Document:

AMENDMENT
      TO

     

    EMPLOYMENT
      AGREEMENT

     

    This
      Amendment to Employment Agreement (the “Amendment”)
      is made
      and entered into as of March 27 2006 (“Effective Date”) by and among
      Wintegra, Ltd. a company Incorporated under the laws of the State of Israel,
      with its principal offices at Ra'anana, Israel (the “Company”),
      and
Yoram
      Yeivin,
      residing at Hod Hasharon (the “Executive”).
      

     

    WHEREAS,
      the Company and the Executive previously executed an Employment Agreement dated
      February 21, 2000 which was amended in April 2005 (the "Employment
      Agreement")
      

     

    WHEREAS,
      the Company and the Executive desire to amend certain of the terms of the
      employment of Executive

     

    NOW,
      THEREFORE, in consideration of the promises and the mutual covenants, terms
      and
      conditions hereinafter set forth, and for other good and valuable consideration,
      the receipt of which is hereby specifically acknowledged, the parties hereto
      agree as follows:

     

    
      1.
        Prior
        Notice. 

    

    The
      parties wish to amend Section 3.1(a) of the Employment Agreement in its entirety
      as follows: 

    

    "Section
      3.1 The Agreement and the Executive's employment may be terminated as hereafter
      provided: 

    (a) Each
      party is entitled to terminate this Agreement at any time, at the option of
      either party, upon 90 days' prior written notice ("Prior
      Notice")."

    

    
      2.
        Severance

    

    Without
      derogation of Section 1 and the severance payments due to Executive under
      applicable law, upon termination of employment from the Company for any reason,
      Executive shall receive payment of the amounts set forth below in consideration
      of Executive's undertaking not to compete with the Company.

    

    
      	 	
              2.1

            	
              Change
                of Control Severance.
                If within twelve (12) months of a Change of Control of Wintegra Inc.
                (the
                "Parent
                Company"),
                the Company terminates Executive’s employment with the Company for reasons
                other than Cause, death, or Disability or Executive resigns from
                his
                employment with the Company due to a Constructive Termination, Executive
                will be entitled to receive:

            

    

    

    
      	(a)  	
              Continuing
                payments of severance pay (less applicable tax withholding) of Salary
                as
                then in effect, for a period of six (6) months from the Termination
                Date,
                payable in accordance with the Company’s normal payroll
                policies;

            

    

     

    
      	(b)  	
              Vesting
                as of the Termination Date of fifty percent (50%) of all unvested
                options
                granted to Executive; and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	(c)  	
              Extension
                of the exercise period enabling Executive to exercise his options
                through
                the first anniversary of the Termination
                Date.

            

    

     

    
      3.
        Definitions.

    

    
      	(a)  	
              Cause.
                For purposes of this Amendment, “Cause” is defined as:
                

            

    

     

    
      	
            	i.	
              an
                act of dishonesty made by Executive in connection with Executive's
                responsibilities as an Executive; 

            

    

     

    
      	
            	ii.	
              Executive's
                conviction of, or plea of nolo
                contendere
                to, a felony; 

            

    

     

    
      	
            	iii.	
              Executive's
                gross misconduct; or 

            

    

     

    
      	
            	iv.	
              Executive's
                continued substantial violations of his employment duties after Executive
                has received a written demand for performance from the Company which
                specifically sets forth the factual basis for the Company's belief
                that
                Executive has not substantially performed his
                duties.

            

    

     

    
      	(b)  	
              Change
                of Control.
                For purposes of this Agreement, “Change of Control” is defined as:
                

            

    

     

    
      	
            	i.	
              any
                “person” (as such term is used in Sections 13(d) and 14(d) of the
                Securities Exchange Act of 1934, as amended) is or becomes the “beneficial
                owner” (as defined in Rule 13d-3 under said Act), directly or
                indirectly, of securities of the Parent Company
                representing fifty percent (50%) or more of the total voting power
                represented by the Parent Company's
                then outstanding voting securities;

            

    

     

    
      	
            	ii.	
              a
                change in the composition of the Board of Directors of the
                Parent Company
                occurring within a two (2) year period, as a result of which fewer
                than a
                majority of the directors are Incumbent Directors. “Incumbent Directors”
                will mean directors who either (A) are directors of the
                Parent Company
                as of the date of the consummation of the Parent Company's
                public offering, or (B) are elected, or nominated for election, to
                the Board of Directors of the Parent Company
                with the affirmative votes of at least a majority of the Incumbent
                Directors at the time of such election or nomination (but will not
                include
                an individual whose election or nomination is in connection with
                an actual
                or threatened proxy contest relating to the election of directors
                to the
                Parent Company);
                

            

    

     

    
      	
            	iii.	
              the
                date of the consummation of a merger or consolidation of the
                Parent Company
                with any other corporation that has been approved by the stockholders
                of
                the Parent Company,
                other than a merger or consolidation which would result in the voting
                securities of the Parent Company
                outstanding immediately prior thereto continuing to represent (either
                by
                remaining outstanding or by being converted into voting securities
                of the
                surviving entity) more than fifty percent (50%) of the total voting
                power
                represented by the voting securities of the Parent Company,
                or such surviving entity outstanding immediately after such merger
                or
                consolidation, or the stockholders of the Parent Company
                approve a plan of complete liquidation of the Parent Company; or
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	iv.	
              the
                date of the consummation of the sale or disposition by the
                Parent Company
                of all or substantially all the Parent Company's
                assets.

            

    

     

    
      	(c)  	
              Constructive
                Termination.
                “Constructive Termination” means Executive’s resignation from his
                employment within ninety (90) days, plus any applicable thirty (30)
                day
                cure period, following the occurrence of any of the following without
                Executive’s consent: 

            

    

     

    
      	
            	i.	
              a
                significant reduction of Executive’s duties, position or responsibilities
                relative to Executive’s duties, position or responsibilities in effect
                immediately prior to such reduction; provided, however, that a reduction
                in duties, position or responsibilities solely by virtue of the
                Parent Company
                being acquired and made part of a larger entity will not constitute
                a
                “Constructive Termination”; or 

            

    

     

    
      	
            	ii.	
              a
                reduction of more than ten percent (10%) by the Company of Executive’s
                Salary as in effect either on the Effective Date or immediately prior
                to
                such reduction (other than as part of an overall reduction applicable
                to
                similarly situated senior executives of the Company or its successor).
                

            

    

     

    
      	(d)  	
              In
                each case, prior to Executive being permitted to resign from his
                employment due to a “Constructive Termination”, the Company will have
                thirty (30) days to cure any such alleged breach, assignment, reduction
                or
                requirement, after Executive provides the Company written
                notice of the actions or omissions constituting such breach, assignment,
                reduction or requirement.

            

    

     

    
      	(e)  	
              Disability.
                “Disability” means that Executive is determined by the Company to be
                disabled under the provisions of the Disability Insurance, and Executive
                has received long-term disability benefits for a period of at least
                three
                (3) months under such plan.

            

    

     

    
      	(f)  	
              Termination
                Date.
                Subject to the requirements of Section 1 of this Amendment, “Termination
                Date” means the effective date of any notice of termination of employment
                delivered by one party to the
                other.

            

    

     

    4 Conditions
      to Receive Severance Package.
      The
      severance payments described in this Amendment will be provided to Executive
      only if Executive executes and delivers to the Company, and does not
      revoke, a general release of claims in a form acceptable to the
      Company.

     

    5. Employment
      Agreement.
      The
      rights described in this Amendment are in addition to any rights granted to
      Executive in the Employment Agreement. All terms and conditions of the
      Employment Agreement that are not specifically amended by this Amendment shall
      remain in full force and effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF, the Company and the Executive have executed this Amendment,
      as
      of the day and year first above written.

    

     

    

     

    
      	
              /s/
                Kobi Ben-Zvi

            	 	
               /s/
                Yoram Yeivin

            
	
              WINTEGRA
                LTD.

            	 	
              YORAM
                YEIVIN

            
	
              By:
                Kobi Ben-Zvi

            	 	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

       

      EMPLOYMENT
        AGREEMENT

       

       

      This
        Employment Agreement (the "Agreement") is made and entered into as of
        February 21, 2000 by and among Wintegra Ltd., a private company
        incorporated under the laws of the State of Israel, with its principal offices
        at Ra'anana, Israel (the "Company"), and Yoram Yeivin, residing at
Hod Hasharon, Israel (the "Executive").

       

      WHEREAS,
        the
        Company desires to employ and secure for itself the services of the Executive
        upon the terms and subject to the conditions specified herein, and

       

      WHEREAS,
        the
        Executive desires to accept employment with the Company upon the terms and
        subject to the conditions specified herein, and

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants, terms
        and
        conditions hereinafter set forth, and for other good and valuable consideration,
        the receipt of which is hereby specifically acknowledged, the parties hereto
        agree as follows:

       

      1.  Employment.
        The
        Company hereby employs the Executive in the capacity of Vice President ("VP")
        of
        the Company upon the terms and subject to the conditions set forth below.
        The
        Executive hereby accepts employment with the Company upon the terms and subject
        to the conditions set forth below. This agreement is personal and shall not
        invoke the provisions of any collective bargaining agreement or arrangement
        or
        extension orders, whether presently existing or shall exist in the future,
        except and only to the extent so mandated by law.

       

      2.  Duties.
        (a) The
        Executive agrees to devote his full business time, attention, best efforts
        and
        ability to the affairs of the Company. He shall report to the Chief Executive
        of
        the Company and shall be subject to the direction and control of the Board
        of
        Directors. The Executive shall have primary responsibility for operating
        and
        managing the Engineering Activities of the Company and such other
        duties as may be assigned to the Executive from time to time by the Chief
        Executive of the Company or the Board of Directors.

       

      (b)  The
        Executive acknowledges that his capacity as VP is a fiduciary position and
        requires a special degree of trust, his duties and responsibilities may entail
        irregular work hours and extensive traveling, for which he is adequately
        rewarded by the compensations provided for in this Agreement, and that
        accordingly the provisions of the Work Hours and Rest Law, 1951 will not
        apply
        to his employment with the Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)  When
        the
        Executive performs services for the Company, the Executive shall be, at all
        times, an employee of the Company. While performing services for the Company,
        the Executive shall not engage in any activities that, in the Company's opinion,
        may interfere or conflict with the proper discharge of his duties.

       

      (d)  The
        Executive shall not be entitled to engage in any other business activity,
        unless
        the Board of Directors has approved in advance such engagement.

       

      3.  Term
        and Termination.
        The
        term of this Agreement shall be effective as of 21/2/2000
        ("Effective Date") and shall continue in full force and effect until terminated
        pursuant to the terms hereof.

       

      3.1  The
        Agreement and the Executive's employment may be terminated as hereafter
        provide:

       

      (a)  at
        any
        time at the option of either party upon sixty (60) days prior written notice
        ("Prior Notice'');

       

      (b)  in
        the
        event of the inability of the Executive to perform his duties hereunder,
        whether
        by reason of injury (mental or physical), illness or otherwise, incapacitating
        the Executive for a continuous period exceeding 60 days or non-consecutive
        -60
        days in any six month period

       

      (c)  for
        cause. For purposes of this Agreement, an event or occurrence constituting
        "cause" includes but is not limited to:

       

      (i)  The
        Executive's omission or refusal to perform any of his duties or to perform
        specific directives of the President or the Board of Directors as designate from
        time to time to direct the Executive in the execution of his duties and
        responsibilities hereunder;

       

      (ii)  Dishonesty
        of the Executive affecting the Company as decided by the Company in its sole
        and
        absolute discretion;

       

      (iii)  a
        serious
        breach of trust including theft, embezzlement, self-dealing, prohibited
        disclosure to unauthorized persons or entities of confidential or proprietary
        information of or relating to the Company, all in the sole and absolute
        discretion of the Company.

       

      (iv)  The
        Executive's conviction of a felony or of any crime involving moral turpitude,
        fraud or misrepresentation. The conviction may or may not relate to the
        Company;

       

      (iv)  Any
        gross
        negligence or bad-faith conduct of the Executive resulting in material loss
        to
        the Company or any of its affiliated companies or material damage to the
        reputation of the Company or any of its subsidiaries; and

       

      (v)  Any
        material breach of this Agreement.

      
      

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      
         

        3.2  In
          the
          event of a termination of this Agreement according to section 3.1 (a)
          pursuant to a Prior Notice the Executive shall continue to render services
          to
          the Company during the Prior Notice period. Nevertheless, the Company shall
          have
          the right not to take advantage of the full Prior Notice period and may
          terminate the employment at any time during the Prior Notice period. In
          the
          event of such termination, the Company shall pay the Executive his salary
          and
          benefits through the remainder of the Prior Notice period.

      

       

      For
        the
        avoidance of any doubt, it is hereby expressed that the Company reserves
        the
        right not to take advantage of the full Prior Notice period in both the event
        the notice of termination of employment was delivered by it or in the event
        that
        it was delivered by the Executive, and such a case shall not constitute a
        dismissal of employment by the Company.

       

      3.3  Notwithstanding
        the foregoing, the Company may terminate the employment without a Prior written
        notice, or paying salary for the Prior Notice period in the event of termination
        under the circumstances specified in sections and 3.1(c)

       

      3.4  In
        the
        event of termination by the Company under the circumstances specified in
        sections 3.1(a) and 3.1(b) the Company shall pay severance payment to which
        the Executive shall be entitled pursuant to the Severance Payment Law, 1963
        ("Severance Payment") less any amounts received by the Executive from his
        Managers' Insurance on account of severance payment (all such payments shall
        be
        less deductions for all applicable taxes and withholdings under any relevant
        laws), and, the Executive shall be entitled to exercise all those share options
        which have vested prior to the Prior Notice period and during the Prior Notice
        period. The Company shall have no further obligation to make any salary payments
        or provide any benefits to the Executive, except as required by applicable
        law.

       

      3.5  In
        the
        event of resignation under section 3.1(a) the Executive is entitled to the
        release of the Manager's Insurance Fund to his possession, and the Executive
        shall be entitled to exercise all those share options which have vested prior
        to
        the Prior Notice resignation. The Company shall have no further obligation
        to
        make any salary payments or provide any benefits to the Executive, except
        as
        required by applicable law.

       

      3.6  In
        the
        event of resignation, for any reason, without the delivery of a prior written
        notice, the Company is entitled to deduct from any debt which it owes the
        Executive an amount equal to the salary that would have been due to the
        Executive for the Prior Notice period during which he should have worked
        pursuant hereto, had he worked.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      3.7  In
        the
        event of termination under section 3.1(c) the Executive shall not be entitle
        to
        severance payment or Prior Notice.

       

      3.8  The
        Executive undertakes that immediately upon the termination of his employment
        with the Company, for any reason, he shall act as follows:

       

      3.8.1  he
        shall
        deliver and/or return to the Company all the documents, diskettes or other
        magnetic media, letters, notes, reports and other papers in his possession
        and
        relating to his employment with the Company, as well as any equipment and/or
        other property belonging to the Company which was placed at his disposal,
        including any company car, telephone instrument, employee's badge or other
        equipment;

       

      3.8.2  he
        shall
        delete any information relating to the Company or its business from his personal
        computer, if any (this act should be coordinated with the Company);

       

      3.8.3  he
        shall
        coordinate his resignation with his supervisors, including the orderly handing
        over of his position according to the timetable determined by the Chief
        Executive, and he shall hand over in an orderly fashion and in accordance
        with
        the Company procedures his position, the documents and all the other matters
        dealt with by him to whomever the Company instructs, and all to the satisfaction
        of the Company.

       

      4.  SALARY.

       

      4.1  As
        compensation for services rendered hereunder, the Company shall pay the
        Executive a gross monthly salary of 38,600 New Israeli Shekels (hereinafter
        the
        "Salary").

       

      4.2  For
        the
        avoidance of any doubt, it is expressed that the aforementioned Salary
        constitutes the overall consideration for the Executive work and in view
        of his
        position and status he shall not be entitled to any additional consideration,
        of
        any form, for his work during overtime hours and on weekends or holidays,
        insofar as required of him.

       

      4.3  The
        Salary and any other benefit granted under this Agreement shall be subject
        to
        deductions for all applicable taxes and withholdings, payable in conformance
        with the regular payroll dates and practices for executives of the Company
        during the term of the Agreement.

      
         

        
          
            
            

          

          
            -4-

            
              

            

          

          
            
            

          

        

         

      

       

      5.  BENEFITS.
        In
        addition to the compensation set forth in paragraph 4 above, the Executive
        shall receive the following benefits, and only such benefits, from the Company
        (less deductions for all applicable taxes and withholdings under any applicable
        law), it being understood that any wage-based benefits shall be calculated
        exclusively on the Salary (without consideration to any of the benefits granted
        herein or any other benefit):

       

      (a)  VACATION.
        The
        Executive shall be entitled to twenty two (22) business days of vacation
        per
        year. The specific dates of such vacations shall be coordinated in advance
        with
        the Chief Executive of the Company. The Executive shall not be entitled to
        accumulate or to redeem any unused vacation days in excess of an aggregate
        of 22
        days.

       

      (b)  OPTIONS.
        The
        Executive shall be granted options to purchase up to 262,500 of the Company's
        parent company, Wintegra Inc., Common Shares, par value 0.1 Cent per share.
        The
        exercise price per share for the shares covered by the said options shall
        be
        US$____ reflecting the value of the Company's shares on the date of grant.
        (Options) Notwithstanding the provisions of such plan, the Options shall
        be
        subject to the following vesting periods and to the following
        terms:

       

      (I)  Upon
        the
        completion of 12 months of employment with the Company on February 21,
        2001, the Executive shall be entitled to exercise 65,625 of the Options granted
        to him in accordance with this section provided the Executive is still employed
        by the Company at the time of exercise and there is no other restrictions
        in the
        Stock Option Plan of Wintegra Inc.

       

      (II)  During
        the period beginning on February 21 2001 and for 36 months thereafter, the
        Executive shall be entitled to exercise each month 1/36 of the Options granted
        to him in accordance with this section provided the Executive is still employed
        by the Company at the time of exercise and there is no other restrictions
        in the
        Stock Option Plan of Wintegra Inc.

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      (III)  Unless
        explicitly otherwise provided herein the Options granted under this Agreement
        shall be subject to the terms and conditions of the Stock Option Plan of
        Wintegra Inc. as will be determined by Wintegra Inc. Board of
        Directors.

       

      (II)  All
        other
        terms and conditions of the Options shall be as set forth in the Stock Option
        Plan of Wintegra Inc. which shall contain provisions including, without
        limitation, those pertaining to certain adjustments, first refusal rights
        to the
        Company, restriction on the right to exercise Option, restrictions on transfer
        of shares before IPO or buy out, restrictions on transfer of Options, and
        provisions regarding termination of employment.

       

      (c)  MANAGERS
        INSURANCE ETC.
        In
        accordance with the Company's general policy, the Company shall procure for
        the
        benefit of the Executive a "Managers' Insurance Policy" (, under customary
        terms, and contribute to such policy an amount equal 5% of the Executive's
        salary and 8.33% on account of the Company's severance payment obligations,
        and
        the Company shall withhold up to 5% from the Executive's salary and contribute
        such amount to the said policy as the Executive's participation. Upon any
        termination of the Executive employment with the Company (other than termination
        by the Company under circumstances in which severance payment is not payable)
        the rights in the Executive's "Managers' Insurance Policy" shall be assigned
        to
        the Executive. The Executive may designate for the above purpose a policy
        already existing in his favor in lieu of the new policy. In addition, the
        Company shall obtain Disability insurance ("Ovdan Kosher Avoda") for the
        exclusive benefit of the Executive and shall contribute up to 2.5% of the
        Executive's salary.

       

      (d)  KEREN
        HISHTALMUT.
        The
        Company shall pay an amount of up to 7.5% of the salary to an "Advanced Study
        Fund" (in which the Executive shall participate in an amount of 2.5% of his
        salary by way of withholding from his pay).

       

      (e)  COMPANY
        CAR.
        The
        company shall provide the Executive with a Company car of group 2. The company
        shall pay or reimburse the Executive for all expenses relating to the use
        and
        maintenance of the car.

       

      (I)  Any
        tax
        liability resulting from the Executive use of the car shall be paid by the
        Executive.

       

      (II)  The
        Executive shall take good care of such Company car and ensure that the provision
        of the insurance policy relating to it are fully observed and shall return
        the
        car and its keys to the Company within five days of termination of
        employment.

       

      6.  CONFIDENTIAL
        INFORMATION.
        The
        Executive agrees not to divulge or use, except in furtherance of the Company's
        business at any time during his employment or after the termination of his
        employment with the Company, any confidential and other proprietary information
        ("Confidential Information") obtained at any time, disclosed to the Executive
        or
        developed by the Executive in the course of the Executive's employment with
        the
        Company or regarding the technology, know how, intellectual property and
        business of either the Company, its subsidiaries, affiliates, or any of its
        customers, except that the Executive may disclose certain necessary information
        to co-workers employed at the Company and to third parties when required
        to do
        so in connection with the performance of his duties hereunder. "Confidential
        Information" shall mean information which is not known to the public and
        shall
        include, but not be limited to, technology, intellectual property, trade
        secrets, know-how, data, technical or non-technical, whether written, graphic
        or
        oral, the names and addresses of prospective or existing investors, customers,
        supply sources, ideas, financial information, operations policies, marketing
        strategies, business development plans, corporate assets, financial forecasts,
        and historical financial results.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      7.  COVENANT
        NOT TO SOLICIT BUSINESS.
        (a) Upon
        termination of this Agreement the Executive agrees that for a period of one
        (1)
        year he will not directly or indirectly solicit any business from individuals
        or
        entities that are customers or distributors of the Company, its subsidiaries,
        at
        the time of the termination of this Agreement, without the prior written
        consent
        of the Board of Directors.

       

      (b)  For
        a
        period of one (1) year from the date of termination of this Agreement, without
        the prior written consent of the Board of Directors, the Executive shall
        not
        offer to employ, or in any way solicit or seek to obtain or achieve the
        employment of any person employed by either the Company, its subsidiaries,
        affiliates, or any successors or assigns thereof now or during one year period
        from the date of the Executive's termination of employment, except for those
        employees who have left the Company, its subsidiaries, affiliates, or any
        successors or assigns thereof more than one (1) year prior to the date of
        the
        Executive's termination of employment with the Company.

       

      (c)  For
        a
        period of eight (8) months from the date of termination of this Agreement,
        without the prior written consent of the Chief Executive of the Company,
        the
        Executive shall not participate, directly or indirectly (whether as advisor,
        principal, agent, partner, officer, director, employee, stockholder, associate
        or consultant of), in any business that competes directly or indirectly with
        the
        business of the Company as it may be at any time during the employment
        periods.

       

      (d)  The
        parties hereto agree that the duration and area for which the covenant not
        to
        compete set forth in paragraph 7(c) above is to be effective and
        reasonable, in terms of their geographical and temporal scope. In the event
        that
        any court determines that the time period and/or area are unreasonable and
        that
        such covenant is to that extent unenforceable, the parties hereto agree that
        such covenant shall remain in full force and effect for the greatest period
        of
        time and in the greatest geographical area that would not render it
        unenforceable. In addition, the Executive acknowledges and agrees that a
        breach
        of paragraph 6 or sections (a), (b) or (c) of this paragraph 7 shall
        cause irreparable harm to the Company, its subsidiaries, and/or its affiliates
        and that the Company shall be entitled to specific performance of this Agreement
        or an injunction without proof of special damages, together with the costs
        and
        reasonable attorney's fees and disbursements incurred by the Company in
        enforcing their rights under paragraph 6 and this
        paragraph 7.

       

      8.  INTELLECTUAL
        PROPERTY ASSIGNMENT.
        Any
        invention, development or know-how which shall be conceived, developed or
        reduced to practice by the Executive during the period of his employment
        relating to the business of the Company or the use of any of its technologies,
        facilities or Confidential information, notwithstanding that it is perfected
        or
        reduced to specific form at any time thereafter provided that its conception
        arose during such period, including all rights therein and in any patent
        or
        other form of intellectual property or legal protection with respect thereto,
        shall become the sole property of the Company, without need for any specific
        action or notice or any consideration to the Executive other than as provided
        for by this Agreement. The Executive shall cooperate with the Company and
        assist
        it in obtaining any patent or other form of legal protection for such inventions
        or know-how for no additional compensation (other than the coverage of the
        Executive's reasonable out of pocket expenses).

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

      9.  WARRANT AND
        REPRESENTATIONS.

       

      9.1  The
        Executive warrants, confirms and undertakes that he is entitled to enter
        into
        this Agreement and to assume all the obligations pursuant hereto, that there
        is
        no contractual or other impediment to his entering into this Agreement and
        to
        his engagement by the Company and that in entering into this Agreement he
        is not
        in breach of any other agreement or obligation to which he is or was a
        party.

       

      9.2  The
        Executive represent and warrants that he will not disclose to the Company
        or use
        during the course of employment with the Company any confidential information
        or
        material belonging to a third party, including that belonging to any prior
        employer, contractor, unless the Executive has first received the written
        approval of that third party and present such approval to the
        Company.

       

      10.  DEDUCTIONS AND
        WITHHOLDINGS.
        The
        Company shall be entitled to deduct and withhold from any amount payable
        to the
        Executive, whether pursuant to this Agreement or otherwise, any and all taxes,
        withholdings or other payments as required under any applicable
        law.

       

      11.  NO
        ASSIGNMENT BY EXECUTIVE.
        The
        Executive shall have no right to assign any of the rights nor to delegate
        any of
        the duties created by this Agreement and any assignment or attempted assignment
        of the Executive's rights, and any delegation or attempted delegation of
        the
        Executive's duties, shall be null and void (except for such delegations of
        authority to other officers of the Company as necessary and customary for
        the
        fulfillment of the Executive's duties). The Company retains the right at
        any
        time to assign any of its rights or delegate any of its duties under this
        Agreement.

       

      12.  BENEFIT.
        Except
        as otherwise expressly provided herein, this Agreement shall inure to the
        benefit of and be binding upon the parties hereto and their respective heirs,
        beneficiaries, personal representatives, successors and assigns.

       

      13.  SEVERABILITY OF
        PROVISIONS.
        If any
        of the provisions of this Agreement is held invalid, such provisions shall
        be
        severed and the remainder of the Agreement shall remain in force and shall
        not
        be affected thereby.

       

      14.  NO
        ORAL CHANGES.
        This
        instrument constitutes and contains the entire Agreement between the parties
        except as otherwise expressly stated herein. This Agreement may be changed
        only
        in writing, and must be signed by the party against whom enforcement of any
        waiver, modification, discharge or other change is sought.

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      15.  WAIVER.
        Either
        party's failure to insist upon strict compliance with any of the terms,
        covenants or conditions hereof shall not be deemed a waiver of such term,
        covenant or condition, nor shall any waiver or relinquishment of any right
        or
        power hereunder at any one or more times be deemed a waiver or relinquishment
        of
        such right or power at any other time or times.

       

      16.  ENTIRE
        AGREEMENT.
        The
        Agreement contained in this instrument supersedes and cancels any and all
        prior
        agreements between the parties hereto, express or implied, written or oral,
        relating to the subject matter hereof. This Agreement sets forth the entire
        agreement between the parties hereto with respect to the subject matter
        hereof.

       

      17.  GOVERNING
        LAW; SUBMISSION TO JURISDICTION.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Israel. Any litigation concerning any claims under or breach of
        this
        Agreement shall be brought exclusively in the competent courts of the Tel-Aviv
        District.

       

      18.  DESCRIPTIVE
        HEADINGS.
        The
        paragraph headings contained herein are for reference purposes only and shall
        not in any way affect the meaning or interpretation of this
        Agreement.

       

      19.  COUNTERPARTS.
        This
        Agreement may be executed in counterparts, each of which shall be deemed
        an
        original, and all such counterparts shall constitute one and the same
        instrument.

       

      20.  SURVIVAL.
        The
        provisions of paragraphs 6, 7 and 8 shall survive any termination of this
        Agreement.

       

      ****

       

      IN
        WITNESS WHEREOF, the Company and the Executive have executed this Employment
        Agreement, as of the day and year first above written.

       

       

      
        	 	 	 	 
	Wintegra Ltd.	 	 	The Executive
	By:
                /s/ Jacob
                Ben-Zvi	 	 	/s/ Yoram
                Yeivin
	
                

              	 	 	
                
Yoram
                Yeivin
	 	 	 	10/3/2000

      

        

       

      
        
          
          

        

        
          -9-AMENDMENT
      TO LOAN AGREEMENT

    

    This
      Amendment to Loan Agreement is made and entered as of the 4th day of June,
      2004,
      by and among Wintegra
      Inc. (the “Company”),
      Wintegra Ltd. ("Wintegra
      Israel")
      and
      the lenders listed in Schedule
      1
      attached
      hereto (the “Lenders”).

    

    WHEREAS,
      the
      parties hereto are parties to a certain Loan Agreement, dated June 4th,
      2002, a
      copy of which is attached hereto as Exhibit
      A
      (the
“Loan
      Agreement”);
      and

    

    WHEREAS, the
      parties wish to amend the Loan Agreement, as set forth below;

    

    NOW
      THEREFORE,
      the
      parties hereby agree as follows:

    

    1. Capitalized
      terms used but not defined, directly or by reference, herein shall have the
      meaning ascribed thereto in the Loan Agreement. Notwithstanding, any reference
      to "Lenders" herein and in the Loan Agreement after the execution of this
      Amendment, shall refer to Plenus Technologies Ltd. Only.

    

    2. Section
      1.2 of the Loan Agreement shall be deleted in its entirety and the section
      marked "Reserved".

    

    

    3. Section
      1.8 of
      the Loan Agreement shall be amended by deleting the word, "second", in the
      third
      line, and inserting the word, "fourth", in place thereof.

    

    4. Section
      2
      of the Loan Agreement shall be amended by inserting the following paragraph
      after the last line: "The
      Company shall pay to the Lenders, on each of the third and fourth anniversary
      of
      the Effective Date, a fee equal to 1% of the Credit Line Amount which was not
      utilized in the contract year ending on such anniversary date, plus VAT if
      applicable. For the purpose of such fee, any Principal Amount repaid during
      such
      year shall be taken into account as partially utilized, based on the number
      of
      days it was outstanding.". 

    

    5. Section
      2.2 of
      the Loan Agreement shall be amended by deleting the words, "twenty four (24)",
      in the third line, and inserting the word, "forty eight (48)", in place thereof.
      

    

    6. Section
      2.4 of the Loan
      Agreement shall be amended by deleting the words, "twenty four (24)", in the
      eighth line, and inserting the words, "forty eight (48)", in place
      thereof.

    

    7. Paragraph
      (iii) of Section 3 of the Loan Agreement shall be amended by (a) inserting
      the
      words, "including, but not limited to, monies borrowed, or to be borrowed,
      from
      United Mizrachi Bank Ltd.", after the words, "Wintegra Israel", in the first
      line, and in the third line, and (b) inserting the words, "including, without
      limitation, by United Mizrachi Bank Ltd.", after the words "commitment to lend",
      in the sixth line thereof. 

     

    
      
        
        

      

      
        -
          1 -

        
          

        

      

      
        
        

      

    

     

    8. Paragraph
      (vi) of Section 3 of the Loan Agreement shall be amended by inserting the words,
      "including, but not limited to, the financial covenants set forth in
Exhibit
      G
      attached
      hereto", after the words, "schedules hereto", in the third line.

    

    9. Paragraph
      (xi) of Section 3 of the Loan Agreement shall be marked as (ix) instead.

    

    10. Paragraph
      (ix) of Section 4 of the Loan Agreement shall be amended by inserting the words,
      "the Series C Preferred Stock,", after the words, "stock of the Company", in
      the
      third line.

    

    11. Section
      9.7 of the Loan Agreement shall be amended by (a) replacing the first sentence
      thereof with the following sentence: "The Company shall pay to Plenus, for
      legal
      fees: (a) Twenty Thousand United States dollars (US$ 20,000), plus applicable
      value added tax, on or immediately after the date which this Agreement and
      all
      schedules and exhibits hereto are executed by the parties, (b) Twelve Thousand
      United States dollars (US$ 12,000) ), plus applicable value added tax, on the
      second anniversary of the Effective Date, (c) all out of pocket expenses
      incurred by Plenus’ legal advisors.", and (b) replacing the word, "amount", in
      the sixth line, with the word, "amounts". 

     

    12. Section
      9.8 of the Loan Agreement shall be amended in its entirety to state that:
"Any
      term
      of this Agreement may be amended and the observance of any term hereof may
      be
      waived (either prospectively or retroactively and either generally or in a
      particular instance) only with the written consent of the Company and Plenus."
      

    

    13. Schedule
      1 to the Loan Agreement shall be replaced by Schedule
      1
      attached
      hereto.

    

    14. Exhibit
      G
      attached
      hereto shall be attached to the Loan Agreement as Exhibit G.

     

    15. Except
      as
      herein expressly agreed, the Loan Agreement, as amended, is hereby confirmed
      and
      ratified and shall remain in full force and effect according
      to its
      terms.

     

    16. The
      parties acknowledge that Wintegra Israel is executing a first ranking floating
      charge and fixed charge in favor of Mizrahi Bank.

    

    17. Concurrently
      with the
      execution and delivery of this Amendment Agreement, the Warrant shall be
      surrendered by Plenus against the issuance of a new warrant, in the form of
      Exhibit
      B attached
      hereto (the "New
      Warrant"),
      and
      all of the provisions of the Loan Agreement with respect to the Warrant and
      the
      Warrant Shares shall apply from the date hereof to the New Warrant and warrant
      shares issuable pursuant thereto.

    

    18. This
      Amendment shall be contingent upon and subject to the fulfillment, on or before
      sixty days of the second anniversary of the Effective Date, of each of the
      following conditions: (1) the issuance of the New Warrant; (2) the execution
      of
      an amended Floating Charge Agreement by and between the Lenders and Wintegra
      Israel (the
      “Amended
      Floating Charge Agreement”)
      in the
      form attached hereto as Exhibit
      C1
      (3)
the
      execution of a collateral agent letter agreement
      by and among the parties hereto, Bank Leumi, and the Co-Lender (the
“Collateral
      Agent Letter Agreement”)
      in the
      form attached hereto as Exhibit
      C2
      ; and
(4)
      the
      board of directors and shareholders of the Company and Wintegra Israel shall
      have authorized the execution and delivery of this Amendment, the Amended
      Floating Charge Agreement, the Collateral Agent Agreement and the New Warrant.
      

    

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF,
      the
      parties have caused this Amendment to be duly executed and delivered on the
      day
      and year first above written.

     

     

    

     

    WINTEGRA
      INC.

    

    By: /s/
      Kobi Ben
      Zvi                          

    

    Its: _CEO____________________

    

    WINTEGRA
      LTD.

    

    By: /s/
      Kobi Ben
      Zvi                          

    

    Its: _CEO____________________

    

    PLENUS
      TECHNOLOGIES LTD. on
      its own
      behalf and on behalf of the Beneficiaries listed in Schedule 1.

    

    By: /s/
      Moti Weiss     /s/ Shlomo
      Karako

    

    Its: Managing
      Parter        
CFO

    

     

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

       

    

    SCHEDULE
      1

    

     

    

      
        	
                THE
                  LENDERS

              
	
                Name
                  and Address

              	 	
                Amount

              	 	
                Currency

              
	
                 

              	 	 	 	 
	
                Plenus
                  Technologies Ltd.

              	 	
                1,787,600

              	 	
                US$

              
	
                On
                  behalf of the Beneficiaries

              	 	 	 	 
	
                Listed
                  below

              	 	 	 	 
	
                16
                  Hagalim Avenue 

              	 	 	 	 
	
                Herzliya
                  Pituach

              	 	 	 	 
	
                Israel

              	 	 	 	 
	
                Attn:
                  Ruthi Simcha and Gadi Moshe

              	 	 	 	 
	
                Facsimile:
                  (972-9) 957-8770

              	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                THE
                  CO-LENDERS

              
	
                Name
                  and Address

              	 	
                Amount

              	 	
                 Currency

              
	 	 	 	 	 
	 	 	 	 	 
	
                Golden
                  Gate Bridge Fund L.P 

              	 	
                212,400

              	 	
                US$

              

      

    

    

    THE
      BENEFICIARIES

     

    
      
        	
                1.

              	
                The
                  Investment Corporation of United Mizrachi Bank Ltd.

              
	
                2.

              	
                Union
                  Bank of Israel Ltd.

              
	
                3.

              	
                Citibank
                  N.A.

              
	
                4.

              	
                Industrial
                  Development Bank of Israel Ltd.

              
	
                5.

              	
                D.
                  Partners (BVI)

              
	
                6.

              	
                CMA
                  Technology Venture Partner Limited

              
	
                7.

              	
                D.
                  Partners (ISR)

              
	
                8.

              	
                Israel
                  Continental Bank Ltd.

              
	
                9.

              	
                Nessuah
                  Zannex Ltd.

              
	
                10.

              	
                Mercantile
                  Discount Bank Ltd.

              
	
                11.

              	
                Benleumi
                  Provident Funds

              
	
                12.

              	
                Bank
                  Leumi Le-Israel B.M.

              
	
                13.

              	
                Kahal
                  Ltd.

              

      

    

    

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G

    

    Financial
      Covenants

    

    The
      Company's revenues during the period commencing on January 1, 2004 end ending
      on
      December 31, 2004 will not be less than Eight Million United States dollar
      (US$8,000,000).

     

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

     

    

      [Plenus
        Letterhead]

      August
        _____, 2004

      

      Citibank,
        N.A. 

      Bank
        Leumi Le-Israel B.M.

      Golden
        Gate Bridge Fund L.P.

      

      Ladies
        and Gentlemen: 

      

      Reference
        is hereby made to (i) that certain Loan Agreement (the "Loan
        Agreement")
        made
        as of June 4, 2002, by and among Wintegra Inc. (the "Company"),
        Wintegra Ltd. and the lenders listed in Schedule
        1
        attached
        thereto (such Lenders, other than Plenus Technologies Ltd., the "Old
        Lenders"),
        (ii)
        that certain Pledge and Security Agreement (the "Security
        Agreement") dated
        as
        of June 4, 2002, by and between the Company and Plenus Technologies Ltd.,
        as
        Collateral Agent ("Plenus"),
        (iii)
        that certain Amendment to Loan Agreement by and between the Company and Wintegra
        Ltd., and the lenders listed in Schedule
        1
        attached
        thereto, made as of June 4th
        2004,
        and (iv) the discharge in full of all rights and interests of the Old Lenders
        under the Loan Agreement and the Security Agreement. All capitalized terms
        used
        and not defined herein shall have the respective meanings assigned to such
        terms
        in the Loan Agreement, as amended.

      

      This
        letter agreement (the "Letter Agreement") sets forth our agreement with respect
        the following: 

      

      1.    Discharge
        of Interests by Old Lenders.

      

      Each
        of
        the Old Lenders hereby confirms and acknowledges the discharge of all of
        its
        rights and interests under the Loan Agreement and the Security Agreement
        and
        releases, waives, and forever relinquishes all claims, demands, obligations,
        liabilities and causes of actions of whatever kind or nature with respect
        thereto .

      

      Notwithstanding
        the foregoing and for the avoidance of doubt, it is hereby stated that all
        the
        Citibank's and Bank Leumi's rights under the Warrant (as such term is defined
        in
        the Loan Agreement) remain in full force and effect in accordance with the
        terms of the Warrant and such rights are unchanged in any way by this Letter
        Agreement.

      

      Citibank
        N.A. ("Citibank")
        confirms that it is no longer a party to the Loan Agreement, the Floating
        Charge
        Agreement (as defined in the Loan Agreement) and/or the Security Agreement
        (the
        "Transaction
        Documents")
        and
        thus the Transaction Documents may be amended from time to time by the other
        parties thereto without requiring Citibank's consent.

      

      
        	 	
                2.

              	
                Confirmation
                  of Plenus as Collateral Agent; Security Agreement.  

              

      

      

      The
        Co-Lender specified in Schedule 1 to the Amended Loan Agreement hereby confirms
        Plenus' appointment as Collateral Agent on its behalf with all of the rights
        and
        powers granted to Plenus pursuant to the Security Agreement and the Loan
        Agreement. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      This
        Letter Agreement may be executed in any number of counterparts, each of which
        shall constitute an original and all of which, taken together, shall constitute
        one and the same instrument.

      

      

      By
        your
        signature below, you hereby acknowledge and accept the terms set forth in
        this
        Letter Agreement.

      

      Sincerely,

      

      Plenus'
        Technologies Ltd.

      

      /s/
        Moti Weiss /s/ Shlomo Karako

      [name,
        title]

      

      

      ACKNOWLEDGED
        AND ACCEPTED:

      

      Citibank,
        N.A., Tel-Aviv Branch

      

      

      By:
        _______________________________

      Name:
        

      Title:
        

      

      Bank
        Leumi Le-Israel B.M.

      

      

      By:
        _______________________________

      Name:
        

      Title:
        

      

      Golden
        Gate Bridge Fund L.P.

      

      

      By:
        /s/ Shlomo Karako

      Name:
        

      Title:
        

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      ACKNOWLEDGED:

      

      WINTEGRA
        INC.

      

      

      By:
        /s/ Kobi Ben Zvi

      Name:
        Kobi Ben Zvi

      Title:
        CEO

      

      

      WINTEGRA
        LTD.

      

      

      By:
        /s/ Kobi Ben Zvi

      Name:
        Kobi Ben Zvi

      Title:
        CEO

    

    
      
        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

      SCHEDULE
        1

      

      THE
        LENDERS

      

        
          	
                  Name
                    and Address

                	
                   Amount

                	
                  Currency

                
	
                   

                	 	 
	
                  Plenus
                    Technologies Ltd.

                	
                   1,787,600

                	
                  US$

                
	
                  On
                    behalf of the Beneficiaries

                	 	 
	
                  Listed
                    below

                	 	 
	
                  16
                    Hagalim Avenue 

                	 	 
	
                  Herzliya
                    Pituach

                	 	 
	
                  Israel

                	 	 
	
                  Attn:
                    Ruthi Simcha and Gadi Moshe

                	 	 
	
                  Facsimile:
                    (972-9) 957-8770

                	 	 

        

      

       

      

      THE
        CO-LENDERS

      

        
          	
                  Name
                    and Address

                	
                  Amount

                	
                   Currency 

                
	 	
                   

                	
                   

                
	
                  Golden
                    Gate Bridge Fund L.P

                	
                  212,400

                	
                  US$

                

        

      

      
 

      THE
        BENEFICIARIES

      

      
        	
                1.
                  The Investment Corporation of United Mizrachi Bank Ltd.

              
	
                2.
                  Union Bank of Israel Ltd.

              
	
                3.
                  Citibank N.A.

              
	
                4.
                  Industrial Development Bank of Israel Ltd.

              
	
                5.
                  D. Partners (BVI)

              
	
                6.
                  CMA Technology Venture Partner Limited

              
	
                7.
                  D. Partners (ISR)

              
	
                8.
                  Israel Continental Bank Ltd.

              
	
                9.
                  Nessuah Zannex Ltd.

              
	
                10.
                  Mercantile Discount Bank Ltd.

              
	
                11.
                  Benleumi Provident Funds

              
	
                12.
                  Bank Leumi Le-Israel B.M.

              
	
                13.
                  Kahal Ltd.

              

      

    

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AMENDMENT
        TO FLOATING CHARGE AGREEMENT

      

      This
        Amendment is made and entered as of the 4th
        day of
        June 2004, by and between Wintegra
        Ltd. (the "Pledgor") and Plenus Technologies Ltd. (“Plenus” or (the
“Lenders”).

      

      WHEREAS,
        the
        parties hereto are parties to a certain Floating Charge Agreement, dated
        June
        4th,
        2002
        (the " Floating Charge Agreement"); and

      

      WHEREAS, the
        parties wish to amend the Floating Charge Agreement, as set forth below;
        

      

      NOW
        THEREFORE,
        the
        parties hereby agree as follows:

      

      1. Capitalized
        terms used but not defined, directly or by reference, herein shall have the
        meaning ascribed thereto in the Floating Charge Agreement. Notwithstanding,
        any
        reference to "Lenders" in the Floating Charge Agreement after the execution
        of
        this Amendment, shall refer to Plenus Technologies Ltd. Only.

      

      2. Section
        1
        to the Floating Charge Agreement shall be amended by inserting the words
        "as it
        may be amended, restated, supplemented or otherwise modified from time to
        time"
        after the words "June 4th,
        2002"
        in the last line thereof.

      

      3. Schedule
        1 to the Floating Charge Agreement shall be replaced by Schedule
        1
        attached
        hereto. 

      

      4. Section
        12 of the Floating Charge Agreement shall be amended by deleting the word
        "Citibank" in the sixteen line.

      

      5. Section
        13 to the Floating Charge Agreement shall be deleted.

      

      6.  Except
        as
        herein expressly agreed, the Floating Charge Agreement, is hereby confirmed
        and
        ratified and shall remain in full force and effect according
        to its
        terms.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        the
        parties have caused this Amendment Agreement to be duly executed and delivered
        on the day and year first above written.

       

       

      
        
          

        

         

        
          WINTEGRA
            LTD.

        

        By:
          /s/
          Kobi Ben Zvi

        
          
            

          

        

        Its:
          CEO

        
          

        

         

         

        
          
             

            
              

            

          

        

         

        PLENUS
          TECHNOLOGIES LTD. On
          its
own behalf and on behalf of the
Beneficiaries listed in Schedule
          1.

        
          
            By: 
              /s/
              Moti Weiss /s/ Shlomo Karako

            
              
                

              

            

            Its: 
Moti
              Weiss, Managing Partner Shlomo Karako, CFO

            
              

            

          

        

        

        Agreed
          and accepted:

        

         

        
          
            

          

        

         

        GOLDEN GATE BRIDGE FUND L.P

        
           

          
            
              By: 
                /s/
                Shlomo Karako

              
                
                  

                

              

              Its: 
Shlomo
                Karako, CFO

              
                

              

            

          
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    THIS
      WARRANT HAS BEEN, AND THE WARRANT SHARES (AS DEFINED HEREIN) WHICH MAY BE
      PURCHASED UPON THE EXERCISE OF THIS WARRANT MAY BE, ACQUIRED SOLELY FOR
      INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE "ACT"), OR ANY APPLICABLE STATE OR COMPARABLE SECURITIES LAW OF
      A
      U.S. OR NON-U.S. JURISDICTION. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR
      SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION
      OF COUNSEL SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH SALE,
      OFFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
      DELIVERY REQUIREMENTS OF THE ACT AND OF ANY APPLICABLE STATE OR COMPARABLE
      SECURITIES LAW OF A U.S. OR NON-U.S. JURISDICTION.

    
       

      WINTEGRA
        INC. (the "CORPORATION")

       

      NO.
        ____;
        VOID AFTER JUNE 3rd,
        2013.

       

      WARRANT

       

      THIS
        CERTIFIES THAT,
        for
        value received, Plenus Technologies Ltd. ("Plenus"),
        or
        any other Holder (as defined in Section 1 hereof) is entitled to purchase,
        at
        the Exercise Price (as such term is defined in Section 2 below) for the Exercise
        Amount (as such term is defined in Section 1 below), at its election, fully
        paid
        shares of the Corporation’s Series C Preferred Stock or New Shares (as such
        terms are defined in Section 1 below), having all rights, privileges and
        preferences, contractual, economic or otherwise, attached to such class of
        shares or otherwise granted to any holder of such class of shares (the
“Warrant Shares”),
        subject
        to the provisions and upon the terms and conditions hereinafter set forth
        in
        this Warrant.

       

      1. Definitions.

       

      As
        used
        herein the following defined terms shall have the meaning ascribed to them
        in
        this Section as follows:

       

      "Convertible
        Securities" shall
        mean options or warrants to purchase, or rights to subscribe for, shares
        of the
        Corporation, or securities that by their terms are convertible into or
        exchangeable for equity securities of the Corporation, or options or warrants
        to
        purchase, or rights to subscribe for, such convertible or exchangeable
        securities.

       

      "Exercise
        Amount" shall
        mean six hundred thousand dollars ($600,000).

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      "Holder"
        shall
        mean Plenus, any Permitted Transferee and any such other third party to which
        this Warrant is assigned or transferred with the Corporation's consent (which
        consent shall not be unreasonably withheld or delayed).

       

      "IPO"
        shall
        mean the consummation of an initial public offering of the Corporation's
        securities.

       

      "Issuance
        of Additional Shares"
        shall
        mean the issuance of shares or Convertible Securities of the Corporation,
        other
        than:

       

      (A) Common
        Stock issued pursuant to a transaction described in subsection 3(iv)(iii)
        of the
        Fifth Restated and Amended Certificate of Incorporation of the Corporation
        (the
        "5th
        Restated Certificate");
        or

      

      (B) Shares
        of
        Common Stock (excluding shares repurchased at cost by the Corporation in
        connection with the termination of service) issuable or issued to employees,
        consultants, directors or vendors of the Corporation in transactions with
        non-financing purposes) pursuant to a stock option plan or restricted stock
        plan
        approved by the Board of Directors of the Corporation; or

      

      (C) Shares
        of
        Common Stock issued upon conversion of the Series A Preferred Stock, Series
        B
        Preferred Stock or Series C Stock, in accordance with the provisions of Section
        3 of the 5th
        Restated
        Certificate;

      

      (D) Shares
        of
        the Corporation issued pursuant to the exercise of warrants to purchase shares
        of Series B Preferred Stock which are outstanding as of the date hereof and
        which are listed in the disclosure schedule to the Series C Stock Purchase
        Agreement (as defined in the 5th
        Restated
        Certificate);

      

      (E) Shares
        of
        the Corporation issued pursuant to the exercise of warrants to purchase shares
        of Series C Preferred Stock which have been granted pursuant to the Series
        C
        Stock Purchase Agreement and are outstanding on the date hereof.

       

      “Last
        Round of Financing” shall
        mean the round of financing consummated in accordance with the Series C
        Preferred Stock Agreement, dated March 25, 2003, by and among the Corporation
        and Purchasers (as defined in that Series C Preferred Stock Purchase Agreement).
        

       

      “M&A
        Transaction”
        shall
        mean the consummation of (a) a transaction or a series of transactions for
        the
        sale or other disposition of all, or substantially all, of the assets or
        business of the Corporation, or (b) a transaction or a series of transactions,
        including, without limitation, a merger or consolidation, whereby, or as
        a
        result thereof, the Corporation's shareholders immediately prior thereto
        hold
        50% or less of the voting power of the Corporation, the surviving entity
        or the
        new entity (as the case may be) or no longer have the power or the right
        to
        appoint more than fifty (50%) percent of the members of the board of directors
        of such entity.

       

      "New
        Shares" shall
        mean any class of shares issued or issuable in connection with the Next round
        of
        Financing. 

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “Next
        Round of Financing”
        shall
        mean the first equity investment (including in Convertible Securities), or
        a
        series of equity investments, in the Corporation of fifteen million dollars
        ($15,000,000) or more occurring after the date hereof.

       

      “Permitted
        Transferee” shall
        mean, (i)
        the
        Co-Lender and each Beneficiary, (ii) any entity which controls, is controlled
        by
        or is under common control with the Holder, and (iii) if the Holder is a
        trustee
for,
        or
        acts on behalf of other person -
        such
        other person. 

       

      “Series
        C Preferred Stock”
        shall
        mean shares of the Corporation's share capital of the same class and par
        value,
        and having the same rights, privileges and preferences, contractual, economic
        or
        otherwise, as the shares purchased by the investors in the Last Round of
        Financing. 

       

      “Realization
        Event”
        shall
        mean an IPO or M&A Transaction. 

       

      Capitalized
        terms not otherwise defined herein shall have the meaning ascribed to them
        in
        the Loan Agreement, dated as of June 4th,
        2002,
        among the Corporation, Wintegra Ltd., Plenus and Citibank N.A., as it may
        be
        amended from time to time (the "Loan Agreement").

       

      2.Number
        and Class of Warrant Shares; Exercise Price.

       

      (a) Number
        of Warrant Shares.
        The
        Holder shall be entitled to purchase such number of Warrant Shares that is
        equal
        to the Exercise Amount divided by the Exercise Price (as defined below).
        

       

      (b) Class
        of Warrant Shares.
        The
        class of share to be issued upon the exercise of this Warrant shall be, at
        the
        Holder's election, Common Stock, Series C Preferred Stock or, if applicable
        at
        the time of exercise, the New Shares.

       

       

      (c) Exercise
        Price.
        The
        Exercise Price for each Warrant Share, subject to adjustments pursuant to
        the
        provisions of this Section 2 and of Section 5 and hereof (the "Exercise
        Price"),
        shall
        be: (i) in case of Series C Preferred Stock -$1.65005 , (ii) in case of New
        Shares - the lowest price per share paid by a purchaser in consideration
        of a
        New Share in the Next Round of Financing, (iii) in case of an IPO - 100%
        of the
        public offering price (before deduction of discounts, commissions or expenses)
        of a Common Stock in the IPO, and (iv) in case of an M&A Transaction - 100%
        of the price per share determined in such transaction. 

       

      

      (d)  Full
        Ratchet Protection.
        Notwithstanding anything herein to the contrary, upon each Issuance of
        Additional Shares at a price per share which is lower than the applicable
        Exercise Price then in effect, the Exercise Price will be automatically reduced
        to such lower price. For the removal of doubts: No adjustment of an Exercise
        Price shall be made if it has the effect of increasing the Exercise Price
        beyond
        the applicable Exercise Price in effect immediately prior to such Issuance
        of
        Additional Shares.

       

      Should
        the Exercise Price indeed be so reduced and the Warrant exercised at such
        lower
        price, the following provisions shall apply:

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (i) For
        the
        purpose of the provisions contained in Article IV of the 5th
        Restated
        Certificate, as such certificate may be amended and/or restated from time
        to
        time, in respect of dividends (Section II-1), liquidation preference (Section
        II-2) and conversion (Section II-3), including, for the avoidance of doubt,
        Conversion Rate (Subsection (i)), automatic conversion (Subsection (ii) and
        conversion price adjustments (Subsection (iv)), the "Original Series C Issue
        Price" of each Series C Preferred Stock held by the Holder shall be deemed
        to be
        such reduced Exercise Price and not as defined in subsection (i) of Section
        II-2
        thereof. 

       

      (ii) Should
        the event described in the beginning of the second to last sentence of Article
        IV, Section II-2, subsection (i) of the 5th
        Restated
        Certificate occur ("the assets and funds thus distributed among the holders
        of
        the Series C Preferred Stock shall be insufficient to permit the payment to
        such holders of the full aforesaid C Preference Amount"), then for the purpose
        of the last part of that sentence ("distributed ratably among the holders
        of the
        Series C Preferred Stock in proportion to the amount of such stock owned
        by each
        such holder"), "the amount of such stock owned by" the Holder relative to
        all of
        the issued and outstanding shares of such stock, shall be deemed to be equal
        to
        the fraction obtained by dividing
        (x) the
        aggregate Exercise Price actually paid by the Holder to the Corporation for
        the
        Series C Preferred Stock it owns, by (y) the aggregate amount actually paid
        to
        the Corporation by all
        holders
        of Series C Preferred Stock for such stock ("Holder's
        Pro Rata Share").

       

      (iii) With
        respect to any vote, consent or waiver within the class of Series C Preferred
        Stock, which is not
        based on
        an "as converted basis", the Holder shall be deemed to hold an amount of
        shares
        of Series C Preferred Stock which, when divided by the entire number of issued
        and outstanding shares of such stock, will be equal to Holder's Pro Rata
        Share.

       

      3. Method
        of Exercise; Payment.

       

      (a) Cash
        Exercise.
        The
        purchase rights represented by this Warrant may be exercised by the Holder,
        in
        whole or in part, by the surrender of this Warrant (with the Notice of Exercise
        form attached hereto as Exhibit A duly
        executed) at the principal office of the Corporation, and by the payment
        to the
        Corporation, by cash, certified, cashier's or other check or method acceptable
        to the Corporation, of an amount equal to the applicable Exercise Price
        multiplied by the number of the Warrant Shares being purchased.

       

      (b)
         Net
        Exercise.
        In lieu
        of the payment method set forth in Section 3(a) above, the Holder may elect
        to
        exchange the Warrant for a number of the applicable class of Warrant Shares
        equal to the number of Warrant Shares computed using the following
        formula:

       

      X
        =
Y(A-B)

                 
        A

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	 	 	
                Where
                  X
                  =
                  the number of Warrant Shares to be issued to the
                  Holder.

              

      

       

      
        	 	 	 	
                Y
                  =
                  the number of Warrant Shares purchasable under the Warrant (adjusted
                  to
                  the date of such calculation, but excluding Warrant Shares already
                  issued
                  under this Warrant).

              

      

       

      
        	 	 	 	
                A
                  =
                  the Fair Market Value (as defined below) of one Warrant
                  Share.

              

      

       

      B
        =
        Exercise Price (as adjusted to the date of such calculation). 

       

      “Fair
        Market Value”
        of a
        Warrant Share shall mean:

       

      
        	
                (i)  
                  

              	
                In
                  the event of an M&A Transaction - the price per Warrant Share
                  (assuming conversion of the Warrant Shares, adjusted to the date
                  of such
                  calculation, but excluding those shares already issued under this
                  Warrant)
                  as determined in such transaction. 

              

      

       

      	(ii)  	
              In
                the event of an IPO - the public offering price (before deduction
                of
                discounts, commissions or expenses) in such offering.

            

       

      	(iii)  	
              If
                the Corporation's Common Stock are publicly traded on a national
                securities exchange, NASDAQ/NMS, over-the-counter or the like - the
                last
                closing trade price of the Common Stock. 

            

       

      	(iv)  	
              If
                the Fair Market Value for a Warrant Share cannot be determined in
                the
                manner set forth above in items (i)- (iii), then the Fair Market
                Value of
                a Warrant Share shall be as determined in good faith by the Corporation
                and the Holder or, if they fail to so determine, by the Corporation's
                auditor.

            

       

      (c) Conditional
        Exercise.
        In the
        event that the Holder intends to exercise this Warrant upon a Realization
        Event,
        the Holder shall be entitled to condition such exercise on the consummation
        of a
        Realization Event and shall indicate same on the Notice of Exercise and,
        having
        done so, the Holder will only be required to pay the applicable aggregate
        Exercise Price if, and at such time as, the Realization Event is
        consummated.

       

      (d) Share
        Certificates; Partial Exercise.
        In the
        event of any exercise of the rights represented by this Warrant, certificates
        for the applicable class and amount of Warrant Shares so purchased shall
        be
        delivered to the Holder promptly and, unless this Warrant has been fully
        exercised in accordance with Sections 3(a) or 3(b) hereof, a new Warrant
        representing the balance of the Warrant Shares with respect to which this
        Warrant shall not have been exercised shall also be issued to the Holder
        within
        such time.

       

      (e) Redemption.
        In the
        event of an IPO or a M&A Transaction, the Holder may elect to redeem the
        Warrant for $258,000, paid in cash (the "Redemption Price"),
        by
        the delivery of a Redemption Notice (a form of which is attached hereto as
        Exhibit B), duly
        executed, at the principal office of the Corporation. The redemption price
        shall
        be paid to the Holder within 7 days from the date such redemption notice
        is
        given against surrendering of the Warrant.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      4. Share
        Fully Paid; Reservation of Shares.
        All of
        the Warrant Shares issuable upon the exercise of the rights represented by
        this
        Warrant will, upon issuance and receipt of the Exercise Price therefor, be
        fully
        paid and non-assessable, and free from allliens and charges. At all times
        when
        this Warrant may be exercised, to the extent technically possible, the
        Corporation shall have authorized and reserved for issuance sufficient shares,
        free from pre-emptive rights, of its Warrant Shares to provide for the exercise
        of the rights represented by this Warrant, so that this Warrant may be exercised
        without additional authorization of share capital, after giving effect to
        all
        other Convertible Securities.

       

      5. Adjustments.
        The
        number and kind of securities purchasable upon the exercise of this Warrant
        and
        the Exercise Price therefor shall be subject to adjustment from time to time
        upon the occurrence of certain events, as follows:

       

      (a) Reclassification.
        In case
        of any reclassification or change of the applicable class of Warrant Shares
        issuable at such time (other than a change in par value, or as a result of
        a
        subdivision or combination), the Corporation shall execute and issue a new
        Warrant, providing that the Holder shall have the right to exercise such
        new
        Warrant, and procure upon such exercise and payment of the same aggregate
        Exercise Price, in lieu of such applicable class of Warrant Shares theretofore
        issuable upon exercise of this Warrant, the kind and amount of shares, other
        securities, money and property receivable upon such reclassification or change,
        by a holder of an equivalent number of such applicable class of Warrant Shares.
        Such new warrant shall provide for adjustments that shall be as nearly
        equivalent as may be practicable to the adjustments provided for in this
        Section
        5 or as shall be necessary in order to ensure the integrity of the Holder’s
        economic rights. The provisions of this subsection (a) shall similarly apply
        to
        successive reclassifications or changes.

       

      (b) Share
        Splits, Dividends, Combinations and Reorganizations.
        In the
        event that the Corporation shall at any time subdivide the outstanding
        applicable class of Warrant Shares or shall issue a share dividend on its
        outstanding applicable class of Warrant Shares, the number of Warrant Shares
        issuable upon exercise of this Warrant immediately prior to such subdivision
        or
        to the issuance of such share dividend shall be proportionately increased,
        and
        the Exercise Price shall be proportionately decreased. In the event that
        the
        Corporation shall at any time combine the outstanding shares of the applicable
        class of Warrant Shares, the number of shares of the applicable class of
        Warrant
        Shares issuable upon exercise of this Warrant immediately prior to such
        combination shall be proportionately decreased, and the Exercise Price shall
        be
        proportionately increased. Similar equitable adjustments will be made in
        the
        event of an M&A Transaction as well as any spin-off, split-off or other
        capital change transaction by the Corporation.

       

      (c) General
        Protection.
        The
        Corporation will not by amendment of its Certificate of Incorporation or
        By-laws
        or through any reorganization, transfer of assets, consolidation, merger,
        dissolution, issuance or sale of its securities or any other voluntary action,
        avoid, or seek to avoid, the observance or performance of any of the terms
        to be
        observed or performed hereunder, but will at all times in good faith assist
        in
        the carrying out of all provisions hereof and in taking of all such actions
        and
        making all such adjustments as may be necessary or appropriate in order to
        protect the rights of the Holder against any impairment.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      6. Notice
        of Adjustments.
        Whenever the number of shares of the applicable class of Warrant Shares
        purchasable hereunder or the Exercise Price thereof shall be adjusted pursuant
        to Sections 2 or 5 hereof, the Corporation shall provide written notice to
        the
        Holder setting forth, in reasonable detail, the event requiring the adjustment,
        the amount of the adjustment, the method by which such adjustment was
        calculated, and the number and class of shares of the applicable class of
        Warrant Shares which may be purchased and the Exercise Price therefor after
        giving effect to such adjustment.

       

      7. Fractional
        Shares.
        This
        Warrant may not be exercised for fractional shares. In the event of fractional
        shares, the Corporation shall round the number of Warrant Shares issuable
        upon
        such exercise down to the nearest whole share and shall pay an amount in
        cash to
        the Holder equal to any such fractional share. 

       

      8. Representations
        and Covenants of the Corporation.
        The
        Corporation represents and covenants to the Holder as follows:

       

      (a) All
        corporate actions on the part of the Corporation, its officers, directors
        and
        shareholders necessary for the sale and issuance of the Warrant and the Warrant
        Shares and the performance of the Corporation's obligations hereunder have
        been
        taken and are effective as of the Effective Date. The Corporation undertakes
        that all additional corporate actions on the part of the Corporation, its
        officers, directors and shareholders as may be required in connection with
        an
        adjustment pursuant hereto and/or the creation, sale and issuance of the
        New
        Shares, will be taken as promptly as practicable.

       

      (b) As
        of the
        date of exercise of this Warrant, the Corporation shall record the Holder
        in the
        Corporation’s internal share register in accordance with the applicable law and
        practice, as the owners, direct or beneficial, of the Warrant Shares pursuant
        to
        the names provided by the Holder in the Notice of Exercise (Exhibit A) to
        this
        Warrant.

       

      9. Restrictions
        Upon Transfer.

       

      (a) Without
        derogating from any other restriction that may be contained in the Certificate
        of Incorporation or By-laws of the Corporation or herein, the Corporation
        need
        not register a transfer of this Warrant or the Warrant Shares unless the
        proposed transferee agrees to be bound by the terms and conditions of this
        Warrant and the proposed transferee provides the Corporation with written
        representations required pursuant to the Act. 

       

      (b) 
        All
        transfers of this Warrant shall be accompanied by an executed warrant transfer
        deed, under which the transferee undertakes to be bound by all obligations
        of
        the Holder under this Warrant. The form of the deed of transfer and is attached
        hereto as Exhibit
        C.
        Any
        proposed transferee shall execute an irrevocable proxy to the Holder, in
        the
        same form attached to the Loan Agreement.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (c) Subject
        to the foregoing, the Holder shall have the right to assign and transfer
        its
        rights and obligations under this Warrant and the Warrant Shares to a Permitted
        Transferee. A transfer of the rights and obligations under this Warrant to
        any
        other person shall require the Corporation's prior written consent, which
        shall
        not be unreasonably withheld or delayed.
        Plenus
        acknowledges and agrees that the Corporation shall not be deemed to unreasonably
        withhold its consent, if due to a right of first refusal conferred upon certain
        shareholders
        of the
        Corporation,
        the
        Corporation is contractually bound to withhold its consent.

       

      10. No
        Rights of Shareholders.
        The
        Holder shall not be entitled, as a Warrant holder, to vote or receive dividends
        or be deemed the holder of the shares of the applicable class of Warrant
        Shares
        or any other securities of the Corporation which may at any time be issuable
        on
        the exercise of this Warrant for any purpose, nor shall anything contained
        herein be construed to confer upon the Holder, as such, any of the rights
        of a
        shareholder of the Corporation or any right to vote for the election of
        directors or upon any matter submitted to shareholders at any meeting thereof,
        or to give or withhold consent to any corporate action (whether upon any
        recapitalization, issuance of shares, reclassification of shares, change
        of par
        value, consolidation, merger, conveyance, or other-wise) or to receive notice
        of
        meetings, or to receive dividends or subscription rights or otherwise until
        the
        Warrant shall have been exercised and the shares of the applicable class
        of
        Warrant Shares purchasable upon the exercise hereof shall have become
        deliverable, as provided herein. Upon the exercise of this Warrant the Holder
        shall be entitled to receive the same anti dilution or price protection rights
        on the Warrant Shares as currently granted, or in the future may be granted,
        to
        the holders of such class of shares of the Corporation (whichever is
        superior).

       

      11. Notices.
        All
        notices and other communications required or permitted hereunder shall be
        in
        writing
        and
        shall be mailed by registered mail, postage prepaid, telecopied (faxed) or
        electronically mailed or delivered by hand to the following
        addresses:

      

      If
        to the
        Corporation:          Wintegra
        Inc.

      6850
        Austin Center Blvd.

      Suite
        215

      Austin
        Texas 78731

      USA

       

      Attention:
        Dr. Ayal Shenhav, Adv. 

      Facsimile:
        972-9-9511187

      E-mail:
        ayal@shenhavlaw.co.il

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      If
        to the
        Plenus:                   
Plenus
        Technologies, Ltd.
            

      16
        Abba
        Eben Avenues 

      Herzliya
        Pituach 

      Israel

       

      Attention:
        Shlomo Karako 

      Facsimile:
        972-9-957-8770

      E-mail:
        momik@plenus.co.il

       

      

      or
        to
        such other address with respect to a party as such party shall notify each
        other
        party in writing as above provided. Any notice sent in accordance with this
        Section 11 shall be effective (i) if mailed by registered mail, three (3)
        business days after mailing, (ii) if sent via telecopier (fax) or electronic
        mail, upon transmission and electronic confirmation of receipt or - if
        transmitted and received on a non-business day - on the first business day
        following transmission and electronic confirmation of receipt, and (iii)
        if
        delivered by hand, upon delivery. 

       

      12. Registration
        Rights.
        Upon
        the
        exercise of the Warrant,
        the
        Holder will be entitled to all registration rights with respect to the Warrant
        Shares to be issued, as have been granted to a “Holder” under the Third Amended
Investors’
        Rights Agreement, dated as of March 25, 2003, and as may further be amended
        from
        time to time (the “Registration
        Rights Agreement”),
        and
        the Holder, including
        any Permitted Transferee and/or Co-lender thereof, shall become a party to
        the
        Registration
        Rights
        Agreement
        by
        signing a joinder agreement. 

       

      The
        Registration Rights Agreement shall be incorporated herein by reference and
        shall be deemed an integral part of this Warrant. Furthermore, upon any exercise
        of the Warrant by the Holder, the Holder, including any Permitted Transferee
        and/or Co-lender, shall be deemed to be a “Holder” or “Initiating Holders”, as
        applicable (as defined in the Registration Rights Agreement) and the Warrant
        Shares shall be deemed “Preferred Registrable Securities” (as defined in the
        Registration Rights Agreement) and the Holder, including any Permitted
        Transferee and/or Co-lender thereof, shall become entitled to all the rights
        and
        privileges set forth in the Registration Rights Agreement as if the Holder
        was
        an original signatory thereto. 

       

      Furthermore,
        for the purposes of the Registration Rights Agreement, upon
        the
        exercise of the Warrant,
        and so
        long as it complies with the “Major Holder” definition or “Major Investor”
definition therein, the Holder shall be deemed as such.

       

      Upon
        the
        exercise of the Warrant,
        the
        holder shall be deemed as a “Holder”, as defined in the Third
        Amended and Restated Right of First Refusal and Co-Sale Agreement
        dated
        March 25, 2003 (“RFR
        Agreement”).
        Furthermore, for the purposes of the RFR Agreement it shall be deemed as
“Major
        Holder” for as long as it complies with such definitions contemplated in the RFR
        Agreement.

       

      In
        addition, the Holder shall also be entitled to any additional or more favorable
        registration rights which may be granted to any investor in the Next Round
        of
        Financing, and the foregoing provisions of this Section 12 shall apply,
mutatis
        mutandis,
        to any
        registration rights agreement entered into by the Corporation in connection
        with
        the Next Round of Financing. 

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      The
        rights
        and obligations of the Corporation and the Holder set forth in this Section
        12
        shall survive the exercise, conversion and expiration of this
        Warrant.

       

      13. Governing
        Law.
        Since
        the Holder is based in Israel, this Warrant and all actions arising out of
        or in
        connection with this Agreement shall be exclusively governed by and construed
        in
        accordance with the laws of the State of Israel. However, corporate law matters
        will be governed by and construed in accordance with the laws of the State
        of
        Delaware.

       

      14. Partial
        Invalidity.
        If any
        provision of this Warrant is held by a court of competent jurisdiction to
        be
        invalid or unenforceable under applicable law, then such provision shall
        be
        excluded from this Warrant and the remainder of this Warrant shall be
        interpreted as if such provision were so excluded and shall be enforceable
        in
        accordance with its terms; provided,
        however,
        that in
        such event this Warrant shall be interpreted so as to give effect, to the
        greatest extent consistent with and permitted by applicable law, to the meaning
        and intention of the excluded provision as determined by such court of competent
        jurisdiction.

       

      15. Currency.
        The
        term "dollars" or the symbol "$" appearing in this Warrant shall mean the
        legal
        currency of the United States of America, and all payments hereunder shall
        be
        made in such currency, unless otherwise agreed in writing by the Holder and
        the
        Corporation. 

       

      16.  Expiration
        of Warrant.
        This
        Warrant shall expire and shall no longer be exercisable upon the earlier
        to
        occur of:

       

      (a) 1:00 p.m.,
        Israel local time, on June 3rd
        , 2013,
        or;

       

      	(b)  	
              a
                Realization Event, provided however, that this provision shall not
                affect
                the right of the Holder to exercise this Warrant pursuant to Sections
                3(b)
                and 3(c) hereof.

            

       

      The
        Company shall provide the Holder with written notice of the expiration of
        the
        Warrant at least fifteen (15) days prior to the anticipated consummation
        of a
        Realization Event (the “Expiration
        Notice”).
        If
        such Expiration Notice is not provided to the Holder prior to the consummation
        of a Realization Event, then the Warrant shall not expire until fifteen (15)
        days after written notice of the expiration of the Warrant due to a Realization
        Event is provided to the Holder.

       

      Issued
        this 4th
        day of
        June, 2004. 

       

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      WINTEGRA
        INC.

      
        	 	 	 	 
	By:
                /s/ Kobi Ben-Zvi	 	 	 
	
                
                  

                

                 

                Title: CEO

                
                  

                

              	 	 	
              

      

       

      Agreed
        and accepted:

       

      PLENUS
        TECHNOLOGIES, LTD.

      
        
          	 	 	 	 
	By:
                  /s/ Moti Weiss	 	 	/s/ Shlomo Karako
	
                  
                    

                  

                   

                  Title: Managing Partner

                  
                    

                  

                	 	 	
                  
                    
                      

                    

                     

                    CFO

                    
                      

                    

                    
                    

                  

                

        

         

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      EXHIBIT A

       

      NOTICE
        OF EXERCISE

       

      Wintegra
        Inc._____

      6850
        Austin Center Blvd.

      Suite
        215

      Austin
        Texas TX7831 

      USA

      

      Attn:
        ____________, 

       

      

       

      1.
        [ ] [____]
        (Check
        and initial here if the undersigned elects this alternative)
        The
        undersigned hereby elects to purchase [FILL
        IN NUMBER OF SHARES]
        ____________ shares of ______________ of the share capital of ____________,
        Ltd.
        pursuant to the terms of the attached Warrant (the "Warrant"),
        and
        tenders herewith payment in full for the purchase price of the shares being
        purchased. [Such purchase is contingent upon _______________ in accordance
        with
        Section 3(c) of the Warrant.]

       

      1.
        [ ] [____]
        (Check
        and initial here if the undersigned elects this alternative In
        lieu
        of exercising the Warrant for cash or a check, the undersigned hereby elects
        to
        effect the net exercise provision of Section 3(b) of the Warrant and receive
        [FILL
        IN NUMBER OF SHARES]
        _________ shares of the share capital of _______________, Ltd. pursuant to
        the
        terms of the Warrant according to the following calculation (Initial here
        if the
        undersigned elects this alternative ________): 

       

      X
        =
Y
        (A-B)  (
        ) =
(____)
        [(_____) - (_____)]

       

      A    
        (_____)

       

      Where
        X =
        the number of shares of Warrant Shares to be issued to Holder.

       

      Y
        = the
        number of shares of Warrant Shares purchasable under the amount of the Warrant
        being exchanged (as adjusted to the date of such calculation).

       

      A
        = the
        Fair Market Value of one share of the Corporation’s Warrant Shares.

       

      B
        =
        Purchase Price (as adjusted to the date of such calculation).

       

      2. Please
        issue a certificate or certificates representing said Warrant Shares in the
        name
        of the below list of entities, and record same in the Corporation’s internal
        share registry, as follows:

       

      

       

      Very
        truly yours,

       

      ______________

       

      By:
        ___________ 

       

      Title:
        __________

       

      Date:
        ___________

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      EXHIBIT B

       

      REDEMPTION
        NOTICE

       

      Wintegra
        Inc.

      6850
        Austin Center Blvd.

      Suite
        215

      Austin
        TX
        78731

      USA

      

      Attn:
        ____________, 

       

       

      1.
        The
        undersigned hereby elects to redeem ____________ shares of ______________
        of the
        share capital of ____________, Ltd. pursuant to the terms of the attached
        Warrant (the "Warrant"),
        and
        in accordance with Section 3 (e) thereto. 

       

      2. Please
        transfer the Redemption Price to account no. 14552/59 at Bank Leumi Ltd.,
        Branch
        No. 864, located in Herzliya. 

       

       

      Very
        truly yours,

       

      ______________

       

      By:
        ___________ 

       

      Title:
        __________

       

      Date:
        __________

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

         

        EXHIBIT C

      

       

      FORM
        OF TRANSFER

       

      (To
        be
        signed only upon transfer of Warrant)

       

      FOR
        VALUE
        RECEIVED, the undersigned (the "Transferor")
        hereby
        assigns and transfers unto ______________________________________________
        (the
        "Transferee")
        the
        right represented by the attached Warrant No. _ (the “Warrant”)
        to
        purchase Warrant Shares of the share capital of _______________, Ltd. in
        an
        amount of $ _________ out of the total Exercise Amount to which the Warrant
        relates, and appoints ______________, Attorney, to transfer such right on
        the
        books of ______________, Ltd., with full power of substitution in the premises.
        The Transferor further represents that the transfer is made in accordance
        with
        the terms of the Warrant, including, without limitation, with respect to
        the
        Transferee being a Permitted Transferee or with respect to which consent
        to
        transfer has been given by ________________, Ltd.

       

      Dated:
        __________________

       

      

       

      By:
        _________________    

       

      Name:
        _____________

       

      

       

      Signed
        in
        the presence of:

       

      

       

      By:
        ________________ 

       

      Name: ______________

       

      

       

      And
        the
        undersigned Transferee hereby agrees to the transfer of said rights to which
        the
        Warrant relates, and agrees to be bound by the terms and conditions of the
        Warrant. The undersigned further represents that the transfer is made in
        accordance with the terms of the Warrant. 

       

      Dated:
        __________________

       

      

       

      By:
            

       

      Name:     

       

      Signed
        in
        the presence of:

       

      By:     

       

      Name:     

       

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    LOAN
      AGREEMENT

    

    THIS
      LOAN
      AGREEMENT (this “Agreement”)
      made
      as of the 4th day of June, 2002, by and between Wintegra Inc., a corporation
      duly incorporated under the laws of Delaware, USA having its principal place
      of
      business at 7000 North MoPac Expwy Suite 200 Austin, Texas TX78731 USA (the
      “Company”),
      Wintegra Ltd., a company duly incorporated under the laws of the State of
      Israel, having its principal place of business at Taya Center, 6 Hamasger St.,
      43653 Ra’anana, Israel ("Wintegra
      Israel")
      and
      the lenders listed in Schedule
      1
      (each a
“Lender”
      and
      collectively the “Lenders”)
      and
      effective as of the Effective Date (as defined below), subject to the Closing
      (as defined below).

    

    W
      I T N E S S E T H :

    

    WHEREAS,
      the Company wishes to obtain a lending facility from the Lenders;
      and

    

    WHEREAS,
      the Lenders are willing to make available a lending facility to the Company
      on
      the terms and conditions set forth in this Agreement.

    

    NOW
      THEREFORE, the parties hereto hereby agree as follows:

    

    1. Loan,
      Security and Warrant.
      

    

    1.1 Loan. The
      Lenders will lend to the Company a revolving credit facility of an aggregate
      amount of up to Two Million United States dollars (US$2,000,000) (the
“Initial
      Credit Amount”).
      

    

    1.2 The
      Initial Credit Amount may be increased by up to an additional One Million and
      Five Hundred United States dollars (US$1,500,000) (the “First
      Additional Credit Amount”)
      upon
      the Company’s achieving the First Milestone, and up to an additional One Million
      and Five Hundred United States dollars (US$1,500,000) (the “Second
      Additional Credit Amount”)
      upon
      the Company’s achieving the Second Milestone (the Initial Credit Amount, the
      First Additional Credit Amount (if applicable) and the Second Additional Credit
      Amount (if applicable) shall be referred to hereinafter collectively as the
      “Principal
      Amount”).
      

    

    The
      First
      Milestone and the Second Milestone by the Company are as set forth in
Annex
      A attached
      hereto, and their achievement shall be determined solely by the Lenders as
      specified in Annex
      A.
      

    

    1.3 All
      or any
      part of the Principal
      Amount
      shall be
      provided in installments (the “Installment(s)”)
      of not
      less than Two
      Hundred and Fifty Thousand United States dollars
      (US$250,000) per Installment, upon the later of: (i) seven (7) business days
      following the date on which the Lenders receive a written disbursement request
      from the Company, which request shall state the exact amount the Company wishes
      to receive from the Lenders (the “Disbursement
      Request”),
      or
      (ii) the date specified in the Disbursement Request. The Company shall be
      entitled to furnish the Lenders with Disbursement Request(s) and to be provided
      with Installment(s) until the Repayment Date, or the New Repayment Date, if
      applicable (as such terms are defined herein), subject to the terms of this
      Agreement. Each
      Installment shall be transferred to the Company by the Lenders, in United States
      dollars, by means of wire transfer in accordance with wire instructions provided
      hereunder or as will be provided in writing by the Company in each Disbursement
      Request. Each Installment requested by the Company will be divided between
      the
      Lenders in amounts which reflect the pro rata portion of the Principal Amount
      which each Lender has committed to lend the Company as set forth in Schedule
      1
      attached
      hereto. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.4 Upon
      achievement by the Company of the First Milestone and entitlement to the First
      Additional Credit Amount, the Company shall have sixty (60) days to notify
      the
      Lenders whether the Company will be drawing any amounts from the First
      Additional Credit Amount. Upon achievement by the Company of the Second
      Milestone and entitlement to the Second Additional Credit Amount, the Company
      shall have sixty (60) days to notify the Lenders whether the Company will be
      drawing any amounts from the Second Additional Credit Amount.

    

    1.5 The
      obligations of the Lenders pursuant to this Agreement are subject to the
receipt
      by the Lenders of: (i) a warrant in the name of Plenus Technologies Ltd.
      (“Plenus”)
      for
      the purchase of Warrant Shares (as defined in the Warrant), as applicable,
      of
      the Company in accordance with the terms of the Warrant (the “Warrant
      Shares”),
      in
      the form attached hereto as Exhibit
      A
      (the
“Warrant”)
      duly
      executed by the Company; (ii) an executed Floating Charge Agreement by and
      between the Lenders and Wintegra Israel (the “Floating Charge
      Agreement”)
      and an
      executed Pledge Agreement by and between the Lenders and the Company (the
“Pledge
      Agreement”)
      in the
      forms attached hereto as Exhibit
      B1
      and
Exhibit
      B2
      respectively; (iii) form(s) for creating a Floating Charge (as defined below)
      prepared for filing with the Israeli Registrar of Companies in the form attached
      hereto as Exhibit
      C1
      and a
      certificate of registration of the Floating Charge, and form(s) for creating
      a
      UCC pledge in the form attached to the Pledge Agreement; (iv) true and correct
      copies of resolutions of the Company's Board of Directors issuing the Warrant
      to
      Plenus and authorizing the issuance of
      the
      Warrant Shares upon exercise of the Warrant and payment of the exercise price;
      and reserving a sufficient number of Warrant Shares to be issued upon exercise
      of the Warrant and authorizing the Company to enter into this Agreement and
      the
      Pledge Agreement, and authorizing an officer of the Company to enter into such
      documents and their respective exhibits, annexes and schedules, all in the
      form
      attached hereto as Exhibit
      D1
      and a
      true and correct copies of resolutions of Wintegra Israel's Board of Directors
      authorizing this Agreement and authorizing Wintegra Israel to enter into the
      Floating Charge Agreement and authorizing an officer of Wintegra Israel to
      enter
      into such documents and their respective exhibits, annexes and schedules, all
      in
      the form attached hereto as Exhibit
      D2;
      (v)
      waivers, consents and approvals regarding pre-emptive rights and/or other
      rights, including, but not limited to, registration rights and waivers, consents
      and approvals from third parties ,including, but not limited to, government
      entities in respect of the transactions contemplated herein, all in the form(s)
      attached hereto as Exhibit
      E;
      (vi)
      confirmation in writing by counsel to the Company and Wintegra Israel,
      respectively, that all relevant corporate actions were duly taken and that
      this
      Agreement and all other related ancillary documentation described herein have
      been executed by an authorized signatory, in the form attached hereto as
Exhibit
      F;
      and
      (vii) true
      and
      correct copies of resolutions of the Company's shareholders by which the prior
      Third Restated and Amended Certificate of Incorporation of the Company were
      replaced with the Fourth Restated and Amended Certificate of Incorporation
      attached hereto on Schedule
      4(i)A by
      which
      among other things: the authorized share capital of the Company was increased
      in
      order to reserve a sufficient number of
      Warrant
      Shares for issuance under the terms of the Warrant.
      The date
      on which all of the above documentation shall be executed and delivered to
      the
      reasonable satisfaction of the Lenders shall be referred to herein as the
“Closing”.
      For
      the purposes of this Agreement including all of its schedules, exhibits and
      annexes, the “Effective
      Date”
shall
      be deemed the earlier of: (a) the date of the Closing or (b) July 1,
      2002.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.6 Security.
      In
      order to secure the repayment of the Principal Amount and any accrued and unpaid
      Interest (as defined below), the Company agrees to create in accordance with
      the
      terms and the conditions of the Pledge Agreement a first priority UCC secured
      pledge on the Company’s present and future tangible and intangible assets and
      rights of any kind whether contingent or absolute, including the execution
      of an
      Account Control Agreement solely with bank Leumi of New York, provided,
      however,
      that
      the Company shall not
      maintain
      funds through Company's current accounts in other banks than in Bank Leumi
      USA,
      accounts’ numbers: 2200474202, 2200474218 and 0200474225 (such accounts referred
      to as “Other
      Accounts” and
      “Leumi
      Accounts”,
      respectively, and together “Current
      Accounts”.
      Other
      Accounts are listed in Schedule
      1.6),
      in
      excess of the aggregate amount of US$ 1,500,000 in all Other Accounts; and
      Wintegra Israel agrees to create, in accordance with the terms and the
      conditions of the Floating Charge Agreement, a first ranking floating charge
      on
      its present and future tangible and intangible assets and rights of any kind
      whether contingent or absolute (together, the “Floating
      Charge”)
      for
      the benefit of the Lenders and for the benefit of the entities listed as
      co-lenders in Schedule
      1
      hereto
      (the “Co-lenders”).
      The
      Floating Charge will rank senior to any other form of security interest on
      the
      assets of the Company and of Wintegra Israel. From time to time Plenus may
      demand, and the Company or Wintegra Israel, or any of their respective
      subsidiaries in case there shall be such), shall execute, such additional
      documents as may be reasonably necessary to maintain the Lenders’ Floating
      Charge. 

    

    It
      is
      expressly provided that the Company shall not maintain funds, securities or
      deposits through any new accounts opened by the Company as of the date hereof
      (“New
      Accounts”),
      without the prior written consent of Plenus. Plenus may require the execution
      and deliverance of an Account Control Agreement or any other reasonable
      requirement or arrangement with respect to such New Accounts as a condition
      for
      such consent.

    

    The
      co-lenders, lenders and beneficiaries listed in Schedule 1 hereby appoint Plenus
      as their agent with respect to the security interest granted to the secured
      parties hereunder under the Security and Pledge Agreement.

    

    1.7 Seniority.
      The
      indebtedness evidenced by this Agreement is hereby expressly senior in right
      of
      payment to any indebtedness currently owing by the Company and/or Wintegra
      Israel to any bank, financial or lending institution or other non-affiliated
      entity, other than with respect to operating expenses of the Company and/or
      Wintegra Israel which are incurred in the Company’s and/or Wintegra Israel’s
      ordinary course of business (the “Debt”).
      A
      list of the Debts of more than 50,000US$ each including the identity of the
      creditor and amount owed as of the date hereof, is attached hereto as
Schedule
      1.7.
      It is
      hereby unequivocally agreed that the Company and Wintegra Israel shall not
      pay,
      or cause to be paid, the Debt until all amounts due under the terms of this
      Agreement are repaid in full to the Lenders. It is acknowledged by the parties
      hereto that Wintegra Israel currently has an undertaking to record a first
      priority lien by Bank Leumi of Israel against certain assets to be purchased
      as
      collateral for bill of sale of those assets, in the amount of up to$200,000
      (including the security of $200,000 of the insurance for the benefit of Bank
      Leumi of Israel), and that the Company has an undertaking to record a first
      priority lien by Bank Leumi of New York against certain assets to be purchased
      as collateral for bill of sale of those assets, in the amount of up to $50,000.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.8 Term.
      The
      term of the grant of credit line by the Lenders to the Company according with
      this Agreement shall commence on the Effective Date, and terminate on the second
      anniversary of the Effective Date unless otherwise terminated or accelerated
      earlier in accordance with this Agreement. 

    

    2. Payment.
      The
      Company undertakes to pay to the Lenders the Principal Amount, together with
      interest thereon (denominated in United States dollars) at a rate of interest
      which shall be LIBOR
      (360
      day
      rate, as determined by Bloomberg and as published by Bank Mizrachi in
      Israel)
      plus 4%
      per annum (the
      “Interest
      Rate”),
      calculated as of the disbursement date of each Installment and compounded
      annually, plus any value added tax in Israel “Value
      Added Tax”,
      if
      applicable, in accordance with Israeli law (together the “Interest”).
      The
      accrued Interest shall be payable on the first day of each financial
      quarter.

    

    2.1 Any
      amount of Principal and/or Interest, which is not paid by the Company within
      fourteen (14) days of its due date (the “Due
      Date”),
      shall
      bear an additional 5% interest (the “Additional
      Interest”)
      per
      annum on such amount from the Due Date. The Additional Interest shall be
      compounded daily.

    

     

    2.2 The
      unpaid and outstanding Principal Amount and accrued and unpaid Interest, shall
      be due and payable in one installment, in United States Dollars, twenty-four
      (24) months following the Effective Date (the "Repayment Date").

     

     

    2.3 All
      payments to be made by the Company to the Lenders shall be made to the following
      accounts: (a) account number 156013 at United Mizrachi Bank Ltd., branch number
      522 at Herzalia being a trust account for Plenus and for the benefit of the
      Co-lenders, (b) account number 9195000015 at Citibank, N.A. - Tel Aviv Branch
      number 001, for payments to Citibank, N.A., and (c) account number 206199 at
      United Mizrachi Bank Ltd., branch number 461 at Tel-Aviv, for the Investment
      Corporation of United Mizrachi Bank Ltd. being one of the Beneficiaries as
      listed in Schedule 1. The parties agree that all amounts repaid by the Company
      will be divided between the Lenders in amounts which reflect the pro rata
      portion of the Principal Amount which each Lender has committed to lend the
      Company as set forth in Schedule
      1
      attached
      hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.4 Notwithstanding
      anything to the contrary, the Company may
      prepay any amounts owed to the Lenders, at any time, subject to the Company
      providing the Lenders with fifteen (15) days prior written notice informing
      the
      Lenders of such intention to prepay, and further provided that each such
      prepayment is in an amount of not less than the lesser of (a) Two
      Hundred and Fifty Thousand United States dollars
      (US$250,000), or (b) the sum of the Principal Amount and any unpaid accrued
      Interest.
      In
      addition, the Company may terminate this Agreement at any time during the
      twenty-four (24) month period following the Effective Date by providing the
      Lenders with a notice in writing indicating its intention to terminate this
      Agreement (the “Termination
      Letter”)
      in the
      form attached hereto as Schedule
      2.4,
      provided
      that
      upon or immediately after the delivery of the Termination Letter to the Lenders,
      (i) the Company shall have satisfied all of its obligations under this Agreement
      (including all exhibits, schedules and annexes thereto) and (ii) the Company
      shall not have any outstanding debts to the Lenders pursuant to this Agreement
      and further provided that upon such delivery any and all amounts due from the
      Company pursuant to this Agreement on account of the Principal Amount and the
      Interest, shall have been paid in full to the reasonable satisfaction of the
      Lenders ("Initiated Termination").
      Upon
      said Initiated Termination, the following shall occur: (i) all of the following
      annexed agreements will be immediately and automatically terminated, without
      any
      further action from neither of the parties hereto: (a) the Floating Charge
      Agreement, (b) the Pledge Agreement, and (c) the Account Control Agreement
      (attached to the Pledge Agreement), and (ii) The Floating Charge on Wintegra
      Israel shall be cancelled and released, the Pledge on Wintegra Inc. shall be
      cancelled and released, and the Lenders shall within twenty-one (21) business
      days as of the Initiated Termination, provide the Company and Wintegra Israel
      with all documents necessary to release the Floating Charge, the Pledge and
      any
      other consent, form, instrument or action required to release any of the
      charges, and discharging the Collateral Agent from its position and
      power.

     

    2.5 The
      Lenders may set-off any obligation owed by the Company under this Agreement
      against any obligation owed by the Lenders to the Company, regardless of the
      place of payment, booking branch or currency of either obligation, upon giving
      the Company a seven (7) days prior written notice. If an obligation is not
      liquidated or is unascertained, the Lenders may set-off in an amount estimated
      by any of them in good faith to be the amount of that obligation. If obligations
      are in different currencies, the Lenders may convert either obligation at a
      market rate of exchange in its usual course of business for the purpose of
      the
      set-off. The Lenders shall not be obliged to exercise any right given to it
      under this right of set-off. In the event that the foregoing set-off is made
      by
      the Lenders any amounts set-off will be deemed to be payment as described in
      Section 2 above.

    

    3. Acceleration.
      Notwithstanding anything herein to the contrary, (i) the entire unpaid Principal
      Amount, together with accrued and unpaid Interest to date, shall be due and
      payable at any time without any further demand, and (ii) the
      term
      of the grant of credit line by the Lenders to the Company according with this
      Agreement shall terminate, immediately upon the occurrence of an Event of
      Acceleration unless otherwise provided for below. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    For
      the
      purposes of this Section 3, an “Event
      of Acceleration”
shall
      be deemed to exist upon the occurrence of any of the following:

    

    
      	(i)	
              the
                Company fails to pay any sum due from it hereunder at the time, in
                the
                currency and in the manner specified herein, or otherwise is in breach
                of
                this Agreement or the Pledge Agreement, or Wintegra Israel is in
                breach of
                this Agreement or the Floating Charge Agreement, and the same is
                not
                remedied within fourteen (14) days after Plenus has notified the
                Company
                in writing of said non-payment or breach;
                or

            

    

    

    
      	(ii)	
              the
                Company or Wintegra Israel is unable to pay its debts as they fall
                due,
                fourteen (14) days after the Company or Wintegra Israel commences
                negotiations with one or more of its creditors with a view to the
                general
                readjustment or rescheduling or entering into arrangement regarding
                its
                indebtedness or makes a general assignment for the benefit of or
                a
                composition with its creditors; or

            

    

    

    
      	(iii)	
              any
                indebtedness for borrowed money of the Company or Wintegra Israel
                is not
                paid when due or any indebtedness for borrowed money of the Company
                or
                Wintegra Israel becomes capable of being declared to be or is declared
                to
                be due and payable prior to its specified maturity by reason of the
                occurrence of a default or a mandatory prepayment event (howsoever
                described) or any commitment to lend under any facility available
                to the
                Company or Wintegra Israel is cancelled by reason of the occurrence
                of any
                such default (or mandatory prepayment event (howsoever described));
                or

            

    

    

    
      	(iv)	
              the
                filing against the Company or Wintegra Israel of any petition in
                liquidation or any petition for relief under the provisions of applicable
                law for the relief of debtors; or the appointment of a special manager,
                temporary liquidator, temporary receiver or trustee to take possession
                of
                the material property or assets of the Company or Wintegra Israel;
                or an
                attachment is placed on any of the material assets of the Company
                or
                Wintegra Israel; or execution
                by the Company or
                Wintegra Israel
                of
                a general assignment for the benefit of its creditors;
                or the Company or Wintegra Israel resolves to voluntarily liquidate;
                or
                the appointment of a permanent liquidator or permanent receiver to
                take
                possession of the material property or assets of the Company or Wintegra
                Israel; or

            

    

    

    
      	(v)	
              any
                representation or statement made or deemed to be made by the Company
                or
                Wintegra Israel in this Agreement or in any notice or other document,
                certificate or statement delivered by it pursuant hereto or in connection
                herewith is or proves to have been materially incorrect or misleading
                when
                made or deemed to have been made;
                or

            

    

    

    
      	(vi)	
              the
                Company or Wintegra Israel fails duly to perform or comply with any
                covenant or other obligation expressed to be assumed by it in this
                Agreement or any of the exhibits or schedules hereto and such failure
                is
                not remedied within fourteen (14) days after Plenus has given notice
                thereof to the Company or Wintegra Israel as the case may be;
                or

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	(vii)	
              the
                Company (a) executes a binding letter of intent or enters into any
                other
                form of commitment with respect to an issuance of the Company’s securities
                or a consolidation or merger of the Company with or into a third
                party,
                pursuant to which the Company’s then current shareholders own less than
                fifty-one (51%) percent of the voting securities of the surviving
                entity
                or the Company’s then current shareholders no longer will have the right
                to appoint fifty-one (51%) percent or more of the members to the
                Company’s
                Board of Directors, (b) execute a binding letter of intent or enters
                into
                any other form of commitment with respect to sale of all or substantially
                all of the Company’s outstanding shares (on an as-converted basis) to
                third parties other than the Company's current shareholders or a
                sale of
                the Company’s material assets, or (c) consummates an initial public
                offering of any of the Company’s securities, or (d) commencement of a
                qualified investment, or series of investments, in the Company’s capital
                stock after the Effective Date in exchange for stock resulting in
                proceeds
                to the Company of an aggregate of at least US$15,000,000 (fifteen
                million
                United States dollars); or

            

    

    

    
      	(viii)	
              any
                event or series of events occur(s), which, in the reasonable opinion
                of
                Plenus, may have a material adverse effect on the business, condition
                (financial or otherwise), or results of operations of the Company
                or
                Wintegra Israel or on the ability of the Company or Wintegra Israel
                to
                comply with any of its obligations hereunder or under the Floating
                Charge
                Agreement or the Pledge Agreement
                respectively.

            

    

    

    
      	(xi)	
              any
                event in which that
                the Company has maintain funds through Company's Current Accounts
                in other
                banks than Bank Leumi of New York, in excess of the aggregate amount
                of
                US$ 1,500,000 in all Current
                Accounts.

            

    

    

    Notwithstanding
      anything herein to the contrary in this clause 3, with respect to the
      occurrences stipulated in clauses 3(vii)(a) and 3(vii)(b), the entire unpaid
      Principal Amount, together with accrued and unpaid Interest to date, shall
      be
      payable only upon the consummation of the transaction the subject-matter of
      the
      letter of intent or agreement mentioned therein. It is agreed that in the event
      that eventually, such letter of intent or agreement mentioned therein shall
      not
      consummate, upon a written notice delivered to Plenus, the said letter of intent
      or agreement mentioned therein shall be not deemed as an Event of Acceleration
      for the purposes of this section 3. .

    

    The
      Company and Wintegra Israel shall promptly inform the Lenders of the occurrence
      of any Event of Acceleration or potential Event of Acceleration and, upon
      receipt of a written request to that effect from Plenus, confirm to the Lenders
      that, except as previously notified to the Lenders or as notified in such
      confirmation, no Event of Acceleration or potential Event of Acceleration has
      occurred.

    

    4.   Representations
      and Warranties of the Company and Wintegra Israel. 

    

    4.1 The
      Company and Wintegra Israel hereby represent and warrant to each of the Lenders,
      as of the Closing and as of each date on which a Disbursement Request is made
      by
      the Company, each of the below representations and warranties: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (i)  the
      Company is a corporation duly formed, validly existing and in good standing
      under the laws of Delaware, USA, and the Company’s By-Laws and Third Restated
      and Amended Certificate of Incorporation are attached hereto as Schedule
      4(i)A;
      Wintegra Israel is a corporation duly formed, validly existing and in good
      standing under the laws of the State of Israel, and Wintegra Israel’s Memorandum
      of Association and Articles of Association are attached hereto as Schedule
      4(i)B;
      each
      of the
      Company and Wintegra Israel has full corporate power and authority to enter
      into
      and perform its obligations under this Agreement
      and this
      Agreement constitutes a legally binding obligation of the Company
      and Wintegra Israel, and
      is
      enforceable against the Company
      and Wintegra Israel in
      accordance with its respective terms;
      

    

    (ii) there
      has
      been no material change in the assets, liabilities, condition (financial or
      otherwise) or business of the Company or Wintegra Israel, as represented by
      the
      Company’s audited financial statements (consolidated) as of 31.12.2001, attached
      hereto as Schedule
      4(ii)A,
      and the
      reviewed interim quarterly financial statements as of 31.3.2002, attached hereto
      as Schedule
      4(ii)B.
      

     

    The Financial
      Statements are true and correct in all material respects, and are in accordance
      with the books and records of the Company and have been prepared in accordance
      with United States generally accepted accounting principals (“GAAP”)
      consistently applied, and accurately present in all material respects the
      financial position of the Company as of such date and the results of its
      operations for the period then ended;

    

    

    (iii)  the
      execution and delivery of this Agreement (including all exhibits, schedules
      and
      annexes) by the Company and Wintegra Israel, and performance of the Company’s
      and Wintegra Israel’s obligations hereunder, have been duly and validly
      authorized by all necessary corporate action; 

    

    (iv)  each
      of
      the Company and Wintegra Israel has taken all actions, corporate or otherwise,
      and has procured all necessary consents and approvals to issue the Warrant
      and
      the Warrant Shares (as defined in the Warrant) issuable pursuant thereto to
      Plenus and the Warrant and the Warrant Shares when issued, and with respect
      to
      the Warrant Shares when the Exercise Price (as defined in the Warrant) is paid,
      shall be duly authorized, validly issued, fully paid, nonassessable and shall
      not trigger any rights of anti-dilution protection or price protection of the
      Company’s shareholders; 

    

    (v)  the
      execution or the delivery of this Agreement, the
      Pledge Agreement or the Floating Charge Agreement and the consummation of the
      transactions contemplated hereby,
      will
      not contravene any agreement or negative pledge, or
      any
law,
      rule, restriction or decree to which the Company or Wintegra Israel is subject,
      except as stated in Schedule
      4(v)
      or in
      Section 1.7 above, and will not result in any such violation or be in conflict
      with or constitute, with or without the passage of time and giving of notice,
      either a default under any such provision, instrument, judgment, order, writ,
      decree or contract or an event that results in the creation of any lien, charge
      or encumbrance upon any assets of the Company or
      Wintegra Israel or
      to the
      knowledge of the Company and Wintegra Israel, the suspension, revocation,
      impairment, forfeiture, or non-renewal of any material permit, license,
      authorization, or approval applicable to the Company
      or
      Wintegra Israel,
      its
      business or operations or any of its assets or properties. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (vi)  there
      is
      no order, writ, injunction or decree of any court, government or governmental
      agency affecting, or to the knowledge of Company and Wintegra Israel may affect,
      the Company or Wintegra Israel or respectively, any of its businesses, assets
      or
      interests, in a material adverse manner; Furthermore,
      there is no action, suit, proceeding or investigation pending or, to the
      Company’s knowledge, currently threatened against the Company or Wintegra
      Israel, that questions the validity of this Agreement, the Pledge Agreement,
      the
      Floating Charge Agreement, or the right of the Company to enter into such
      agreements, or to consummate the transactions contemplated hereby or thereby,
      or
      that might result, either individually or in the aggregate, in any material
      adverse changes in the assets, condition, affairs or prospects of the Company,
      financially or otherwise, nor is the Company aware that there is any basis
      for
      the foregoing. 

    

    (vii)  except
      to
      the extent disclosed on Schedule
      4(vii)
      hereto
      and Section 1.7 above, there are no claims, guarantees, royalty payments,
      payments to government entities or regulatory bodies, security interests,
      options, rights or other privileges outstanding with respect to any of the
      Company's or Wintegra Israel’s assets or securities and the Company or Wintegra
      Israel has no outstanding loans
      or
      debts or financial obligations to any third parties including but not limited
      to
      any of the Company’s or
      Wintegra Israel’s banking
      obligations and any liens on the Company’s or
      Wintegra Israel’s bank
      accounts or other assets of the Company or
      Wintegra Israel
      whether
      registered or not;

    

    (viii) the
      Company or
      Wintegra Israel owns
      and
      has developed, or has obtained the right to use, free and clear of all liens
      (other than the liens created hereunder or by operation of law) and claims,
      all
      patents, trademarks, domain names and copyrights, and applications, licenses
      and
      rights with respect to the foregoing, and all trade secrets, including know-how,
      inventions, designs, processes, works of authorship, computer programs and
      technical data and information (collectively herein "Intellectual
      Property")
      used
      and sufficient for use in the conduct of its business as now conducted , and,
      to
      the
      best of the Company’s knowledge, without
      infringing upon or violating any right, lien, or claim of others, and the
      Company or
      Wintegra Israel has
      taken
      security measures to protect the secrecy, confidentiality and value of all
      the
      Intellectual Property. A complete list of all patents, trademarks and domain
      names registered by the Company or
      Wintegra Israel in
      any
      jurisdiction as of the Effective Date is set forth in Schedule
      4(viii)
      attached
      hereto;

    

    (ix)  the
      Company’s capitalization on a fully diluted basis, as of the Closing and
      including the Warrant, is as set forth in Schedule
      4(ix)
      attached
      hereto. The
      outstanding shares of common stock of the Company, the Series B Preferred Stock
      and the Series A Preferred Stock of the Company (the “Preferred
      Stock”)
      are
      all duly and validly authorized and issued, fully paid and nonassessable, and
      were issued in accordance with the registration or qualification provisions
      of
      the Securities Act of 1933, as amended (the “Act”)
      and
      any relevant state securities laws, or pursuant to valid exemptions therefrom.
      Except as provided in Schedule
      4(ix),
      there
      are no outstanding options, warrants, rights (including conversion or
      pre-emptive rights with respect to the Warrant Shares) or agreements for the
      purchase or acquisition from the Company of any shares of its capital stock.
      The
      Company is not a party or subject to any agreement or understanding, and, to
      the
      best of the Company’s knowledge, there is no agreement or understanding between
      any persons and/or entities, which affects or relates to the voting rights
      or to
      the giving of written consents with respect to (1) any of the Company’s
      securities (excluding options granted under the employee stock option plan
      of
      the Company), or (2) a director of the Company. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (x)  to
      the
      Company's best knowledge, there
      are
      no investigations or actions or administrative proceedings of or before any
      court or agency which (a) could be reasonably likely to have a material adverse
      effect on the business, condition (financial or otherwise) or results of
      operations of the Company or
      Wintegra Israel or
      the
      ability of the Company or
      Wintegra Israel to
      perform its obligations hereunder, or (b) purports to affect the legality,
      validity or enforceability of this Agreement, the Pledge Agreement or the
      Floating Charge Agreement; 

    

    (xi)  there
      has
      not occurred, nor is the Company aware of any facts (other than general economic
      and business trends) showing that it is likely to occur, any event or series
      of
      events, which may have a material adverse effect on the business, condition
      (financial or otherwise), or results of operations of the Company or
or
      Wintegra Israel on
      the
      ability of the Company or
      Wintegra Israel to
      comply
      with any of its obligations hereunder or under the Floating Charge Agreement;
      and 

    

    (xii)  the
      Company has one (1) wholly owned subsidiary - Wintegra Israel. Wintegra Israel
      has two (2) subsidiaries, as follows: Wintegra (UK) Ltd., which is duly
      incorporated and in good standing under the laws of the United Kingdom, and
      Wintegra (Canada) Ltd., which is duly incorporated and in good standing under
      the laws of Canada (collectively, the “Subsidiaries”).
      

    

    For
      the
      purposes of clauses (v)-(viii), (x) and (xi) in this Section 4, shall mean
      the
      Company, Wintegra Israel and the Subsidiaries. Other than Wintegra Israel,
      the
      Company does not presently own or control, directly or indirectly, any interest
      in any other corporation, association, or other business entity. The Company
      or
      Wintegra Israel is
      not a
      participant in any partnership.

    

    (xiii)
      No
      consent, approval, order or authorization of, or registration, qualification,
      designation, declaration or filing with, any federal, state or local
      governmental authority on the part of the Company is required in connection
      with
      the consummation of the transactions contemplated by this Agreement, the Pledge
      Agreement or the Floating Charge Agreement, except the filing of the Restated
      Certificate of Incorporation with the Secretary of State of the State of
      Delaware, filing the required registration forms of the Floating Charge and
      the
      Pledge and compliance with the requirements of State Blue Sky laws, if
      any.

    

    (xiv) Each
      Material Agreement is in full force and effect, and none is subject to recession
      and to the best knowledge of the Company, there are not existing any
      circumstances which would reasonably be expected to materially modify the terms
      of any Material Agreement. No third party is in default under any Material
      Agreement. True and correct copies of each Material Agreement has been delivered
      to Plenus or its counsel. The Company or Wintegra Israel is not in breach of
      any
      obligation under any Material Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    For
      the
      purposes of this Agreement, the term “Material
      Agreement”
shall
      mean any agreements, understandings, instruments, contracts, proposed
      transactions, judgments, orders, writs or decrees to which the Company or
      Wintegra Israel is a party or by which it is bound that may involve
      (i) obligations (contingent or otherwise) of, or payments to the Company,
      exceeding $50,000 each, or (ii) intellectual property rights of the Company
      and/or the intellectual property rights of any third party (other than the
      license of the Company's software and products in the ordinary course of its
      business), or (iii) distribution rights, or (iv) confidentiality and/or non
      disclosure undertakings (other than with employees or consultants of the
      Company), (v) provisions restricting or affecting the development, manufacture
      or distribution of the Company's or Wintegra Israel’s products or services, or
      (vi) restrictions or limitations on the Company's or Wintegra Israel’s right to
      do business or compete in any area or any field with any person, firm or
      company, or (vii) indemnification by the Company Wintegra Israel with
      respect to infringements of proprietary rights, or (viii) loans, extend or
      guarantee credit made by or provided to an officer or director of the Company
      or
      Wintegra Israel or any of their immediate family, or personal interest of such
      in a Material Agreement of the Company or Wintegra Israel.

    

    4.2  Without
      derogating from any right the Lenders may have, the Company and Wintegra Israel
      shall indemnify, defend and hold harmless each of the Lenders and all their
      respective officers, employees and agents against all damages and liabilities
      stemming from a misrepresentation of the Company or Wintegra Israel under this
      Section 4 of the Agreement.

    

    5. Reporting
      and Notice Rights; Attendance at Board Meetings.
      

    

    5.1 Until
      the
      termination of this Agreement, and following the termination of this Agreement
      upon the reasonable request of the Lenders and so long as the Warrant is
      outstanding, the Company shall provide the Lenders with the following:
(i) audited
      financial statements within one hundred twenty (120) days after the end of
      each
      fiscal year (including an audited annual balance sheet of the Company as of
      the
      end of the fiscal year and the statement of income and cash flow of the Company
      for the fiscal year then ended), (ii) un-audited, reviewed quarterly
      financial statements within sixty (60) days after the end of each quarter,
      (iii)
      such other data and information as the Lenders may reasonably request provided
      such data is reasonably available, (iv) advanced written notice of impending
      offerings of New Securities of the Company (as such term is defined in the
      Company’s By-Laws) by the Company in which the Company offers more than five
      percent (5%) of the Company’s fully diluted share capital as of such date, at
      least five (5) business days prior to the closing of such transaction or
      offering, (v) advanced written notice of a merger or consolidation of the
      Company, a sale of all or substantially all of the assets or shares of the
      Company or any other reorganization or restructuring of the Company having
      similar effects or a distribution of dividends, at least five (5) business
      days
      prior to the anticipated closing of such transaction or offering or distribution
      and (vi) advanced written notice of a firmly underwritten initial public
      offering of the Company’s shares pursuant to a registration statement filed with
      the Securities and Exchange Commission pursuant to the Securities Act or
      pursuant to a registration statement filed with a similar law under any foreign
      jurisdiction. Furthermore, the Lenders shall have, subject to customary
      non-disclosure obligations, at reasonable times and upon reasonable notice,
      full
      access to all books and records of the Company and shall be entitled to inspect
      the properties of the Company and consult with management of the Company
      regarding the same, to the extent necessary and reasonable for the purpose
      of
      monitoring observance by the Company of its obligations under this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.2 During
      the term of this Agreement, at any time that the outstanding Principal Amount
      disbursed and accrued Interest thereon, is due and outstanding exceeds
      US$3,000,000 (three million United States dollars), Plenus shall be entitled
      to
      nominate one (1) person on its behalf, the identity of which is acceptable
      to
      the Company (the “Observer”),
      who
      shall be entitled to attend all meetings of the Company’s Board of Directors
      (whether in person, telephonic or other) in a non-voting observer capacity,
      concurrently with the members of the Company's Board of Directors, and in the
      same manner and shall be entitled to receive notice of such meeting and a copy
      of all materials provided to such members. The Company agrees that neither
      Plenus nor the Observer will have a fiduciary duty. Notwithstanding the
      previously mentioned, both Plenus and the Observer shall abide by the
      confidentiality undertakings imposed on the other directors of the Company,
      in
      their capacity as such. 

     

    5.3 Furthermore,
      the Company acknowledges that Plenus will likely have, from time to time,
      information that may be of interest to the Company ("Information")
      regarding a wide variety of matters. The Company recognizes that a portion
      of
      such Information may be of interest to the Company. Such Information may or
      may
      not be known by the Observer. The Company, as a material part of the
      consideration for this Agreement, agrees that Plenus and its Observer shall
      have
      no duty to disclose any Information to the Company or permit the Company to
      participate in any projects or investments based on any Information, or to
      otherwise take advantage of any opportunity that may be of interest to the
      Company if it were aware of such Information, and hereby waives, to the extent
      permitted by law, any claim based on the corporate opportunity doctrine or
      otherwise that could limit Plenus’ ability to pursue opportunities based on such
      Information or that would require Plenus or its Observer to disclose any such
      Information to the Company or offer any opportunity relating thereto to the
      Company. 

    

    5.4 The
      Lenders acknowledge that the data and the information regarding or relating
      the
      Company or Wintegra Israel, obtained pursuant to the provisions of this Section
      5 or by the operation of any applicable law are confidential, and agree and
      undertake that such data and information will not be disclosed to any third
      party, nor exploited for other projects, investments or the like, without the
      prior written consent of the Company; provided that, in connection with reports
      to their investors and/or Co-lenders, the Lenders may, without first obtaining
      such written consent, make general statements regarding the nature and progress
      of the Company's business and information to its investors and/or Co-lenders.
      The Lenders may disclose the data and information mentioned above to their
      officers and employees on a need to know basis, and such officers and employees
      shall undertake the same obligations as the Lenders undertake with respect
      to
      such data and information.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    This
      section 5 (except for subsection 5.2) shall apply mutatis
      mutandis
      to
      Wintegra Israel.

     

    6. Authority.
      Notwithstanding anything herein to the contrary, (i) Citibank N.A.
      (“Citibank”)
      agrees
      that Plenus at its sole discretion shall determine whether to realize any
      charges and/or pledges over the assets of the Company created for the benefit
      of
      the Lenders; (ii) Citibank agrees that Plenus at its sole discretion shall
      determine whether repayment of any amounts hereunder owed to the Lenders are
      to
      be accelerated or whether an event of a default pursuant to the Floating Charge
      Agreement or the Pledge Agreement has occurred, and Plenus is hereby appointed
      the attorney-in-fact on behalf of Citibank in connection with all of the
      foregoing and Citibank agrees not to take any action to the contrary, and (iii)
      Citibank agrees that in the case that the Lenders should give their consent
      under this Agreement, Plenus’ consent shall bind Citibank as well. Furthermore,
      the parties agree that the portion of the Warrant allocated to Citibank shall
      be
      held by Plenus in trust for the benefit of Citibank.

    

    7. Syndication.
      Notwithstanding
      any of the provisions set forth herein, the Company understands and agrees
      that
      Plenus has syndicated the loan granted hereunder to the Co-lenders and to the
      Beneficiaries listed in Schedule
      1,
      provided,
      however,
      that
      Plenus shall act as the lead manager of such syndication on behalf of the
      Co-lenders and on behalf of the Beneficiaries. Notwithstanding the above, each
      Co-Lender and/or Permitted Transferee and/or Beneficiaries shall be entitled
      to
      receive, upon the exercise of the Warrant by Plenus (in its capacity as lead
      manager) a proportional amount of the Warrant Shares issuable upon such
      exercise, as may be notified in writing to the Company by Plenus upon such
      exercise, so long as such Co-lender and Permitted Transferee and Beneficiaries
      (or their respective officers, directors, shareholders or members) is not a
      competitor of the Company, and provided further that prior to a Realization
      Event (as defined in the Warrant) the Warrant Shares so disbursed shall be
      held
      in trust by Plenus for the benefit of Citibank, the Co-lenders and/or Permitted
      Transferees and/or Beneficiaries. Citibank, such Co-lenders and/or Permitted
      Transferees shall give Plenus an irrevocable proxy (including with respect
      to
      any voting rights upon exercise of the Warrant, and the voting rights with
      respect to the release the Floating Charge), in the form attached hereto as
      Schedule
      7,
      irrevocable until the earlier of: (i) the termination of any of Plenus’
formation agreements, or (ii) immediately after the consummation of a
      Realization Event (as defined in the Warrant) in relation to the Warrant Shares,
      authorizing Plenus to sign and execute this Agreement and any Exhibits and
      Schedules attached hereto or other documents related to the transaction
      contemplated hereunder, on behalf of all Co-lenders, Beneficiaries and Citibank,
      which signing will obligate each said party as if it was originally signed
      by
      such party ("Proxy").
      Plenus represents to the Company that pursuant to its formation agreements,
      Plenus holds a Proxy for its Beneficiaries. Nothing in this Section will
      derogate from the obligations and undertakings of the Lenders and Co-lenders
      under this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    It
      is
      agreed that Plenus may further syndicate the Loan to other co-lenders or
      beneficiaries, and in such case, Clause 7 shall apply mutatis
      mutandis
      to any
      such co-lenders or beneficiaries. Plenus shall notify the Company in writing
      by
      fourteen (14) days from the consummation of such future syndication.

    

    8. Covenant.
      Each
      of
      the Company and Wintegra Israel shall comply with the terms of and do all that
      is necessary to maintain in full force and effect all authorizations, approvals,
      licenses and consents required in or by the laws and regulations of Delaware
      and/or Israel (as the case may be), and any other applicable jurisdiction to
      enable it lawfully to enter into and perform its obligations under this
      Agreement, the Pledge Agreement and the Floating Charge Agreement and to ensure
      the legality, validity, enforceability or admissibility in evidence of this
      Agreement.

    

    9. Miscellaneous.
      

    

    9.1 The
      obligations of the Lenders hereunder are several and not joint. 

    

    9.2 Each
      of
      the parties hereto shall perform such further acts and execute such further
      documents as may reasonably be necessary to carry out and give full effect
      to
      the provisions of this Agreement and the intentions of the parties as reflected
      hereby.

    

    9.3 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.

    

    9.4 Except
      as
      otherwise expressly limited herein, the provisions hereof shall inure to the
      benefit of, and be binding upon, the successors, assigns, heirs, executors,
      and
      administrators of the parties hereto. 

     

    9.5 None
      of
      the rights, privileges, or obligations set forth in, arising under, or created
      by this Agreement may be assigned or transferred by any party hereto without
      the
      prior consent in writing of the other parties which consent shall not be
      unreasonably withheld. Anything herein to the contrary notwithstanding and
      without derogating from the requirement and limitations set forth in Section
      6
      above, each Lender shall have the right to assign or transfer their rights,
      privileges and obligations under this Agreement as long as such transfer is
      not
      to a competitor of the Company to: (i) any other entity which controls, is
      controlled by or is under common control with any Lender, (ii) if the Lender
      is
      a trustee or
      is
      appointed to act on behalf of others then
      to
      its beneficiaries being investors or affiliates of investors of the Lender,
      or
      (iii) if the Lender is a general or limited partnership, assignments and
      transfers to its partners and to partnerships managed by the same management
      company or managing general partner or by an entity which controls, is
      controlled by, or is under common control with, such management company or
      managing general partner (each a “Permitted
      Transferee”),
      provided that each such transfer will be subject to the provisions of Section
      6
      above, and that each such Permitted Transferee shall have executed (i) an
      irrevocable Proxy to Plenus; and (ii) an undertaking of any and all obligations
      of the transferor under this Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.6 This
      Agreement, its Exhibits, Schedules and Annexes hereto constitute the full and
      entire understanding and agreement among the parties with regard to the subject
      matters hereof and thereof. The preamble, Schedules, Exhibits and Annexes hereto
      constitute an integral part hereof. 

    

    9.7 The
      Company shall pay the Plenus Twenty Thousand United States dollars (US$ 20,000)
      plus applicable value added tax for legal fees, on or immediately after the
      date
      which this Agreement and all schedules and exhibits hereto are executed by
      the
      parties plus all out of pocket expenses incurred by the Plenus’ legal advisors.
      The above-stated amount shall include amounts that the Company shall pay for
      any
      other reasonable expenses and applicable value added tax incurred during the
      negotiation of this Agreement including any stamp duty that may be payable
      in
      connection with this Agreement. 

    

    9.8 Any
      term
      of this Agreement may be amended and the observance of any term hereof may
      be
      waived (either prospectively or retroactively and either generally or in a
      particular instance) only with the written consent of all of the parties to
      this
      Agreement. 

    

    9.9 The
      obligations of the Company to indemnify the Lenders in Section 4 hereof and
      the
      obligations under Section 5 hereof, will survive this Agreement until all
      statutes of limitations for actions that may be brought against the Lenders
      have
      expired. 

    

    9.10 All
      notices and other communications required or permitted hereunder to be given
      to
      a party to this Agreement shall be in writing and shall be telecopied (faxed)
      or
      mailed by registered or certified mail, postage prepaid, or by electronic mail,
      or otherwise delivered by hand or by messenger, if to the Company then to the
      Company's address set forth above to the attention of the Chief Executive
      Officer and the Chief Financial Officer with a copy to Dr. Ayal Shenhav, Adv.,
      ,
      at 91 Medinat Hayehudim St., POB 4121, Herzeliya 46140, Israel, fax number
      09-9511187, and if to the Lenders then to the addresses set forth in
Schedule
      1
      with a
      copy to Joseph Mayer, Adv., Yossi Avraham and Co., at 3 Daniel Frisch Tel Aviv,
      Israel, fax number 03-6963801, or such other address with respect to a party
      as
      such party shall notify each other party in writing as above provided. Any
      notice sent in accordance with this Section 9.11 shall be effective (i) if
      mailed, seven (7) business days after mailing, (ii) if sent by messenger, upon
      delivery, and (iii) if sent via telecopier (fax) or electronic mail, upon
      transmission and electronic confirmation of receipt or (if transmitted and
      received on a non-business day) on the first business day following transmission
      and electronic confirmation of receipt. 

    

    9.11 No
      delay
      or omission to exercise any right, power, or remedy accruing to any party upon
      any breach or default under this Agreement, shall be deemed a waiver of any
      other breach or default theretofore or thereafter occurring. All remedies,
      either under this Agreement or by law or otherwise afforded to any of the
      parties, shall be cumulative and not alternative.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.12 If
      any
      provision of this Agreement is held by a court of competent jurisdiction to
      be
      unenforceable under applicable law, then such provision shall be excluded from
      this Agreement and the remainder of this Agreement shall be interpreted as
      if
      such provision were so excluded and shall be enforceable in accordance with
      its
      terms; provided, however, that in such event this Agreement shall be interpreted
      so as to give effect, to the greatest extent consistent with and permitted
      by
      applicable law, to the meaning and intention of the excluded provision as
      determined by such court of competent jurisdiction.

    

    

    [Remainder
      of page intentionally left blank.]

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    IN
      WITNESS WHEREOF, the parties have signed this Loan Agreement in one or
      more counterparts as of the date first appearing above set forth.

    

                                            WINTEGRA
      INC.

    

                                            
   By: /s/
      Kobi BenZvi

    

                                               Its:
CEO        

    

                                            WINTEGRA
      LTD.

    
       

                                              
   By: /s/
        Kobi BenZvi

      

                                             
    Its:
CEO        

    PLENUS
      TECHNOLOGIES LTD. On
      its
      own behalf and on behalf of the Beneficiaries listed in Schedule 1.

    

                                               By:
 Ruth
      Simha Shlomo Karako__

    

                                               Its:
 Managing
      Partner CFO______

    

     

                                            CITIBANK,
      N.A., TEL
      AVIV BRANCH

     

                                               By:
/s/
      Thomas A.
      Mulvihill

    

                                               Its:
Country
      Risk
      Manager

     

    
 

    [Signature
      Page of Loan Agreement]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1

     

    
      
        	
                  THE
                  LENDERS

              
	 Name and Address	
                 Amount

              	
                 Currency

              
	 	 	 
	
                Plenus Technologies Ltd.

                On behalf of the Beneficiaries

                Listed below

                16 Hagalim Avenue

                Herzliya Pituach

                Israel

                Attn: Ruthi Simcha and Gadi Moshe

                Facsimile: (972-9) 957-8770

              	
                3,311,828

              	
                US$

              
	 	 	 
	
                Citibank, N.A., Tel Aviv
                  Branch

                Platinum Building

                21 Ha’arba’ah Street

                Tel Aviv 64739

                Israel

                Attention: Tom
                  Mulvihill, Country Risk Manager

                with a copy to: Nandan Mer, CEO

                Facsimile: (972-3) 684-2404

              	
                688,172

              	
                US$

              

      

    

     

    
      
        
          	
                    THE
                    CO-LENDERS

                
	 Name and Address	
                   Amount

                	
                   Currency

                
	 	 	 
	
                  Bank Leumi Le-Israel B.M.

                   

                  33 Yehuda Hlevy Street

                  Tel-Aviv

                  Attention: Iris Rosenberg

                  Facsimile: ________________

                	
                  1,000,000

                	
                  US$

                
	
                	 	 

        

      

       

    

    THE
      BENEFICIARIES

    

    
      	
              1.
                The Investment Corporation of United Mizrachi Bank Ltd.

            
	
              2.
                Union Bank of Israel Ltd.

            
	
              3.
                Citibank N.A.

            
	
              4.
                Industrial Development Bank of Israel Ltd.

            
	
              5.
                D. Partners (BVI)

            
	
              6.
                CMA Technology Venture Partner Limited

            
	
              7.
                D. Partners (ISR)

            
	
              8.
                Israel Continental Bank Ltd.

            
	
              9.
                Nessuah Zannex Ltd.

            
	
              10.
                Mercantile Discount Bank Ltd.

            
	
              11.
                Benleumi Provident Funds

            
	
              12.
                Bank Leumi Le-Israel B.M.

            
	
              13.
                Kahal Ltd.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
Annex
        A

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Annex
        A

      Wintegra
        Inc. - Milestones

      

      First
        Milestone:

      The
        occurrence of both by Wintegra Inc.:

      (1) the
        aggregate amount of sales and purchase orders without any rights for
        cancellation upon six (6) consecutive months shall be at least $600,000US.
        The
        Company shall furnish Plenus with its’ auditors authorization of accomplishment
        of this conditions, and;

      (2) at
        least
        thirty (30) design wins shall be active upon the consummation of the first
        milestone, of which five (5) shall be according with a signed and executed
        agreement with any of the Companies listed in Group A herein.

      

      Second
        Milestone:

      The
        occurrence of both by Wintegra Inc.:

      (1) the
        aggregate amount of sales and purchase orders without any rights for
        cancellation upon three (3) consecutive months shall be at least $1,000,000US.
        The Company shall furnish Plenus with its’ auditors authorization of
        accomplishment of this conditions, and;

      (2) at
        least
        forty (40) design wins shall be active upon the consummation of the second
        milestone, of which five (5) shall be according with a signed and executed
        agreement with any of the Companies listed in Group A herein.

      

      General

      For
        the
        avoidance of doubt, all of the above milestones are cumulative and each of
        the
        above milestones must be met. In addition, it is hereby clarified that the
        above
        milestones shall be deemed accomplished upon the occurrence of the above
        jointly
        or separately by Wintegra Inc. and/or Wintegra Ltd.. 

      

      Group
        A

      Alcatel

      Cisco

      3COM

      Ericsson

      Fujitsu

      Huwawei

      Hyundai

      Juniper
        Networks

      Marconi/GEC

      NEC

      Nortel

      Nokia

      Lucent

      Motorola

      Samsung

      Siemens

      LG
        Korea

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Exhibit
        A

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

      -Plenus
        letterhead-

      

      July
        3,
        2003

      

      Wintegra
        Inc.

      7200
        N.
        Mopac Expy.

      Suite
        270

      Austin,
        TX 78731

      

      Dear
        Sirs,

      

      RE:
        Warrant
        Clarification

      

      Reference
        is hereby made to that certain warrant to purchase shares of Preferred B
        Stock,
        US$ 0.001 par value each, of Wintegra Inc., a Delaware corporation
        ("Series
        B Preferred Stock"
        and
        "Company",
        respectively), issued by Company to Plenus Technologies Ltd. ("Plenus")
        as
        part of a credit financing closed on June 4, 2002 (the "Warrant"
        and
        "Transaction",
        respectively). All terms not otherwise defined herein shall have the meanings
        ascribed thereto in the Warrant.

      

      Section
        2(c) of the Warrant provides, in its second paragraph, that upon the occurrence
        of certain events described therein, the Exercise Price will be automatically
        reduced to the New Exercise Price. 

      

      At
        your
        request, we hereby express our understanding and agreement that should the
        Exercise Price indeed be so reduced and the Warrant exercised at such reduced
        price, the following provisions shall apply:

      

       

      	1.  	
              For
                the purpose of the provisions contained in Article IV.II of the Company's
                Fifth Restated and Amended Certificate of Incorporation, as such
                certificate may be amended and/or restated from time to time (the
                "Certificate"),
                in respect of dividends (Section 1), liquidation preference (Section
                2)
                and conversion (Section 3), including, for the avoidance of doubt,
                Conversion Rate (Subsection (i)), automatic conversion (Subsection
                (ii))
                and conversion price adjustments (Subsection (iv)), the "Original
                Series B
                Issue Price" of each Series B Preferred Stock held by Plenus shall
                be
                deemed to be such reduced Exercise Price and not
                as
                defined in subsection 2(ii) thereof. 

            

       

      	2.  	
              Should
                the event described in the beginning of the last sentence of Article
                IV.II, Section 2(ii) of the Certificate occur ("the assets and funds
                thus
                distributed among the holders of the Series B Preferred Stock shall
                be insufficient to permit the payment to such holders of the full
                aforesaid B Preference Amount"), then for the purpose of the last
                part of
                that sentence ("distributed ratably among the holders of the Series
                B
                Preferred Stock in proportion to the amount of such stock owned by
                each
                such holder"), "the amount of such stock owned by" Plenus relative
                to all
                of the issued and outstanding shares of such stock, shall be deemed
                to be
                equal to the fraction obtained by dividing
                (x) the aggregate Exercise Price actually paid by Plenus to the Company
                for the Series B Preferred Stock it owns, by (y) the aggregate amount
                actually paid to the Company by all
                holders of Series B Preferred Stock for such stock ("Plenus'
                Pro Rata Share").

            

       

      	3.  	
              With
                respect to any vote, consent or waiver within the class of Series
                B
                Preferred Stock, which is not
                based on an "as converted basis", Plenus shall be deemed to hold
                an amount
                of shares of Series B Preferred Stock which, when divided by the
                entire
                number of issued and outstanding shares of such stock, will be equal
                to
                Plenus' Pro Rata Share. 

            

      

      If
        this
        clarification accurately sets forth your understanding and agreement as well,
        please so acknowledge by signing a copy of this letter, in the space provided,
        and returning such signed copy to us. 

      

      

      Sincerely,

      

      Plenus
        Technologies Ltd.

      By: /s/
        Ruth Simha                                           

      

      

      We
        acknowledge:

      

      Wintegra
        Inc.

      By:
        /s/
        Jacob
        Ben-Zvi                         

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      THIS
        WARRANT AND THE WARRANT SHARES (AS DEFINED HEREIN) WHICH MAY BE PURCHASED
        UPON
        THE EXERCISE OF THIS WARRANT, HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT AND
        HAVE
        NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),
        OR
        ANY APPLICABLE STATE OR COMPARABLE SECURITIES LAW OF A U.S. OR NON-U.S.
        JURISDICTION. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
        OR
        HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL
        SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH SALE, OFFER, PLEDGE
        OR
        HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
        REQUIREMENTS OF THE ACT AND OF ANY APPLICABLE STATE OR COMPARABLE SECURITIES
        LAW
        OF A U.S. OR NON-U.S. JURISDICTION.

       

      WINTEGRA
        INC.

       

      
        	NO. __ 	 	
                VOID
                  AFTER June 3rd,
                  2010.

              

      

       

      WARRANT

       

       

      THIS
        CERTIFIES THAT,
        for
        value received, Plenus Technologies Ltd. (the "Holder")
        is
        immediately entitled to subscribe for and purchase from Wintegra Inc.,
a
        company
        duly incorporated under the laws of Delaware, USA
        (the
“Company”),
        at the
        Exercise Price (as such term is defined below and as may be adjusted pursuant
        to
        Section 5 hereof) for an aggregate value of up to One Million Five Hundred
        United States dollars (US $1,500,000) (or such lower value as set forth below)
        (the “Exercise
        Amount”),
        of
        the Company’s fully paid and non-assessable Series B Preferred Shares (as
        defined below) (as
        adjusted
        in accordance with Section 2 and Section 5 hereof) or whichever class may
        be
        applicable in the circumstances as determined below, having all rights,
        privileges and preferences, contractual, economic or otherwise, attached
        to such
        class of shares or granted to any holder of such class of shares (the
“Warrant Shares”),
        subject
        to the provisions and upon the terms and conditions hereinafter set forth
        in
        this Warrant.

       

      1. Definitions.

       

      As
        used
        herein the following defined terms shall have the meaning ascribed to them
        in
        this Section as follows:

       

      "Issuance
        of Additional Stock"
        shall
        mean the issuance of shares and Convertible Securities of the Company, other
        than shares of the Company issued or issuable:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	(A)	
                  upon
                    conversion of shares of Preferred
                    Stock;

                

        

      

       

      
        
          	 	(B) 	
                  upon
                    grant of, and/or exercise of any and all of the warrants and
                    options
                    granted to any of the Company's stockholders under the Last Round
                    of
                    Financing (as defined below)and the TI Warrants attached to the
                    Series B
                    Preferred Stock Purchase Agreement dated April 5, 2001 (the “Series
                    B Preferred Stock Purchase Agreement”)
                    as Exhibits G1, G2, G3 and G4 and the rights provided in the
                    Bridge Loan
                    Agreement dated January 25, 2001 attached as Exhibit E to the
                    Series B
                    Preferred Stock Purchase Agreement;

                

          	 	 	 

          	
                	(C)	
                  up
                    to 5,000,000 shares of Common Stock reserved for issuance to,
                    and/or
                    options thereto sold or issued to, employees, directors or consultants
                    of
                    the Company pursuant to the Company’s stock option plan as adopted by the
                    Company; 

                

        

      

       

      "Convertible
        Securities" shall
        mean options or warrants to purchase or rights to subscribe for shares of
        the
        Company, or securities by their terms convertible into or exchangeable for
        equity securities of the Company or options or warrants to purchase or rights
        to
        subscribe for such convertible or exchangeable securities

       

      “Deemed
        Issuance”
        shall
        mean the issuance of Convertible Securities.

       

      “Last
        Round of Financing” shall
        mean the round of financing consummated in accordance with the Series B
        Preferred Share Purchase Agreement dated April 5, 2001, by and among the
        Company
        and the Purchasers (as defined in that Share Purchase Agreement), the Joinder
        thereto dated April 9, 2001 and the Amendment thereto dated July 15, 2001.
        

       

      “M&A
        Transaction”
        shall
        mean either: (x) the consummation of any consolidation or merger of the Company
        with or into a third party, pursuant to which the Company's shareholders
        immediately prior to such transaction own less than fifty-one percent (51%)
        of
        the voting securities of the surviving entity immediately after the consummation
        of such transaction, or (y) the consummation of a sale of all or substantially
        all of the Company’s shares or assets to any third party.

       

      “Next
        Qualified Financing”
        shall
        mean the first investment, or series of investments in the Company’s share
        capital after the date hereof in which the Company issues shares
        provided that the aggregate gross proceeds to the Company in such financing
        exceeds Fifteen Million United States dollars (US$15,000,000).

       

      “Permitted
        Transferee” shall
        mean (i)
        any
        other entity which controls, is controlled by or is under common control
        with
        the Holder, (ii) if the Holder is a trustee or
        is
        appointed to act on behalf of others then
        to
        its beneficiaries being investors of the Holder, or (iii) if the Holder is
        a
        general or limited partnership,
        assignments and transfers to its partners and/or to partnerships managed
        by the
        same management company or managing general partner or by an entity which
        controls, is controlled by, or is under common control with, such management
        company or managing general partner.

       

      "Preferred
        Stock"
        or
“Preferred
        Shares”
shall
        mean shares of Series A Preferred Stock and shares of Series B Preferred
        Stock
        of the Company.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      “Realization
        Event”
        shall
        mean either (x) the closing of a firmly underwritten initial public offering
        of
        the Company’s shares (an “IPO”)
        pursuant to a registration statement filed with the Securities and Exchange
        Commission pursuant to the Act or pursuant to a registration statement filed
        with a similar law under any foreign jurisdiction; or (y) the closing of
        an
        M&A Transaction.

       

      “Series
        B Preferred Shares”
        shall
        mean the preferred shares purchased by the investors in the Last Round of
        Financing, each with a nominal value of US$0.001, having all rights privileges
        and preferences, contractual, economic or otherwise, attached to such class
        of
        preferred share or granted to any holder of such class of share.

       

      Capitalized
        terms not otherwise defined herein shall have the meaning ascribed to them
        in
        the loan agreement between the Company, the Holder and others dated, as of
        June
        4, 2002 (the “Loan
        Agreement”).

       

      2.Number
        and Class of Warrant Shares; Exercise Price.

       

      (a) Number
        of Warrant Shares.
        The
        Holder shall be entitled to purchase such number of Warrant Shares that is
        equal
        to the Exercise Amount (as defined below) divided by the Exercise Price (as
        defined below). The Exercise Amount shall be as follows:

       

      (i) Four
        Hundred Thousand United States dollars (US$400,000) as of the date hereof;
        or

       

      (ii) the
        Exercise Amount shall be adjusted up to Six Hundred Thousand United States
        dollars (US$600,000) in the event that the Company shall receive funds in
        accordance with a Disbursement Request pursuant to Section 1.1 of the Loan
        Agreement at any time during the term of the Loan Agreement; or

       

      (iii) the
        Exercise Amount shall be further adjusted up to Seven Hundred Thousand United
        States dollars (US$700,000) in the event that (a) the Company shall have
        the
        right to draw any amount from the First Additional Credit Amount and shall
        notify the Holder of its intention to exercise its right pursuant to Section
        1.4
        of the Loan Agreement, and (b) the Company has not received any funds from
        the
        Initial Credit Amount pursuant to Section 1.3 of the Loan Agreement;
        or

       

      (iv) the
        Exercise Amount shall be further adjusted up to Nine Hundred Thousand United
        States dollars (US$900,000) in the event that (a) the Company shall have
        the
        right to draw any amount from the First Additional Credit Amount and shall
        notify the Holder of its intention to exercise its right pursuant to Section
        1.4
        of the Loan Agreement, and (b) the Company received any funds from the Initial
        Credit Amount pursuant to Section 1.3 of the Loan Agreement; or

       

      (v) the
        Exercise Amount shall be further adjusted up to One Million and Fifty Thousand
        United States dollars (US$1,050,000) in the event that the
        Company shall draw any amount from the First Additional Credit Amount
pursuant
        to Section 1.3 of the Loan Agreement; or

       

      (vi) the
        Exercise Amount shall be further adjusted up to One Million United States
        dollars (US$1,000,000) in the event that (a) the
        Company shall have the right to draw the Second Additional Credit Amount
        or any
        portion thereto and shall notify the Holder of its intention to exercise
        its
        right pursuant
        to Section 1.4 of the Loan Agreement, and (b) the Company has not received
        any
        funds from the Initial Credit Amount pursuant to Section 1.3 of the Loan
        Agreement; or 

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      (vii) the
        Exercise Amount shall be further adjusted up to [One Million and Two Hundred
        Thousand United States dollars (US$1,200,000)] in the event that (a)
the
        Company shall have the right to draw the Second Additional Credit Amount
        or any
        portion thereto and shall notify the Holder of its intention to exercise
        its
        right pursuant
        to Section 1.4 of the Loan Agreement, and (b) the Company has received any
        funds
        from the Initial Credit Amount pursuant to Section 1.3 of the Loan Agreement,
        and (b) the Company has not received any funds from the First Additional
        Credit
        Amount pursuant to Section 1.3 of the Loan Agreement; or 

       

      (viii) the
        Exercise Amount shall be further adjusted up to [One Million and Three Hundred
        Thousand and Fifty United States dollars (US$1,350,000)] in the event that
        (a)
the
        Company shall have the right to draw the Second Additional Credit Amount
        or any
        portion thereto and shall notify the Holder of its intention to exercise
        its
        right pursuant
        to Section 1.4 of the Loan Agreement, and (b) the Company has received any
        funds
        from the Initial Credit Amount pursuant to Section 1.3 of the Loan Agreement,
        and (b) the Company has received any funds from the First Additional Credit
        Amount pursuant to Section 1.3 of the Loan Agreement; or 

       

      (ix) the
        Exercise Amount shall be further adjusted up to One Million and Five Hundred
        Thousand United States dollars (US$1,500,000) in the event that the
        Company shall draw any amount from the Second Additional Credit Amount
pursuant
        to Section 1.3 of the Loan Agreement.

       

      (b) Class
        of Warrant Shares.
        The
        class of share to be issued upon the exercise of this Warrant shall be Series
        B
        Preferred Shares.

       

      (c) Exercise
        Price.
        The
        Exercise Price for each Warrant Share, subject to adjustments pursuant to
        the
        provisions of this Section 2 and Section 5 herein, shall be US$2.75656.

       

      Notwithstanding
        anything herein to the contrary, upon each Issuance of Additional Stock or
        deemed issuance of shares at a price per share less than the applicable Exercise
        Price then in effect (the "New
        Exercise Price"),
        the
        Exercise Price will be automatically reduced to the New Exercise Price. No
        adjustment of an Exercise Price shall be made if it has the effect of increasing
        the Exercise Price beyond the applicable Exercise Price in effect immediately
        prior to such issuance or Deemed Issuance. 

       

      3. Method
        of Exercise; Payment.

       

      (a) Cash
        Exercise.
        The
        purchase rights represented by this Warrant may be exercised by the Holder,
        in
        whole or in part, by the surrender of this Warrant (with the Notice of Exercise
        form attached hereto as Exhibit A duly
        executed) at the principal office of the Company, and by the payment to the
        Company, by cash, certified, cashier's or other check acceptable to the Company,
        of an amount equal to the applicable aggregate Exercise Price of the applicable
        class of Warrant Shares being purchased.

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      (b)
         Net
        Exercise.
        In the
        event of a Realization Event and in lieu of the payment method set forth
        in
        Section 3(a) above, the Holder may elect to exchange the Warrant for a number
        of
        the applicable class of Warrant Shares equal to the number of Warrant Shares
        computed using the following formula:

       

      X
        =
Y
        (A-B)

                 
A

       

      
        	 	
                Where
                  X = the number of Warrant Shares (adjusted to the date of such
                  calculation, but excluding those shares already issued under this
                  Warrant)
                  to be issued to the Holder.

              

      

       

      
        	 	
                Y
                  =
                  the number of Warrant Shares purchasable under the Warrant (adjusted
                  to
                  the date of such calculation, but excluding those shares already
                  issued
                  under this Warrant).

              

      

       

      
        	 	
                A
                  =
                  the Fair Market Value (as defined below) of one Warrant
                  Share.

              

      

       

      
        	 	 	
                B
                  =
                  Exercise Price (as adjusted to the date of such calculation).
                  

              

      

       

      
        	 	 	
                “Fair
                  Market Value”
                  of
                  a Warrant Share shall mean:

              

      

       

      
        	 	 	
                (i)

              	
                In
                  the event of an M&A Transaction the price per Warrant Share (assuming
                  conversion of the Warrant Shares, adjusted to the date of such
                  calculation, but excluding those shares already issued under this
                  Warrant)
                  as determined in such transaction. 

              

        	 	 	 	 

        	 	 	(ii) 	
                If
                  the exercise date is the date of closing of an IPO, then the public
                  offering price (before deduction of discounts, commissions or expenses)
                  in
                  such offering.

              

      

       

      
        	 	
                (iii)

              	
                In
                  the event that the Fair Market Value for a Warrant Share cannot
                  be
                  determined in the manner set forth above in items (i) and (ii),
                  then the
                  Fair Market Value of a Warrant Share shall be as determined by
                  the
                  Company’s Board of Directors in good
                  faith.

              

      

       

      In
        the
        event of a cashless exercise under this Section 3(b), this Warrant must be
        exercised for all the Warrant Shares and must be surrendered to the Company
        along with the Notice of Exercise. After such exercise and receipt by the
        Holder
        of the appropriate amount of Warrant Shares, this Warrant shall be null and
        void. 

       

      (c) Conditional
        Exercise.
        In the
        event that the Holder intends to exercise this Warrant with respect to a
        Realization Event, the Holder shall be entitled to condition such exercise
        on
        the consummation of a Realization Event and shall indicate as such on the
        Notice
        of Exercise form attached hereto as Exhibit A
        and the
        Holder will only be required to pay the applicable aggregate Exercise Price
        at
        such time as the Realization Event is consummated.

       

      (d) Share
        Certificates.
        In the
        event of any exercise of the rights represented by this Warrant, certificates
        for the applicable class and amount of Warrant Shares so purchased shall
        be
        delivered to the Holder promptly and, unless this Warrant has been fully
        exercised in accordance with Sections 3(a) or 3(b) hereof, a new Warrant
        representing the balance of the Warrant Shares with respect to which this
        Warrant shall not have been exercised shall also be issued to the Holder
        within
        such time.

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      4. Share
        Fully Paid; Reservation of Shares.
        All of
        the Warrant Shares issuable upon the exercise of the rights represented by
        this
        Warrant will, upon issuance and receipt of the Exercise Price therefore,
        be
        fully paid and non-assessable, and free from all taxes, liens and charges
        with
        respect to the issue thereof. At all times when this Warrant may be exercised,
        the Company shall have authorized and reserved for issuance sufficient shares,
        free from pre-emptive rights, of its Warrant Shares to provide for the exercise
        of the rights represented by this Warrant, so that this Warrant may be exercised
        without additional authorization of Preferred Shares after giving effect
        to all
        other warrants, options, convertible securities and other rights to acquire
        shares of the Company.

       

      5. Adjustments.
        The
        number and kind of securities purchasable upon the exercise of this Warrant
        and
        the Exercise Price therefore shall be subject to adjustment from time to
        time
        upon the occurrence of certain events, as follows:

       

      (a) Reclassification.
        In case
        of any reclassification or change of the applicable class of Warrant Shares
        issuable at such time (other than a change in par value, or as a result of
        a
        subdivision or combination), the Company shall execute a new Warrant, providing
        that the Holder shall have the right to exercise such new Warrant, and procure
        upon such exercise and payment of the same aggregate Exercise Price, in lieu
        of
        such applicable class of Warrant Shares theretofore issuable upon exercise
        of
        this Warrant, the kind and amount of shares, other securities, money and
        property receivable upon such reclassification or change, by a holder of
        an
        equivalent number of such applicable class of Warrant Shares. Such new warrant
        shall provide for adjustments that shall be as nearly equivalent as may be
        practicable to the adjustments provided for in this Section 5 or as shall
        be
        necessary in order to ensure the integrity of the Holder’s economic rights. The
        provisions of this subsection (a), shall similarly apply to successive
        reclassifications or changes.

       

      (b) Share
        Splits, Dividends, Combinations and Reorganizations.
        In the
        event that the Company shall at any time subdivide the outstanding applicable
        class of Warrant Shares or shall issue a share dividend on its outstanding
        applicable class of Warrant Shares the number of Warrant Shares issuable
        upon
        exercise of this Warrant immediately prior to such subdivision or to the
        issuance of such share dividend shall be proportionately increased, and the
        Exercise Price shall be proportionately decreased. In the event that the
        Company
        shall at any time combine the outstanding shares of the applicable class
        of
        Warrant Shares the number of shares of the applicable class of Warrant Shares
        issuable upon exercise of this Warrant immediately prior to such combination
        shall be proportionately decreased, and the Exercise Price shall be
        proportionately increased, effective at the close of business on the date
        of
        such subdivision, share dividend or combination, as the case may be. Similar
        equitable adjustments will be made in the event of a consolidation, merger
        or
        reorganization of the Company with or into, or a sale of all or substantially
        all of the Company's assets, or substantially all of the Company's issued
        and
        outstanding share capital, to, any other company, or any other entity or
        person,
        other than a wholly-owned subsidiary of the Company as well as any spin-off
        or
        split-off transaction by the Company.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      (c) General
        Protection.
        The
        Company will not by amendment of its By-Laws and/or the its Certificate of
        Incorporation or through any reorganization, transfer of assets, consolidation,
        merger, dissolution, issuance or sale of its securities or any other voluntary
        action, avoid or seek to avoid the observance or performance of any of the
        terms
        to be oberserved or performed hereunder, but will at all times in good faith
        assist in the carrying out of all provisions hereof and in taking of all
        such
        actions and making all such adjustments as may be necessary or appropriate
        in
        order to protect the rights of the Holder against any impairment.

       

      6. Notice
        of Adjustments.
        Whenever the number of shares of the applicable class of Warrant Shares
        purchasable hereunder or the Exercise Price thereof shall be adjusted pursuant
        to Section(s) 2 and 5 hereof, the Company shall provide written notice to
        the
        Holder setting forth, in reasonable detail, the event requiring the adjustment,
        the amount of the adjustment, the method by which such adjustment was
        calculated, and the number and class of shares of the applicable class of
        Warrant Shares which may be purchased and the Exercise Price therefore after
        giving effect to such adjustment.

       

      7. Fractional
        Shares.
        This
        Warrant may not be exercised for fractional shares. In the event of fractional
        shares, the Company shall round the number of Warrant Shares issuable upon
        such
        exercise down to the nearest whole share and shall pay an amount in cash
        to the
        Holder equal to any such fractional share. 

       

      8. Representations
        and Covenants of the Company.
        The
        Company represents and covenants to the Holder as follows:

       

      (a) that
        all
        corporate actions on the part of the Company, its officers, directors and
        shareholders necessary for the sale and issuance of the Warrant and the Warrant
        Shares and the performance of the Company's obligations hereunder have been
        taken and are effective as of the Effective Date. The Company undertakes
        that
        all corporate actions on the part of the Company, its officers, directors
        and
        shareholders will be taken as necessary for the creation, sale and issuance
        of
        the Series B Preferred Shares, such actions will be taken as promptly as
        practicable following an adjustment to the Exercise Price pursuant to Sections
        2(c) and 5 above which results in an insufficient amount of Series B Preferred
        Shares being held in reserve by the Company.

       

      (b) that
        as
        of the date of exercise of this Warrant, the Company shall record the Holder,
        any Permitted Transferees of the Holder and any Co-lender of the Holder,
        in the
        Company’s internal share register in accordance with the applicable law, as the
        owners, direct or beneficial, of the Warrant Shares pursuant to the names
        provided by the Holder in Section 4 on the Notice of Exercise (Exhibit A)
        to
        this Warrant.

       

      9. Representations
        and Warranties by the Holder.
        The
        Holder represents and warrants to the Company as follows:

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

      (a) The
        Holder is acquiring the Warrant for investment for its own account, not as
        a
        nominee or agent, and not with the current view to, or for resale in connection
        with, any distribution thereof, except with respect to its Co-lenders and/or
        Permitted Transferees in accordance with Section 11(b) below. 

       

      (b) The
        Holder understands that the Warrant and the Warrant Shares have not been
        registered under the Act, or another comparable law, by reason of their issuance
        in a transaction exempt from registration under the Act pursuant to
        Section 4(2) thereof, and that they must be held by the Holder
        indefinitely, and that the Holder must therefore bear the economic risk of
        such
        investment indefinitely, unless the Warrant Shares have been registered for
        resale under the Act or such resale is exempted from such registration. The
        Holder is aware of the provisions of Rule 144 promulgated under the Act and
        its requirements for the resale of the Warrant Shares which permits limited
        resale of shares purchased in a private placement subject to the satisfaction
        of
        certain conditions, including, among other things, the existence of a public
        market for the shares, the availability of certain current public information
        about the Company, the resale occurring not less than one year after a party
        has
        purchased and paid for the security to be sold, the sale being effected through
        a “broker’s transaction” or in transactions directly with a “market maker” and
        the number of shares being sold during any three-month period not exceeding
        specified limitations. The Holder further understands that the Warrant Shares
        have not been qualified under any state or non-U.S. securities law. The Holder
        understands that no public market now exists for any of the Warrant Shares
        and/or the Warrant and that the Company has made no assurances that a public
        market will ever exist for the Company’s shares.

       

      (c) The
        Holder has such knowledge and experience in financial and business matters
        that
        it is capable of evaluating the merits and risks of the purchase of this
        Warrant
        and the shares of the applicable class of Warrant Shares purchasable pursuant
        to
        the terms of this Warrant and of protecting its interests in connection
        therewith.

       

      (d) The
        Holder is able to bear the economic risk of the purchase of the shares of
        the
        applicable class of Warrant Shares pursuant to the terms of this Warrant
        including an entire loss of the value of such investment.

       

      (e)
        The
        Holder understands that the Warrant and the Warrant Shares have not been
        registered under the Act, in part, by reason of a specific exemption from
        the
        registration provisions of the Act, the availability of which depends upon,
        among other things, the bona fide nature of the investment intent and the
        accuracy of the Holder’s representations as expressed herein. If
        Holder, any
        Permitted Transferee of the Holder and any Co-lender of the Holder, is
        a
        resident or citizen of the United States or the offer of the Warrant Shares
        was
        made to the Holder, any
        Permitted Transferee of the Holder and any Co-lender of the Holder, while
        such person or entity was in the United States, then the Holder,
        any
        Permitted Transferee of the Holder and any Co-lender of the Holder, is
        an
“accredited investor” within the meaning of Rule 501(a) promulgated under the
        United States Securities Act of 1933, as amended (the “Securities
        Act”).

       

      (f) If
        the
        Holder,
        any
        Permitted Transferee of the Holder and any Co-lender of the Holder
        is not a
        resident or citizen of the United States and the offer of the Warrant Shares
        was
        not made to the Holder, any
        Permitted Transferee of the Holder and any Co-lender of the Holder
        while
        the Holder,
        any
        Permitted Transferee of the Holder and any Co-lender of the Holder
        was in
        the United States, then the Holder,
        any
        Permitted Transferee of the Holder and any Co-lender of the Holder
        acknowledge and agree that the offer and sale of the Warrant Shares is being
        made in reliance upon Regulation S promulgated under the Securities Act and
        that
        the offer and sale of the Warrant Shares constitutes an “offshore transaction”
within the meaning of Regulation S, as amended from time to time.

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      10. Restrictive
        Legend.

       

      The
        shares of the applicable class of Warrant Shares shall be stamped or imprinted
        with the following legend:

       

      THE
        SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
        AND
        HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED
        (THE
“ACT”). SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
        REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH
        ACT UNLESS
        THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO IT STATING
        THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
        DELIVERY REQUIRED OF THE SAID ACT AND IS IN ACCORDANCE WITH THE BY LAWS AND
        THE
        CERTIFICATE OF INCORPORATION OF THE COMPANY AS MAY BE AMENDED FROM TIME TO
        TIME.

       

      11. Restrictions
        Upon Transfer and Removal of Legend.

       

      (a) The
        Company need not register a transfer of this Warrant or the Warrant Shares
        bearing the restrictive legend set forth in Section 10 hereof, unless the
        conditions specified in such legend are satisfied and the transferees provide
        the Company with written representations required pursuant to the Act for
        such
        transfer and such transferees agree to be bound by the terms and conditions
        of
        this Warrant. The Company may also instruct its transfer agent not to register
        the transfer of the shares of Warrant Shares unless the conditions set forth
        in
        the previous sentence are satisfied. In no event shall the Holder, its Permitted
        Transferees or any of its Co-lenders transfer this Warrant to a competitor
        of
        the Company that operates in the same field of business as the Company. Any
        transfer of the Warrant Shares is subject to the Company's Certificate of
        Incorporation.

       

      (b) Notwithstanding
        the provisions of paragraph (a) above and subject to the Certificate of
        Incorporation of the Company then in effect with respect to the Warrant Shares,
        no opinion of counsel or "no-action" letter or approval of the Company or
        its
        shareholders or requirement or approval from any other third party shall
        be
        necessary for a transfer of this Warrant, or any part thereof, or of the
        Warrant
        Shares, without consideration to: (i) any Permitted Transferee of the Holder,
        or
        (ii) any other Co-lender, provided
        that any
        such Permitted Transferee or Co-lender shall have executed an irrevocable
        proxy
        to the Holder, in the same form attached to that certain Loan Agreement between
        the Company, the Holder and other, dated June 4, 2002

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

      (c)
        All
        transfers of this Warrant shall be accompanied by an executed warrant transfer
        deed in the form of transfer, under which the transferee undertakes to be
        bound
        by all obligations of the Holder under this Warrant. The form of the deed
        of
        transfer and the Proxy attached hereto as Exhibit
        B.

       

      12. Rights
        of Shareholders.
        No
        holder of this Warrant shall be entitled, as a Warrant holder, to vote or
        receive dividends or be deemed the holder of the shares of the applicable
        class
        of Warrant Shares or any other securities of the Company which may at any
        time
        be issuable on the exercise of this Warrant for any purpose, nor shall anything
        contained herein be construed to confer upon the holder of this Warrant,
        as
        such, any of the rights of a shareholder of the Company or any right to vote
        for
        the election of directors or upon any matter submitted to shareholders at
        any
        meeting thereof, or to give or withhold consent to any corporate action (whether
        upon any recapitalization, issuance of share, reclassification of share,
        change
        of par value, consolidation, merger, conveyance, or other-wise) or to receive
        notice of meetings, or to receive dividends or subscription rights or otherwise
        until the Warrant shall have been exercised and the shares of the applicable
        class of Warrant Shares purchasable upon the exercise hereof shall have become
        deliverable, as provided herein. Notwithstanding the foregoing, upon the
        exercise of this Warrant, in the event that the rights of anti-dilution or
        price-protection attached to the Warrant Shares shall be inferior to the
        rights
        of anti-dilution or price protection currently granted to the holders of
        the
        Series B Preferred Shares as set forth in the Certificate of Incorporation
        of
        the Company currently in effect on the date hereof, then the Holder shall
        be
        entitled to receive the same anti-dilution or price protection rights on
        the
        Warrant Shares as currently granted to the holders of the Series B Preferred
        Shares on the date hereof.

       

      13. Expiration
        of Warrant.
        This
        Warrant shall expire and shall no longer be exercisable upon the earlier
        to
        occur of:

       

      
        	(a)  	1:00 p.m., Israel local time, on June 3rd, 2010,
                or;

      

      
        	 	 

      

      
        	(b)  	
                a
                  Realization Event, provided however, that this provision shall
                  not affect
                  the right of the Holder to exercise this Warrant pursuant to Sections
                  3(b)
                  and 3(c) hereof.

              

      

       

      
        	(c)  	
                the
                  cancellation of the Warrant pursuant to the terms of Section 18
                  hereof.
                  

              

      

       

      The
        Company shall provide the Holder with written notice of the expiration of
        the
        Warrant at least fifteen (15) days prior to the anticipated consummation
        of a
        Realization Event (the “Expiration
        Notice”).
        If
        such Expiration Notice is not provided to the Holder prior to the consummation
        of a Realization Event, then the Warrant shall not expire until fifteen (15)
        days after written notice of the expiration of the Warrant due to a Realization
        Event is provided to the Holder.

       

      14. Notices.
        All
        notices and other communications required or permitted hereunder shall be
        in
        writing, shall in
        writing and shall be telecopied (faxed) or mailed by registered or certified
        mail, postage prepaid, or by electronic mail, or otherwise delivered by hand
        or
        by messenger, if to the Company then to the Company's address set forth above
        to
        the attention of the Chief Executive Officer and the Chief Financial Officer
        with a copy to Dr. Ayal Shenhav, Adv., Ayal Shenhav & Co., 91 Medinat
        Hayehudim Street, P.O.Box 4121, Herzlia 46140, Israel, and if to the Holder
        then
        to the addresses set forth in Schedule
        1
        of the
        Loan Agreement with
        a
        copy to Joseph
        Mayer, Adv., Yossi Avraham and Co., at 3 Daniel Frisch St. Tel Aviv, 64731,
        Israel, fax number 03-6963801, or such other address with respect to a party
        as
        such party shall notify each other party in writing as above provided. Any
        notice sent in accordance with this Section 14 shall be effective (i) if
        mailed,
        seven (7) business days after mailing, (ii) if sent by messenger, upon delivery,
        and (iii) if sent via telecopier (fax) or electronic mail, upon transmission
        and
        electronic confirmation of receipt or (if transmitted and received on a
        non-business day) on the first business day following transmission and
        electronic confirmation of receipt. 

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      15. Registration
        Rights.
        Upon
        the
        exercise of the Warrant,
        the
        Holder, including any Permitted Transferee and/or Co-lender thereof, will
        be
        entitled to all registration rights with respect to the Warrant Shares to
        be
        issued, as have been granted to a “Holder” under the Second Amended Investors’
        Rights Agreement, dated as of July 19, 2001, and as may further be amended
        from
        time to time (the “Registration
        Rights Agreement”),
        and
        the Holder, including
        any Permitted Transferee and/or Co-lender thereof, shall become a party to
        the
Registration
        Rights Agreement
        by
        signing a joinder agreement. 

       

      The
        Registration Rights Agreement shall be incorporated herein by reference and
        shall be deemed an integral part of this Warrant. Furthermore, upon any exercise
        of the Warrant by the Holder, the Holder, including any Permitted Transferee
        and/or Co-lender, shall be deemed to be a “Holder” or “Initiating Holders”, as
        applicable (as defined in the Registration Rights Agreement) and the Warrant
        Shares shall be deemed “Preferred Registrable Securities” (as defined in the
        Registration Rights Agreement) and the Holder, including any Permitted
        Transferee and/or Co-lender thereof, shall become entitled to all the rights
        and
        privileges set forth in the Registration Rights Agreement as if the Holder
        was
        an original signatory thereto. Furthermore,
        for the purposes of the Registration Rights Agreement, upon
        the
        exercise of the Warrant,
        the
        holder shall be deemed as a “Holder”, and so long as it complies with “Major
        Holder” definition or “Major Investor” definition therein, shall be deemed as
        such as the case may be.

       

      Upon
        the
        exercise of the Warrant,
        the
        holder shall be deemed as a “Holder”, as defined in the Second
        Amended and Restated Right of First Refusal and Co-Sale Agreement
        dated
        July 19, 2001 (“RFR
        Agreement”).
        Furthermore, for the purposes of the RFR Agreement it shall be deemed as
“Major
        Holder” for as long as it complies with such definitions contemplated in the RFR
        Agreement.

       

      The
        rights
        and obligations of the Company and the Holder set forth in this Section 15
        shall
        survive the exercise, conversion and expiration of this Warrant. 

       

      16. Governing
        Law.
        Since
        the Holder is based in Israel, this Warrant and all actions arising out of
        or in
        connection with this Agreement shall be exclusively governed by and construed
        in
        accordance with the laws of the State of Israel. However, corporate law matters
        will be governed by and construed in accordance with the laws of the State
        of
        Delaware. 

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      17. Power
        of Warrant.
        This
        Warrant and the Exhibits hereto constitute the full and entire understanding
        and
        agreement between the Company and the Holder and is independent of, and
        supersedes, any other agreement or instrument with regard to the subject
        matters
        hereof and thereof. 

       

       

      Issued
        this [__]th day of May, 2002.

       

      WINTEGRA
        INC.

       

      By:
        /s/ Jacob Ben-Zvi, President and CEO

       

      

       

      Agreed
        and accepted:

      PLENUS
        TECHNOLOGIES LTD.

       

      By:
        /s/ Ruth Simha /s/ Shlomo Karako

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

      
EXHIBIT A

       

      NOTICE
        OF EXERCISE

       

       

      
        	
                TO:

              	 	Wintegra Inc.	 
	 	 	[____________]	 
	 	 	Attn: ____________, VP and CFO	 

      

       

      1. The
        undersigned hereby elects to purchase [FILL
        IN NUMBER OF SHARES]
        ____________ shares of Series B Preferred Shares of Wintegra Inc. pursuant
        to
        the terms of the attached Warrant and tenders herewith payment in full for
        the
        purchase price of the shares being purchased, together with all applicable
        transfer taxes, if any (Initial here if the undersigned elects this alternative
        _______).[Such purchase is contingent upon _______________ in accordance
        with
        Section 3(c) of this Warrant.]

       

      2. In
        lieu
        of exercising the attached Warrant for cash or a check, the undersigned hereby
        elects to effect the net exercise provision of Section 3(b) of this Warrant
        and
        receive [FILL
        IN NUMBEROF SHARES]
        _________ shares of Series B Preferred Shares of Wintegra Inc. pursuant to
        the
        terms of this Warrant according to the following calculation (Initial here
        if
        the undersigned elects this alternative ________): 

       

      X
        =
Y
        (A-B)  (
        ) =
(____)
        [(_____) - (_____)]

                   A    
        (_____)

       

      Where
        X =
        the number of shares of Warrant Shares to be issued to Holder.

       

      Y
        = the
        number of shares of Warrant Shares purchasable under the amount of the Warrant
        being exchanged (as adjusted to the date of such calculation).

       

      A
        = the
        Fair Market Value of one share of the Company’s Warrant Shares.

       

      B
        =
        Purchase Price (as adjusted to the date of such calculation).

       

      3. Please
        issue a certificate or certificates representing said Series B Preferred
        Shares
        in the name of the undersigned or in such other name as is specified below
        and
        as a trustee on behalf of the beneficiaries of the undersigned:

       

      _________________________________

      (Name)

       

      _________________________________

       

      _________________________________

      (Address)

       

      

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      4. The
        undersigned hereby represents and warrants that the aforesaid shares of Series
        B
        Preferred Shares are being acquired for the account of the undersigned for
        investment and not with a view to, or for resale, in connection with the
        distribution thereof, and that the undersigned has no present intention of
        distributing or reselling such shares and all representations and warranties
        of
        the undersigned set forth in Section 9 of the attached Warrant are true and
        correct as of the date hereof.

       

      5. Please
        record in the Company’s internal share register, the below list of entities
        representing the owners, direct and beneficial, of the said Series B Preferred
        Shares, as follows:

       

      _________________________________

      (Name)

       

      _________________________________

      (Amount)

       

      _________________________________

      (Address)

       

       

      6. [For
        a
        non-Israeli entity] Attached are the documents and details required in order
        to
        record a new issuance of shares in the offices of Companies Registrar.

       

       

      _____________________________

      (Signature)

       

      Title:_________________________

       

       

      ____________________________

      (Date)

       

      

       

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

      EXHIBIT B

       

      FORM
        OF TRANSFER

       

      (To
        be
        signed only upon transfer of Warrant)

       

      FOR
        VALUE
        RECEIVED, the undersigned (the "Transferor")
        hereby
        sells, assigns and transfers unto
        _______________________________________________(the "Transferee")
        the
        right represented by the attached Warrant No. 1 to purchase ____________
        shares
        of Series B Preferred Shares of Wintegra Inc. (the “Warrant”)
        to
        which the attached Warrant relates, and appoints ______________ Attorney
        to
        transfer such right on the books of Wintegra Inc., with full power of
        substitution in the premises. The Transferor further represents that the
        transfer is made in accordance with the terms of the Warrant, including,
        without
        limitation, with respect to the Transferee being a Permitted Transferee or
        a
        Co-lender, and that said transferee has executed the Proxy.

       

      Dated:
        ____________________

       

      
        	 	 	By:
                _________________________________
	 	 	 
	 	 	Name:
                _______________________________

      

           

       

      
        	 	
                (Signature
                  must conform in all respects to name of Holder as specified on
                  the face of
                  the Warrant)

              	 
	 	 	 
	 	
                Address:              [                
                     
 ]

              	 
	 	 	 
	 	
                
                                        
                           [                
                       
 ]

                

              	 

      

       

       

      Signed
        in
        the presence of:

       

      By: _____________________________    

       

      Name: ___________________________

       

       

      And
        we,
        the Transferee, agree to the transfer of said rights to which the Warrant
        relates, and agree to be bound by the terms and conditions of the Warrant.
        The
        undersigned further represent that the transfer is made in accordance with
        the
        terms of the Warrant. 

       

      
         

        
          	 	 	 
	 	
                  Address: [______________________________]

                	 
	 	 	 
	 	
                  [______________________________]

                	 
	 	
                  [fax:___________________________]

                	 
	 	
                  [e-mail:_________________________]

                	 

        

         

        
          
            
            

          

          
            -15-

            
              

            

          

          
            
            

          

        

      

    

     

    Exhibit
      B1

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      FLOATING
        CHARGE AGREEMENT

      

      THIS
        FLOATING CHARGE AGREEMENT (this “Agreement”)
        made
        as of the 4th day of June 2002, by and between Wintegra Ltd., a company duly
        incorporated under the laws of the State of Israel, having its principal
        place
        of business at Taya Center, 6 Hamasger St., 43653 Ra’anana, Israel (the
“Pledgor”),
        Plenus Technologies Ltd. of Delta House, 16 Hagalim Avenue, Herzylia 46725,
        Israel (“Plenus”)
        and
        Citibank, N.A., Tel Aviv Branch of Platinum Building, 21 Ha’arba’ah Street, Tel
        Aviv 64739, Israel (“Citibank”,
        and
        together with Plenus, the “Lenders”).

      

      
        	
                WHEREAS

              	 	
                the
                  Pledgor has agreed to enter into this Agreement in order to secure
                  certain
                  obligations of the Pledgor and of Wintegra Inc., a Delaware corporation
                  (“Wintegra
                  Inc.”),
                  to the Lenders and to the entities listed as co-lenders in Schedule
                  1
                  hereto (the “Co-lenders”),
                  pursuant to the Loan Agreement (as defined
                  below).

              

      

      

      NOW,
        THEREFORE, IT IS AGREED AS FOLLOWS:

      

      1. The
        Preamble to this Agreement constitutes an integral part hereof. All capitalized
        terms used herein and not defined herein shall have the meaning assigned
        to such
        terms in the Loan Agreement by and among Wintegra Inc., the Pledgor and the
        Lenders, dated as of June 4th, 2002 (the “Loan Agreement”).

      

      2.
        To
        secure
        the performance of the Pledgor’s and
        Wintegra Inc.’s obligations
        pursuant to this Agreement and the Loan Agreement, the Pledgor hereby pledges
        and grants to the Lenders and to the Co-Lenders, a first priority floating
        charge on all of its right, title and interest (the “Floating Charge”)
        in all
        its present and future tangible and intangible assets and rights of any kind
        whether contingent or absolute as well as any amounts payable pursuant to
        the
        Pledgor’s insurance policy(ies) (except for any amounts payable pursuant to the
        insurance of certain assets for the benefit of Bank Leumi of Israel according
        with a specific pledge in favour of Bank Leumi as stipulated herein), all
        as
        more fully described in Exhibit
        A
        attached
        hereto (the "Collateral"),
        for
        as long as the Floating Charge is in effect. 

      

      3. The
        Pledgor will not without prior written consent of Plenus: (a) materially
        change
        the general nature of its business; (b) make any loan or other extension
        of
        credit to its distributors, customers, subsidiaries, or employees other than
        loans and advances granted in the ordinary course of business and for an
        aggregate amount of not more than $100,000, provided, however, that this
        subsection (b) shall not apply to transactions between Pledgor and any of
        its
        current or future subsidiaries, conducted in the ordinary course of business,
        including, without limitation, transfer of funds for the coverage of salaries,
        leases and all other reasonable administrative expenses, each of such
        transactions shall not exceed the amount of US$ 300,000; (c) receive any
        loan or
        advance from a third party or incur any debt other than debt incurred in
        the
        ordinary course of business consistent with past business practices of the
        Pledgor and up to an aggregate amount of US$100,000; (d)
        issue
        any guarantee or otherwise incur any contingent liability other than in the
        ordinary course of business and up to an aggregate amount of US$100,000;
        (e)
        sell, pledge, transfer, assign or grant a security interest in any of the
        Collateral or any of the Pledgor's other assets other than with respect to
        the
        creation of a fixed charge on assets of the Pledgor which are acquired by
        the
        Pledgor following the Effective Date, and further provided however, that
        the
        value of such pledged assets does not exceed $100,000 in the aggregate and
        provided that such fixed charge shall only be recorded on behalf of the actual
        seller of such assets or a commercial bank specifically financing such an
        acquisition of assets; (f) repay any existing or future loans or debts in
        the
        aggregate amount of more than US$100,000 or financial obligations,
        including, without limitation, with respect to shareholders’ loans, excluding
        operating expenses of the Pledgor which are incurred in the Pledgor’s ordinary
        course of business, provided,
        however,
        that
        this subsection (f) shall not apply to (i) a loan in the amount of US$ 200,000
        and any accrued interest thereon payable with respect to such loan provided
        to
        the Pledgor by Bank Leumi of Israel for the financing of purchasing certain
        assets as collateral for bill of sale of those assets; and (ii) any amounts
        payable to suppliers of Pledgor, which suppliers provide Pledgor CAD software,
        IP licensing, chips manufacturing services and any other services or parts
        required by Pledgor in the ordinary course of business as currently conducted;
        (g)
        transfer ownership of its assets to a third party other than in the ordinary
        course of business, (h) create
        or
        permit to exist any encumbrance over all or any of its present or future
        revenues or assets; and (i) distribute any dividends.
        The
        above covenants shall also apply to any existing subsidiary of the Pledgor
        or
        any subsidiary to be created by the Pledgor after the date hereof. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      This
        Section 3 shall not apply to any transaction conducted between Pledgor and
        Wintegra Inc., including, without limitation, all of the above mentioned
        transactions.

      

      4. The
        Pledgor shall use its best efforts to preserve the Collateral, without
        interfering with the use of the Collateral in the ordinary course of business,
        and shall either procure the economically reasonable necessary insurance
        to do
        so or shall maintain existing insurance which is reasonable for a company
        of the
        size, at the stage of development and in the industry which Pledgor operates.
        The Pledgor shall permit the Lenders to inspect the Collateral and its records
        at all reasonable times and upon reasonable notice, subject to customary
        non-disclosure restrictions as reasonably determined by the Pledgor or Wintegra
        Inc. 

      

      5. The
        Pledgor hereby makes those representations and warranties appearing in Section
        4
        of the Loan Agreement to the Lenders and such representations and warranties
        are
        incorporated by reference herein.

      

      6. The
        Lenders shall be entitled to enforce the Floating Charge against the Pledgor
        and
        the Collateral shall
        become due and payable or subject to immediate foreclosure at any time without
        any further demand, immediately
        upon the occurrence of a Default Event unless otherwise provided for
        below.

      

      For
        the
        purposes of this Section 6, a “Default
        Event”
shall
        be deemed to exist upon the occurrence of any of the following: 

      

      (i) Wintegra
        Inc. fails to pay any sum due from it pursuant to the Loan Agreement at the
        time, in the currency and in the manner specified in the Loan Agreement,
        or
        otherwise is in breach of this Agreement or the Loan Agreement, and the same
        is
        not remedied within fourteen (14) days after Plenus has notified Wintegra
        Inc.
        in writing of said nonpayment or breach; or

      

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      (ii) the
        Pledgor is unable to pay its debts as they fall due, fourteen (14) days after
        the Company or Wintegra Israel commences negotiations with one or more of
        its
        creditors with a view to the general readjustment or rescheduling or entering
        into arrangement regarding its indebtedness, or upon the consummation of
        a
        general assignment for the benefit of or a composition with its creditors;
        or

      

      (iii) any
        indebtedness for borrowed money of the Pledgor is not paid when due or any
        indebtedness for borrowed money of the Pledgor becomes capable of being declared
        to be or is declared to be due and payable prior to its specified maturity
        by
        reason of the occurrence of a default or a mandatory prepayment event (howsoever
        described) or any commitment to lend under any facility available to the
        Pledgor
        is cancelled by reason of the occurrence of any such default (or mandatory
        prepayment event (howsoever described)); or

      

      (iv) the
        filing against the Pledgor of any petition in liquidation or any petition
        for
        relief under the provisions of applicable law for the relief of debtors;
        or the
        appointment of a special manager, temporary liquidator, temporary receiver
        or
        trustee to take possession of the material property or assets of the Pledgor;
        or
        an attachment is placed on any of the material assets of the Pledgor; or
        execution
        by the Pledgor of a general assignment for the benefit of its
        creditors;
        or the
        Pledgor resolves to voluntarily liquidate; or the appointment of a permanent
        liquidator or permanent receiver to take possession of the material property
        or
        assets of the Pledgor; or

      

      (v) notwithstanding
        Clause (i), any representation or statement made by the Pledgor in this
        Agreement or in the Loan Agreement or in any notice or other document,
        certificate or statement delivered by it pursuant hereto or in connection
        herewith is or proves to have been incorrect or misleading when made or deemed
        to have been made; or

      

      (vi) the
        Pledgor
fails
        duly to perform or comply with any covenant or other obligation expressed
        to be
        assumed by it in this Agreement, the Loan Agreement or any of the exhibits,
        schedules or annexes hereto and thereto (if capable of remedy) and such failure
        is not remedied within fourteen (14) days after Plenus has given a written
        notice thereof to the
        Pledgor;
        or

      

      (vii) any
        event
        or series of events occur(s), which, in the reasonable opinion of Plenus,
        may
        have a material adverse effect on the business, condition (financial or
        otherwise), or results of operations of the Pledgor or on the ability of
        the
        Pledgor to comply with any of its obligations hereunder or under the Loan
        Agreement.

      

      (viii) any
        occurrence of a Default Event under the Pledge Agreement by and among Wintegra
        Inc., Plenus and others dated June 4th, 2002.

      

      The
        Pledgor
        shall
        promptly inform the Lenders
        of the
        occurrence of any Default Event or potential Default Event and, upon receipt
        of
        a written request to that effect from Plenus, confirm to the Lenders
        that,
        except as previously notified to the Lenders
        or as
        notified in such confirmation, no Default Event or potential Default Event
        has
        occurred.

      

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      7. The
        Pledgor shall cooperate with the Lenders and execute all documents as may
        be
        reasonably necessary to register this Floating Charge with the Israeli Registrar
        of Companies and/or Registrar of Pledges and shall bear all stamp taxes with
        respect to such registrations. The Pledgor shall pay upon demand, all reasonable
        expenses, including reasonable attorney's fees, of enforcing the Lenders'
        rights
        and remedies hereunder in the event of a breach by the Pledgor.

      

      8. The
        amount being secured under the Floating Charge created by this Agreement
        is
        unlimited in amount and is created in accordance with the Loan Agreement.
        The
        payments to be made to the Lenders in the event of the foreclosure of the
        Floating Charge will be made in the following order: costs
        (pro rata among the Lenders), expenses
        and taxes, Interest and then Principal Amount. The Floating Charge and this
        Agreement shall be cancelled, and the Lenders shall within twenty-one (21)
        business days as of the repayment provide the Pledgor with all documents
        necessary to release the Floating Charge, upon repayment of all amounts owed
        to
        the Lenders and/or the termination of the Loan Agreement pursuant to its
        terms.

      

      9. This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Israel. 

      

      10. The
        Pledgor shall promptly notify the Lenders in writing of any event, which
        materially adversely affects the value of the Collateral. 

      

      11. The
        Pledgor will immediately notify the Lenders of any material change in its
        name
        or identity or corporate structure or in the location of its chief offices
        or
        where its books and records are kept as well as any change to its incorporation
        documents which might adversely affect the Lenders’ rights
        hereunder.

      

      12.
        None
        of
        the rights, privileges, or obligations set forth in, arising under, or created
        by this Agreement may be assigned or transferred by any party hereto without
        the
        prior consent in writing of the other parties;
        notwithstanding the foregoing and without derogating from the requirement
        and
        limitations set forth immediately below, each of the Lenders shall have the
        right to assign or transfer any of its rights, privileges and obligations
        under
        this Agreement to a Permitted Transferee, as such term is defined in the
        Loan
        Agreement, provided that such transfer is not to a competitor of the Pledgor,
        and further provided that the assignee undertakes, in writing, all of such
        Lender’s obligations hereunder. The Lenders shall notify the Pledgor in writing,
        of any such assignment no later than seven (7) days following its
        execution.
        Notwithstanding
        any of the provisions set forth herein, the Pledgor
        understands
        and agrees that Plenus has syndicated the loan granted hereunder to the
        Co-Lenders and
        to
        the Beneficiaries listed in Schedule
        1
        (the
“Beneficiaries”)
        of the
        Loan Agreement, provided,
        however,
        that
        Plenus shall act as the lead manager of such syndication on behalf of such
        entities and that the terms of Section 7 to the Loan Agreement are fully
        complied with by Citibank, the Co-lenders and the Beneficiaries. Notwithstanding
        anything in this Agreement, the Co-Lender(s) and/or the Beneficiaries shall
        not
        be entitled to foreclosure the Floating Charge.

      

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      13.  Notwithstanding
        anything herein to the contrary, (i) Citibank agrees that Plenus at its sole
        discretion shall determine whether to realize any charges and/or pledges
        over
        the assets of the Pledgor created for the benefit of the Lenders, and (ii)
        Citibank agrees that Plenus at its sole discretion shall determine whether
        a
        Default Event has occurred, and Plenus is hereby appointed the attorney-in-fact
        on behalf of Citibank in connection with all of the foregoing and Citibank
        agrees not to take any action to the contrary. 

       

      14. Any
        notices to be provided by one party to the others shall be done in accordance
        with the notice provisions set forth in the Loan Agreement.

      

      

      IN
        WITNESS WHEREOF this Floating Charge Agreement has been executed by the parties
        hereto as of the date first above written.

      

      

      
        	
                WINTEGRA
                  LTD.

              	 	
                PLENUS
                  TECHNOLOGIES LTD.

                On
                  its own behalf and in trust for 

                _________________________

                 

              
	
                By:

              	/s/
                Jacob Ben-Zvi	 	 	
                By:

              	/s/
                Ruth Simha /s/ Shlomo Karako	 
	
                Title:

              	CEO	 	 	
                Title:

              	Ruth
                Simha / Shlomo Karako	 
	
                Date:

              	5/29/02	 	 	
                Date:

              	Managing
                Partner	 
	 	 	 
	 	 	 
	
                CITIBANK,
                  N.A., TEL AVIV BRANCH

              	 	 
	 	 	 
	
                By:

              	/s/
                Thomas A. Mulvihill	 	 	 
	
                Title:

              	CRM	 	 	 
	
                Date:

              	 	 	 	 
	 	 	 

      

      
 

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

      

      The
        Collateral consists of all of Pledgor’s right, title and interest in and to all
        assets of the Pledgor, including but not limited to the following:

      

      All
        goods
        and equipment now owned or hereafter acquired, including, without limitation,
        all machinery, fixtures, vehicles (including motor vehicles and trailers),
        and
        any interest in any of the foregoing, and all attachments, accessories,
        accessions, replacements, substitutions, additions, and improvements to any
        of
        the foregoing, wherever located;

      

      All
        inventory, now owned or hereafter acquired, including, without limitation,
        all
        merchandise, raw materials, parts, supplies, packing and shipping materials,
        work in process and finished products including such inventory as is temporarily
        out of Pledgor's custody or possession or in transit and including any returns
        upon any accounts or other proceeds, including insurance proceeds, resulting
        from the sale or disposition of any of the foregoing and any documents of
        title
        representing any of the above;

      

      All
        contract rights and general intangibles now owned or hereafter acquired,
        including, without limitation, goodwill, trademarks, servicemarks, Internet
        domain names, trade dress, trade styles, trade names, patents, patent
        applications, leases, license agreements, franchise agreements, blueprints,
        drawings, purchase orders, customer lists, route lists, infringements, claims,
        computer programs, computer discs, computer tapes, literature, reports,
        catalogs, design rights, income tax refunds, payments of insurance; all claims
        for damages by way of any past, present and future infringement of any of
        the
        foregoing and rights to payment of any kind;

      

      All
        now
        existing and hereafter arising accounts, contract rights, royalties, license
        rights and all other forms of obligations owing to Pledgor arising out of
        the
        sale or lease of goods, the licensing of technology or the rendering of services
        by Pledgor, whether or not earned by performance, and any and all credit
        insurance, guaranties, and other security therefor, as well as all merchandise
        returned to or reclaimed by Pledgor;

      

      All
        documents, cash, deposit accounts, securities, securities entitlements,
        securities accounts, investment property, financial assets, letters of credit,
        certificates of deposit, instruments and chattel paper now owned or hereafter
        acquired and Pledgor's Books relating to the foregoing;

      

      All
        copyright rights, copyright applications, copyright registrations and like
        protections in each work of authorship and derivative work thereof, whether
        published or unpublished, now owned or hereafter acquired; all trade secret
        rights, including all rights to unpatented inventions, know-how, operating
        manuals, license rights and agreements and confidential information, now
        owned
        or hereafter acquired; all mask work or similar rights available for the
        protection of semiconductor chips, now owned or hereafter acquired; all claims
        for damages by way of any past, present and future infringement of any of
        the
        foregoing; and

      

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      All
        Pledgor's Books relating to the foregoing and any and all claims, rights
        and
        interests in any of the above and all substitutions for, additions and
        accessions to and proceeds thereof.

      

      The
        term
        "Pledgor's Books" as used herein shall mean all Pledgor's books and records
        including ledgers, records regarding Pledgor's assets or liabilities, the
        Collateral, business operations or financial condition and all computer programs
        or discs or any equipment containing the information.

      

      All
        insurance policies or the proceeds thereof in respect of the above described
        assets.

      

      

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

      
Exhibit
        B2

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
       

      PLEDGE
        AND SECURITY AGREEMENT

      
 

      dated
        as of June 4, 2002

       

       

      between

       

       

      Wintegra
        Inc.

       

       

      and

       

       

      Plenus
        Technologies Ltd.,

       

      as
        Collateral Agent

       

      

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      TABLE
        OF CONTENTS

       

      
        
          
            	 	 	 	
                    PAGE

                  
	 	 	 	 
	
                    SECTION
                      1.

                  	 	
                    DEFINITIONS

                  	
                    1

                  
	 	 	
                    General
                      Definitions

                  	
                    1

                  
	 	 	
                    Definitions;
                      Interpretation

                  	
                    10

                  
	
                    SECTION
                      2.

                  	 	
                    GRANT
                      OF SECURITY

                  	
                    10

                  
	 	 	
                    Grant
                      of Security

                  	
                    10

                  
	 	 	
                    Certain
                      Limited Exclusions

                  	
                    11

                  
	
                    SECTION
                      3.

                  	 	
                    SECURITY
                      FOR OBLIGATIONS

                  	
                    12

                  
	 	 	
                    Security
                      for Obligations

                  	
                    12

                  
	 	 	
                    Continuing
                      Liability under Collateral

                  	
                    12

                  
	
                    SECTION
                      4.

                  	 	
                    REPRESENTATIONS,
                      WARRANTIES, AGREEMENTS AND COVENANTS

                  	
                    13

                  
	 	 	
                    General
                      Representations and Warranties

                  	
                    13

                  
	 	 	
                    General
                      Agreements and Covenants

                  	
                    13

                  
	 	 	
                    Use
                      of Collateral

                  	
                    14

                  
	 	 	
                    Corporate
                      Name and Identity

                  	
                    14

                  
	 	 	
                    Value
                      of Collateral

                  	
                    15

                  
	 	 	
                    Intellectual
                      Property. Grantor hereby makes those representations and warranties
                      appearing in Section 4(viii) of the Credit Agreement to the
                      Lenders, and
                      such representations and warranties are incorporated by reference
                      herein.

                  	
                    15

                  
	
                    
                      4.7

                    

                  	 	
                    Intellectual
                      Property Covenants and Agreements. The Grantor hereby covenants
                      and agrees
                      as follows:

                  	
                    15

                  
	
                    SECTION
                      5.

                  	 	
                    COLLATERAL
                      AGENT APPOINTED ATTORNEY-IN-FACT

                  	
                    17

                  
	 	 	
                    Power
                      of Attorney

                  	
                    17

                  
	 	 	
                    No
                      Duty on the Part of Collateral Agent or Collateral Agents

                  	
                    18

                  

          

           

          
            
              
              

            

            
              ii

              
                

              

            

            
              
              

            

          

           

          
            	
                    SECTION
                      6.

                  	 	
                    REMEDIES

                  	
                    18

                  
	 	 	
                    Generally

                  	
                    18

                  
	 	 	
                    Application
                      of Proceeds

                  	
                    20

                  
	 	 	
                    Sales
                      on Credit

                  	
                    20

                  
	 	 	
                    Investment
                      Related Property

                  	
                    20

                  
	 	 	
                    Intellectual
                      Property

                  	
                    21

                  
	
                    SECTION
                      7.

                  	 	
                    COLLATERAL
                      AGENT

                  	
                    23

                  
	
                    SECTION
                      8.

                  	 	
                    TERM
                      OF SECURITY INTEREST; TRANSFER OF SECURED OBLIGATIONS

                  	
                    24

                  
	 	 	
                    STANDARD
                      OF CARE; COLLATERAL AGENT MAY PERFORM

                  	
                    24

                  
	
                    SECTION
                      10.

                  	 	
                    MISCELLANEOUS.

                  	
                    25

                  
	 	 	
                    Notices

                  	
                    25

                  
	 	 	
                    Amendments
                      and Waivers

                  	
                    25

                  
	 	 	
                    Successors
                      and Assigns

                  	
                    25

                  
	 	 	
                    Independence
                      of Covenants

                  	
                    25

                  
	 	 	
                    Survival
                      of Representations, Warranties and Agreements

                  	
                    26

                  
	 	 	
                    Severability

                  	
                    26

                  
	 	 	
                    Headings

                  	
                    26

                  
	 	 	
                    Applicable
                      Law

                  	
                    26

                  
	 	 	
                    Consent
                      To Jurisdiction

                  	
                    26

                  
	 	 	
                    WAIVER
                      OF JURY TRIAL

                  	
                    26

                  
	 	 	
                    Counterparts

                  	
                    27

                  
	 	 	
                    Effectiveness

                  	
                    27

                  
	 	 	
                    Entire
                      Agreement

                  	
                    27

                  
	 	 	 	 
	
                    [Annex
                      A - Control Agreement]

                  	 
	
                    [Annex
                      B - Pledge Supplement Agreement].

                  	 

          

        

      

      
 

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

      This
        PLEDGE
        AND SECURITY AGREEMENT,
        dated
        as of June 4th, 2002 (this "Agreement"),
        by and
        among Wintegra Inc., a Delaware corporation (the
        "Grantor"),
        and Plenus
        Technologies Ltd., as Collateral Agreement ("Plenus"
        or
        "Collateral
        Agent").
        

       

       

      RECITALS:

      
 

      WHEREAS,
        reference is made to that certain Loan Agreement, dated as of the date hereof
        (as it may be amended, restated, supplemented or otherwise modified from
        time to
        time, the "Credit
        Agreement"),
        by and
        among the Grantor, Wintegra Israel Ltd. ("Wintegra
        Israel"),
        Citibank N.A. ("Citibank",
        and
        together with Plenus the "Lenders")
        and the
        other entities listed and defined as Co-Lenders on Schedule 1 to the Credit
        Agreement (the
        "Co-lenders")
        and,

       

      WHEREAS,
        in
        consideration for providing credit as set forth in the Credit Agreement the
        Grantor has agreed to secure all obligations under the Credit
        Agreement.

       

      NOW,
        THEREFORE,
        in
        consideration of the premises and the agreements, provisions and covenants
        herein contained, the Grantor
        and the Collateral Agent agree as follows:

       

      
        	SECTION
                1.	
                DEFINITIONS

              

      

       

      1.1  General
        Definitions.
        In this
        Agreement, the following terms shall have the following meanings:

       

      "Account
        Debtor" shall
        mean each Person who is obligated on a Receivable or any Supporting Obligation
        related thereto.

       

      "Accounts"
        shall
        mean all "accounts" as defined in Article 9 of the UCC.

       

      "Agreement"
        shall
        have the meaning set forth in the preamble.

       

      "Authenticate"
        shall
        mean "authenticate" as defined in Article 9 of the UCC.

       

      "Bankruptcy
        Code"
        shall
        mean Title 11 of the United States Code entitled "Bankruptcy", as now and
        hereafter in effect, or any successor statute.

       

      "Chattel
        Paper" shall
        mean all "chattel paper" as defined in Article 9 of the UCC, including, without
        limitation, "electronic chattel paper" or "tangible chattel paper", as each
        term
        is defined in the UCC.

       

      "Closing
        Date" shall
        mean the date on which the Credit Agreement is made.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      "Collateral"
        shall
        have the meaning set forth in Section 2.1 hereof.

       

      "Collateral
        Agent" shall
        have the meaning set forth in the preamble.

       

      "Collateral
        Records" shall
        mean books, records, ledger cards, files, correspondence, customer lists,
        blueprints, technical specifications, manuals, computer software, computer
        printouts, tapes, disks and related data processing software and similar
        items
        that at any time evidence or contain information relating to any of the
        Collateral or are otherwise necessary or helpful in the collection thereof
        or
        realization thereupon.

       

      "Collateral
        Support" shall
        mean all property (real or personal)
        assigned, hypothecated or otherwise securing any Collateral and shall include
        any security agreement or other agreement granting a lien or security interest
        in such real or personal property. 

       

      "Commercial
        Tort Claims" shall
        mean all "commercial tort claims" as defined in the UCC, including, without
        limitation, all commercial tort claims listed and described with specification
        on Schedule III hereto (as such schedule may be amended or supplemented from
        time to time).

       

      "Commodities
        Accounts" (i)
        shall
        mean all "commodity accounts" as defined in Article 9 of the UCC and (ii)
        shall
        include, without limitation, all of the accounts listed on Schedule IV hereto
        under the heading "Commodities Accounts" (as such schedule may be amended
        or
        supplemented from time to time).

       

      "Copyright
        Licenses" shall
        mean any and all agreements providing for the granting of any right in or
        to
        Copyrights (whether such Grantor is licensee or licensor thereunder)
        including, without limitation, each agreement referred to in Schedule III(B)
        (as
        such schedule may be amended or supplemented from time to time).

       

      "Copyrights"
        shall
        mean all United States, state and foreign copyrights, all mask works fixed
        in
        semi-conductor chip products (as defined under 17 U.S.C. 901 of the U.S.
        Copyright Act),
        whether
        registered or unregistered, now or hereafter in force throughout the world,
        all
        registrations and applications therefore including, without limitation, the
        applications referred to in Schedule III(A) (as such schedule may be amended
        or
        supplemented from time to time),
        all
        rights corresponding thereto throughout the world, all extensions and renewals
        of any thereof, the right to sue for past, present and future infringements
        of
        any of the foregoing, and all proceeds of the foregoing, including, without
        limitation, licenses, royalties, income, payments, claims, damages, and proceeds
        of suit.

       

      "Credit
        Agreement" shall
        have the meaning set forth in the preamble.

       

      "Documents
        Evidencing Goods"
        shall
        mean all "documents" as defined in the UCC evidencing, representing or issued
        in
        connection with Goods.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      "Equipment"
        shall
        mean: (i) all "equipment" as defined in the UCC, (ii) all machinery,
        manufacturing equipment, data processing equipment, computers, office equipment,
        furnishings, furniture, appliances, and tools (in each case, regardless of
        whether characterized as equipment under the UCC),
        (iii)
        all Fixtures and (iv) all accessions or additions thereto, all parts thereof,
        whether or not at any time of determination incorporated or installed therein
        or
        attached thereto, and all replacements therefore, wherever located, now or
        hereafter existing, except for such equipment which was secured in favor
        of Bank
        Leumi USA under a specific pledge in connection with a loan in the amount
        of US$
        50,000 granted to Grantor for the purchase of such property.

       

      "Event
        of Default" shall
        mean the occurrence of any one or more of the following conditions:

       

      (i) The
        Grantor fails to pay any sum due from it pursuant to the Credit Agreement
        at the
        time, in the currency and in the manner specified in the Credit Agreement,
        or
        otherwise is in breach of this Agreement or the Credit Agreement, and the
        same
        is not remedied within fourteen (14) days after Plenus has notified the Grantor
        in writing of said nonpayment or breach; or

       

      (ii) the
        Grantor is unable to pay its debts as they fall due, fourteen (14) days after
        the Wintegra Israel or the Grantor commences negotiations with one or more
        of
        its creditors with a view to the general readjustment or rescheduling or
        entering into arrangement regarding its indebtedness, or upon the consummation
        of a general assignment for the benefit of or a composition with its creditors;
        or

       

      (iii) any
        indebtedness for borrowed money of the Grantor is not paid when due or any
        indebtedness for borrowed money of the Grantor becomes capable of being declared
        to be or is declared to be due and payable prior to its specified maturity
        by
        reason of the occurrence of a default or a mandatory prepayment event (howsoever
        described) or any commitment to lend under any facility available to the
        Grantor
        is cancelled by reason of the occurrence of any such default (or mandatory
        prepayment event (howsoever described)); or

       

      (iv) the
        filing against the Grantor of any petition in liquidation or any petition
        for
        relief under the provisions of applicable law including, without limitation,
        the
        Bankruptcy Code for the relief of debtors; or the appointment of a special
        manager, interim liquidator, interim receiver, trustee or other custodian
        to
        take possession of the material property or assets of the Grantor ; or an
        attachment is placed on any of the material assets of the Grantor; or execution
        by the Grantor of a general assignment for the benefit of its creditors;
        or the
        Grantor resolves to voluntarily liquidate; or the appointment of a liquidator,
        receiver, trustee or custodian to take possession of the material property
        or
        assets of the Grantor; or

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      (v) notwithstanding
        Clause (i), any representation or statement made by the Grantor in this
        Agreement or in the Credit Agreement or in any notice or other document,
        certificate or statement delivered by it pursuant hereto or in connection
        herewith is or proves to have been incorrect or misleading when made or deemed
        to have been made; or

       

      (vi) the
        Grantor fails duly to perform or comply with any covenant or other obligation
        expressed to be assumed by it in this Agreement, the Credit Agreement or
        any of
        the exhibits, schedules or annexes hereto and thereto (if capable of remedy)
        and
        such failure is not remedied within fourteen (14) days after Plenus has given
        a
        written notice thereof to the Pledge; or

       

      (vii) any
        event
        or series of events occur(s), which, in the reasonable opinion of Plenus,
        may
        have a material adverse effect on the business, condition (financial or
        otherwise), or results of operations of the Grantor or on the ability of
        the
        Grantor to comply with any of its obligations hereunder or under the Credit
        Agreement.

       

      (viii) any
        occurrence of a Default Event under the Floating Charge Agreement by and
        among
        Wintegra Israel, Plenus and others dated the date hereof.

       

      (ix) the
        Grantor maintains or has maintained funds in excess of an aggregate amount
        of
        US$ 1,500,000 in any account of other than the Grantor Accounts.

       

      "Fixtures"
        shall
        mean all "fixtures" as defined in Article 9 of the UCC.

       

      "General
        Intangibles" (i)
        shall
        mean all "general intangibles" as defined in Article 9 of the UCC and (ii)
        shall
        include, without limitation, all interest rate or currency protection or
        hedging
        arrangements, all tax refunds and all licenses, permits, concessions and
        authorizations, (in each case, regardless of whether characterized as general
        intangibles under the UCC).

       

      "Goods"
        (i)
        shall
        mean all "goods" as defined in Article 9 of the UCC and (ii) shall include,
        without limitation, all Inventory, Equipment, Documents Evidencing Goods
        and
        Software Embedded In Goods.

       

      "Grantor
        Accounts"
        shall
        mean accounts numbers: 2200474202, 2200474218 and 0200474228, maintained
        by Bank
        Leumi USA, 562 5th Avenue, New York, NY 10036, in favor of the
        Grantor.

       

      "Instruments"
        shall
        mean all "instruments" as defined in Article 9 of the UCC.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      "Insurance"
        shall
        mean all insurance policies covering any or all of the Collateral (regardless
        of
        whether is the loss payee thereof).

       

      "Intellectual
        Property" shall
        mean, collectively, the Copyrights, the Copyright Licenses, the Patents,
        the
        Patent Licenses, the Trademarks, the Trademark Licenses, the Trade Secrets,
        and
        the Trade Secret Licenses.

       

      "Inventory"
        shall
        mean: (i) all "inventory" as defined in the UCC and (ii) all goods held for
        sale
        or lease or to be furnished under contracts of service or so leased or
        furnished, all merchandise, raw materials, work in process, finished goods,
        and
        materials used or consumed in the manufacture, packing, shipping, advertising,
        selling, leasing, furnishing or production of such inventory or otherwise
        used
        or consumed in the Grantor's business; all goods in which the Grantor has
        an
        interest in mass or a joint or other interest or right of any kind; and all
        goods which are returned to or repossessed by the Grantor, and all accessions
        thereto and products thereof (in each case, regardless of whether characterized
        as inventory under the UCC).

       

      "Investment
        Accounts"
        shall
        mean the Securities Accounts, Commodities Accounts and deposit accounts (if
        any).

       

      "Investment
        Related Property" shall
        mean: (a) all "investment property" (as such term is defined in Article 9
        of the
        UCC)
        and (b)
        all of the following (regardless of whether classified as investment property
        under the UCC): all (i) Pledged Equity Interests, (ii) Pledged Debt, (iii)
        the
        Investment Accounts and (iv) Certificates of Deposit.

       

      "Letter
        of Credit Right" shall
        mean "letter-of-credit right" as defined in the UCC.

       

      "Lien"
        shall
        mean (i) any lien, mortgage, pledge, assignment, security interest, charge
        or
        encumbrance of any kind (including any agreement to give any of the foregoing,
        any conditional sale or other title retention agreement, and any lease in
        the
        nature thereof)
        and any
        option, trust or other preferential arrangement having the practical effect
        of
        any of the foregoing and (ii) in the case of Pledged Equity Interests, any
        purchase option, call or similar right of a third party with respect to such
        Pledged Equity Interests, except for the warrants of the Grantor issued in
        connection with the Credit Agreement.

       

      "Material
        Contract"
        shall
        mean any contract or other arrangement to which the Grantor is a party for
        which
        breach, nonperformance, cancellation or failure to renew would be determined
        by
        the Grantor's board of directors to have a material adverse effect on the
        business condition (financial or otherwise) or results of operations of the
        Grantor or Wintegra Israel or on the ability of the Grantor to comply with
        any
        of its obligations hereunder or under the Credit Agreement.

       

      "Money"
        shall
        mean "money" as defined in the UCC.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      "Non-Assignable
        Contract"
        shall
        mean any agreement, contract or license to which the Grantor is a party that
        by
        its terms purport to restrict or prevent the assignment or granting of a
        security interest therein (either by its terms or by any federal or state
        statutory prohibition or otherwise irrespective of whether such prohibition
        or
        restriction is enforceable under Section 9-406 through 409 of the
        UCC).

       

      "Non-payment
        Contract"
        means
        any contract or agreement to which the Grantor is a party other than any
        contract where the account debtor's principal obligation is a monetary
        obligation; provided,
        however
        that
        Non-payment Contracts shall not include any Receivables Contracts.

       

      "Patent
        Licenses" shall
        mean all agreements providing for the granting of any right in or to Patents
        (whether such Grantor is licensee or licensor thereunder) including, without
        limitation, each agreement referred to in Schedule III(D) hereto (as such
        schedule may be amended or supplemented from time to time).

       

      "Patents"
        shall
        mean all United States, state and foreign patents and applications for letters
        patent throughout the world, including, but not limited to each patent and
        patent application referred to in Schedule III(C) hereto (as such schedule
        may
        be amended or supplemented from time to time),
        all
        reissues, divisions, continuations, continuations-in-part, extensions, renewals,
        and reexaminations of any of the foregoing, all rights corresponding thereto
        throughout the world, and all proceeds of the foregoing including, without
        limitation, licenses, royalties, income, payments, claims, damages, and proceeds
        of suit and the right to sue for past, present and future infringements of
        any
        of the foregoing.

       

      "Payment
        Intangible" shall
        have the meaning specified in the UCC.

       

      "Permitted
        Transferees"
        shall
        have the meaning set forth in the Credit Agreement.

       

      "Person"
        shall
        mean and include natural persons, corporations, limited partnerships, general
        partnerships, limited liability companies, limited liability partnerships,
        joint
        stock companies, joint ventures, associations, companies, trusts, banks,
        trust
        companies, land trusts, business trusts or other organizations, whether or
        not
        legal entities, and governmental authorities.

       

      "Pledged
        Alternative Equity Interests"
        shall
        mean all participation or other interests in any equity or profits of any
        business entity and the certificates, if any, representing such interests
        all
        dividends, distributions, cash, warrants, rights, options, instruments,
        securities and other property or proceeds from time to time received, receivable
        or otherwise distributed in respect of or in exchange for any or all of such
        interests and any other warrant, right or option to acquire any of the
        foregoing; provided,
        however,
        that
        Pledged Alternative Equity Interests shall not include any Pledged Stock,
        Pledged Partnership Interests, Pledged LLC Interests and Pledged Trust
        Interests.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      "Pledged
        Debt" shall
        mean all indebtedness for borrowed money owed to Grantor, whether or not
        evidenced by any instrument or promissory note, and all interest, cash,
        instruments and other property or proceeds from time to time received,
        receivable or otherwise distributed in respect of or in exchange for any
        or all
        of the foregoing.

       

      "Pledged
        Equity Interests" shall
        mean all Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests,
        Pledged Trust Interests and Pledged Alternative Equity Interests.

       

      "Pledged
        LLC Interests" shall
        mean all interests in any limited liability company and the certificates,
        if
        any, representing such limited liability company interests and any interest
        of
        such Grantor on the books and records of such limited liability company or
        on
        the books and records of any securities intermediary pertaining to such interest
        and all dividends, distributions, cash, warrants, rights, options, instruments,
        securities and other property or proceeds from time to time received, receivable
        or otherwise distributed in respect of or in exchange for any or all of such
        limited liability company interests and any other warrant, right or option
        to
        acquire any of the foregoing.

       

      "Pledged
        Partnership Interests" shall
        mean all interests in any general partnership, limited partnership, limited
        liability partnership or other partnership and the certificates, if any,
        representing such partnership interests and any interest of such Grantor
        on the
        books and records of such partnership or on the books and records of any
        securities intermediary pertaining to such interest and all dividends,
        distributions, cash, warrants, rights, options, instruments, securities and
        other property or proceeds from time to time received, receivable or otherwise
        distributed in respect of or in exchange for any or all of such partnership
        interests and any other warrant, right or option to acquire any of the
        foregoing.

       

      "Pledged
        Stock" shall
        mean all shares of capital stock owned by such Grantor, including, without
        limitation, all shares of capital stock of Wintegra Israel, and the
        certificates, if any, representing such shares and any interest of such Grantor
        in the entries on the books of the issuer of such shares or on the books
        of any
        securities intermediary pertaining to such shares, and all dividends,
        distributions, cash, warrants, rights, options, instruments, securities and
        other property or proceeds from time to time received, receivable or otherwise
        distributed in respect of or in exchange for any or all of such shares and
        any
        other warrant, right or option to acquire any of the foregoing. 

       

      "Pledged
        Trust Interests" shall
        mean all interests in a Delaware business trust or other trust and the
        certificates, if any, representing such trust interests and any interest
        of such
        Grantor on the books and records of such trust or on the books and records
        of
        any securities intermediary pertaining to such interest and all dividends,
        distributions, cash, warrants, rights, options, instruments, securities and
        other property or proceeds from time to time received, receivable or otherwise
        distributed in respect of or in exchange for any or all of such trust interests
        and any other warrant, right or option to acquire any of the
        foregoing.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      "Proceeds"
        shall
        mean: (i) all "proceeds" as defined in Article 9 of the UCC, (ii) payments
        or
        distributions made with respect to any Investment Related Property and (iii)
        whatever is receivable or received when Collateral or proceeds are sold,
        leased,
        licensed, exchanged, collected or otherwise disposed of, whether such
        disposition is voluntary or involuntary.

       

      "Receivables
        Contracts" shall
        mean all (i) Accounts, (ii) Chattel Paper, (iii) Payment Intangibles, (iv)
        Instruments and (v) to the extent not otherwise covered above, all other
        rights
        to payment, whether or not earned by performance, for goods or other property
        sold, leased, licensed, assigned or otherwise disposed of, or services rendered
        or to be rendered, regardless of how classified under the UCC together with
        all
        of Grantor's rights, if any, in any goods or other property giving rise to
        such
        right to payment and all Collateral Support and Supporting Obligations related
        thereto and all Receivables Records; provided,
        however,
        that
        Receivables Contracts shall not include any Investment Related
        Property.

       

      "Receivables
        Records" shall
        mean (i) all original copies of all documents, instruments or other writings
        or
        electronic records or other Records evidencing the Receivables Contracts,
        (ii)
        all books, correspondence, credit or other files, Records, ledger sheets
        or
        cards, invoices, and other papers relating to Receivables Contracts, including,
        without limitation, all tapes, cards, computer tapes, computer discs, computer
        runs, record keeping systems and other papers and documents relating to the
        Receivables Contracts, whether in the possession or under the control of
        Grantor
        or any computer bureau or agent from time to time acting for Grantor or
        otherwise, (iii) all evidences of the filing of financing statements and
        the
        registration of other instruments in connection therewith, and amendments,
        supplements or other modifications thereto, notices to other creditors or
        agents
        thereof, and certificates, acknowledgments, or other writings, including,
        without limitation, lien search reports, from filing or other registration
        officers, (iv) all credit information, reports and memoranda relating thereto
        and (v) all other written or non-written forms of information related in
        any way
        to the foregoing or any Receivable.

       

      "Record"
        shall
        have the meaning specified in the UCC.

       

      "Secured
        Obligations"
        shall
        mean: all obligations of every nature of the Grantor from time to time owed
        to
        the Collateral Agent or any Secured Party hereunder or under the Transaction
        Documents whether for principal, interest (including interest which, but
        for the
        filing of a petition in bankruptcy with respect to such Grantor, would have
        accrued on any obligation, whether or not a claim is allowed against such
        Grantor for such interest in the related bankruptcy proceeding) or reimbursement
        of amounts drawn under letters of credit.

       

      "Secured
        Party"
        shall
        mean any of the Lenders or the Co-lenders.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      "Securities"
        shall
        mean any stock, shares, partnership interests, voting trust certificates,
        certificates of interest or participation in any profit-sharing agreement
        or
        arrangement, options, warrants, bonds, debentures, notes, or other evidences
        of
        indebtedness, secured or unsecured, convertible, subordinated or otherwise,
        or
        in general any instruments commonly known as "securities" or any certificates
        of
        interest, shares or participations in temporary or interim certificates for
        the
        purchase or acquisition of, or any right to subscribe to, purchase or acquire,
        any of the foregoing. 

       

      "Securities
        Accounts" (i)
        shall
        mean all "securities accounts" as defined in Article 8 of the UCC and (ii)
        shall
        include, without limitation, all of the accounts listed on Schedule I hereto
        under the heading "Securities Accounts" (as such schedule may be amended
        or
        supplemented from time to time).

       

      "Software
        Embedded in Goods"
        means,
        with respect to any Goods, any computer program embedded in Goods and any
        supporting information provided in connection with a transaction relating
        to the
        program if (i) the program is associated with the Goods in such a manner
        that it
        customarily is considered part of the Goods or (ii) by becoming the owner
        of the
        Goods a person acquires a right to use the program in connection with the
        Goods.

       

      "State"
        shall
        mean a State of the United States, the District of Columbia, Puerto Rico,
        the
        United States Virgin Islands, or any territory or insular possession subject
        to
        the jurisdiction of the United States.

       

      "Supporting
        Obligation" shall
        mean all "supporting obligations" as defined in the UCC.

       

      "Trade
        Secret Licenses" shall
        mean any and all agreements providing for the granting of any right in or
        to
        Trade Secrets (whether such Grantor is licensee or licensor
        thereunder).
        

       

      "Trade
        Secrets" shall
        mean all trade secrets and all other confidential or proprietary information
        and
        know-how now or hereafter owned or used in, or contemplated at any time for
        use
        in, the business of such Grantor (all of the foregoing being collectively
        called
        a "Trade Secret"),
        whether
        or not such Trade Secret has been reduced to a writing or other tangible
        form,
        including all documents and things embodying, incorporating, or referring
        in any
        way to such Trade Secret, the right to sue for past, present and future
        infringement of any Trade Secret, and all proceeds of the foregoing, including,
        without limitation, licenses, royalties, income, payments, claims, damages,
        and
        proceeds of suit.

       

      "Trademark
        Licenses" shall
        mean any and all agreements providing for the granting of any right in or
        to
        Trademarks (whether such Grantor is licensee or licensor thereunder).

       

      "Trademarks"
        shall
        mean all United States, state and foreign trademarks, trade names, corporate
        names, company names, business names, fictitious business names, internet
        domain
        names, trade styles, service marks, certification marks, collective marks,
        logos, other source or business identifiers, designs and general intangibles
        of
        a like nature, all registrations and applications for any of the foregoing
        including, but not limited to the registrations and applications referred
        to in
        Schedule III(E) hereto (as such schedule may be amended or supplemented from
        time to time),
        all
        extensions or renewals of any of the foregoing, all of the goodwill of the
        business connected with the use of and symbolized by the foregoing, the right
        to
        sue for past, present and future infringement or dilution of any of the
        foregoing or for any injury to goodwill, and all proceeds of the foregoing,
        including, without limitation, licenses, royalties, income, payments, claims,
        damages, and proceeds of suit.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      "Transaction
        Documents"
        shall
        mean the Credit Agreement, this Agreement, the Floating Charge Agreement
        between
        Wintegra Israel and the Lenders.

       

      "UCC"
        shall
        mean the Uniform Commercial Code as in effect from time to time in the State
        of
        New York.

       

      1.2  Definitions;
        Interpretation.
        All
        capitalized terms used herein (including the preamble and recitals hereto)
        and
        not otherwise defined herein shall have the meanings ascribed thereto in
        the
        Credit Agreement or, if not defined therein, in the UCC. References to
        "Sections," "Annexes" and "Schedules" shall be to Sections, Annexes and
        Schedules, as the case may be, of this Agreement unless otherwise specifically
        provided. Section headings in this Agreement are included herein for convenience
        of reference only and shall not constitute a part of this Agreement for any
        other purpose or be given any substantive effect. Any of the terms defined
        herein may, unless the context otherwise requires, be used in the singular
        or
        the plural, depending on the reference. The use herein of the word "include"
        or
        "including", when following any general statement, term or matter, shall
        not be
        construed to limit such statement, term or matter to the specific items or
        matters set forth immediately following such word or to similar items or
        matters, whether or not nonlimiting language (such as "without limitation"
        or
        "but not limited to" or words of similar import) is used with reference thereto,
        but rather shall be deemed to refer to all other items or matters that fall
        within the broadest possible scope of such general statement, term or matter.
        If
        any conflict or inconsistency exists between this Agreement and the Credit
        Agreement, the Credit Agreement shall govern. All references herein to
        provisions of the UCC shall include all successor provisions under any
        subsequent version or amendment to any Article of the UCC.

       

      
        	SECTION
                2. 	
                GRANT
                  OF SECURITY

              

      

       

      2.1  Grant
        of Security.
        The
        Grantor hereby grants to the Collateral Agent a security interest and continuing
        lien on all of such Grantor's right, title and interest in, to and under
        all
        personal property of such Grantor including, but not limited to the following,
        in each case whether now owned or existing or hereafter acquired or arising
        and
        wherever located except for any property secured in favor of Bank Leumi USA
        under a specific pledge agreement in connection with a loan in the aggregate
        amount of up to US $50,000 provided to Grantor for the purchase of such property
        (all of which being hereinafter collectively referred to as the "Collateral",
        as
        defined in Section 1.1):

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (i)  Documents;

       

      (ii)  Goods
        (including Documents Representing Goods
        and
        Software Embedded in Goods);

       

      (iii)  Insurance;

       

      (iv)  Intellectual
        Property;

       

      (v)  Investment
        Related Property;

       

      (vi)  Letter
        of
        Credit Rights;

       

      (vii)  Money;

       

      (viii)  Non-payment
        Contracts;

       

      (ix)  Receivables
        Contracts and Receivable Records;

       

      (x)  Commercial
        Tort Claims;

       

      
        	
              	(xi)	
                to
                  the extent not otherwise included above, all
                  General Intangibles, Material Contracts, motor
                  vehicles and other personal property of any kind and all Collateral
                  Records, Collateral Support and Supporting  Obligations
                  relating to any of the foregoing;
                  and 

              

        	 	 	 

        	 	(xii)	
                to the extent not otherwise
                  included
                  above, all Proceeds, products, accessions, rents and profits of
                  or in
                  respect of any of the foregoing.

              

        	 	 	 

        	 	 	
                For the avoidance of any doubt,
                  it is
                  hereby agreed and clarified that none of the foregoing subsections
                  of this
                  Section 2 shall limit, restrict or prevent the performance of transactions
                  between the Grantor and Wintegra
                  Israel.

              

      

       

      2.2  Certain
        Limited Exclusions.Notwithstanding
        anything herein to the contrary, in no event shall the security interest
        granted
        under Section 2.1 hereof attach to any Lease, license, contract, property
        rights
        or agreement to which the Grantor is a party or any of its rights or interests
        thereunder if and for so long as the grant of such security interest shall
        constitute or result in (i) the abandonment, invalidation or unenforceability
        of
        any right, title or interest of the Grantor therein or (ii) in a breach or
        termination pursuant to the terms of, or a default under, any such Lease
        license, contract property rights or agreement (other than to the extent
        that
        any such term would be rendered ineffective pursuant to Sections 9-406, 9-407,
        9-408 or 9-409 of the UCC (or any successor provision or provisions) of any
        relevant jurisdiction or any other applicable law (including the Bankruptcy
        Code) or principles of equity), provided however that such security interest
        shall attach immediately at such time as the condition causing such abandonment,
        invalidation or unenforceability shall be remedied and, to the extent severable,
        shall attached immediately to any portion of such Lease, license, contract,
        property rights or agreement that does not result in any of the consequences
        specified in (i) or (ii).

       

      
        
          
          

        

        
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        	SECTION
                3. 	
                SECURITY
                  FOR OBLIGATIONS.

              

      

       

      3.1  Security
        for Obligations.This
        Agreement secures, and the Collateral is collateral security for, the prompt
        and
        complete payment or performance in full when due, by acceleration, Event
        of
        Default, demand or otherwise (including the payment of amounts that would
        become
        due but for the operation of the automatic stay under Section 362(a) of the
        Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of
        all Secured Obligations.

       

      3.2  Continuing
        Liability under Collateral.Notwithstanding
        anything herein to the contrary, (i) the Grantor shall remain liable for
        all
        obligations under the Collateral and nothing contained herein is intended
        or
        shall be a delegation of duties to the Collateral Agent or any Secured Party
        and
        (ii) the Grantor shall remain liable under each of the agreements included
        in
        the Collateral, including, without limitation, any agreements relating to
        Pledged Partnership Interests or Pledged LLC Interests, to perform all of
        the
        obligations undertaken by it thereunder all in accordance with and pursuant
        to
        the terms and provisions thereof and neither the Collateral Agent nor any
        other
        Secured Party shall have any obligation or liability under any of such
        agreements by reason of or arising out of this Agreement or any other document
        related thereto nor shall the Collateral Agent nor any other Secured Party
        have
        any obligation to make any inquiry as to the nature or sufficiency of any
        payment received by it or have any obligation to take any action to collect
        or
        enforce any rights under any agreement included in the Collateral, including,
        without limitation, any agreements relating to Pledged Partnership Interests
        or
        Pledged LLC Interests, (iii) the exercise by a Lender of any of its rights
        hereunder shall not release the Grant or from any of its duties or obligations
        under the contracts and agreements included n the Collateral.

       

      
        
          
          

        

        
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        	SECTION
                4.	
                REPRESENTATIONS,
                  WARRANTIES, AGREEMENTS AND COVENANTS.

              

      

       

      4.1  General
        Representations and Warranties.The
        Grantor hereby represents and warrants, as of the date hereof and as of each
        date that an Installment (as defined in the Credit Agreement) is made,
        that:

       

      (i)  The
        full
        legal name of the Grantor is Wintegra, Inc., its organizational identification
        number is 3164711 and it has been duly organized as a corporation solely
        under
        the laws of the State of Delaware and remains duly existing as such. The
        Grantor
        has not filed any certificates of domestication, transfer or continuance
        in any
        other jurisdiction;

       

      (ii)  Upon
        the
        filing of all UCC financing statements naming the Grantor as "grantor" and
        the
        Collateral Agent as "Collateral Agent" and describing the Collateral in the
        filing office of [_________] and other filing delivered by the Grantor including
        without limitation the control agreement , the security interests granted
        to the
        Collateral Agent hereunder constitute valid and perfected first priority
        Liens;

       

      (iii)  Other
        than the financing statements filed in favor of the Collateral Agent, no
        effective UCC financing statement, fixture filing or other instrument similar
        in
        effect under any applicable law is on file in any filing or recording
        office.

       

      4.2  General
        Agreements and Covenants.The
        Grantor hereby covenants and agrees that without the prior written consent
        of
        the Collateral Agent it will not: 

       

      (i)  materially
        change the general nature of its business; 

       

      (ii)  make
        any
        loan or other extension of credit to its distributors, customers, subsidiaries,
        or employees other than loans and advances granted in the ordinary course
        of
        business and for an aggregate amount of not more than US$100,000, provided,
        however,
        that
        this subsection (ii) shall not apply to transactions between Grantor and
        any of
        its current or future subsidiaries, conducted in the ordinary course of
        business, including, without limitation, transfer of funds for the coverage
        of
        salaries, leases and all other reasonable administrative expenses, each of
        such
        transactions shall not exceed the amount of $ US300,000;
        

       

      (iii)  receive
        any loan or advance from a third party or incur any debt other than debt
        incurred in the ordinary course of business consistent with past business
        practices of the Grantor and up to an aggregate amount of
        US$100,000;

       

      (iv)  issue
        any
        guarantee or otherwise incur any contingent liability other than in the ordinary
        course of business and up to an aggregate amount of US$100,000;

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      (v)  sell,
        pledge, transfer, assign or grant a security interest in any of the Collateral
        or any of the Grantor's other than
        with
        respect to the creation of a fixed charge on assets of the Grantor which
        are
        acquired by the Grantor following the date hereof, and further provided however,
        that the value of such pledged assets does not exceed $100,000 in the aggregate,
        and provided that such fixed charge shall only be recorded on behalf of the
        actual seller of such assets or a commercial bank specifically financing
        such an
        acquisition of assets;

       

      (vi)  repay
        any
        existing or future loans or debts in the aggregate amount of more than
        US$100,000 or financial obligations, including without limitation shareholders’
loans, in each case excluding operating expenses of the Grantor which are
        incurred in the Grantor's ordinary course of business,
        provided,
        however,
        that
        this subsection (f) shall not apply to (i) a loan in the amount of US$ 50,000
        and any accrued interest thereon payable with respect to such loan provided
        to
        the Grantor by Bank Leumi USA for the financing of purchasing certain assets
        as
        collateral for bill of sale of those assets; and (ii) any amounts payable
        to
        suppliers of Grantor, which suppliers provide Grantor CAD software, IP
        licensing, chips manufacturing services and any other services or parts required
        by Grantor in the ordinary course of business as currently conducted;

       

      (vii)  transfer
        ownership of its assets to a third party other than in the ordinary course
        of
        business;

       

      (viii)  create
        or
        permit to exist any encumbrance over all or any of its present or future
        revenues or assets; and

       

      (ix)  distribute
        any dividends.

       

      The
        above
        covenants shall also apply to any subsidiaries to be created by the Grantor
        after the date hereof. This Section 4.2 shall not apply to any transaction
        conducted solely between Grantor and Wintegra Israel. 

       

      4.3  Use
        of
        Collateral.The
        Grantor shall use its best efforts and shall cause its subsidiaries and
        affiliates to use their best efforts to preserve the Collateral, without
        interfering with the use of the Collateral in the ordinary course of business,
        and shall either procure the economically reasonable necessary insurance
        to do
        so or shall maintain existing insurance which is reasonable for a company
        of the
        size, at the stage of development and in the industry which the Grantor
        operates. The Grantor shall permit the Collateral Agent to inspect the
        Collateral and its records at all reasonable times and upon reasonable notice,
        subject to customary non-disclosure restrictions as reasonably determined
        by the
        Grantor or Wintegra Israel.

       

      4.4  Corporate
        Name and Identity.The
        Grantor shall not change its name, identity, corporate structure (e.g. by
        merger, consolidation, or change in corporate form), sole place of business,
        chief executive office, type of organization or jurisdiction of organization
        or
        establish any trade names unless it shall have (a) notified the Collateral
        Agent
        in writing, by executing and delivering to the Collateral Agent a completed
        Pledge Supplement, substantially in the form of Annex C attached hereto,
        together with all Supplements to Schedules thereto, as least thirty (30)
        days
        prior to any such change or establishment, identifying such new proposed
        name,
        identity, corporate structure, sole place of business, chief executive office,
        jurisdiction of organization or trade name and providing such other information
        in connection therewith as the Collateral Agent may reasonably request and
        (b)
        taken all actions necessary or advisable to maintain the continuous validity,
        perfection and the same or better priority of the Collateral Agent's security
        interest in the Collateral granted or intended to be granted and agreed to
        hereby.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      4.5  Value
        of Collateral.The
        Grantor shall promptly notify the Collateral Agent in writing of any event
        known
        to the Grantor, which materially adversely affects the value of the Collateral.
        

       

      4.6  Intellectual
        Property.
        Grantor
        hereby makes those representations and warranties appearing in Section 4(viii)
        of the Credit Agreement to the Lenders, and such representations and warranties
        are incorporated by reference herein.

       

      4.7  Intellectual
        Property Covenants and Agreements.
        The Grantor hereby covenants and agrees as follows:

       

      (a)  it
        shall
        promptly (but in no event more than thirty (30) days after the Grantor obtains
        knowledge thereof)
        report
        to the Collateral Agent (i) the filing of any application to register any
        Intellectual Property with the United States Patent and Trademark
        Office,
        the United States Copyright Office, or any state registry or foreign counterpart
        of the foregoing (whether such application is filed by such Grantor or through
        any agent, employee, licensee, or designee thereof)
        and (ii)
        the registration of any Intellectual Property by any such office, in each
        case
        by executing and delivering to the Collateral Agent a completed Pledge
        Supplement, substantially in the form of Annex A attached hereto, together
        with all Supplements to Schedules thereto; 

       

      (b)  it
        shall,
        promptly upon the reasonable request of the Collateral Agent, execute and
        deliver to the Collateral Agent any document required to acknowledge,
        confirm, register, record, or perfect
        the
        Collateral Agent's interest in any part of the Intellectual Property, whether
        now owned or hereafter acquired; it is hereby expressly agreed that prior
        to an
        Event of Default, the Collateral Agent shall not unreasonably withhold its
        consent , to the extent such consent is required due to the recording or
        registration of
        the
        security interest with respect to the Intellectual Property
        with the
United
        States Patent and Trademark Office or the United States Copyright Office,
        to any
        action by the Grantor which would otherwise be permissible under the terms
        of
        the Transaction Documents. Further Assurances

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

      

       

      (a)  The
        Grantor agrees that from time to time, upon the reasonable request of Collateral
        Agent and at the Grantor's expense, to Authenticate, execute and deliver
        all
        further instruments and documents, and take all further action, that may
        be
        necessary or desirable in order to create and/or maintain the validity,
        perfection or priority of and protect any security interest granted or purported
        to be granted hereby or to enable the Collateral Agent to exercise and enforce
        its rights and remedies hereunder with respect to any Collateral. 

       

      
        	(i) 
                 	
                file
                  such financing or continuation execute and deliver such other agreements,
                  instruments, endorsements, powers of attorney or notices, as may
                  be
                  necessary or desirable, or as the Collateral Agent may reasonably
                  request,
                  in order to perfect and preserve the security interests granted
                  or
                  purported to be granted hereby;

              

      

       

      
        	(ii)
                  	
                take
                  all actions necessary to ensure the recordation of appropriate
                  evidence of
                  the liens and security interest granted hereunder in the Intellectual
                  Property with any intellectual property registry in which said
                  Intellectual Property is registered or in which an application
                  for
                  registration is pending including, without limitation, the United
                  States
                  Patent and Trademark Office, the United States Copyright Office,
                  the
                  various Secretaries of State, and the foreign counterparts on any
                  of the
                  foregoing.

              

      

       

      
        	(iii)
                  	
                at
                  any reasonable time, upon request by the Collateral Agent, Annex
                  the
                  Collateral to and allow inspection of the Collateral by the Collateral
                  Agent, or persons designated by the Collateral Agent; and
                  

              

      

       

      
        	(iv)
                  	
                at
                  the Collateral Agent's reasonable request, appear in and defend
                  any action
                  or proceeding that may affect such Grantor's title to or the Collateral
                  Agent's security interest in all or any part of the Collateral.
                  

              

      

       

      (b)  The
        Grantor hereby authorizes the filing of any financing statements or continuation
        statements, and amendments to financing statements, or any similar document
        in
        any jurisdictions and with any filing offices as the Collateral Agent may
        determine, in its sole discretion, are necessary or advisable to perfect
        the
        security interest granted to the Collateral Agent herein. Such financing
        statements may describe the Collateral in the same manner as described herein
        or
        may contain an indication or description of collateral that describes such
        property in any other manner as the Collateral Agent may determine, in its
        sole
        discretion, is necessary, advisable or prudent to ensure the perfection of
        the
        security interest in the Collateral granted to the Collateral Agent herein,
        including, without limitation, describing such property as "all assets" or
        "all
        personal property, whether now owned or hereafter acquired. The Grantor
        shall furnish to the Collateral Agent from time to time statements and schedules
        further identifying and describing the Collateral and such other reports
        in
        connection with the Collateral as the Collateral Agent may reasonably request,
        all in reasonable detail.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      (c)  The
        Grantor hereby authorizes the Collateral Agent to modify this Agreement after
        obtaining such Grantor's written approval of or signature to such modification
        by amending Schedule III hereto (as such schedule may be amended or supplemented
        from time to time)
        to
        include reference to any right, title or interest in any existing Intellectual
        Property or any Intellectual Property acquired or developed by the Grantor
        or
        any of its subsidiaries or affiliates, including, without limitation, Wintegra
        Israel, after the execution hereof or to delete any reference to any right,
        title or interest in any Intellectual Property in which the Grantor no longer
        has or claims any right, title or interest.

       

      
        	SECTION
                5.	
                COLLATERAL
                  AGENT APPOINTED
                  ATTORNEY-IN-FACT.

              

      

       

      5.1  Power
        of Attorney.The
        Grantor hereby appoints the Collateral Agent (such appointment being coupled
        with an interest) as such Grantor's attorney-in-fact, with full authority
        in the
        place and stead of such Grantor and in the name of such Grantor, the Collateral
        Agent or otherwise, to take any action and to execute any instrument that
        the
        Collateral Agent may deem reasonably necessary or advisable to accomplish
        the
        purposes of this Agreement, including, without limitation, the following:
        

       

      (a)  
        upon the
        occurrence and during the continuance of any Event of Default, provided that
        the
        Event of Default has not been cured within seven (7) days, to obtain and
        adjust
        insurance required to be maintained by such Grantor or paid to the Collateral
        Agent pursuant to the Transaction Documents; upon the occurrence and during
        the
        continuance of any Event of Default, to ask for, demand, collect, sue for,
        recover, compound, receive and give acquittance and receipts for moneys due
        and
        to become due under or in respect of any of the Collateral;

       

      (b)  upon
        the
        occurrence and during the continuance of any Event of Default, provided that
        the
        Event of Default has not been cured within seven (7) days, to receive, endorse
        and collect any drafts or other instruments, documents and chattel paper
        in
        connection with clause (b) above; 

       

      (c)  upon
        the
        occurrence and during the continuance of any Event of Default, provided that
        the
        Event of Default has not been cured within seven (7) days, to file any claims
        or
        take any action or institute any proceedings that the Collateral Agent may
        deem
        necessary or desirable for the collection of any of the Collateral or otherwise
        to enforce the rights of the Collateral Agent with respect to any of the
        Collateral; 

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      (d)  to
        prepare, sign, and file for recordation in any intellectual property registry,
        appropriate evidence of the lien and security interest granted herein in
        the
        Intellectual Property in the name of such Grantor as assignor; 

       

      (e)  to
        take
        or cause to be taken all actions necessary to perform or comply or cause
        performance or compliance with the terms of this Agreement, including, without
        limitation, access to pay or discharge taxes or Liens levied or placed upon
        or
        threatened against the Collateral, the legality or validity thereof and the
        amounts necessary to discharge the same , any such payments made by the
        Collateral Agent to become obligations of such Grantor to the Collateral
        Agent,
        due and payable immediately without demand; and 

       

      (f)  generally
        to sell, transfer, pledge, make any agreement with respect to or otherwise
        deal
        with any of the Collateral as fully and completely as though the Collateral
        Agent were the absolute owner thereof for all purposes, and to do, at the
        Collateral Agent's option, at any time or from time to time, all acts and
        things
        that the Collateral Agent deems reasonably necessary to protect, preserve
        or
        realize upon the Collateral and the Collateral Agent's security interest
        therein
        in order to effect the intent of this Agreement, all as fully and effectively
        as
        such Grantor might do.

       

      5.2  No
        Duty on the Part of Collateral Agent or Collateral Agents.The
        powers conferred on the Collateral Agent hereunder are solely to protect
        the
        interests of the Secured Parties in the Collateral and shall not impose any
        duty
        upon the Collateral Agent or any Secured Party to exercise any such powers.
        The
        Collateral Agent and the Secured Parties shall be accountable only for amounts
        that they actually receive as a result of the exercise of such powers, and
        neither they nor any of their officers, directors, employees or agents shall
        be
        responsible to the Grantor for any act or failure to act hereunder, except
        for
        their own gross negligence or willful misconduct.

       

       

      
        	SECTION
                6.	
                REMEDIES.

              

      

       

      6.1  Generally

       

      (a)  If
        any Event of Default shall have occurred and be continuing, which Event of
        Default was not cured within seven (7) days as of the delivery of a written
        notice from the Collateral Agent, the Collateral Agent may exercise in respect
        of the Collateral, in addition to all other rights and remedies provided
        for
        herein or otherwise available to it at law or in equity, all the rights and
        remedies of the Collateral Agent on default under the UCC (whether or not
        the
        UCC applies to the affected Collateral) to collect, enforce or
        satisfy any Secured Obligations then owing, whether by acceleration or
        otherwise, including without limitation any of the following:

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      
        	(i)  	
                require
                  the Grantor to, and the
                  Grantor hereby agrees that it shall at its expense and promptly
                  upon
                  request of the Collateral Agent forthwith, assemble all or art
                  of the
                  Collateral as directed by the Collateral Agent and make it available
                  to
                  the Collateral Agent at a place to be designated by the Collateral
                  Agent
                  that is reasonably convenient to both parties;

              

      

       

      
        	(ii)  	
                enter
                  onto the property where any Collateral is located and take possession
                  thereof with or without judicial
                  process;

              

      

       

      
        	(iii)  	
                prior
                  to the disposition of the Collateral, store, process, repair or
                  recondition the Collateral or otherwise prepare the Collateral
                  for
                  disposition in any manner to the extent the Collateral Agent deems
                  appropriate; 

              

      

       

      
        	(iv)  	
                without
                  notice except as specified below or under the UCC, sell, assign,
                  lease,
                  license (on an exclusive or nonexclusive basis)
                  or
                  otherwise dispose of the Collateral or any part thereof in one
                  or more
                  parcels at public or private sale, at any of the Collateral Agent's
                  offices or elsewhere, for cash, on credit or for future delivery,
                  at such
                  time or times and at such price or prices and upon such other terms
                  as the
                  Collateral Agent may deem commercially reasonable; and
                  

              

      

       

      (b)  The
        Collateral Agent or any Secured Party may be the purchaser of any or all
        of the
        Collateral at any public or private (to the extent to portion of the Collateral
        being privately sold is of a kind that is customarily sold on a recognized
        market or the subject of widely distributed standard price
        quotations)
        sale in
        accordance with the UCC and the Collateral Agent, as collateral agent for
        and
        representative of the Secured Parties, shall be entitled, for the purpose
        of
        bidding and making settlement or payment of the purchase price for all or
        any
        portion of the Collateral sold at any such sale made in accordance with the
        UCC,
        to use and apply any of the Secured Obligations as a credit on account of
        the
        purchase price for any Collateral payable by the Collateral Agent at such
        sale.
        Each purchaser at any such sale shall hold the property sold absolutely free
        from any claim or right on the part of the Grantor, subject to Grantor's
        certain
        liens in favor of Bank Leumi USA, as set forth above and the Grantor hereby
        waives (to the extent permitted by applicable law)
        all
        rights of redemption and/or stay which it now has or may at any time in the
        future have under any rule of law or statute now existing or hereafter enacted.
        The Grantor agrees that, to the extent notice of sale shall be required by
        law,
        at least ten (10) days notice to such Grantor of the time and place of any
        public sale or the time after which any private sale is to be made shall
        constitute reasonable notification. The Collateral Agent shall not be obligated
        to make any sale of Collateral regardless of notice of sale having been given.
        The Collateral Agent may adjourn any public or private sale from time to
        time by
        announcement at the time and place fixed therefore, and such sale may, without
        further notice, be made at the time and place to which it was so adjourned.
        The
        Grantor agrees that it would not be commercially unreasonable for the Collateral
        Agent to dispose of the Collateral or any portion thereof by using Internet
        sites that provide for the auction of assets of the types included in the
        Collateral or that have the reasonable capability of doing so, or that match
        buyers and sellers of assets. The Grantor
        hereby waives any claims against the Collateral Agent arising by reason of
        the
        fact that the price at which any Collateral may have been sold at such a
        private
        sale was less than the price which might have been obtained at a public sale,
        even if the Collateral Agent accepts the first offer received and does not
        offer
        such Collateral to more than one offeree. If the proceeds of any sale or
        other
        disposition of the Collateral are insufficient to pay all the Secured
        Obligations, the Grantor shall be liable for the deficiency and the fees
        of any
        attorneys employed by the Collateral Agent to collect such deficiency.
        The Grantor
        further agrees that a breach of any of the covenants contained in this Section
        will cause irreparable injury to the Collateral Agent, that the Collateral
        Agent
        has no adequate remedy at law in respect of such breach and, as a consequence,
        that each and every covenant contained in this Section shall be specifically
        enforceable against the Grantor, and the Grantor hereby waives and agrees
        not to
        assert any defenses against an action for specific performance of such covenants
        except for a defense that no default has occurred giving rise to the Secured
        Obligations becoming due and payable prior to their stated maturities. Nothing
        in this Section shall in any way alter the rights of the Collateral Agent
        hereunder. 

       

      
        
          
          

        

        
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      (c)  The
        Collateral Agent may sell the Collateral without giving any warranties as
        to the
        Collateral. The Collateral Agent may specifically disclaim or modify any
        warranties of title or the like, except that the Collateral Agent may not
        disclaim or modify a warranty as to its claim to the Collateral pursuant
        to this
        Agreement. This procedure will not be considered to adversely effect the
        commercial reasonableness of any sale of the Collateral

       

      (d)  The
        Collateral Agent shall have no obligation to marshall any of the
        Collateral.

       

      (e)  Upon
        the
        occurrence and during the continuance of any Event of Default, provided that
        the
        Event of Default has not been cured within seven (7) days, all amounts and
        proceeds (including checks and other instruments) received by the Grantor
        in
        respect of amounts due to such Grantor in respect of the Collateral or any
        portion thereof shall be received in trust for the benefit of the Collateral
        Agent hereunder, shall be segregated from other funds of such Grantor and
        shall
        be forthwith paid over or delivered to the Collateral Agent in the same form
        as
        so received (with any necessary endorsement)
        to be
        held as cash Collateral and applied then or at any time against the Secured
        Obligations then due and owing. The Grantor shall
        not, without the prior written consent of the Collateral Agent, adjust, settle
        or compromise the amount or payment of any such amount or release wholly
        or
        partly any obligor with respect thereto or allow any credit or discount
        thereon.

       

      6.2  Application
        of Proceeds. 
        Except
        as
        expressly provided elsewhere in this Agreement, all proceeds received by
        the
        Collateral Agent in respect of any sale, any collection from, or other
        realization upon all or any part of the Collateral shall be applied in full
        or
        in part by the Collateral Agent against, the Secured Obligations in the
        following order of priority: first,
        to the
        payment of all costs and expenses of such sale, collection or other realization,
        including reasonable compensation to the Collateral Agent and its agents
        and
        counsel, and all other expenses, liabilities and advances made or incurred
        by
        the Collateral Agent in connection therewith, and all amounts for which the
        Collateral Agent is entitled to indemnification under the Transaction Documents
        (in its capacity as the Collateral Agent) and all advances made by the
        Collateral Agent hereunder for the account of the applicable Grantor, and
        to the
        payment of all costs and expenses paid or incurred by the Collateral Agent
        in
        connection with the exercise of any right or remedy hereunder or under any
        Transaction Document, all in accordance with the terms hereof or thereof;
        second,
        to the
        extent of any excess of such proceeds, to the payment of all other Secured
        Obligations for the ratable benefit of the Secured Party; and third,
        to the
        extent of any excess of such proceeds, to the payment to or upon the order
        of
        such Grantor or to whosoever may be lawfully entitled to receive the same
        or as
        a court of competent jurisdiction may direct.

       

      6.3  Sales
        on Credit. 
        If
        Collateral Agent sells any of the Collateral upon credit, Grantor will be
        credited only with payments actually made by purchaser and received by
        Collateral Agent and applied to indebtedness of the Purchaser. In the event
        the
        purchaser fails to pay for the Collateral, Collateral Agent may resell the
        Collateral and Grantor shall be credited with proceeds of the sale.

       

      6.4  Investment
        Related Property.

       

      (a)  The
        Grantor recognizes that, by reason of certain prohibitions contained in the
        Securities Act of 1933 and applicable state securities laws, the Collateral
        Agent may be compelled, with respect to any sale of all or any part of the
        Investment Related Property conducted without prior registration or
        qualification of such Investment Related Property under the Securities Act
        and/or such state securities laws, to limit purchasers to those who will
        agree,
        among other things, to acquire the Investment Related Property for their
        own
        account, for investment and not with a view to the distribution or resale
        thereof. The Grantor
        acknowledges that any such private sale may be at prices and on terms less
        favorable than those obtainable through a public sale without such restrictions
        (including a public offering made pursuant to a registration statement under
        the
        Securities Act)
        and,
        notwithstanding such circumstances, the Grantor
        agrees that any such private sale shall be deemed to have been made in a
        commercially reasonable manner and that the Collateral Agent shall have no
        obligation to engage in public sales and no obligation to delay the sale
        of any
        Investment Related Property for the period of time necessary to permit the
        issuer thereof to register it for a form of public sale requiring registration
        under the Securities Act or under applicable state securities laws, even
        if such
        issuer would, or should, agree to so register it. If the Collateral Agent
        determines to exercise its right to sell any or all of the Investment Related
        Property, upon written request, the Grantor
        shall and shall cause each issuer of any Pledged Stock to be sold hereunder,
        each partnership and each limited liability company from time to time to
        furnish
        to the Collateral Agent all such information as the Collateral Agent may
        request
        in order to determine the number and nature of interest, shares or other
        instruments included in the Investment Related Property which may be sold
        by the
        Collateral Agent in exempt transactions under the Securities Act and the
        rules
        and regulations of the Securities and Exchange Commission thereunder, as
        the
        same are from time to time in effect.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      (b)  Upon
        the
        occurrence and during the continuation of an Event of Default, which
        Event of Default was not cured within seven (7) days as of the delivery of
        a
        written notice from the Collateral Agent, the
        Collateral Agent shall have the right to apply the balance from the Grantor
        Account or instruct the bank at which Grantor Account is maintained to pay
        the
        balance of Grantor Account to or for the benefit of the Collateral Agent,
        all in
        accordance with that certain Account Control Agreement between Grantor and
        Collateral Agent, dated the date hereof.

       

      6.5  Intellectual
        Property.

       

      (a)  Anything
        contained herein to the contrary notwithstanding, upon the occurrence and
        during
        the continuation of an Event of Default, which
        Event of Default was not cured within seven (7) days as of the delivery of
        a
        written notice from the Collateral Agent:
        

       

      
        	(i)  	
                the
                  Collateral Agent shall have the right (but not the obligation)
                  to
                  bring suit or otherwise commence any action or proceeding in the
                  name of
                  the Grantor, the Collateral Agent or otherwise, in the Collateral
                  Agent's
                  sole discretion, to enforce any Intellectual Property, in which
                  event such
                  Grantor shall, at the request
                  of
                  the Collateral Agent, do any and all lawful acts and execute any
                  and all
                  documents required by the Collateral Agent in aid of such enforcement
                  and
                  such Grantor shall promptly, upon demand, reimburse and indemnify
                  the
                  Collateral Agent as provided in the Transaction Documents in connection
                  with the exercise of its rights under this Section, and, to the
                  extent
                  that the Collateral Agent shall elect not to bring suit to enforce
                  any
                  Intellectual Property as provided in this Section, the Grantor
                  agrees to
                  use all reasonable measures, whether by action, suit, proceeding
                  or
                  otherwise, to prevent the infringement of any of the Intellectual
                  Property
                  by others and for that purpose agrees to diligently maintain any
                  action,
                  suit or proceeding against any Person so infringing as shall be
                  necessary
                  to prevent such infringement;

              

      

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      
        	(ii)  	
                upon
                  written demand from the Collateral Agent, the Grantor shall grant,
                  assign,
                  convey or otherwise transfer to the Collateral Agent all of such
                  Grantor's
                  right, title and interest
                  in
                  and to the Intellectual Property and shall execute and deliver
                  to the
                  Collateral Agent such documents as are necessary or appropriate
                  to carry
                  out the intent and purposes of this Agreement;

              

      

       

      
        	(iii)  	
                the
                  Grantor agrees that such an assignment and/or recording shall be
                  applied
                  to reduce the Secured Obligations outstanding only to the extent
                  that the
                  Collateral Agent receives cash proceeds or the equivalent in respect
                  of
                  the sale of, or other realization upon, the Intellectual Property;
                  

              

      

       

      
        	(iv)  	
                within
                  five (5)
                  business days after written notice from the Collateral Agent, the
                  Grantor
                  shall make available to the Collateral Agent, to the extent within
                  such
                  Grantor's power and authority, such personnel in such Grantor's
                  employ on
                  the date of such Event of Default as the Collateral Agent may reasonably
                  designate, by name, title or job responsibility, to permit such
                  Grantor to
                  continue, directly or indirectly, to produce, advertise and sell
                  the
                  products and services
                  sold or delivered by such Grantor under or in connection with the
                  Trademarks, Trademark Licenses, such persons to be available to perform
                  their prior functions on the Collateral Agent's behalf and to be
                  compensated by the Collateral Agent at such Grantor's expense on
                  a per
                  diem, pro-rata basis consistent with the salary and benefit structure
                  applicable to each as of the date of such Event of Default;
                  

              

      

       

      
        	(v)  	
                the
                  Collateral Agent shall have the right to notify, or require the
                  Grantor to
                  notify, any obligors
                  with respect to amounts due or to become due to such Grantor in
                  respect of
                  the Intellectual Property, of the existence of the security interest
                  created herein, to direct such obligors to make payment of all
                  such
                  amounts directly to the Collateral Agent, and, upon such notification
                  and
                  at the expense of such Grantor, to enforce collection of any such
                  amounts
                  and to adjust, settle or compromise the amount or payment thereof,
                  in the
                  same manner and to the same extent as such Grantor might have
                  done;

              

      

       

      
        	(vi)  	
                all
                  amounts and proceeds (including checks and other instruments) received
                  by
                  the Grantor in respect of amounts due to such Grantor in respect
                  of the
                  Collateral or any portion thereof shall be received in trust for
                  the
                  benefit of the Collateral Agent hereunder, shall be segregated
                  from other
                  funds of such Grantor and shall be forthwith paid over or delivered
                  to the
                  Collateral Agent in the same form as so received (with any necessary
                  endorsement)
                  to
                  be held as cash Collateral and applied then or at any time against
                  the
                  Secured Obligations then due and owing;
                  and

              

      

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      (b)  the
        Grantor shall
        not, without the prior written consent of the Collateral Agent, adjust, settle
        or compromise the amount or payment of any such amount or release wholly
        or
        partly any obligor with respect thereto or allow any credit or discount thereon.
        If
        (i) an
        Event of Default shall have occurred and, by reason of cure, waiver,
        modification, amendment or otherwise, no longer be continuing, (ii) no other
        Event of Default shall have occurred and be continuing, (iii) an assignment
        or
        other transfer to the Collateral Agent of any rights, title and interests
        in and
        to the Intellectual Property shall have been previously made other than in
        accordance with Section 4 of this Agreement, and (iv) the Secured Obligations
        shall not have become immediately due and payable according to the Credit
        Agreement, upon the written request of the Grantor, the Collateral Agent
        shall
        promptly execute and deliver to such Grantor, at such Grantor's sole cost
        and
        expense, such assignments or other transfer as may be necessary to reassign
        to
        such Grantor any such rights, title and interests as may have been assigned
        to
        the Collateral Agent as aforesaid, subject to any disposition thereof that
        may
        have been made by the Collateral Agent (in such event, the Collateral Agent
        shall deliver to the Grantor all of the funds or the equivalent, paid to
        Collateral Agent in consideration for any such disposition); provided, after
        giving effect to such reassignment, the Collateral Agent's security interest
        granted pursuant hereto, as well as all other rights and remedies of the
        Collateral Agent granted hereunder, shall continue to be in full force and
        effect; and provided further, the rights, title and interests so reassigned
        shall be free and clear of any Liens granted by or on behalf of the Collateral
        Agent and the Collateral Agents.

       

      Solely
        for the purpose of enabling the Collateral Agent to exercise rights and remedies
        under this Section 6 and at such time as the Collateral Agent shall be lawfully
        entitled to exercise such rights and remedies, the Grantor hereby grants
        to the
        Collateral Agent, to the extent it has the right to do so, an irrevocable,
        nonexclusive license (exercisable without payment of royalty or other
        compensation to such Grantor),
        subject, in the case of Trademarks, to sufficient rights to quality control
        and
        inspection in favor of such Grantor to avoid the risk of invalidation of
        said
        Trademarks, to use, operate under, license, or sublicense any Intellectual
        Property now owned or hereafter acquired by such Grantor, and wherever the
        same
        may be located, such license to terminate upon termination of this Agreement
        and
        the payment in full of the Secured Obligations.

       

      
        
          	SECTION
                  7. 	
                  COLLATERAL
                    AGENT.

                

        

      

       

      The
        Collateral Agent has been appointed to act as Collateral Agent hereunder
        by each
        Secured Party either pursuant to the Transaction Documents or by their
        acceptance of the benefits hereof. The Collateral Agent shall be obligated,
        and
        shall have the right hereunder, to make demands, to give notices, to exercise
        or
        refrain from exercising any rights, and to take or refrain from taking any
        action (including, without limitation, the release or substitution of
        Collateral),
        solely
        in accordance with this Agreement and the Credit Agreement. Without the written
        consent of the Collateral Agent that would be affected thereby, no amendment,
        modification, termination, or consent shall be effective if the effect thereof
        would release all or substantially all of the Collateral except as expressly
        provided herein. In furtherance of the foregoing provisions of this Section,
        each Secured Party, by its acceptance of the benefits hereof, agrees that
        it
        shall have no right individually to realize upon any of the Collateral
        hereunder, it being understood and agreed by such Secured Party that all
        rights
        and remedies hereunder may be exercised solely by the Collateral Agent for
        the
        benefit of each Secured Party in accordance with the terms of this Section.
        

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      
        
          	SECTION
                  8. 	
                  TERM
                    OF SECURITY INTEREST; TRANSFER OF SECURED
                    OBLIGATIONS.

                

        

      

       

      This
        Agreement shall create a continuing security interest in the Collateral and
        shall remain in full force and effect until the termination of the Credit
        Agreement, according to the terms therein, including without limitation the
        payment in full of all amounts due to the Lenders, by executing a Letter
        of
        Termination (as defined and attached thereto) ("Credit
        Termination"),
        be
        binding upon the Grantor, its successors and assigns, and inure, together
        with
        the rights and remedies of the Collateral Agent hereunder, to the benefit
        of the
        Collateral Agent and its successors, transferees and assigns. Upon a Credit
        Termination, this Agreement and all schedules and exhibits attached hereto,
        as
        may be amended from time to time, shall immediately and automatically be
        terminated, without any further action from the parties hereto. Without limiting
        the generality of the foregoing, each Secured Party may assign or transfer
        its
        rights hereunder to a Permitted Transferee and the Permitted Transferee shall
        thereupon become vested with all the benefits in respect thereof granted
        to the
        Secured Party herein or otherwise. Upon the payment in full of all Secured
        Obligations, the cancellation or termination of the commitments and any other
        contingent obligation included in the Secured Obligations, the security interest
        granted hereby shall automatically terminate hereunder and of record and
        all
        rights to the Collateral shall automatically and immediately revert to Grantor.
        Upon a Credit Termination, the Collateral Agent shall and hereby agree and
        undertakes, at Grantor's expense and immediately upon Grantor's request,
        to
        execute and deliver to Grantor such documents as Grantor shall reasonably
        request to evidence such termination. By executing this Agreement, the
        Collateral Agent and Grantor hereby agree and undertake that in the event
        that
        the Credit Agreement is terminated according to the terms therein, including
        without limitation the payment in full of all amounts due to the Lenders:
        (i)
        the security interest contemplated hereunder shall have no effect whatsoever,
        and will be null and void, (ii) Grantor shall maintain and/or revert all
        rights
        in the Collateral, and (iii) this Agreement and any Control Agreement shall
        be
        terminated and cancelled.

       

      
        
          	SECTION 9 . 	
                  STANDARD
                    OF CARE; COLLATERAL AGENT MAY
                    PERFORM

                

        

      

       

      The
        powers conferred on the Collateral Agent hereunder are solely to protect
        its
        interest in the Collateral and the interests of the Secured Parties and shall
        not impose any duty upon it to exercise any such powers. Except for the exercise
        of reasonable care in the custody of any Collateral in its possession and
        the
        accounting for moneys actually received by it hereunder, the Collateral Agent
        shall have no duty as to any Collateral or as to the taking of any necessary
        steps to preserve rights against prior parties or any other rights pertaining
        to
        any Collateral. The Collateral Agent shall be deemed to have exercised
        reasonable care in the custody and preservation of Collateral in its possession
        if such Collateral is accorded treatment substantially equal to that which
        the
        Collateral Agent accords its own property. Neither the Collateral Agent nor
        any
        of its directors, officers, employees or agents shall be liable for failure
        to
        demand, collect or realize upon all or any part of the Collateral or for
        any
        delay in doing so or shall be under any obligation to sell or otherwise dispose
        of any Collateral upon the request of the Grantor or otherwise. If the Grantor
        fails to perform any agreement contained herein, the Collateral Agent may
        itself
        perform, or cause performance of, such agreement, and the expenses of the
        Collateral Agent incurred in connection therewith shall be payable by the
        Grantor.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      
        
          	SECTION
                  10. 	
                  MISCELLANEOUS.

                

        

      

       

      10.1  Notices.
        Unless
        otherwise specifically provided herein, any notice or other communication
        herein
        required or permitted to be given to a Grantor or Collateral Agent, shall
        be
        sent pursuant to Section 9.10 of the Credit Agreement.

       

      10.2  Amendments
        and Waivers

       

      (a)  Consent.
        Except
        as
        provided for herein, no amendment or modification of this Agreement may be
        effective without the written consent of both the Grantor and the Collateral
        Agent. No waiver of any provision of this Agreement, or consent to any departure
        by the Grantor therefrom, shall in any event be effective without the written
        concurrence of the Collateral Agent.

       

      (b)  No
        Waiver; Remedies Cumulative.
        No
        failure or delay on the part of the Collateral Agent or Grantor in the exercise
        of any power, right or privilege hereunder or under any other Transaction
        Document shall impair such power, right or privilege or be construed to be
        a
        waiver of any default or acquiescence therein, nor shall any single or partial
        exercise of any such power, right or privilege preclude other or further
        exercise thereof or of any other power, right or privilege. All rights, powers
        and remedies existing under this Agreement and the other Transaction Documents
        are cumulative, and not exclusive of, any rights or remedies otherwise
        available. Any forbearance or failure to exercise, and any delay in exercising,
        any right, power or remedy hereunder shall not impair any such right, power
        or
        remedy or be construed to be a waiver thereof, nor shall it preclude the
        further
        exercise of any such right, power or remedy.

       

      10.3  Successors
        and Assigns.This
        Agreement shall be binding upon the parties hereto and their respective
        successors and assigns including all persons who become bound as debtor to
        this
        Agreement, Grantor shall not, without the prior written consent of the
        Collateral Agent, assign any right, duty or obligation hereunder.

       

      10.4  Independence
        of Covenants.All
        covenants hereunder shall be given independent effect so that if a particular
        action or condition is not permitted by any of such covenants, the fact that
        it
        would be permitted by an exception to, or would otherwise be within the
        limitations of, another covenant shall not avoid the occurrence of a Default
        or
        an Event of Default if such action is taken or condition exists.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      10.5  Survival
        of Representations, Warranties and Agreements.All
        representations, warranties and agreements made herein shall survive the
        execution and delivery hereof. 

       

      10.6  Severability.In
        case
        any provision in or obligation hereunder shall be invalid, illegal or
        unenforceable in any jurisdiction, the validity, legality and enforceability
        of
        the remaining provisions or obligations, or of such provision or obligation
        in
        any other jurisdiction, shall not in any way be affected or impaired
        thereby.

       

      10.7  Headings.Section headings
        herein are included herein for convenience of reference only and shall not
        constitute a part hereof for any other purpose or be given any substantive
        effect.

       

      10.8  Applicable
        Law.This
        agreement and the rights and obligations of the parties hereunder shall be
        governed by, and shall be construed and enforced in accordance with, the
        laws of
        the State of New York.

       

      10.9  Consent
        To Jurisdiction.All
        judicial proceedings brought against the Grantor arising out of this Agreement,
        may be brought in any state or federal court of competent jurisdiction in
        the
        State, county and city of New York. By executing and delivering this agreement,
        the Grantor, for itself and in connection with its properties, irrevocably
        accepts generally and unconditionally the nonexclusive jurisdiction and venue
        of
        such courts; waives any defense of forum non conveniens; agrees that service
        of
        all process in any such proceeding in any such court may be made by registered
        or certified mail, return receipt requested, to the applicable Grantor at
        its
        address provided in accordance with section 11.1; agrees that service as
        provided above is sufficient to confer personal jurisdiction over the applicable
        Grantor in any such proceeding in any such court, and otherwise constitutes
        effective and binding service in every respect; and agrees that the Collateral
        Agent retains the right to serve process in any other manner permitted by
        law or
        to bring proceedings against the Grantor in the courts of any other
        jurisdiction.

       

      10.10  WAIVER
        OF JURY TRIAL.EACH
        OF
        THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY
        TRIAL
        OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER. THE SCOPE
        OF
        THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT
        MAY
        BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
        INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER
        COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS
        WAIVER
        IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH
        HAS
        ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH
        WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH
        PARTY
        HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH
        ITS
        LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
        RIGHTS
        FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING
        THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A
        MUTUAL
        WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 11.10 AND EXECUTED
        BY EACH
        OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
        AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO. IN THE EVENT OF
        LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY
        THE
        COURT.

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      10.11  Counterparts.
        This
        Agreement may be executed in any number of counterparts, each of which when
        so
        executed and delivered shall be deemed an original, but all such counterparts
        together shall constitute but one and the same instrument.

       

      10.12  Effectiveness.This
        Agreement shall become effective upon the execution of a counterpart hereof
        by
        each of the parties hereto and receipt by Grantor and the Collateral Agent
        of
        written or telephonic notification of such execution and authorization of
        delivery thereof. 

       

      10.13  Entire
        Agreement. This
        Agreement and the other Transaction Documents embody the entire agreement
        and
        understanding between Grantor and the Collateral Agent and supersede all
        prior
        agreements and understandings between such parties relating to the subject
        matter hereof and thereof. Accordingly, the Transaction Documents may not
        be
        contradicted by evidence of prior, contemporaneous or subsequent oral agreements
        of the parties. There are no unwritten oral agreements between the
        parties.

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        the
        Grantor and the Collateral Agent have caused this Agreement to be duly executed
        and delivered by their respective officers thereunto duly authorized as of
        the
        date first written above.

       

      
        	 	 	 
	 	WINTEGRA
                INC.
	 
 	 
 	 
 
	 	By:  	/s/ Kobi Ben-Zvi
	 	
                
Name:
                Kobi Ben-Zvi
	 	Title: CEO

      
         

        
          	 	 	 
	 	
                  PLENUS
                    TECHNOLOGIES LTD.

                  as the Collateral Agent

                
	 
 	 
 	 
 
	 	By:  	/s/ Ruth Simha           /s/
                  Slomo
                  Karako
	 	
                  
Name:
                  Ruth Simha         
Slomo
                  Karako
	 	Title: 
                  Managing Partner       CFO

      

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        I

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

       

       

      INVESTMENT
        RELATED PROPERTY

       

      

       

      Pledged
        Stock: 

       

      
        	
                 

                Grantor

              	
                 

                Stock
                  Issuer

              	
                 

                Class
                  of Stock

              	
                 

                Certificated
                  (Y/N)

              	
                 

                Stock
                  Certificate No.

              	
                 

                Par
                  Value

              	
                 

                No.
                  of Pledged Stock

              	
                 

                %
                  of Outstanding Stock of the Stock Issuer

              
	Wintegra
                INC.	Wintegra
                LTD	Ordinary
                Shares	 	 	1
                NIS	
                1000
                  shares

              	100%

      

      

       

      Pledged
        LLC Interests:

       

      
        	
                 

                Grantor

              	
                 

                Limited
                  Liability Company

              	
                 

                Certificated
                  (Y/N)

              	
                 

                Certificate
                  No. (if any)

              	
                 

                No.
                  of Pledged Units

              	
                 

                %
                  of Outstanding LLC Interests of the Limited Liability
                  Company

              
	N/A	 	 	 	 	 

      

      

       

      Pledged
        Partnership Interests:

       

      
        	
                 

                Grantor

              	
                 

                Partnership

              	
                 

                Type
                  of Partnership Interests (e.g.,
                  general or limited)

              	
                 

                Certificated
                  (Y/N)

              	
                 

                Certificate
                  No.

                (if
                  any)

              	
                 

                %
                  of Outstanding Partnership Interests of the
                  Partnership

              
	 	 	 	 	 	 

      

      

       

      
        
          
            
              
              

            

            
              
                S-I-1

              

              
                

              

            

            
              
              

            

          

           

          Pledged
            Trust Interests:

        

      

       

      
        	
                 

                Grantor

              	
                 

                Trust

              	
                 

                Class
                  of Trust Interests

              	
                 

                Certificated
                  (Y/N)

              	
                 

                Certificate
                  No.

                (if
                  any)

              	
                 

                %
                  of Outstanding Trust Interests of the Trust

              
	N/A	 	 	 	 	 

      

       

       

      Pledged
        Debt:

       

      
        	
                 

                Grantor

              	
                 

                Issuer

              	
                 

                Original
                  Principal Amount

              	
                 

                Outstanding
                  Principal Balance

              	
                 

                Issue
                  Date

              	
                 

                Maturity
                  Date

              
	Wintegra
                INC.	Wintegra
                LTD	
                $250,000

              	
                $250,000

              	Feb
                23, 2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $550,000

              	
                $550,000

              	March
                15,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $500,000

              	
                $500,000

              	June
                21,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $22,500

              	
                $22,500

              	August
                17,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $500,000

              	
                $500,000

              	September
                21,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $600,000

              	
                $600,000

              	October
                19,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $380,000

              	
                $380,000

              	November
                22,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $400,000

              	
                $400,000

              	December
                26,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $1,750,000

              	
                $1,750,000

              	March
                27,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $2,200,000

              	
                $2,200,000

              	June
                25,
                2000	None
	Wintegra
                INC.	Wintegra
                LTD	
                $10,400,000

              	
                $10,400,000

              	July
                24, 2000	None

      

      

       

      
        
          
          

        

        
          
            S-I-2

          

          
            

          

        

        
          
          

        

      

       

      Securities
        Account:

       

      
        	
                 

                Grantor

              	
                 

                Share
                  of Securities Intermediary

              	
                 

                Account
                  Number

              	
                 

                Account
                  Name

              
	N/A	 	 	 

      

      

       

      Commodities
        Accounts:

       

      
        	
                 

                Grantor

              	
                 

                Name
                  of Commodities Intermediary

              	
                 

                Account
                  Number

              	
                 

                Account
                  Name

              
	N/A	 	 	 

      

      

       

      Deposit
        Accounts:

       

      
        	
                 

                Grantor

              	
                 

                Name
                  of Depositary Bank

              	
                 

                Account
                  Number

              	
                 

                Account
                  Name

              
	N/A	 	 	 

      

      

       

      (B)

      Name
        of Grantor Date
        of Acquisition 
Description
        of Acquisition 

       

       

      
        
          
            
            

          

          
            
              S-I-3

            

            
              

            

          

          
            
            

          

        

      SCHEDULE
        II

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

       

      

       

      
        	Name of Grantor	 	Description of Letters of
                Credit

      

      

       

       

      
         

        
          
            
              
              

            

            
              
                S-II-1

              

              
                

              

            

            
              
              

            

          

        

      

      

      SCHEDULE
        III

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

       

       

      INTELLECTUAL
        PROPERTY

       

      
        	(a)  	
                Copyrights
                  - None

              

      

       

      
        	(b)  	
                Copyright
                  Licenses - None

              

      

       

      
        	(c)  	
                Patents
                  - None

              

      

       

      
        	(d)  	
                Patent
                  Licenses - None

              

      

       

      
        	(e)  	
                Trademarks
                  - None

              

      

       

      
        	(f)  	
                Trademark
                  Licenses - None

              

      

       

      
        	(g)  	
                Trade
                  Secret Licenses - None

              

      

       

      
        	(h)  	
                Intellectual
                  Property Matters - N/A

              

      

       

       

      
        
          
            
            

          

          
            
              S-III-1

            

            
              

            

          

          
            
            

        

      

      SCHEDULE
        IV

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

       

      

       

      
        	
                 

                Name
                  of Grantor

              	
                 

                Commercial
                  Tort Claims

              
	 	
                None

              

      

      

       

      
         

        
          
            
              
              

            

            
              
                S-IV-1

              

              
                

              

            

            
              
              

          

        

      

      Annex
        A

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

      
 

       

      CONTROL
        AGREEMENT FOR DEPOSIT ACCOUNTS

       

      

       

       

       

       

      
        
          
          

        

        
          ANNEX A-1

          
            

          

        

        
          
          

        

      

      

      

 

      Annex
        B

       

      TO
        PLEDGE
        AND SECURITY AGREEMENT

       

      
 

       

      CONTROL
        AGREEMENT FOR SECURITIES ACCOUNTS

       

      

       

       

       

      
 

      
        
          
            
            

          

          
            ANNEX B-1

            
              

            

          

          
            
            

Annex
            C

        

      

       

      PLEDGE
        SUPPLEMENT

       

      

       

      This
        PLEDGE
        SUPPLEMENT,
        dated
[mm/dd/yy],
        is
        delivered by [NAME
        OF NEW GRANTOR]
        a
[NAME
        OF STATE OF INCORPORATION] [Corporation]
        (the
        "New Grantor") pursuant to the Pledge and Security Agreement, dated as of
        [
        ], 2002
        (as it
        may be from time to time amended, restated, modified or supplemented, the
        "Security
        Agreement"),
        among
Wintegra,
        Inc.,
        and
[NAME
        OF COLLATERAL AGENT],
        as the
        Collateral Agent. Capitalized terms used herein not otherwise defined herein
        shall have the meanings ascribed thereto in the Security Agreement.

       

       

      New
        Grantor hereby confirms the grant to the Collateral Agent set forth in the
        Security Agreement of, and does hereby grant to the Collateral Agent, a security
        interest in all of New Grantor's right, title and interest in and to all
        Collateral to secure the Secured Obligations, in each case whether now or
        hereafter existing or in which New Grantor
        now has
        or hereafter acquires an interest and wherever the same may be located. From
        and
        after the date hereof, New Grantor shall be a "Grantor" for all purposes
        of the
        Security Agreement. New Grantor hereby makes all of the representations and
        warranties set forth in the Security Agreement. New Grantor represents and
        warrants that the attached Supplements to Schedules accurately and completely
        set forth all additional information required pursuant to the Security Agreement
        and hereby agrees that such Supplements to Schedules shall constitute part
        of
        the Schedules to the Security Agreement.

       

       

      IN
        WITNESS WHEREOF,
        New
        Grantor has caused this Pledge Supplement to be duly executed and delivered
        by
        its duly authorized officer as of [mm/dd/yy].

      
        	 	 	 
	 	 	 
	 	[NAME
                OF NEW GRANTOR]
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
	 	Title: 

      

      

       

      
        
          
            
              
              

            

            
              ANNEX
                C-1

              
                

              

            

            
              
              

            

          

        

      

    

     

    
       

      
        	 	 	
                [bank
                  leumi logo]

              

      

       

      ACCOUNT
        CONTROL AGREEMENT

      

      Date:
        July __, 2002

      

      PARTIES

      

      Plenus
        Technologies Ltd. as Collateral Agent for the Lenders parties pursuant to
        and as
        such terms are defined in the Agreement (hereinafter defined)
        (''Creditor'')

      Wintegra
        Inc. (“Customer'')

      Bank
        Leumi USA (''Bank'')

      562
        5th
        Avenue,
        New York, NY 10036 (''Banking Office'')

      

      BACKGROUND

      

      Customer
        hereby grants Creditor a security interest in accounts maintained by Bank
        for
        Customer and in all funds heretofore or hereafter deposited into that account,
        including any interest earned thereon. The Parties are entering into this
        agreement to perfect Creditor’s security interest in that account.

      

      
        
          	1.	
                  AGREEMENT

                

        

      

      
        	 	 

      

      
        
          	1.	
                  The
                    Account

                

        

      

      

      Bank
        represents and warrants to Creditor that Bank maintains accounts numbers:
        2200474202, 2200474218 and 0200474228 (collectively, the ''Account'')
        for
        Customer at the Banking Office and that, as of the date hereof, Bank does
        not
        know of any claim to or interest in the Account, except for claims and interests
        of the parties referred to in this agreement.

      

      
        
          	2.	
                  Control
                    of Account by Creditor

                

        

      

      

      a.  Bank,
        Customer and Creditor agree that Bank will comply with written instructions
        (''Orders'')
        originated by Creditor in the form attached hereto as Schedule
        2a,
        for the
        disposition of funds in the Account without further consent from Customer
        and
        without regard to any inconsistent or conflicting Orders given to Bank by
        Customer. Creditor hereby undertakes to deliver Customer with a copy of such
        Order simultaneously with the delivery of such Order to the Bank.

      

      b.  It
        is
        hereby clarified that for so long as Bank has not received an Order from
        Creditor, Customer shall be fully entitled and authorized to withdraw and
        deposit any and all funds available in the Account, subject to penalties
        for
        early withdraws of any time deposits.

      

      c.  
        Creditor
        agrees that before it attempts to give Bank any Orders concerning the Account,
        Creditor shall deliver to the Banking Office such documentation as Bank may
        from
        time to time reasonably request to evidence the authority of those partners,
        officers, employees or agents whom Creditor may designate to give
        Orders.

      

      
        
          	3.	
                  Priority
                    of Creditor’s Security Interest; Rights Reserved by the
                    Bank

                

        

      

      

      a.
         Bank
        agrees that all of its present and future rights against the Account are
        subordinate to Creditor's security interest therein; provided,
        however,
        that
        Creditor agrees that nothing herein subordinates or waives, and that Bank
        expressly reserves, all of its present and future rights (whether described
        as
        rights of setoff, banker's lien, chargeback or otherwise, and whether available
        to Bank under the law or under any other agreement between Bank and Customer
        concerning the Account, or otherwise) with respect to: (i) items deposited
        to
        the Account and returned unpaid, whether for insufficient funds or for any
        other
        reason, and without regard to the timeliness of return of any such items;
        (ii)
        checks paid, or other payment orders executed in good faith against uncollected
        funds in the Account provided Bank does not have reasonable cause to doubt
        the
        collectibility of such uncollected funds; (iii) claims of breach of the transfer
        or presentment warranties arising under the applicable Uniform Commercial
        Code
        made against Bank in connection with items deposited to the Account; (iv)
        Bank's
        usual and customary charges for services rendered in connection with the
        Account; and (v) liens in favor of the Bank, not to exceed US$ 50,000, to
        secure
        the Loan (as defined below).

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      b.
         Except
        as
        otherwise required by law, Bank will not agree with any third party that
        Bank
        will comply with Orders originated by such third party.

      

      
        
          	4.	
                  Statements;
                    Notices of Adverse Claims

                

        

      

      

      Bank
        may
        disclose to Creditor such information concerning the Account as Creditor
        may
        from time to time reasonably request; provided,
        however,
        that
        Bank shall have no obligation to disclose to Creditor any information which
        Bank
        does not ordinarily make available to its depositors. Bank will use reasonable
        efforts promptly to notify Creditor and Customer if any other person claims
        that
        it has a property interest in the Account. It is hereby acknowledged by the
        parties hereto that Customer shall be entitled to record a first priority
        lien
        of certain assets to be purchased under a bill of sale, in favor of the Bank,
        in
        the amount of up to $50,000, which may be provided to Customer as a loan
        from
        the Bank (the "Loan").

      

      
        
          	5.	
                  Bank's
                    Responsibility

                

        

      

      

      a.  Except
        for permitting a withdrawal in violation of section 2, above, Bank will not
        be
        liable to Creditor for complying with Orders from Customer that are received
        by
        Bank before Bank receives and has had a reasonable opportunity to act on
        a
        contrary Order from Creditor.

      

      b.  Bank
        will
        not be liable to Customer for complying with Orders originated by Creditor,
        even
        if Customer notifies Bank that Creditor is not legally entitled to issue
        Orders,
        unless Bank takes the action after it is served with an injunction, restraining
        order or other legal process enjoining it from doing so, issued by a court
        of
        competent jurisdiction, and has had a reasonable opportunity to act on the
        injunction, restraining order or other legal process.

      

      c.  This
        agreement does not create any obligation of Bank except for those expressly
        set
        forth in this agreement. In particular, Bank need not investigate whether
        Creditor is entitled under Creditor's agreements with Customer to give Orders.
        Bank may rely on notices and communications it believes are given by the
        appropriate party.

      

      
        	6.	
                Indemnity

              

      

      

      Creditor
        and Customer will indemnify Bank, its officers, directors, employees, and
        agents
        against claims, liabilities, and expenses arising out of this agreement
        (including reasonable attorneys' fees and disbursements), except to the extent
        the claims, liabilities, or expenses are caused by Bank's gross negligence
        or
        willful misconduct. Creditor's and Customer's liability under this section
        is
        several and not joint.

      

      
        	7.	
                Termination;
                  Survival

              

      

       

      a.   This
        Agreement and
        the obligations of the Bank to the Creditor pursuant to this Agreement shall
        be
        in effect as of the date hereof and shall be terminated immediately upon
        the
        receipt by the Bank of a Notice of Termination, in the form attached hereto
        as
Schedule
        7,
        duly
        executed by both Customer and Creditor.

       

      b.   The
        termination of this
        Agreement shall not terminate the Account or alter the obligations of the
        Bank
        to the Customer pursuant to any other agreement with respect to the Account.
        

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      c.
        Upon
        the termination of this Agreement, Creditor shall have no further right to
        originate Orders concerning the Account, and Bank shall take such steps as
        Customer may reasonably request to vest full ownership and control of the
        Account, with Customer, including, but not limited to, transferring all of
        the
        assets in the Account, to other account(s) in the name of Customer, its
        designees or affiliates.
        

      

      d.
        Sections 5, "Bank's Responsibility," and 6, "Indemnity," will survive
        termination of this agreement.

      

      
        	8.	
                Governing
                  Law

              

      

      

      This
        agreement and the Account will be governed by the laws of the State of New
        York.
        Bank may not change the law governing the Account without Creditor's express
        written agreement, which consent shall not be unreasonably
        withheld.

      

      
        	9.	
                Entire
                  Agreement

              

      

      

      This
        agreement is the entire agreement and supersedes any prior agreements and
        contemporaneous oral agreements of the parties concerning its subject
        matter.

      

      
        
          	10.	
                  Amendments

                

        

      

      

      No
        amendment of, or waiver of a right under, this agreement will be binding
        unless
        it is in writing and signed by the party to be charged.

      

      
        
          	11.	
                  Severability

                

        

      

      

      To
        the
        extent a provision of this agreement is unenforceable, this agreement will
        be
        construed as if the unenforceable provision were omitted.

      

      
        
          	12.	
                  Other
                    Agreements

                

        

      

      

      For
        so
        long as this agreement remains in effect, transactions involving the Account
        shall be subject, except to the extent inconsistent herewith, to the provisions
        of such demand-deposit account agreements, disclosures, and fee schedules
        as are
        in effect from time to time for accounts like the Account.

      

      
        
          	13.	
                  Successors
                    and Assigns

                

        

      

      

      The
        provisions of this agreement shall be binding upon and inure to the benefit
        of
        Bank, Creditor and Customer and their respective successors and
        assigns.

      

      
        
          	14.	
                  Notices

                

        

      

      

      A
        notice
        or other communication to a party under this agreement will be in writing
        and
        will be sent to the party's address set forth below or to such other address
        as
        the party may notify the other parties, and will be effective on
        receipt.

      

      
        
          	15.	
                  Counterparts

                

        

      

      

      This
        agreement may be executed in counterparts, each of which shall be an original,
        and all of which shall constitute but one and the same instrument.

      

      The
        foregoing is hereby acknowledged and agreed to, effective as of the last
        of the
        dates set forth below.

      
 

      [Remainder
        page intentionally left blank]

      
 

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Signatures
        page –
        Account Control Agreement – June
        2002

      

      

      
        
          	Jacob
                  Ben-Zvi
	(Customer)	 
	 	 
	Address:	 7200
                  N      Expy
	 	 
	 	 Suite
                  270, Austin TX 7831
	 	 
	Facsimile:	 512-345-3828
	 	 
	Telephone:	 512-345-3808
	 	 
	Date:	 June
                  4, 2002
	 	 
	 	 
	 	 PLENUS
                  TECHNOLOGIES LTD.
	(Creditor)	 
	 	 
	By:	
                   /s/
                    R. Simha /s/ Shlomo Karako

                
	 	 
	Name:	 Ruth
                  Simha / Shlomo Karako
	 	 
	Title:	 Managing
                  Partner / CFO
	 	 
	Address:	 16
                  Hagalim Avenue
	 	 
	 	 Herzlia
                  Pituson, Israel
	 	 
	Facsimile:	 972-9-957-8770
	 	 
	Telephone:	 972-9-957-4944
	 	 
	Date:	 

        

         

         

        
          	
                  Bank
                    Leumi USA

                	 
	(Bank)	 
	 	 
	/s/
                  Howard Kramer	 
                  /s/ Rafael Siso
	By: Howard Kramer 	 Rafael Siso 
	 	 
	Name: Howard Kramer 	 Rafael Siso 
	 	 
	Title: Vice President 	 First Vice
                  President

        

      

       

      Address: 562
        5th
        Avenue,
        New York, NY 10036

      (Banking
        office)

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      Signatures
        page –
        Account Control Agreement – May
        2002

      

      
 

      Facsimile: 212-626-1072
        

      (Banking
        office)

      

      

      Telephone: 212-626-1055
        

      (Banking
        office)

      

      

      Date: 
        August 6, 2002

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      Schedule
        2a

      Date:
        __________________

      

      Bank
        Leumi USA

      562
        5th
        Avenue,

      New
        York,
        NY 10036

      

      

      Re:
        Wintegra
        Inc. –
        Default Order

      

      Dear
        Sirs,

      

      This
        is
        to certify that due to an Event of Default (as such term is defined in that
        certain Pledge and Security Agreement between Customer and Creditor, dated
        May
        __, 2002 (the "Security
        Agreement"))
        which
        has occurred and was not cured according to the Security Agreement, you are
        hereby given an Order (as such term is defined in that certain Account Control
        Agreement dated May __, 2002) to cease complying with orders or instructions
        originated by Customer concerning the Account.

      

      Furthermore,
        you are hereby instructed to comply with the following actions within the
        Account:

      

       

      
        	1.  	
                Cease
                  any transfer or withdrawing of funds out of the
                  Account.

              

      

       

      
        	2.  	
                Effect
                  the transfer of US$ ____________ to the Creditor, out of the funds
                  available within the Account [such
                  amount shall not be less than US$ 250,000].

              

      

       

      
        	 	 	 
	 	Sincerely,
	 	 
	 	Plenus Technologies Ltd.
	 
 	 
 	 
 
	 	By:  	 
	 	 	
                
 
	 	Title:	 
	 	 	
                
 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      Schedule
        7

       

       

      
        	Plenus Technologies Ltd.  	 	
                Date_________

              

      

      

          

      Re:
        Notice
        of Termination (the “Letter”)

       

      Dear
        Sirs:

       

       

      In
        accordance with Section 2.4 of the Loan Agreement between Plenus Technologies
        Ltd. ( “Plenus”)
        and
        among other with Wintegra Inc. (the “Company”),
        dated
        May __, 2002 (the “Agreement”),
        we,
        the Company, hereby provide Plenus with notice to terminate the Loan Agreement
        pursuant to its terms (including all of its schedules, exhibits and annexes
        with
        the exception of the Warrant).

       

      On
        or
        prior to the date hereof, we repaid to Plenus the outstanding Principal Amount
        and all accrued Interest (as defined in the Agreement) thereon. Accordingly,
        Plenus has no further rights of any kind in the Company, except as specified
        below, and shall relieve the Company from any of its obligations under the
        Loan
        Agreement and all of its schedules, exhibits and annexes, except as specified
        below. 

       

      We
        hereby
        acknowledge that the termination of the Agreement (including all of its
        schedules, exhibits and annexes with the exception of the Warrant) in accordance
        with this notice of termination is subject to Plenus’ confirmation that on or
        prior to the date herein, we have repaid the Principal Amount and all accrued
        Interest (as defined in the Loan Agreement) thereon; Concurrently with the
        execution of its acceptance of this letter, Plenus shall execute any documents
        necessary to cancel the floating charge recorded with the Registrar of Companies
        in Israel and the UCC Pledge. 

       

      We
        are
        aware further that this Termination Letter shall not be construed to derogate
        in
        any manner whatsoever, from Plenus’ rights in accordance with the Warrant issued
        to Plenus on April ___, 2002 and the reporting and notice rights of Plenus
        under
        Section 5 of the Loan Agreement, and the
        obligations of the Company to indemnify Plenus in Section 4 of the Agreement
        will survive this Letter until all statutes of limitations for actions that
        may
        be brought against Plenus have expired
        which
        shall survive the termination of the Loan Agreement in accordance with its
        terms.

       

      
        	 	 	 
	 	Sincerely,
	 	 
	 	Wintegra Inc.
	 	 	 
	 	By:  	 
	 	
                

              
	
                Agreed and accepted:

                 

                 

              	 
	
                
                  

                

                 

              	 
	
                Plenus Technologies Ltd.

              	 

      

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

     

    Exhibit
      C1

     

    
       

      
        	
                To:
                  Company Registrar

              	 	
                Form
                  10 (Regulation 12)

              
	 	 	 
	
                [TRANSLATION
                  FOR CONVENIENCE]

              

      

       

      
        

        
          	
                  Pledge
                    and Mortgage Report

                
	
                  (Article
                    178 to the Companies Ordinance [New Version] -
                    1983)

                

        

         

        
          	
                  Code

                	
                  Company
                    No.

                	
                   

                	
                  Name
                    of the Borrowing Company

                
	
                  81

                	
                  51

                	
                  230107

                	
                  5

                	 	
                  Wintegra
                    Ltd.

                

        

          

        
          	
                  Date
                    of formation

                	 	
                  Type
                    of

                	 	
                  Currency

                	 	
                  The

                	 	
                  The
                    insured sum (in words)

                
	
                   

                	
                   

                	
                   

                	 	
                  Currency

                	 	
                  Code

                	 	
                  insured
                    sum

                	 	
                   

                
	
                  Day
                    

                	
                  Month

                	
                  Year

                	 	
                  
                     

                  

                	 	
                   

                	 	
                  NIS

                	 	
                  Unlimited

                
	
                   

                	
                  
                    05

                  

                	
                  2002

                	 	
                  
                     

                  

                	 	
                   

                	 	
                   

                	 	
                   

                

        

        

        
          	
                  Stamp

                	 	
                  Detail
                    of the document

                	 	
                  Code

                
	
                  Tax

                	 	
                   

                	 	
                   

                
	
                  5.00

                    NIS

                  

                	 	
                  Floating
                    charge agreement, dated June 4, 2002. Loan agreement, dated June
                    4, 2002
                    
                    (hereinafter
                      "the
                      Documents")

                  

                	 	
                   

                

        

        

        
          	
                  Details
                    of the Lenders

                	 	 
	
                  ID
                    Number1

                	 	
                  Description
                    of the lender

                	 	
                  Sum
                    of the loan

                
	
                  5-1291277-5

                	 	
                  Plenus
                    Technologies Ltd. (hereinafter: "The
                    Lender")

                	 	
                  NIS

                
	
                   

                	 	
                  and
                    the lenders by virtue of the Agreement regarding

                	 	
                  Unlimited

                
	 	 	
                  Participation
                    in the Loan, dated June

                	 	 
	
                   

                	 	
                  4,
                    2002, and according to the terms of the Documents,

                	 	 
	
                   

                	 	
                  the
                    lenders mentioned hereinafter

                	 	 
	
                  5-2001807-8

                	 	
                  Bank
                    Leumi of Israel Ltd.

                	 	 
	
                  5-6001470-6

                	 	
                  Citibank,
                    N.A.

                	 	 
	 	 	 	 	 

        

        

        
Details
          of the pledged assets

      

      

      
        	
                Description
                  of pledged assets

              	 	 
	
                First
                  ranking floating charge which includes all the Company's assets
                  at any
                  given time. No pledge, cancellation or transfer can be made without
                  the
                  Lender's approval, subject to terms set forth in the
                  Documents.

              	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -2-

       

       

      
        	
                Special
                  Conditions

              
	
                Date
                  of the

              	 	
                Date
                  of

              	 	
                If
                  there is a restriction on another

              	 	
                Y

              
	
                serial
                  release

              	 	
                decision

              	 	
                charge,
                  indicate "Y"

              	
                –>

              	 
	
                Day
                  

              	
                 Month

              	
                Year

              	 	
                Day

              	
                 
                  Month

              	
                Year

              	 	 	 	 

      

       

      
        
          
            	 	 
	 	 

	 	
                    Registration
                      of a notice, as set forth

                  	 	 
	 	
                    in
                      regulation 12(B) of the Company

                  	
                    –>

                  	 
	 	
                    Regulations
                      (Report, Regulation

                  	 	 
	 	
                    details
                      and forms), - 1999

                  	 	 
                    

          

          
Reference
            to the prohibition or limitation of the creation of other pledges and
            special
            conditions

        

        No
          pledge
          can be registered to another, without the approval of the pledge
          holder

         

         

        I
          hereby declare that the details mentioned in this document are correct
          and
          complete, and that I am an office holder in the Company, as mentioned in
          article
          39 of the Companies Law2.
          

        

        
          	
                  Jacob
                    Ben-Zvi

                	 	
                  54097373

                	 	
                  CEO

                	 	
                  June
                    4, 2002

                	 	
                  /s/
                    J. Ben Zvi

                
	
                  Name

                	 	
                  ID3

                	 	
                  Title

                	 	
                  Date

                	 	
                  Signature

                

        

        

        I
          hereby declare that the details mentioned in this document are correct
          and
          complete.4

        

        
          	 	 	 	 	 	 	 	 	 
	
                  Date

                	 	
                  Signature

                	 	
                  Title

                	 	
                  ID3

                	
                   

                	
                  Name

                

        

      

       

      
        
          
            

          

        

        1
          If
          the
          signatory does not have an Israeli identification number, the number of
          his
          passport and the country of issuance shall be listed. If the party is an
          entity,
          the company number shall be listed. If it is a foreign entity, the company
          number and state of incorporation shall be listed. 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -
        3
        -

      

      

      	2  	
              An
                officer of the Company shall sign this document when the lien is
                filed by
                the Company.

            

      	3  	
              If
                the party does not have an Israeli identification number, the number
                of
                his passport and the country of issuance shall be listed; 
                and
                  if, this is the first report about such lender by the Company,
                  a copy
                  shall be attached of such documents as is set forth in Regulation
                  16 of
                  the Company Regulations (Report, Regulation details and forms),
                  -
                  1999

              

            

      	4 	
              Shall
                be signed by an "interested person" as defined in Section 186 of
                the
                Ordinance, when the lien is flied in accordance wit Section 186 of
                the
                Ordinance.. 

            

       

       

       

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
  

    Exhibit
      C2

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      D1

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      UNANIMOUS
        WRITTEN CONSENT OF

      THE
        BOARD OF DIRECTORS 

      OF
        WINTEGRA, INC.

      

       

      June
        4th, 2002

      

      The
        undersigned, being all of the directors of Wintegra, Inc., a Delaware
        corporation (the “Corporation”),
        hereby approve and adopt the following preambles and resolutions by written
        consent pursuant to Section 141(f) of the Delaware General Corporation Law
        (“DGCL”):

       

      WHEREAS,
        the Corporation wishes to enter into a Loan Agreement ("Loan
        Agreement")
        with
        Plenus Technologies Ltd., Citibank and other lenders listed therein (the
        substantial form of which is attached hereto as Exhibit
        A),
        under
        which the Corporation shall be entitled to a certain Credit Facility (as
        defined
        below), according to the terms and conditions set forth in the Loan Agreement
        and exhibits attached thereto; and

      

      WHEREAS,
        the Board believes that it is in the best interests of the Corporation to
        allow
        and enable the consummation of said Credit Line transaction; and

       

      WHEREAS,
        in order to enable such Credit Facility transaction, the Corporation is required
        to (i) adopt and amend the Restated Certificate of Incorporation of the
        Corporation in the form of the Fourth Restated and Amended Certificate of
        Incorporation attached hereto as Exhibit
        B
        and
        incorporated herein by this reference (the “Fourth
        Certificate”)
        in
        order to permit the Board to issue such amount of warrants to purchase Preferred
        B Stock of the Corporation as designated in the Loan Agreement; (ii) adopt
        and
        execute the Pledge Agreement substantially in the form attached hereto as
        Exhibit
        C
        (“Pledge
        Agreement”);
        and
        (iii) adopt and execute the Account Control Agreement substantially in the
        form
        attached hereto as Exhibit
        D
        (“Control
        Agreement”).

      

      

      It
        was unanimously resolved:

       

      	1.  	
              To
                obtain a revolving credit facility of an aggregate amount of up to
                US$
                5,000,000 (the “Credit
                Facility”)
                from Plenus Technologies Ltd. (“Plenus”)
                and Citibank N.A., Tel Aviv Branch (“Citibank”).

            

       

      	2.  	
              To
                enter and execute the Loan Agreement including all schedules, exhibits
                and
                annexes thereto with Plenus and Citibank.

            

       

      	3.  	
              As
                security for the Credit Facility, to create in favor of Plenus, Citibank
                and Bank Leumi Le Israel B.M., a first priority UCC pledge over the
                assets
                and property of the Company, in accordance with the Pledge Agreement,
                including certain collateral control under Company's account with
                bank
                Leumi of New York, as set forth in the Control
                Agreement.

            

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      	4.  	
              To
                issue a warrant (the “Warrant”)
                to Plenus to purchase the Company’s Preferred B Stock (as designated in
                the Warrant) in an aggregate amount of up to US$ 1,500,000, at an
                exercise
                price of US$ 2.75656 per share, all in accordance with the terms
                and
                conditions of the Warrant attached hereto as Exhibit
                E
                ("Warrant
                Shares")
                and to issue the underlying Warrant Shares upon exercise of the Warrant
                in
                accordance with the terms and conditions of the
                Warrant.

            

       

      	5.  	
              To
                reserve a sufficient number of Warrant Shares from the share capital
                of
                the Company to be issued to Plenus upon the exercise of the Warrant
                in
                accordance with its terms.

            

       

      	6.  	
              To
                authorize Mr. Jacob Ben-Zvi to execute, on behalf of the Company,
                the Loan
                Agreement, the Schedules and Exhibits attached thereto, and any other
                document or filing necessary in order to implement the resolutions
                above.

            

       

      	7.  	
              To
                authorize Mr. Jacob Ben-Zvi to disburse, on behalf of the Company,
                any
                portion of the Credit Facility, at his sole discretion and in accordance
                with the Loan Agreement.

            

       

      	8.  	
              That
                the Board hereby calls for a stockholders meeting and recommends
                and
                advises the adoption of the Fourth Certificate which is thereafter
                to be
                submitted with the Secretary of the State of Delaware as the Corporation’s
                Fourth Restated and Amended Certificate of
                Incorporation.

            

       

      	9.  	
              That
                the officers of the Corporation or any of them be, and they hereby
                are,
                directed to take any and all actions necessary or desirable in order
                to
                cause the Certificate to become effective under the DGCL and other
                applicable law, such officers or any of them being specifically hereby
                directed to file the Third Certificate with the Secretary of State
                of the
                State of Delaware following such approval and adoption.
                

            

      

      

      This
        Unanimous Written Consent of the Board of Directors, which may be executed
        in
        counterparts, each being deemed an original but all of which together shall
        be
        deemed one and the same instrument, dated as of the first date set forth
        above,
        shall be filed with the minutes of the proceedings of the Board and shall
        have
        the same force and effect as if approved and adopted at a duly noticed and
        scheduled meeting of the Board.

      

      

      

      
        	
                /s/Jacob
                  Ben Zvi

              	 	
                /s/
                  Matty Carp

              
	
                Jacob
                  Ben Zvi

                 

              	 	
                Matty
                  Carp

              
	
                /s/
                  Robert O'dell

              	 	
                /s/
                  Ron Yachini

              
	
                Robert
                  O'dell

                 

              	 	
                Ron
                  Yachini

              
	
                /s/
                  Amos Weiss

              	 	
                /s/
                  Zvika Limon

              
	
                Amos
                  Weiss

              	 	
                Zvika
                  Limon

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Exhibit
      D2

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      Wintegra
        Ltd.

       

      No.
        51-290107-5

      (the
        “Company”)

      

      Unanimous
        Written Resolution of the Board of Directors of the Company

      

      Dated June
        4th, 2002

      

      The
        undersigned being all the directors of the Company, hereby consent to the
        following resolutions in lieu of a meeting in accordance with Articles 102
        of
        the Articles of Association of the Company.

      

      It
        was unanimously resolved:

       

      	1.  	
              To
                enter and execute the Loan Agreement including all schedules, exhibits
                and
                annexes thereto (the “Loan
                Agreement”)
                with Plenus Technologies Ltd. (“Plenus”)
                and Citibank N.A., Tel Aviv Branch (“Citibank”),
                in the form attached hereto as Schedule
                A.

            

       

      	2.  	
              As
                security for the revolving credit facility of an aggregate amount
                of up to
                US$ 5,000,000 (the “Credit
                Facility”)
                provided to Wintegra Inc., to create in favor of Plenus, Citibank
                and Bank
                Leumi Le Israel B.M., a first ranking floating charge over the assets
                and
                property of the Company, in accordance with the Floating Charge Agreement
                attached hereto as Schedule
                B.

            

       

      	3.  	
              To
                authorize Mr. Jacob Ben-Zvi to execute, on behalf of the Company,
                Schedules A, B and any other document or filing necessary in order
                to
                implement the resolutions above. Mr. Ben-Zvi shall discretionally
                revise,
                prepare and adjust any documents required in order to consummate
                and
                effect the Credit Facility set forth in the Loan Agreement and the
                exhibits attached thereto. 

            

      

       

      

      
        	
                /s/
                  Jacob Ben Zvi

              	 	
                /s/
                  Matty Carp

              
	
                Jacob
                  Ben Zvi

              	 	
                Matty
                  Carp

              
	 	 	 
	
                /s/
                  Robert O'dell

              	 	
                /s/
                  Ron Yachini

              
	
                Robert
                  O'dell

              	 	
                Ron
                  Yachini

              
	 	 	 
	
                /s/
                  Amos Weiss

              	 	
                /s/
                  Zvika Limon

              
	
                Amos
                  Weiss

              	 	
                Zvika
                  Limon

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      Schedule
        A

      

      Loan
        Agreement

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Schedule
        B

      

      Floating
        Charge Agreement

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    Exhibit
      E

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      F

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      June
        2,
        2002

      To:

      Plenus
        Technologies Ltd.

      Citibank
        N.A.

      

      Re:
        Wintegra
        Ltd. and Wintegra Inc.

      

      Dear
        Sirs,

      

      We
        have
        acted as Israeli counsels to Wintegra Inc., a corporation duly
        incorporated under the laws of Delaware, USA (the
        "Company"),
        and
        Wintegra Ltd., a company duly incorporated under the laws of Israel
        ("Wintegra
        Israel"),
        in
        connection with a loan transaction by and between the Company, Wintegra Israel,
        Plenus Technologies Ltd., and Citibank N.A., including a Loan Agreement (the
        "Loan
        Agreement"),
        Floating Charge Agreement (the "Floating
        Charge Agreement"),
        Pledge Agreement (the “Pledge
        Agreement”),
        and a
        Warrant (the "Warrant")
        (the
        Loan Agreement including all of its exhibits, schedules and annexes, the
        Floating Charge Agreement, the Pledge Agreement and the Warrant shall be
        referred to herein as the “Transaction
        Documents”).
        All
        capitalized terms as used herein shall have the meaning ascribed to them
        in the
        Transaction Documents, unless otherwise specifically stated in this Opinion
        Letter. This opinion is being rendered to you pursuant to Section 1.5(vi)
        of the
        Loan Agreement.

      

      In
        furnishing this opinion we have reviewed the Transaction Documents, including
        all exhibits and schedules thereto, the Third Restated Certificate of
        Incorporation of the Company and all amendments thereto (collectively, the
        "Corporate
        Documents"),
        the
        corporate records, and all other documents of the Company which we deemed
        necessary or appropriate.

      

      In
        all
        such reviews, we have assumed the due execution and delivery of documents
        by the
        parties thereto (pursuant to due authorization), the genuineness of all
        signatures, the authenticity and completeness of all documents submitted
        to us
        as originals, the conformity to original documents of documents submitted
        to us
        as certified or photostatic copies, the authenticity of the originals of
        such
        latter documents and the legal capacity of all signatories to such
        documents.

      

      As
        to
        factual matters which are not within our knowledge, we have relied upon the
        representations by the Company and Wintegra Israel as to certain factual
        matters, and have made no independent checks or verification of such factual
        matters. Except as expressly set forth in this opinion, we have not undertaken
        any independent investigation to determine the existence or absence of such
        facts. We have not examined any records of any court, administrative tribunal
        or
        other similar entity in connection with our opinions expressed herein. Except
        to
        the extent expressly set forth herein or as we otherwise believe to be necessary
        to our opinion, we have not undertaken any independent investigation to
        determine the existence or absence of any fact, and no inference as to our
        knowledge of the existence or absence of any fact should be drawn from our
        representation of the Company or the rendering of the opinion set forth below.
        Whenever our opinions herein are indicated to be based on "our knowledge",
        it is
        intended to signify that during the course of our engagement in connection
        with
        the transactions referred to herein, no information has come to our attention
        that would give us actual knowledge of the existence or absence of such facts,
        and such expression refers to the current actual knowledge of the attorneys
        of
        this firm who have worked on matters for the Company. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      We
        are
        admitted to practice in the State of Israel and are not admitted to practice
        in
        the State of Delaware. However, for the limited purpose of this opinion,
        we are
        generally familiar with the laws of the State of Delaware, including the
        Delaware General Corporation Law as it relates to corporate formalities,
        all as
        presently in effect. This opinion is limited to the laws of the State of
        Israel
        and, to the limited extent set forth above, the laws of the State of Delaware
        as
        such laws presently exist and to the facts as they presently presented. We
        express no opinion with respect to the effect or the applicability of the
        laws
        of any other jurisdiction.

      

      With
        respect to certain matters within this opinion, we have relied upon the legal
        opinions of Eitan, Pearl, Latzer & Cohen-Zedek dated April 9th,
        2001,
        and the legal opinion of Gray Cary Ware & Freidenrich, LLP, dated April
        9th,
        2001,
        as issued with respect to the latest equity investment in the Company.

      

      Our
        opinions below are further subject to the following qualifications and
        exceptions:

      

      (i) the
        effect of bankruptcy, insolvency, reorganization, arrangement, moratorium
        or
        other similar laws relating to or affecting the rights of creditors generally,
        including, without limitation, laws relating to fraudulent transfers or
        conveyances, preferences and equitable subordination;

      

      (ii) the
        effect of foreign laws, judicial determinations or governmental actions
        affecting creditors' rights or the Company's performance of its obligations
        under the Transaction Documents;

      

      (iii) limitations
        imposed by general principles of equity upon the availability of equitable
        remedies or the enforcement of provisions of any documents referred to herein
        and the effect of judicial decisions which have held that certain provisions
        are
        unenforceable where their enforcement would violate the implied covenant
        of good
        faith and fair dealing, or would be commercially unreasonable, or where their
        breach is not material; and

      

      (iv) our
        opinions expressed herein are based upon current statutes, rules, regulations,
        cases and official interpretive opinions which, in our experience, are normally
        applicable to the type of transaction provided for in the
        Agreement.

      

      Except
        as
        otherwise indicated, our opinions expressed herein are rendered as of, and
        are
        based upon the facts in existence and known to us on the date
        hereof.

       

      Based
        on
        the foregoing, and subject to the foregoing, and subject to the limitations
        set
        forth below, we are of the opinion that as of the date hereof:

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      1.  The
        Company is a corporation duly incorporated and validly existing under the
        laws
        of the State of Delaware USA for an unlimited duration. 

       

      2.  Wintegra
        Israel is a company duly incorporated and validly existing under the laws
        of the
        State of Israel for an unlimited duration.

       

      3.  The
        Company has the corporate power under its Third Restated Certificate of
        Incorporation to enter into each of the Transaction Documents, to issue and
        sell
        the Warrant Shares (as defined in the Warrant), and to carry out and perform
        its
        obligations under the terms of the Transaction Documents.

       

      4.  Wintegra
        Israel has the corporate power under its Articles of Association to enter
        into
        each of the Transaction Documents and to carry out and perform its obligations
        under the terms of the Transaction Documents.

       

      5.  The
        execution of the Transaction Documents by the Company and the performance
        of its
        obligations thereunder, to our knowledge do not conflict with or result in
        a
        breach of any of the terms or provisions of any agreement or other obligation
        to
        which the Company is a party, or by which it or its properties are
        bound.

       

      6.  The
        execution of the Transaction Documents by Wintegra Israel and the performance
        of
        its obligations thereunder, to our knowledge do not conflict with or result
        in a
        breach of any of the terms or provisions of any agreement or other obligation
        to
        which Wintegra Israel is a party, or by which it or its properties are
        bound.

       

      7.  Each
        of
        the Transaction Documents has been duly authorized by all requisite corporate
        action on the part of the Company and Wintegra Israel and has been duly executed
        and delivered by authorized signatories.

       

      8.  Each
        of
        the Transaction Documents constitutes a legal, valid and binding obligation
        of
        the Company, enforceable against the Company and Wintegra Israel.

       

      9.  The
        Warrant has been duly authorized, validly issued and is nonassessable and
        to our
        knowledge, the Warrant Shares when issued shall be duly authorized, validly
        issued, fully paid and non-assessable.

       

      10.  The
        execution and delivery by the Company of, and the performance by the Company
        of
        its obligations in each of the Transaction Documents do not violate applicable
        provisions of corporate statutory law or regulation, rule, order or decree
        of
        any competent Authority in Delaware applicable to the Company.

       

      11.  The
        execution and delivery by Wintegra Israel of, and the performance by Wintegra
        Israel of its obligations in each of the Transaction Documents do not violate
        applicable provisions of corporate statutory law or regulation, rule, order
        or
        decree of any competent Authority in the State of Israel applicable to Wintegra
        Israel. 

       

      12.  To
        the
        best of our knowledge, no authorizations, consents or approvals are required
        from any governmental authorities or agencies or other official bodies in
        Delaware in connection with the execution or delivery of the Transaction
        Documents or the performance by the Company of its obligations thereunder,
        other
        than the approvals applied for and received by the Company, as specified
        in
        Exhibit E of the Loan Agreement.

       

      13.  To
        the
        best of our knowledge, no authorizations, consents or approvals are required
        from any governmental authorities or agencies or other official bodies in
        the
        State of Israel in connection with the execution or delivery of the Transaction
        Documents or the performance by Wintegra Israel of its obligations thereunder.
        

       

      This
        opinion is rendered only to you and is solely for your benefit in connection
        with the Agreement. This opinion may not be relied upon by you for any other
        purpose; nor may this opinion be provided to, quoted to or relied upon by
        any
        other person or entity for any purpose without our prior written
        consent.

      

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

     

    UNANIMOUS
      WRITTEN CONSENT OF

    THE
      STOCKHOLDERS OF

    WINTEGRA,
      INC.

    

    June
      4th, 2002

    

    The
      undersigned, being the stockholders of Wintegra, Inc., a Delaware corporation
      (the “Corporation”),
      hereby approve and adopt the following preambles and resolutions by written
      consent pursuant to Section 228 of the Delaware General Corporation Law and
      Section 1.9 of the Corporation’s Bylaws:

     

    WHEREAS,
      the Board of Directors of the Corporation (the “Board”)
      has
      determined it to be in the best interests of the Corporation to approve and
      execute a certain loan agreement, between the Corporation and certain lenders
      named therein (the "Lenders"),
      providing the Corporation a credit facility of up to US$ 5,000,000, all as
      more
      detailed in the loan agreement, substantially in the form attached hereto as
      Exhibit
      A
      ("Loan
      Agreement")
      ; and

     

    WHEREAS,
      under said Loan Agreement, the Corporation is required to amend the Third
      Restated and Amended Certificate of Incorporation of the Corporation,
      substantially in the form of the Fourth Restated and Amended Certificate of
      Incorporation (the “Fourth
      Certificate”)
      attached hereto as Exhibit
      B,
      increasing the authorized share capital of the Corporation, in order to permit
      the Board to issue the Lenders, upon the consummation of the Loan Agreement,
      a
      warrant to purchase the initial amount of 145,108 shares of Series B Preferred
      Stock par value US$ 0.001 each ("Preferred
      B Stock"),
      and
      additional amount of up to 399,048 Preferred B Stock, subject to the terms
      set
      forth in said warrant (the "Warrant"),
      as
      more detailed in the Warrant, attached hereto as Exhibit
      C.
      Upon
      exercise, the Preferred B Stock issuable thereof, shall have the rights,
      preferences, designations and qualifications set forth in said Fourth
      Certificate.

     

    RESOLVED,
      that the Fourth Certificate, together with any changes thereto as the executive
      officers of the Corporation or any of them deem necessary or desirable as
      conclusively indicated by any such officer’s execution and filing thereof, be,
      and hereby is, approved, ratified and adopted by the stockholders of the
      Corporation in all respects; and further

     

    RESOLVED,
      that upon the execution of the Loan Agreement and all agreements, amendments
      and
      other documents, as the Board may deem fit, and all the transactions
      contemplated thereby, all actions taken by the Board or officers in furtherance
      thereof, including the issuance of said Warrants, be, and they hereby are,
      approved and adopted in all respects.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    WHEREAS,
      upon the exercise of said Warrants according to the terms and conditions
      contemplated therein, Lenders shall be holders of shares of Series B Preferred
      Stock of the Corporation; and

    

    WHEREAS,
      the Warrant provides that upon exercise, the Preferred B Stock issuable thereof
      to the Lenders shall have all registration, co-sale and first refusal rights,
      granted to "Holders" or "Initiating Holders" under each of those certain Second
      Amended Investors' Rights Agreement, and Second
      Amended and Restated Right of First Refusal and Co-Sale Agreement,
      both
      dated July 19, 2001.

    

    RESOLVED,
      that the Warrant be, and hereby is, in all respects approved.

     

    WHEREAS,
      the foregoing preambles and resolutions are intended to provide broad
      authorization of the actions described therein, whether taken prior or
      subsequent to the date this Action by Written Consent of the Stockholders is
      executed;

    

    RESOLVED,
      that the undersigned stockholders hereby ratify and confirm any and all acts
      heretofore taken in connection with the foregoing resolutions by the duly
      elected officers of the Corporation in good faith in their capacities as
      officers of the Corporation as the valid and binding acts of the Corporation
      duly approved by the stockholders; and

    

    RESOLVED
      FURTHER, that the officers of the Corporation or any of them are hereby
      authorized and directed, in the name and on behalf of the Corporation, or
      otherwise, to execute and deliver all such instruments, documents and
      certificates together with such changes thereto as any such officer deems
      necessary or desirable as conclusively indicated by such officer’s execution and
      delivery thereof, and to take all such further and other action in connection
      with the resolutions hereinabove adopted as they may deem necessary, advisable,
      or proper to effectuate the intent and accomplish the purposes of these
      resolutions.

    

    [The
      remainder of this page is intentionally left blank.]

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Signatures
      - Stockholders resolution - May 2002

    

    IN
      WITNESS WHEREOF,
      the
      undersigned stockholders of Wintegra Inc. have executed this Unanimous Written
      Consent to be effective as of the date first above written, and have directed
      that this Unanimous Written Consent be filed with the minutes of the proceedings
      of the stockholders of the Corporation.

    

    STOCKHOLDERS:

     

    
      	
               

            	 	
               

            	 	
               

            
	
              Kobi
                Ben-Zvi
 	 	
              Robert
                O'Dell
 	 	
              Magnum
                Communications 

              Fund
                (Israel ) L.P.
 
	 	 	 	 	 
	 	 	 	 	
              By:
                ______________

              Title:
                _____________

               

               

            
	
               

            	 	
               

            	 	
               

            
	 Magnum
              Communications 
              Entrepeneurs
                Fund L.P.

            	 	
              Magnum
                Communications 

              Fund
                L.P.
 	 	
              Concord
                Ventures II (Israel) L.P. 
 
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

               

               

            	 	
              By:
                ______________

              Title:
                _____________

            	 	
              By:
                ______________

              Title:
                _____________

               

            
	
               

            	 	
               

            	 	
               

            
	
              Concord Ventures II 

              (Cayman) L.P. 

            	 	
              Galileo
                Technology Ltd.
 	 	 GCWF
              Investment Partners II
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

               

               

            	 	
              By:
                ______________

              Title:
                _____________

            	 	
              By:
                ______________

              Title:
                _____________

               

            
	
               

            	 	
               

            	 	
               

            
	 BDA Investment
              Partners	 	
               Tally A. Eitan - Zeev Pearl & Co.

              Trustees Ltd

            	 	
              Texas
                Instruments Incorporated
 
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

               

               

            	 	
              By:
                ______________

              Title:
                _____________

            	 	
              By:
                ______________

              Title:
                _____________

               

            
	
               

            	 	
               

            	 	
              .

            
	
              Genesis
                Partners II LDC 

            	 	 Genesis
              Partners II (Israel), L.P.	 	 Marinon Development
              Inc
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

               

               

            	 	
              By:
                ______________

              Title:
                _____________

            	 	
              By:
                ______________

              Title:
                _____________

               

            
	
               

            	 	
               

            	 	
               

            
	
              MRVM
                Advisory Services Ltd. 

            	 	 Sonostar
              Ventures LLC	 	 Stanley
              B. Shopkorn
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

            	 	
              By:
                ______________

              Title:
                _____________

               

               

            	 	
              By:
                ______________

              Title:
                _____________

               

            
	
               

            	 	 	 	 
	
              China
                Development
                Industrial 

              Bank
                Inc. 

            	 	 	 	 
	 	 	 	 	 
	
              By:
                ______________

              Title:
                _____________

            	 	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
        A

    

    

    LOAN
      AGREEMENT

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    Exhibit
      B

    

    

    FOURTH
      RESTATED AND AMENDED CERTIFICATE OF INCORPORATION

    

    

    (See
      attached)

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      FOURTH
        RESTATED AND AMENDED CERTIFICATE OF INCORPORATION

      OF

      WINTEGRA,
        INC.

       

      Wintegra,
        Inc., a corporation organized and existing under the laws of the State of
        Delaware (the “Corporation”), hereby certifies as follows:

      

      FIRST:
        The
        name
        of the corporation is Wintegra, Inc. The original Certificate of Incorporation
        of the corporation was filed with the Secretary of State of the State of
        Delaware on January 26, 2000. The Third Restated and Amended Certificate
        of
        Incorporation was filed with the Secretary of State of the State of Delaware
        on
        July 17, 2001.

      

      SECOND:
        This
        Fourth Restated and Amended Certificate of Incorporation restates and integrates
        and further amends the Restated and Amended Certificate of Incorporation
        of the
        corporation and has been duly adopted and approved in accordance with Sections
        242 and 245 of the General Corporation Law of the State of Delaware. Stockholder
        approval of this Third Restated and Amended Certificate of Incorporation
        was
        given by written consent of the stockholders of the corporation in accordance
        with Section 228 of the General Corporation Law of the State of
        Delaware.

      

      THIRD:
        The
        text
        of the Third Restated and Amended Certificate of Incorporation is hereby
        amended
        and restated in its entirety as follows:

      

      

      

      

      

      [Remainder
        of page intentionally left blank]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        I

       

      The
        name
        of this corporation is Wintegra, Inc.

       

      ARTICLE
        II

       

      The
        address of the registered office of this corporation in the State of Delaware
        is
        1209 Orange Street, in the City of Wilmington, County of New Castle, Delaware.
        The name of its registered agent at such address is The Corporation Trust
        Company.

       

      ARTICLE
        III

       

      The
        nature of the business or purposes to be conducted or promoted is to engage
        in
        any lawful act or activity for which corporations may be organized under
        the
        General Corporation Law of Delaware.

       

      ARTICLE
        IV

       

      I.  Classes
        of Stock.
        This
        corporation is authorized to issue two classes of stock to be designated,
        respectively, “Common Stock” and "Preferred Stock". The total number of shares
        that this corporation is authorized to issue is Forty Million (40,000,000)
        shares, of which twenty six million six hundred ninety thousand nine hundred
        and
        seven ( 26,690,907) shall be shares of Common Stock, US$ 0.001 par value
        each,
        and the remaining thirteen million three hundred nine thousand ninety three
        (13,309,093) shall be Preferred Stock. 

       

      The
        Preferred Stock may be issued from time to time in one or more series. The
        first
        series of Preferred Stock shall be designated as Series A Preferred Stock,
        which
        series shall consist of 5,050,000 shares (“Series
        A Preferred Stock”)
        and
        shall have the rights, preferences, privileges and restrictions set forth
        herein. The second series of Preferred Stock shall be designated as Series
        B
        Preferred Stock, which series shall consist of eight million two hundred
        and
        fifty nine thousand ninety three (8,259,093) shares (“Series
        B Preferred Stock”)
        and
        shall have the rights, preferences, privileges and restrictions set forth
        herein. Series A Preferred Stock and the Series B Preferred Stock shall be
        referred to as the “Preferred
        Stock”.
        For
        the purposes of this Restated Certificate, any reference to "Preferred
        Stock"
        shall
        be to one combined class of shares.

      

      II.  Rights,
        Preferences and Restrictions of Preferred Stock.
        The
        Preferred Stock authorized by this Certificate of Incorporation may be issued
        from time to time in one or more series. The rights, preferences, privileges,
        and restrictions granted to and imposed on the Preferred Stock, are as set
        forth
        below in this Article IV(II). 

       

      1.  Dividend
        Provisions.

       

      (i) The
        holders of the Series A Preferred Stock and Series B Preferred Stock shall
        be entitled to receive, out of funds legally available therefore, non-cumulative
        dividends at the rate of 8% of the Original Series A Issue Price and the
        Original Series B Issue Price respectively (as defined below) (subject to
        appropriate adjustments in the event of any stock dividend, stock split,
        combination or other similar recapitalization affecting such shares) per
        annum
        per share, payable in preference and priority to any payment of any cash
        dividend on Common Stock or any other shares of capital stock of the corporation
        other than the Preferred Stock, payable when and as declared by the Board
        of
        Directors of the corporation. If such dividends on the Preferred Stock shall
        not
        have been paid, or declared and set apart for payment, the deficiency shall
        be
        fully paid or declared and set apart for payment before any dividend shall
        be
        paid or declared or set apart for any Common Stock.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      2.  Liquidation
        Preference.

       

      (i) In
        the
        event of any liquidation, dissolution or winding up of this corporation,
        either
        voluntary or involuntary, the holders of Series B Preferred Stock shall be
        entitled to receive, prior and in preference to any distribution of any of
        the
        assets of this corporation to the holders of Series A Preferred Stock and
        Common
        Stock by reason of their ownership thereof, an amount per share equal to
        the sum
        of (i) two U.S dollars and seventy five point seven cents (U$2.75656) (as
        may be adjusted in accordance with Section 1.3 of the Series B Preferred
        Stock
        Purchase Agreement) for each outstanding share of Series B Preferred Stock
        (the “Original
        Series B Issue Price”)
        plus
        annual interest at the rate of 90 days LIBOR plus 1.0%, for the period that
        has
        passed since the date of the first issuance of any Series B Preferred
        Stock, plus (ii) all declared but unpaid dividends on such share (subject
        to
        adjustment of such fixed dollar amounts for any stock splits, stock dividends,
        combinations, recapitalizations or the like)(collectively, the “B
        Preference Amount”).
        If
        upon the occurrence of such event, the assets and funds thus distributed
        among
        the holders of the Series B Preferred Stock shall be insufficient to permit
        the payment to such holders of the full aforesaid B Preference Amount, then
        the
        entire assets and funds of this corporation legally available for distribution
        shall be distributed ratably among the holders of the Series B Preferred
        Stock in proportion to the amount of such stock owned by each such
        holder.

       

      (ii) Upon
        the
        completion of the distribution required by subsection (i) of this
        Section 2, the remaining assets of this corporation available for
        distribution to stockholders shall be distributed among the holders of
        Series A Preferred Stock in accordance with the provision of Section
        (II)(2)(ii) of this Article IV. In such event, the holders of Series A
        Preferred Stock shall be entitled to receive, prior and in preference to
        any
        distribution of any of the assets of this corporation to the holders of Common
        Stock by reason of their ownership thereof, an amount per share equal to
        the sum
        of (i) one US dollar (U$1.0) for each outstanding share of Series A
        Preferred Stock (the “Original
        Series A Issue Price”)
        plus
        annual interest at the rate of 90 days LIBOR plus 1.0%, for the period that
        has
        passed since the date of issuance of any Series A Preferred Stock, plus
        (ii) all declared but unpaid dividends on such share (subject to adjustment
        of
        such fixed dollar amounts for any stock splits, stock dividends, combinations,
        recapitalizations or the like)(collectively, the “A Preference
        Amount”).
        If
        upon the occurrence of such event, such remaining assets and funds of this
        corporation available for distribution among the holders of the Series A
        Preferred Stock shall be insufficient to permit the payment to such holders
        of
        the full aforesaid A Preference Amount, then the remaining assets and funds
        of
        this corporation legally available for distribution shall be distributed
        ratably
        among the holders of the Series A Preferred Stock in proportion to the
        amount of such stock owned by each such holder.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      Notwithstanding
        the foregoing, the respective Preference Amounts shall not be payable, if
        upon a
        liquidation or deemed liquidation, the funds or assets available for
        distribution yield (i) in respect of each share of Series B Preferred Stock,
        three times the Original Series B Issue Price; and (ii) in respect of each
        share
        of Series A Preferred Stock, four times the Original Series A Issue Price,
        In
        such event, the holders of Preferred Stock shall not be entitled to their
        respective Preference Amounts and shall participate ratably with the holders
        of
        Common Stock as described in Section 2(iii) below.

       

      (iii) Upon
        the
        completion of the distribution required by subsections (i) and (ii) of this
        Section 2, the remaining assets of this corporation available for
        distribution to stockholders shall be distributed among the holders of
        Series B Preferred Stock, Series A Preferred Stock and Common Stock pro
        rata based on the number of shares of Common Stock held by each (on an
        as-converted basis).

       

      (iv) (a) For
        purposes of this Section 2, a liquidation, dissolution or winding up of this
        corporation shall be deemed to be occasioned by, or to include (unless the
        holders of at least a majority of the Preferred Stock then outstanding and
        voting as a separate class shall determine otherwise), (A) the
        acquisition of this corporation by another entity by means of any transaction
        or
        series of related trans-actions (including, without limitation, any
        reorganization, merger or consolidation) that results in the transfer of
        fifty
        percent (50%) or more of the outstanding voting power of this corporation;
        or
        (B) a
        sale of all or substantially all of the assets of this corporation
        ("Merger
        and Acquisition").

      

      b) In
        any of
        the events specified in Subsections 2(i), 2(ii), 2(iii) and 2 (iv) the holders
        of Preferred Stock shall be paid for each share of such stock in cash or
        in
        securities received from the acquiring entity, or in a combination thereof,
        at
        the closing of any such transaction, amounts as set forth in subsection 2(i),
        2(ii) and 2(iii) above.

      

      (c) If,
        in
        any of the events specified in Subsections 2(i), 2(ii), 2(iii) and 2(iv),
        the
        consideration received by this corporation is other than cash, the value
        of such
        consideration will be deemed its fair market value. Any securities shall
        be
        valued as follows:

      

      (I)  Securities
        not subject to restrictions on free marketability covered by Section (c)(I)(B)
        below:

       

      (1)  If
        traded
        on a securities exchange or through the Nasdaq National Market, the value
        shall
        be deemed to be the average of the closing prices of the securities on such
        exchange or system over the thirty (30) day period ending three (3) days
        prior
        to the closing;

       

      (2)  If
        actively traded over-the-counter, the value shall be deemed to be the average
        of
        the closing bid or sale prices (whichever is applicable) over the thirty
        (30)
        day period ending three (3) days prior to the closing; and

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (3)  If
        there
        is no active public market, the value shall be the fair market value thereof,
        as
        determined by an independent appraiser appointed by the Board of the Corporation
        with the consent of the holders of at least a majority of the voting power
        of
        all then outstanding shares of Preferred Stock.

       

      (II)  Securities
        subject to restrictions on free marketability: The method of valuation of
        securities subject to restrictions on free marketability (other than
        restrictions arising solely by virtue of a stockholder’s status as an affiliate
        or former affiliate) shall be to make an appropriate discount from the market
        value determined as above in (A) (I) (1), (2) or (3) to reflect the approximate
        fair market value thereof, as mutually determined by this corporation and
        at
        least one director appointed by the holders of the then outstanding shares
        of
        such Preferred Stock. In the event that no mutual determination can be
        concluded, fair market value will be as determined by an independent appraiser
        appointed by the Board of the Corporation.

       

      (d) In
        the
        event the requirements of this subsection 2(iv) are not complied with, this
        corporation shall forthwith either:

      

      (I) cause
        such closing to be postponed until such time as the requirements of this
        Section 2 have been complied with; or

      

      (II) cancel
        such transaction, in which event the rights, preferences and privileges of
        the
        holders of shares of Preferred Stock shall revert to and be the same as such
        rights, preferences and privileges existing immediately prior to the date
        of the
        first notice referred to in subsection 2(iv)(e) hereof.

      

      (e) This
        corporation shall give each holder of record of Preferred Stock written notice
        of such impending transaction not later than twenty (20) days prior to the
        stockholders’ meeting called to approve such transaction, or twenty (20) days
        prior to the closing of such transaction, whichever is earlier, and shall
        also
        notify such holders in writing of the final approval of such transaction.
        The
        first of such notices shall describe the material terms and conditions of
        the
        impending transaction and the provisions of this Section 2, and this corporation
        shall thereafter give such holders prompt notice of any material changes.
        The
        transaction shall in no event take place sooner than ten (10) days after
        this
        corporation has given the first notice provided for herein or sooner than
        five
        (5) days after this corporation has given notice of any material changes
        provided for herein; provided, however, that such periods may be shortened
        upon
        the written consent of the holders of Preferred Stock that are entitled to
        such
        notice rights or similar notice rights and that represent at least majority
        of
        the voting power of all then outstanding shares of such Preferred
        Stock.

      

      3.  Conversion.
        The
        holders of Preferred Stock shall have conversion rights as follows (the
“Conversion
        Rights”):

       

      (i)  Right
        to Convert.
        Each
        share of Preferred Stock shall be convertible, at the option of the holder
        thereof, at any time after the date of issuance of such share, at the office
        of
        this corporation or any transfer agent for such stock, into such number of
        fully
        paid and nonassessable shares of Common Stock as is determined by dividing
        the
        Original Series A Issue Price and the Original Series B Issue Price,
        respectively, by the Conversion Price applicable to such share, determined
        as
        hereafter provided, in effect on the date the certificate is surrendered
        for
        conversion of such class of Preferred Shares ("Conversion
        Rate").
        The
        initial Conversion Price per share for shares of Series A Preferred Stock
        shall be the Original Series A Issue Price, and the initial Conversion
        Price per share for shares of Series B Preferred Stock shall be the
        Original Series B Issue Price; provided, however, that the Conversion Price
        for the Preferred Stock shall be subject to adjustment as set forth in
        subsection 3(iv). 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (ii)  Automatic
        Conversion.
        Each
        share of
        Preferred Stock shall automatically be converted into shares of Common Stock
        at
        the Conversion Rate at the time in effect for such Preferred Stock immediately
        upon the earlier of (i) 
        this corporation’s sale of its Common Stock in a firm commitment underwritten
        public offering pursuant to an effective registration statement under the
        Securities Act of 1933, as amended, with a pre-money valuation of the
        corporation of at least $200,000,000 and aggregate net proceeds of at least
        $30,000,000 (a “Qualified
        IPO”)
        or
        (ii) the
        date specified by written consent or agreement of the holders of sixty percent
        (60%) of the then outstanding shares of Preferred Stock. In the event of
        such
        Qualified IPO, the person(s) entitled to receive the Common Stock issuable
        upon
        such conversion of Preferred Stock shall not be deemed to have converted
        such
        shares of Preferred Stock until immediately prior to the closing of such
        public
        offering at which time the Preferred Stock shall be converted automatically
        without any further action by the holders of such shares and whether or not
        the
        certificates representing such shares are surrendered to the corporation
        or its
        transfer agent; provided, however, that the corporation shall not be obligated
        to issue certificates evidencing the shares of Common Stock issuable upon
        such
        conversion unless certificates evidencing such shares of Preferred Stock
        being
        converted are either delivered to the corporation or its transfer agent,
        as
        hereinafter provided, or the holder notifies the corporation or any transfer
        agent, as hereinafter provided, that such certificates have been lost, stolen
        or
        destroyed.

       

      (iii)  Mechanics
        of Conversion.
        Before
        any holder of Preferred Stock shall be entitled to convert the same into
        shares
        of Common Stock, he or she shall surrender the certificate or certificates
        therefor, duly endorsed, at the office of this corporation or of any transfer
        agent for the Preferred Stock, and shall give a written notice to this
        corporation at its principal corporate office, of the election to convert
        the
        same and shall state therein the name or names in which the certificate or
        certificates for shares of Common Stock are to be issued. This corporation
        shall, as soon as practicable thereafter, issue and deliver at such office
        to
        such holder of Preferred Stock, or to the nominee or nominees of such holder,
        a
        certificate or certificates for the number of shares of Common Stock to which
        such holder shall be entitled as aforesaid. Such conversion shall be deemed
        to
        have been made immediately prior to the close of business on the date of
        such
        surrender of the shares of Preferred Stock to be converted, and the person
        or
        persons entitled to receive the shares of Common Stock issuable upon such
        conversion shall be treated for all purposes as the record holder or holders
        of
        such shares of Common Stock as of such date. If the conversion is in connection
        with an underwritten offering of securities registered pursuant to the
        Securities Act of 1933, the conversion may, at the option of any holder
        tendering Preferred Stock for conversion, be conditioned upon the closing
        with
        the underwriters of the sale of securities pursuant to such offering, in
        which
        event the persons entitled to receive the Common Stock upon conversion of
        the
        Preferred Stock shall not be deemed to have converted such Preferred Stock
        until
        immediately prior to the closing of such sale of securities. 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (iv)  Conversion
        Price Adjustments for Certain Dilutive Issuances, Splits and
        Combinations.
        The
        Conversion Price of the Series A Preferred Stock and Series B Preferred Stock
        shall be subject to adjustment from time to time as follows:

       

      (i) (A)(I) Series
        B Preferred Stock.
        If this
        corporation shall issue, after the date upon which any shares of Series B
        Preferred Stock were first issued (the “Purchase
        Date”),
        any
        Additional Stock (as defined below) without consideration or for consideration
        per share less than the Conversion Price for the Series B Preferred Stock
        in
        effect immediately prior to the issuance of such Additional Stock (in each
        case,
        the “Series B New Price”), the Conversion Price for Series B Preferred Stock in
        effect immediately prior to each such issuance shall forthwith be adjusted
        to
        the Series B New Price. 

       

      (II) Series
        A Preferred Stock.
        If this
        corporation shall issue, after the date upon which any shares of Series A
        Preferred Stock were first issued, any Additional Stock (as defined below)
        without consideration or for consideration per share less than the Conversion
        Price for the Series A Preferred Stock in effect immediately prior to the
        issuance of such Additional Stock (in each case, the “Series A New Price”), the
        Conversion Price for Series A Preferred Stock in effect immediately prior
        to
        each such issuance shall forthwith be adjusted to the Series A New Price.
        

       

      (B) No
        adjustment of the Conversion Price for the Preferred Stock shall be made
        in an
        amount of less than one cent per share, provided that any adjustments that
        are
        not required to be made by reason of this sentence shall be carried forward
        and
        shall be either taken into account in any subsequent adjustment made prior
        to
        three (3) years from the date of the event giving rise to the adjustment
        being
        carried forward, or shall be made at the end of three (3) years from the
        date of
        the event giving rise to the adjustment being carried forward. Except to
        the
        limited extent provided for in subsections (E)(3) and (E)(4) below, no
        adjustment of such Conversion Price pursuant to this subsection 3(iv)(i)
        shall
        have the effect of increasing the Conversion Price above the Conversion Price
        in
        effect immediately prior to such adjustment.

       

      (C) In
        the
        case of the issuance of Common Stock for cash, the consideration shall be
        deemed
        to be the amount of cash paid therefor before deducting any reasonable
        discounts, commissions or other expenses allowed, paid or incurred by this
        corporation for any underwriting or otherwise in connection with the issuance
        and sale thereof.

       

      (D) In
        the
        case of the issuance of the Common Stock for a consideration in whole or
        in part
        other than cash, the consideration other than cash shall be deemed to be
        the
        fair value thereof as determined by the Board of Directors irrespective of
        any
        accounting treatment.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (E) In
        the
        case of the issuance (whether before, on or after the applicable Purchase
        Date)
        of options to purchase or rights to subscribe for Common Stock, securities
        by
        their terms convertible into or exchangeable for Common Stock or options
        to
        purchase or rights to subscribe for such convertible or exchangeable securities,
        the following provisions shall apply for all purposes of this
        subsection 3(iv)(i) and subsection 3(iv)(ii):

       

      (1)  The
        aggregate maximum number of shares of Common Stock deliverable upon exercise
        (assuming the satisfaction of any conditions to exercisability, including
        without limitation, the passage of time, but without taking into account
        potential antidilution adjustments) of such options to purchase or rights
        to
        subscribe for Common Stock shall be deemed to have been issued at the time
        such
        options or rights were issued and for a consideration equal to the consideration
        (determined in the manner provided in subsections 3(iv)(i)(C) and (iv)(i)(D)),
        if any, received by this corporation upon the issuance of such options or
        rights
        plus the minimum exercise price provided in such options or rights (without
        taking into account potential antidilution adjustments) for the Common Stock
        covered thereby.

       

      (2)  The
        aggregate maximum number of shares of Common Stock deliverable upon conversion
        of, or in exchange (assuming the satisfaction of any conditions to
        convertibility or exchangeability, including, without limitation, the passage
        of
        time, but without taking into account potential antidilution adjustments)
        for,
        any such convertible or exchangeable securities or upon the exercise of options
        to purchase or rights to subscribe for such convertible or exchangeable
        securities and subsequent conversion or exchange thereof shall be deemed
        to have
        been issued at the time such securities were issued or such options or rights
        were issued and for a consideration equal to the consideration, if any, received
        by this corporation for any such securities and related options or rights
        (excluding any cash received on account of accrued interest or accrued
        dividends), plus the minimum additional consideration, if any, to be received
        by
        this corporation (without taking into account potential antidilution
        adjustments) upon the conversion or exchange of such securities or the exercise
        of any related options or rights (the consideration in each case to be
        determined in the manner provided in subsections 3(iv)(i)(C) and
        (iv)(i)(D)).

       

      (3)  In
        the
        event of any change in the number of shares of Common Stock deliverable or
        in
        the consideration payable to this corporation upon exercise of such options
        or
        rights or upon conversion of or in exchange for such convertible or exchangeable
        securities, including, but not limited to, a change resulting from the
        antidilution provisions thereof, the Conversion Price of the Series A
        Preferred Stock and the Conversion Price of the Series B Preferred Stock,
        respectively, to the extent in any way affected by or computed using such
        options, rights or securities, shall be recomputed to reflect such change,
        but
        no further adjustment shall be made for the actual issuance of Common Stock
        or
        any payment of such consideration upon the exercise of any such options or
        rights or the conversion or exchange of such securities.

       

      (4)  Upon
        the
        expiration of any such options or rights, the termination of any such rights
        to
        convert or exchange or the expiration of any options or rights related to
        such
        convertible or exchangeable securities, the Conversion Price of the
        Series A Preferred Stock and the Conversion Price of the Series B
        Preferred Stock, respectively, to the extent in any way affected by or computed
        using such options, rights or securities or options or rights related to
        such
        securities, shall be recomputed to reflect the issuance of only shares of
        Common
        Stock (and convertible or exchangeable securities that remain in effect)
        actually issued upon the exercise of such options or rights, upon the conversion
        or exchange of such securities or upon the exercise of the options or rights
        related to such securities.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (5)  
        Shares
        of Common Stock deemed issued and the consideration deemed paid therefor
        pursuant to subsections 3(iv)(i)(E)(1) and (2) shall be appropriately adjusted
        to reflect any change, termination or expiration of the type described in
        either
        subsection 3(iv)(i)(E)(3) or (4).

       

      

      (ii) “Additional
        Stock”
shall
        mean any shares of Common Stock issued (or deemed to have been issued pursuant
        to subsection 3(iv)(i)(E)) by this corporation after the Purchase Date other
        than:

      

      (A) Common
        Stock issued pursuant to a transaction described in subsection 3(iv)(iii)
        hereof; or

      

      (B) Shares
        of
        Common Stock (excluding shares repurchased at cost by this corporation in
        connection with the termination of service) issuable or issued to employees,
        consultants, directors or vendors (if in transactions with primarily
        non-financing purposes) of this corporation directly or pursuant to a stock
        option plan or restricted stock plan approved by the Board of Directors of
        this
        corporation.

      

      (C) Shares
        of
        Common Stock issued upon conversion of the Series A Preferred Stock or Series
        B
        Preferred Stock, in accordance with the provisions of this Section
        3.

      

      (iii) In
        the
        event this corporation should at any time or from time to time after the
        Purchase Date fix a record date for the effectuation of a split or subdivision
        of the outstanding shares of Common Stock or the determination of holders
        of
        Common Stock entitled to receive a dividend or other distribution payable
        in
        additional shares of Common Stock or other securities or rights convertible
        into, or entitling the holder thereof to receive directly or indirectly,
        additional shares of Common Stock (hereinafter referred to as “Common
        Stock Equivalents”)
        without payment of any consideration by such holder for the additional shares
        of
        Common Stock or the Common Stock Equivalents (including the additional shares
        of
        Common Stock issuable upon conversion or exercise thereof), then, as of such
        record date (or the date of such dividend distribution, split or subdivision
        if
        no record date is fixed), the Conversion Price of the Series A Preferred
        Stock and the Conversion Price of the Series B Preferred Stock shall be
        appropriately decreased so that the number of shares of Common Stock issuable
        on
        conversion of each share of such series shall be increased in proportion
        to such
        increase of the aggregate of shares of Common Stock outstanding and those
        issuable with respect to such Common Stock Equivalents with the number of
        shares
        issuable with respect to Common Stock Equivalents determined from time to
        time
        in the manner provided for deemed issuances in subsection
        3(iv)(i)(E).

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      (iv) If
        the
        number of shares of Common Stock outstanding at any time after the Purchase
        Date
        is decreased by a combination of the outstanding shares of Common Stock,
        then,
        following the record date of such combination, the Conversion Price for the
        Series A Preferred Stock and the Conversion Price of the Series B
        Preferred Stock shall be appropriately increased so that the number of shares
        of
        Common Stock issuable on conversion of each share of such series shall be
        decreased in proportion to such decrease in outstanding shares.

      

      (v)  Other
        Distributions.
        In the
        event this corporation shall declare a distribution payable in securities
        of
        other persons, evidences of indebtedness issued by this corporation or other
        persons, assets (excluding cash dividends) or options or rights not referred
        to
        in subsection 3(iv)(iii), then, in each such case for the purpose of this
        subsection 3(v), the holders of the Preferred Stock shall be entitled to
        a
        proportionate share of any such distribution as though they were the holders
        of
        the number of shares of Common Stock of this corporation into which their
        shares
        of Preferred Stock are convertible as of the record date fixed for the
        determination of the holders of Common Stock of this corporation entitled
        to
        receive such distribution. 

       

      (vi)  Recapitalizations.
        If at
        any time or from time to time there shall be a recapitalization of the Common
        Stock (other than a subdivision, combination or merger or sale of assets
        transaction provided for elsewhere in this Section 3 or Section 2) provision
        shall be made so that the holders of Preferred Stock shall thereafter be
        entitled to receive upon conversion of the shares of Preferred Stock the
        number
        of shares of stock or other securities or property of the Corporation or
        otherwise, to which a holder of Common Stock deliverable upon conversion
        would
        have been entitled on such recapitalization. In any such case, appropriate
        adjustment shall be made in the application of the provisions of this Section
        3
        with respect to the rights of the holders of Preferred Stock after the
        recapitalization to the end that the provisions of this Section 3 (including
        adjustment of the respective Conversion Price then in effect and the number
        of
        shares purchasable upon conversion of the shares of Preferred Stock) shall
        be
        applicable after that event as nearly equivalent as may be
        practicable.

       

      (vii)  No
        Impairment.
        This
        corporation will not, by amendment of its Certificate of Incorporation or
        through any reorganization, recapitalization, transfer of assets, consolidation,
        merger, dissolution, issue or sale of securities or any other voluntary action,
        avoid or seek to avoid the observance or performance of any of the terms
        to be
        observed or performed hereunder by this corporation, but will at all times
        in
        good faith assist in the carrying out of all the provisions of this Section
        3
        and in the taking of all such action as may be necessary or appropriate in
        order
        to protect the conversion rights of the holders of Preferred Stock against
        impairment.

       

      (viii)  No
        Fractional Shares and Certificate as to Adjustments.

       

      (a) No
        fractional shares shall be issued upon the conversion of any share or shares
        of
        Preferred Stock. Whether or not fractional shares are issuable upon such
        conversion shall be determined on the basis of the total number of shares
        of
        Preferred Stock the holder is at the time converting into Common Stock and
        the
        number of shares of Common Stock issuable upon such aggregate conversion.
        In
        lieu of any fractional share to which the holder would otherwise be entitled,
        the Corporation shall pay cash equal to the fair market value of such fractional
        share as reasonably determined in good faith by the Board of Directors of
        the
        Corporation.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (b) Upon
        the
        occurrence of each adjustment or readjustment of the respective Conversion
        Price
        of Preferred Stock pursuant to this Section 3, this corporation, at its expense,
        shall promptly compute such adjustment or readjustment in accordance with
        the
        terms hereof and prepare and furnish to each holder of Preferred Stock a
        certificate setting forth such adjustment or readjustment and showing in
        detail
        the facts upon which such adjustment or readjustment is based. This corporation
        shall, upon the written request at any time of any holder of Preferred Stock,
        furnish or cause to be furnished to such holder a like certificate setting
        forth
        (A) such adjustment and readjustment, (B) the Conversion Price for
        such series of Preferred Stock at the time in effect, and (C) the number of
        shares of Common Stock and the amount, if any, of other property that at
        the
        time would be received upon the conversion of a share of Preferred
        Stock.

      

      (ix)  Notices
        of Record Date.
        In the
        event of any taking by this corporation of a record of the holders of any
        class
        of securities for the purpose of determining the holders thereof who are
        entitled to receive any dividend (other than a cash dividend) or other
        distribution, any right to subscribe for, purchase or otherwise acquire any
        shares of stock of any class or any other securities or property, or to receive
        any other right, this corporation shall mail to each holder of Preferred
        Stock,
        at least twenty (20) days prior to the date specified therein, a notice
        specifying the date on which any such record is to be taken for the purpose
        of
        such dividend, distribution or right, and the amount and character of such
        dividend, distribution or right.

       

      (x)  Reservation
        of Stock Issuable Upon Conversion.
        This
        corporation shall at all times reserve and keep available out of its
        authorized but unissued shares of Common Stock, solely for the purpose of
        effecting the conversion of the shares of the Preferred Stock, such number
        of
        its shares of Common Stock as shall from time to time be sufficient to effect
        the conversion of all outstanding shares of the Preferred Stock; and if at
        any
        time the number of authorized but unissued shares of Common Stock shall not
        be
        sufficient to effect the conversion of all then outstanding shares of Preferred
        Stock (on a fully-diluted basis), in addition to such other remedies as shall
        be
        available to the holder of such series of Preferred Stock, this corporation
        will
        take such corporate action as may, in the opinion of its counsel, be necessary
        to increase its authorized but unissued shares of Common Stock to such number
        of
        shares as shall be sufficient for such purposes, including, without limitation,
        engaging in best efforts to obtain the requisite shareholder approval of
        any
        necessary amendment to this Restated Certificate of Incorporation.

       

      (xi)  Status
        of Converted Stock
        In the
        event any shares of Preferred Stock shall be converted pursuant to this
        Section 3, the shares so converted shall be cancelled and shall not be
        issuable by this corporation. The Third Restated and Amended Certificate
        of
        Incorporation of this corporation shall be appropriately amended to effect
        the
        corresponding reduction in this corporation’s authorized capital
        stock.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      (xii)  Notices.
        Any
        notice required by the provisions of this Section 3 to be given to the holders
        of shares of Preferred Stock shall be deemed given if deposited in the United
        States mail, postage prepaid, and addressed to each holder of record at his
        address appearing on the books of this corporation.

       

      4.  Voting
        Rights.
        

       

      (i)  General
        Voting Rights of Preferred Stock.
        The
        holder of each share of Preferred Stock shall have the right to one vote
        for
        each share of Common Stock into which such Preferred Stock could then be
        converted, and with respect to such vote, such holder shall have full voting
        rights and powers equal to the voting rights and powers of the holders of
        Common
        Stock, and shall be entitled, notwithstanding any provision hereof, to notice
        of
        any stockholders’ meeting in accordance with the bylaws of this corporation, and
        shall be entitled to vote, together with holders of Common Stock, with respect
        to any question upon which holders of Common Stock have the right to vote.
        Fractional votes shall not, however, be permitted. (ii)Voting
        for the Election of Directors.
        The
        number of directors shall be seven (7) and the Board of Directors shall be
        elected as follows:

       

      (i) Three
        directors (the “Preferred Stock Designees”) shall be elected by the holders of
        the outstanding Preferred Stock voting as a single class and in accordance
        with
        the provisions of the Second Amended and Restated Investors’ Rights Agreement,
        dated July, 2001 (the “Investors’ Rights Agreement”). The holders of the
        outstanding Preferred Stock shall be entitled to remove or fill a vacancy
        in any
        of the Preferred Stock Designees in accordance with the provisions of the
        Investors’ Rights Agreement.

       

      (ii) Three
        directors (the “Common Stock Designees”) shall be elected by the holders of the
        outstanding Common Stock of the Company , voting as a single class and in
        accordance with the provisions of the Investors’ Rights Agreement. The holders
        of the outstanding Common Stock shall be entitled to remove or fill a vacancy
        in
        any of the Common Stock Designees in accordance with the provisions of the
        Investors’ Rights Agreement.

       

      (iii) One
        director shall be elected by the holders of the outstanding Preferred Stock
        and
        the outstanding Common Stock voting together as a single class and in accordance
        with the provisions of the Investors’ Rights Agreement. 

       

      5.  Redemption
        Rights.
        In the
        event that holders of any class of stock of the corporation shall be entitled
        to
        demand redemption of their shares by the corporation, then the holders of
        the
        Preferred Stock shall be entitled to the most favorable redemption rights
        granted to the holders of any class of stock at the same time as such class
        of
        stock but giving effect to the Original Series A Issue Price and the Original
        Series B Issue Price. To remove all doubt, under no circumstances will the
        Preferred Stock be redeemed prior to the redemption date set for any other
        class
        of stock.

      

      6. Negative
        Covenants.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      6.1 As
        long
        as the Preferred Stock of the Company represents at least 10% of the outstanding
        share capital of the Company (on an as-converted basis), then without limitation
        of any rights of the holders of Preferred Stock under applicable law, all
        the
        following decisions of the Company will require the affirmative vote at least
        50% of the outstanding Preferred Stock of the Company, voting together as
        one
        class (provided that the voting rights of Galileo Technology Ltd. and holders
        of
        Preferred Stock who hold less than one (1%) of the outstanding shares of
        the
        Company (calculated on an as converted basis), shall be excluded from such a
        vote, and further provided that if such decision may be approved by the Board
        of
        Directors in accordance with applicable law, the decision will require the
        affirmative vote of at least 50% of the Preferred Stock Designees, excluding
        the
        Preferred Stock Designee appointed by Galileo Technology): 

       

      (i) A
        decision which results in a Merger
        and Acquisition (as such term is defined in section 2(iv)). This veto shall
        not
        apply in any one of the following events: (i) with respect to the holders
        of
        Series B Preferred Stock, the transaction described herein yields funds or
        assets available for distribution to the holders of Series B Preferred Stock
        of
        a multiple of three (3) times the purchase price per share of Series B Preferred
        Stock for each share of Series B Preferred Stock (the“B
        Qualified Value”);
        or
        (ii) with respect to the holders of Series A Preferred Stock, the transaction
        described herein yields funds or assets available for distribution to the
        holders of Series A Preferred Stock of a multiple of four (4) times the purchase
        price per share of Series A Preferred Stock for each share of Series A Stock
        (the "A Qualified
        Value").

       

      (ii) A
        decision to sell, transfer, lease, pledge, license or dispose of all or assets
        that reflect in excess of 40% of the fair market value of the assets, rights
        or
        business of the Company. This veto shall not apply: (i) with respect to the
        holders of Series A Preferred, in the event that the transaction described
        herein yields a distribution reflecting A Qualified Value Stock; (ii) with
        respect to the holders of Series B Preferred Stock, in the event that the
        transaction described herein yields a distribution reflecting B Qualified
        Value;

       

      (iii) A
        decision to declare or pay any dividend on or any other distribution of cash,
        shares, or other assets on account of the Common Stock of the Company;

       

      (iv) A
        decision to effect a dissolution, liquidation or winding up of the Company
        and/or the cessation of all or a substantial part of the business of the
        Company. This veto shall not apply: (i) to the holders of Series A Preferred
        Stock, in the event that the transaction described herein yields a distribution
        reflecting A Qualified Value (ii) to the holders of Series B Preferred Stock,
        in
        the event that the transaction described herein yields a distribution reflecting
        B Qualified Value;

       

      (v) A
        decision to approve the annual budget of the Company (however, it is clarified
        that approval of the budget will be made by the Board of
        Directors);

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (vi) A
        material change in the nature of the business as conducted by the Company
        prior
        to such decision, provided that this Section 6.1(vi) shall not be construed
        as a
        veto on any transaction to which another veto right under this Section 6.1
        applies;

       

      (vii) A
        decision to enter into any agreement with a holder of more than 5% of the
        Company’s share capital (on an as converted basis) or a director of the Company
        or any related party thereto. 

       

      6.2 Notwithstanding
        Section 6.1, and without limitation of any rights of the holders of preferred
        shares under applicable law, as long as the outstanding Preferred Stock
        represent at least 10% of the outstanding share capital of the Company (on
        an
        as-converted basis) all of the following decisions of the Company will require
        the affirmative vote of at least a majority of the Preferred Shares, voting
        together as one class (provided that if such decision would only adversely
        affect the Series A Preferred Stock or the Series B Preferred Stock, as the
        case
        may be, then only the shares of such series of Preferred Stock shall be
        considered a separate class for the purpose of this Section 6.2 and further
        provided that if such decision may be approved by the Board of Directors
        in
        accordance with applicable law, they will require the affirmative vote of
        at
        least a majority of the Preferred Stock Designees):

       

      (i) A
        decision to adopt any amendment of the certificate of incorporation and/or
        the
        bylaws of the Company that adversely affects the rights attached to the
        Preferred Stock, such as, without limitations, voting rights, liquidation
        rights, anti-dilution rights, dividend rights, first refusal rights and rights
        to appoint directors, and specifically includes any amendment to this Section
        6.

       

      (ii) A
        decision which allows an authorization or issuance of any Shares having rights,
        preferences or privileges senior to or on a parity with the Preferred Stock.
        For
        the purposes of this subsection (ii), Shares
        shall
        not include: (i) the issuance or sale of shares of stock (or options
        therefor) to employees, directors and consultants under stock plans approved
        by
        the Company’s Board of Directors; (ii) the issuance of securities pursuant
        to the conversion or exercise of convertible or exercisable securities; (iii)
        any dividend payable in shares of Common Stock or any shares issued upon
        a
        subdivision or combination of such shares; (iv) the issuance of securities
        in
        connection with acquisitions of assets, businesses or companies, made by
        the
        Company or settlements of claims involving the Company (v) the issuance of
        securities constituting up to 15% of the outstanding share capital of the
        Company immediately prior to such issuance, to a Strategic Investor, (herein
        defined as an entity that has entered into a material agreement with the
        Company
        such as an OEM agreement, agreement for purchase and/or sale of goods, or
        a
        joint project), which Strategic Investor has been designated as a Strategic
        Investor by a majority of the Board of Directors with the affirmative vote
        of at
        least one of the Board members appointed by the holders of Preferred Stock,
        provided that such director was not appointed by Galileo Technology Ltd.;
        and
        (vi) issuance of securities or warrants to a lending institution in connection
        with a Hybrid Financing, as defined in subsection 3.2 (vi) of the Amended
        and
        Restated Investor Rights Agreement.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

      III. Common
        Stock.
        The
        rights, preferences, privileges and restrictions granted to and imposed on
        the
        Common Stock are as set forth below in this Article IV(III).

       

      1.  Dividend
        Rights.
        Subject
        to the prior rights of holders of all classes of stock at the time outstanding
        having prior rights as to dividends, the holders of the Common Stock shall
        be
        entitled to receive, when and as declared by the Board of Directors, out
        of any
        assets of this corporation legally available therefor, such dividends as
        may be
        declared from time to time by the Board of Directors.

       

      2.  Liquidation
        Rights.
        Upon
        the liquidation, dissolution or winding up of this corporation, the assets
        of
        this corporation shall be distributed as provided in Section (II)(2) of
        Article IV hereof.

       

      3.  Redemption.
        The
        Common Stock is not redeemable.

       

      4.  Voting
        Rights.
        The
        holder of each share of Common Stock shall have the right to one vote for
        each
        such share, and shall be entitled to notice of any stockholders’ meeting in
        accordance with the bylaws of this corporation, and shall be entitled to
        vote
        upon such matters and in such manner as may be provided by law.

       

      ARTICLE
        V

      

      Except
        as
        otherwise provided in this Certificate of Incorporation, in furtherance and
        not
        in limitation of the powers conferred by statute, the Board of Directors
        is
        expressly authorized to make, repeal, alter, amend and rescind any or all
        of the
        Bylaws of this corporation.

       

      ARTICLE
        VI

      

      Issuances
        of stock of the Company are subject to certain preemptive rights of the
        stockholders of the Company as set forth and in accordance with the provisions
        of the Investors’ Rights Agreement.

       

      ARTICLE
        VII

       

      Elections
        of directors need not be by written ballot unless the Bylaws of this corporation
        shall so provide. 

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        VIII

       

      Meetings
        of stockholders may be held within or without the State of Delaware, as the
        Bylaws may provide. The books of this corporation may be kept (subject to
        any
        provision contained in the statutes) outside the State of Delaware at such
        place
        or places as may be designated from time to time by the Board of Directors
        or in
        the Bylaws of this corporation.

       

      ARTICLE
        IX

       

      A
        director of this corporation shall, to the fullest extent permitted by the
        General Corporation Law as it now exists or as it may hereafter be amended,
        not
        be personally liable to this corporation or its stockholders for monetary
        damages for breach of fiduciary duty as a director, except for liability
        (i) for any breach of the director’s duty of loyalty to this corporation or
        its stockholders, (ii) for acts or omissions not in good faith or that
        involve intentional misconduct or a knowing violation of law, (iii) under
        Section 174 of the General Corporation Law, or (iv) for any transaction
        from which the director derived any improper personal benefit. If the General
        Corporation Law is amended, after approval by the stockholders of this Article,
        to authorize corporation action further eliminating or limiting the personal
        liability of directors, then the liability of a director of this corporation
        shall be eliminated or limited to the fullest extent permitted by the General
        Corporation Law, as so amended.

       

      Any
        amendment, repeal or modification of this Article IX, or the adoption of
        any provision of this Amended and Restated Certificate of Incorporation
        inconsistent with this Article IX, by the stockholders of this corporation
        shall not apply to or adversely affect any right or protection of a director
        of
        this corporation existing at the time of such amendment, repeal, modification
        or
        adoption.

       

      ARTICLE
        X

       

      This
        corporation reserves the right to amend, alter, change or repeal any provision
        contained in this Certificate of Incorporation, in the manner now or hereafter
        prescribed by statute subject to the provisions of this Certificate of
        Incorporation.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        XI

       

      To
        the
        fullest extent permitted by applicable law, this corporation is authorized
        to
        provide indemnification of (and advancement of expenses to) agents of this
        corporation (and any other persons to which General Corporation Law permits
        this
        corporation to provide indemnification) through bylaw provisions, agreements
        with such agents or other persons, vote of stockholders or disinterested
        directors or otherwise, in excess of the indemnification and advancement
        otherwise permitted by Section 145 of the General Corporation Law, subject
        only
        to limits created by applicable General Corporation Law (statutory or
        non-statutory), with respect to actions for breach of duty to this corporation,
        its stockholders, and others.

       

      Any
        amendment, repeal or modification of the foregoing provisions of this
        Article XI shall not adversely affect any right or protection of a
        director, officer, agent, or other person existing at the time of, or increase
        the liability of any director of this corporation with respect to any acts
        or
        omissions of such director, officer or agent occurring prior to, such amendment,
        repeal or modification.

       

      Dated
        as
        of May __, 2003

       

      
        	 	 	 
	 	/s/
                JACOB BEN-ZVI  
	 	JACOB
                BEN-ZVI

      

       

       

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    Exhibit
      C

    

    WARRANT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        SCHEDULE
          2.4

        FORM
          OF TERMINATION LETTER

      

      

       

      
        	Plenus Technologies Ltd. 	 	Date_________

      

           

       

      Re:
        Notice
        of Termination (the “Letter”)

       

       

      Dear
        Sirs:

       

      In
        accordance with Section 2.4 of the Loan Agreement between Plenus Technologies
        Ltd. ( “Plenus”)
        and
        among other with Wintegra Inc. (the “Company”),
        dated
        June 4, 2002 (the “Agreement”),
        we,
        the Company, hereby provide Plenus with notice to terminate the Loan Agreement
        pursuant to its terms (including all of its schedules, exhibits and annexes
        with
        the exception of the Warrant).

       

      On
        or
        prior to the date hereof, we repaid to Plenus the outstanding Principal Amount
        and all accrued Interest (as defined in the Agreement) thereon. Accordingly,
        Plenus has no further rights of any kind in the Company, except as specified
        below, and shall relieve the Company from any of its obligations under the
        Loan
        Agreement and all of its schedules, exhibits and annexes, except as specified
        below. 

       

      We
        hereby
        acknowledge that the termination of the Agreement (including all of its
        schedules, exhibits and annexes with the exception of the Warrant) in accordance
        with this notice of termination is subject to Plenus’ confirmation that on or
        prior to the date herein, we have repaid the Principal Amount and all accrued
        Interest (as defined in the Loan Agreement) thereon; Concurrently with the
        execution of its acceptance of this letter, Plenus shall execute any documents
        necessary to cancel the floating charge recorded with the Registrar of Companies
        in Israel and the UCC Pledge recorded (as set forth in the Pledge Agreement
        between Wintegra Inc. and Plenus Technologies Ltd.). 

       

      We
        are
        aware further that this Termination Letter shall not be construed to derogate
        in
        any manner whatsoever, from Plenus’ rights in accordance with the Warrant issued
        to Plenus on June 4, 2002 and the reporting and notice rights of Plenus under
        Section 5 of the Loan Agreement, and the
        obligations of the Company to indemnify Plenus in Section 4 of the Agreement
        will survive this Letter until all statutes of limitations for actions that
        may
        be brought against Plenus have expired
        which
        shall survive the termination of the Loan Agreement in accordance with its
        terms.

      
        	 	 	 
	 	Sincerely,
	 	 
	 	Wintegra Inc.
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	
                Agreed
                  and accepted:

              	 
	 	 
	 	 
	
                
 	 
	Plenus Technologies Ltd.	 

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

      Schedule 4(i)A

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SCHDULE
        4 (vii)

      

       Guarantees,
        Royalty payments, Options, Rights or other privileges 

      

      Liens,
        Guarantees

       

      	1.  	
              Wintegra
                Israel has recorded a first priority lien by Bank Leumi of Israel
                against
                certain assets as collateral for bill of sale of certain equipment,
                in the
                amount of $200,000. The Company has an undertaking to record a first
                priority lien by Bank Leumi of New York against certain assets as
                collateral for bill of sale of certain equipment, in the amount of
                up to
                $50,000. 

            

       

      	2.  	
              Wintegra
                Israel provided bank guarantees to its lessor in the amount of
                $243,000.

            

       

      	3.  	
              Wintegra
                Israel recorded a pledge on its switch board as part of a capital
                lease
                agreement.

            

      

      Royalties

       

      	1.  	
              As
                part of Wintegra Israel's agreement with Mips dated December 22,
                2000
                Wintegra Israel will pay Mips royalties for each core being integrated
                in
                the company's chip based on a percentage of the per unit selling
                price.

            

       

      	2.  	
              As
                part of Wintegra Israel's agreement with Philips dated January 22,
                2001
                Wintegra Israel will pay Philips royalties for selling Licensed Products
                based on a percentage of the net selling price of the company's
                sales.

            

      

      Options

       

      	3.  	
              Certain
                holders of preferred B stock of the company hold warrants entitle
                them to
                purchase up to 181,390 preferred B stock of the
                company.

            

       

      	4.  	
              As
                of April 30, 2002 the company has reserved 5,000,000 shares of common
                stock of the company as a pool for issuance to employees, directors
                and
                advisors of the company according to the company's approved stock
                plan.
                Out of the pool 4,061,100 options were granted, out of which 1,154,250
                options have been exercised by grantees. 

            

      

      Privilege
        with respect to the company's securities 

      The
        holders of preferred stock of the company and the company's founders are
        entitle
        to certain privilege with respect to their holdings and with respect to the
        company's securities, at set forth in company's third restated certificate
        of
        incorporation and in that certain second amended and restated investor rights
        agreement dated July 19th
        2001.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      Schedule
        7

       

      Wintegra
        Inc.

       

      IRREVOCABLE
        PROXY

       

      A. The
        undersigned ("Proxy
        Grantors"),
        being
        the Co-lenders and their successors (as these terms are defined in that certain
        Loan Agreement between Wintegra Inc., an Delaware corporation, Plenus
        Technologies Ltd., an Israeli company and others, dated June 4, 2002) (the
        "Agreement"
        and
        "Company"
        respectively), hereby irrevocably appoint Plenus
        Technologies Ltd. of Delta House, 16 Hagalim Avenue, Herzylia 46725, Israel
        (the
“Proxy
        Holder”)
        as their
        proxy to sign and execute the Agreement and any Exhibits and Schedules attached
        thereto and any other documents related to the transaction contemplated hereby
        and thereby and to vote for them and on their behalf at shareholders meetings
        of
        the Company 

       

      B. This
        Irrevocable Proxy is given in accordance with and pursuant to the
        Agreement.

       

      The
        Proxy
        Grantors agree as follows:

       

      1.
        Each
        Proxy Grantor hereby severally and irrevocably appoints and constitutes the
        Proxy Holder as the Proxy Grantor's true and lawful proxy and attorney-in-fact,
        with full power of substitution and revocation, to sign and execute, at the
        sole
        discretion of Proxy Holder, the Agreement and any document, form or letter
        related to or in connection with the performance of the undertakings and
        obligations of the parties to the Agreement, their successors, under the
        Agreement and all exhibits and schedules attached thereto. 

       

      2. Upon
        exercise of the Warrant (as defined in the Agreement), Proxy Holder, on behalf
        of each Proxy Grantor, shall be entitled to attend meetings of the shareholders
        of the Company to be held at any time, or any continuation or adjournment
        thereof, to vote or take action by written consent with respect to those
        shares
        of the Company's Series B Preferred Shares, nominal value 0.001 US$ each,
        set
        forth next to each of the Proxy Grantors’ names in Schedule
        A
        of this
        Irrevocable Proxy, on all matters as the Proxy Holder shall determine in
        its
        discretion, including, without limitation, shareholders meetings, shareholders
        actions by written consent and waivers. 

       

      3. Each
        Proxy Grantor hereby acknowledges and agrees that the foregoing irrevocable
        grant to the Proxy Holder is in connection with the Agreement, is coupled
        with
        an interest, and shall survive with respect to each Proxy Grantor each Proxy
        Grantor’s liquidation or dissolution. Furthermore, each Proxy Grantor hereby
        severally and irrevocably appoints the Proxy Holder as the Proxy Grantor's
        true
        and lawful proxy and attorney-in-fact, with full power of substitution, to
        receive all notices to which they are entitled to by virtue of contract or
        the
        Company’s Articles of Association.

       

      4. This
        Irrevocable Proxy shall terminate automatically upon the earlier of: (a)
        the
        consummation of a Realization Event, or (b) the termination of Proxy Holder's
        formation agreements. This Irrevocable Proxy is irrevocable until its
        termination as set forth above.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      For
        the
        purposes of this Section 2 the term “Realization
        Event”
shall
        mean either (x) the closing of a firmly underwritten initial public offering
        of
        the Company’s shares (an “IPO”)
        pursuant to a registration statement filed with the Securities and Exchange
        Commission pursuant to the Act or pursuant to a registration statement filed
        with a similar law under any foreign jurisdiction; or (y) the closing of
        an
        M&A Transaction. For the purposes of this Section 2, the term “M&A
        Transaction”
        shall
        mean either: (x) the consummation of any consolidation or merger of the Company
        with or into a third party, pursuant to which the Company's shareholders
        immediately prior to such transaction own less than fifty-one percent (51%)
        of
        the voting securities of the surviving entity immediately after the consummation
        of such transaction, or (y) the consummation of a sale of all or substantially
        all of the Company’s shares or assets to any third party.

       

      5. This
        Irrevocable Proxy shall be governed by and construed in accordance with the
        laws
        of the State of Israel, without regard to its conflict of laws
        principles.

       

      6. This
        Irrevocable Proxy may be executed in counterparts, each of which shall be
        an
        original, but all of which together shall be deemed to constitute one
        instrument.

       

      7. Each
        of
        the signatories hereto acknowledges and agrees that this Irrevocable Proxy
        supersedes and replaces any prior proxies, or amendments thereto, which may
        have
        been executed by any or all of the parties hereto, and any prior oral or
        written
        proxies given with respect to the Company's securities are hereby revoked
        as of
        the date hereof. 

      

       

      8.
        This
        proxy shall be binding upon the heirs, estate, executors, personal
        representatives, successors and assigns of the undersigned.

       

      9.
        If any
        provision of this proxy or any part of any such provision is held under any
        circumstances to be invalid or unenforceable in any jurisdiction, then (i)
        such
        provision or part thereof shall, with respect to such circumstances and in
        such
        jurisdiction, be deemed amended to conform to applicable laws so as to be
        valid
        and enforceable to the fullest possible extent, (ii) the invalidity or
        unenforceability of such provision or part thereof under such circumstances
        and
        in such jurisdiction shall not affect the validity or enforceability of such
        provision or part thereof under any other circumstances or in any other
        jurisdiction, and (iii) the invalidity or unenforceability of such provision
        or
        part thereof shall not affect the validity or enforceability of the remainder
        of
        such provision or the validity or enforceability of any other provision of
        this
        proxy. Each provision of this proxy is separable from every other provision
        of
        this proxy, and each part of each provision of this proxy is separable from
        every other part of such provision.

      
 

       

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