
parties as follows:

                  COMPANY:                  Passave Inc.
                                            C/o Passave Ltd.
                                            Beit Amgar, 7 Rival St
                                            Tel Aviv, Israel
                                            Tel:  972-3-6887272
                                            Facsimile: (972-3-6887062)

                  PURCHASER:                Blue Orange Ventures, LLC.
                                            C/o Ariel Maislos
                                            25 Ben Gurion St.
                                            Or Yehuda, Israel

                                       10

<PAGE>

                  ESCROW AGENT:
                                            Naschitz, Brandes & Co.
                                            5 Tuval St.
                                            Tel Aviv
                                            Tel: 03-6235090
                                            Fax: 03-6235021

By signing these Joint Escrow Instructions, you become a party hereto only for
the purpose of said Joint Escrow Instructions; you do not become a party to the
Agreement.

This instrument shall be binding upon and inure to the benefit of the parties
hereto, and their respective successors and permitted assigns.

The Repurchase Agreement is incorporated herein by reference. These Joint Escrow
Instructions, the Repurchase Agreement (including the exhibits referenced
therein) constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Escrow Agent, the Purchaser and the Company with respect to
the subject matter hereof, and may not be modified except by means of a writing
signed by the Escrow Agent, the Purchaser and the Company.

These Joint Escrow Instructions shall be governed by, and construed and enforced
in accordance with, the laws of Israel.

                                         Very truly yours,

                                         Passave Inc.

                                         By: ARIEL MAISLOS   /S/ ARIEL MAISLOS

                                         Title: PRESIDENT

PURCHASER:

Blue Orange Ventures, LLC

By:  /S/ ARIEL MAISLOS
----------------------
Ariel Maislos
Title:  President

Address: ___________________________
____________________________________
____________________________________

/S/ NASCHITZ, BRANDES & CO.
---------------------------
Naschitz, Brandes & Co., Israeli
counsel to Passave Inc.

                                       11

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