Document:

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                              INSILICON CORPORATION

                        2000 EMPLOYEE STOCK PURCHASE PLAN

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                                TABLE OF CONTENTS
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Section 1             PURPOSE....................................................................................1

Section 2             DEFINITIONS................................................................................1

         2.1      "1934 Act".....................................................................................1

         2.2      "Board"........................................................................................1

         2.3      "Code".........................................................................................1

         2.4      "Committee"....................................................................................1

         2.5      "Common Stock".................................................................................1

         2.6      "Company"......................................................................................1

         2.7      "Compensation".................................................................................1

         2.8      "Eligible Employee"............................................................................1

         2.9      "Employee".....................................................................................2

         2.10     "Employer" or "Employers"......................................................................2

         2.11     "Enrollment Date"..............................................................................2

         2.12     "Grant Date"...................................................................................2

         2.13     "Participant"..................................................................................2

         2.14     "Plan".........................................................................................2

         2.15     "Purchase Date"................................................................................2

         2.16     "Subsidiary"...................................................................................2

Section 3             SHARES SUBJECT TO THE PLAN.................................................................2

         3.1      Number Available...............................................................................2

         3.2      Adjustments....................................................................................3

Section 4             ENROLLMENT.................................................................................3

         4.1      Participation..................................................................................3

         4.2      Payroll Withholding............................................................................3

Section 5             OPTIONS TO PURCHASE COMMON STOCK...........................................................3

         5.1      Grant of Option................................................................................3

         5.2      Duration of Option.............................................................................3

         5.3      Number of Shares Subject to Option.............................................................4

         5.4      Other Terms and Conditions.....................................................................4
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Section 6             PURCHASE OF SHARES.........................................................................4

         6.1      Exercise of Option.............................................................................4

         6.2      Delivery of Shares.............................................................................5

         6.3      Exhaustion of Shares...........................................................................5

Section 7             WITHDRAWAL.................................................................................5

         7.1      Withdrawal.....................................................................................5

Section 8             CESSATION OF PARTICIPATION.................................................................5

         8.1      Termination of Status as Eligible Employee.....................................................5

Section 9             DESIGNATION OF BENEFICIARY.................................................................5

         9.1      Designation....................................................................................5

         9.2      Changes........................................................................................5

         9.3      Failed Designations............................................................................6

Section 10            ADMINISTRATION.............................................................................6

         10.1     Plan Administrator.............................................................................6

         10.2     Actions by Committee...........................................................................6

         10.3     Powers of Committee............................................................................6

         10.4     Decisions of Committee.........................................................................7

         10.5     Administrative Expenses........................................................................7

         10.6     Eligibility to Participate.....................................................................7

         10.7     Indemnification................................................................................7

Section 11            AMENDMENT, TERMINATION, AND DURATION.......................................................7

         11.1     Amendment, Suspension, or Termination..........................................................7

         11.2     Duration of the Plan...........................................................................8

Section 12            GENERAL PROVISIONS.........................................................................8

         12.1     Participation by Subsidiaries..................................................................8

         12.2     Inalienability.................................................................................8

         12.3     Severability...................................................................................8

         12.4     Requirements of Law............................................................................8

         12.5     Compliance with Rule 16b-3.....................................................................8

         12.6     No Enlargement of Employment Rights............................................................9

         12.7     Apportionment of Costs and Duties..............................................................9
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         12.8     Construction and Applicable Law................................................................9

         12.9     Captions.......................................................................................9

EXECUTION             ...........................................................................................9
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                              INSILICON CORPORATION
                        2000 EMPLOYEE STOCK PURCHASE PLAN
                        (AS ADOPTED ON JANUARY 12, 2000)

                                   SECTION 1
                                    PURPOSE

                  inSilicon Corporation hereby establishes the inSilicon
Corporation 2000 Employee Stock Purchase Plan, effective as of the first
Enrollment Date, in order to provide eligible employees of the Company and
its participating Subsidiaries with the opportunity to purchase Common Stock
through payroll deductions. The Plan is intended to qualify as an employee
stock purchase plan under Section 423(b) of the Code.

                                   SECTION 2
                                  DEFINITIONS

                  2.1    "1934 ACT" means the Securities Exchange Act of 1934,
as amended. Reference to a specific Section of the 1934 Act or regulation
thereunder shall include such Section or regulation, any valid regulation
promulgated under such Section, and any comparable provision of any future
legislation or regulation amending, supplementing or superseding such Section
or regulation.

                  2.2    "BOARD" means the Board of Directors of the Company.

                  2.3    "CODE" means the Internal Revenue Code of 1986, as
amended. Reference to a specific Section of the Code or regulation thereunder
shall include such Section or regulation, any valid regulation promulgated
under such Section, and any comparable provision of any future legislation or
regulation amending, supplementing or superseding such Section or regulation.

                  2.4    "COMMITTEE" shall mean the committee appointed by
the Board to administer the Plan. Any member of the Committee may resign at
any time by notice in writing mailed or delivered to the Secretary of the
Company. As of the effective date of the Plan, the Plan shall be administered
by the Compensation Committee of the Board.

                  2.5    "COMMON STOCK" means the common stock of the Company.

                  2.6    "COMPANY" means inSilicon Corporation, a Delaware
corporation.

                  2.7    "COMPENSATION" means a Participant's regular wages.
The Committee, in its discretion, may (on a uniform and nondiscriminatory
basis) establish a different definition of Compensation prior to an
Enrollment Date for all options to be granted on such Enrollment Date.

                  2.8    "ELIGIBLE EMPLOYEE" means every Employee of an
Employer, except (a) any Employee who immediately after the grant of an
option under the Plan, would own stock and/or hold outstanding options to
purchase stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of stock of the Company or of any
Subsidiary

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of the Company (including stock attributed to such Employee pursuant to
Section 424(d) of the Code), or (b) as provided in the following sentence.
The Committee, in its discretion, from time to time may, prior to an
Enrollment Date for all options to be granted on such Enrollment Date,
determine (on a uniform and nondiscriminatory basis) that an Employee shall
not be an Eligible Employee if he or she: (1) has not completed at least two
years of service since his or her last hire date (or such lesser period of
time as may be determined by the Committee in its discretion), (2)
customarily works not more than 20 hours per week (or such lesser period of
time as may be determined by the Committee in its discretion), (3)
customarily works not more than 5 months per calendar year (or such lesser
period of time as may be determined by the Committee in its discretion), or
(4) is an officer or other manager.

                  2.9    "EMPLOYEE" means an individual who is a common-law
employee of any Employer, whether such employee is so employed at the time
the Plan is adopted or becomes so employed subsequent to the adoption of the
Plan.

                  2.10    "EMPLOYER" or "EMPLOYERS" means any one or all of
the Company, and those Subsidiaries which, with the consent of the Board,
have adopted the Plan.

                  2.11    "ENROLLMENT DATE" means such dates as may be
determined by the Committee (in its discretion and on a uniform and
nondiscriminatory basis) from time to time.

                  2.12    "GRANT DATE" means any date on which a Participant
is granted an option under the Plan.

                  2.13    "PARTICIPANT" means an Eligible Employee who (a)
has become a Participant in the Plan pursuant to Section 4.1 and (b) has not
ceased to be a Participant pursuant to Section 8 or Section 9.

                  2.14    "PLAN" means the inSilicon Corporation 2000
Employee Stock Purchase Plan, as set forth in this instrument and as
hereafter amended from time to time.

                  2.15    "PURCHASE DATE" means such dates as may be
determined by the Committee (in its discretion and on a uniform and
nondiscriminatory basis) from time to time prior to an Enrollment Date for
all options to be granted on such Enrollment Date.

                  2.16    "SUBSIDIARY" means any corporation in an unbroken
chain of corporations beginning with the Company if each of the corporations
other than the last corporation in the unbroken chain then owns stock
possessing fifty percent (50%) or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain.

                                   SECTION 3
                          SHARES SUBJECT TO THE PLAN

                  3.1     NUMBER AVAILABLE. A maximum of 250,000 shares of
Common Stock shall be available for issuance pursuant to the Plan. Beginning
with the first fiscal year of the Company beginning after the effective date
of the Plan, on the first day of each fiscal year of the Company, Shares will
be added to the Plan equal to the lesser of (a) 0.3125% of the outstanding

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Shares on the last day of the prior fiscal year, or (b) 100,000 Shares.
Shares sold under the Plan may be newly issued shares or treasury shares.

                  3.2     ADJUSTMENTS. In the event of any reorganization,
recapitalization, stock split, reverse stock split, stock dividend,
combination of shares, merger, consolidation, offering of rights or other
similar change in the capital structure of the Company, the Board may make
such adjustment, if any, as it deems appropriate in the number, kind and
purchase price of the shares available for purchase under the Plan and in the
maximum number of shares subject to any option under the Plan.

                                   SECTION 4
                                   ENROLLMENT

                  4.1     PARTICIPATION. Each Eligible Employee may elect to
become a Participant by enrolling or re-enrolling in the Plan effective as of
any Enrollment Date. In order to enroll, an Eligible Employee must complete,
sign and submit to the Company an enrollment form in such form, manner and by
such deadline as may be specified by the Committee from time to time (in its
discretion and on a nondiscriminatory basis). Any Participant whose option
expires and who has not withdrawn from the Plan automatically will be
re-enrolled in the Plan on the Enrollment Date immediately following the
Purchase Date on which his or her option expires. Any Participant whose
option has not expired and who has not withdrawn from the Plan automatically
will be deemed to be un-enrolled from the Participant's current option and be
enrolled as of a subsequent Enrollment Date if the price per Share on such
subsequent Enrollment Date is lower than the price per Share on the
Enrollment Date relating to the Participant's current option.

                  4.2     PAYROLL WITHHOLDING. On his or her enrollment form,
each Participant must elect to make Plan contributions via payroll
withholding from his or her Compensation. Pursuant to such procedures as the
Committee may specify from time to time, a Participant may elect to have
withholding equal to a whole percentage from 1% to 15% (or such lesser
percentage that the Committee may establish from time to time for all options
to be granted on any Enrollment Date). A Participant may elect to increase or
decrease his or her rate of payroll withholding by submitting a new
enrollment form in accordance with such procedures as may be established by
the Committee from time to time. A Participant may stop his or her payroll
withholding by submitting a new enrollment form in accordance with such
procedures as may be established by the Committee from time to time. In order
to be effective as of a specific date, an enrollment form must be received by
the Company no later than the deadline specified by the Committee, in its
discretion and on a nondiscriminatory basis, from time to time. Any
Participant who is automatically re-enrolled in the Plan will be deemed to
have elected to continue his or her contributions at the percentage last
elected by the Participant.

                                   SECTION 5
                        OPTIONS TO PURCHASE COMMON STOCK

                  5.1     GRANT OF OPTION. On each Enrollment Date on which
the Participant enrolls or re-enrolls in the Plan, he or she shall be granted
an option to purchase shares of Common Stock.

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                  5.2     DURATION OF OPTION. Each option granted under the
Plan shall expire on the earliest to occur of (a) the completion of the
purchase of shares on the last Purchase Date occurring within 27 months of
the Grant Date of such option, (b) such shorter option period as may be
established by the Committee from time to time prior to an Enrollment Date
for all options to be granted on such Enrollment Date, or (c) the date on
which the Participant ceases to be such for any reason. Until otherwise
determined by the Committee for all options to be granted on an Enrollment
Date, the period referred to in clause (b) in the preceding sentence shall
mean the period from the applicable Enrollment Date through the last business
day prior to the immediately following Enrollment Date.

                  5.3     NUMBER OF SHARES SUBJECT TO OPTION. The number of
shares available for purchase by each Participant under the option will be
established by the Committee from time to time prior to an Enrollment Date
for all options to be granted on such Enrollment Date.

                  5.4     OTHER TERMS AND CONDITIONS. Each option shall be
subject to the following additional terms and conditions:

                  (a)     payment for shares purchased under the option shall
         be made only through payroll withholding under Section 4.2;

                  (b)     purchase of shares upon exercise of the option will
         be accomplished only in accordance with Section 6.1;

                  (c)     the price per share under the option will be
         determined as provided in Section 6.1; and

                  (d)     the option in all respects shall be subject to such
         other terms and conditions (applied on a uniform and nondiscriminatory
         basis), as the Committee shall determine from time to time in its
         discretion.

                                   SECTION 6
                              PURCHASE OF SHARES

                  6.1     EXERCISE OF OPTION. Subject to Section 6.2, on each
Purchase Date, the funds then credited to each Participant's account shall be
used to purchase whole shares of Common Stock. Any cash remaining after whole
shares of Common Stock have been purchased shall be carried forward in the
Participant's account for the purchase of shares on the next Purchase Date.
The price per Share of the Shares purchased under any option granted under
the Plan shall be eighty-five percent (85%) of the lower of:

                  (a)     the closing price per Share on the Grant Date for
         such option on the NASDAQ National Market System; or

                  (b)     the closing price per Share on the Purchase Date
         on the NASDAQ National Market System;

provided, however, that with respect to any Grant Date under the Plan that
coincides with the date of the final prospectus for the initial public
offering of the Common Stock, the price in

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clause (a) above shall be the price per Share at which shares of Common Stock
are initially offered for sale to the public by the Company's underwriters in
such offering.

                  6.2     DELIVERY OF SHARES. As directed by the Committee in
its sole discretion, shares purchased on any Purchase Date shall be delivered
directly to the Participant or to a custodian or broker (if any) designated
by the Committee to hold shares for the benefit of the Participants. As
determined by the Committee from time to time, such shares shall be delivered
as physical certificates or by means of a book entry system.

                  6.3     EXHAUSTION OF SHARES. If at any time the shares
available under the Plan are over-enrolled, enrollments shall be reduced
proportionately to eliminate the over-enrollment. Such reduction method shall
be "bottom up", with the result that all option exercises for one share shall
be satisfied first, followed by all exercises for two shares, and so on,
until all available shares have been exhausted. Any funds that, due to
over-enrollment, cannot be applied to the purchase of whole shares shall be
refunded to the Participants (without interest thereon).

                                 SECTION 7
                                 WITHDRAWAL

                  7.1     WITHDRAWAL. A Participant may withdraw from the
Plan by submitting a completed enrollment form to the Company. A withdrawal
will be effective only if it is received by the Company by the deadline
specified by the Committee (in its discretion and on a uniform and
nondiscriminatory basis) from time to time. When a withdrawal becomes
effective, the Participant's payroll contributions shall cease and all
amounts then credited to the Participant's account shall be distributed to
him or her (without interest thereon).

                                  SECTION 8
                         CESSATION OF PARTICIPATION

                  8.1     TERMINATION OF STATUS AS ELIGIBLE EMPLOYEE. A
Participant shall cease to be a Participant immediately upon the cessation of
his or her status as an Eligible Employee (for example, because of his or her
termination of employment from all Employers for any reason). As soon as
practicable after such cessation, the Participant's payroll contributions
shall cease and all amounts then credited to the Participant's account shall
be distributed to him or her (without interest thereon). If a Participant is
on a Company-approved leave of absence, his or her participation in the Plan
shall continue for so long as he or she remains an Eligible Employee and has
not withdrawn from the Plan pursuant to Section 7.1.

                                  SECTION 9
                           DESIGNATION OF BENEFICIARY

                  9.1     DESIGNATION. Each Participant may, pursuant to such
uniform and nondiscriminatory procedures as the Committee may specify from
time to time, designate one or more Beneficiaries to receive any amounts
credited to the Participant's account at the time of his or her death.
Notwithstanding any contrary provision of this Section 9, Sections 9.1 and
9.2 shall be operative only after (and for so long as) the Committee
determines (on a uniform and nondiscriminatory basis) to permit the
designation of Beneficiaries.

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                  9.2     CHANGES. A Participant may designate different
Beneficiaries (or may revoke a prior Beneficiary designation) at any time by
delivering a new designation (or revocation of a prior designation) in like
manner. Any designation or revocation shall be effective only if it is
received by the Committee. However, when so received, the designation or
revocation shall be effective as of the date the designation or revocation is
executed (whether or not the Participant still is living), but without
prejudice to the Committee on account of any payment made before the change
is recorded. The last effective designation received by the Committee shall
supersede all prior designations.

                  9.3     FAILED DESIGNATIONS. If a Participant dies without
having effectively designated a Beneficiary, or if no Beneficiary survives
the Participant, the Participant's Account shall be payable to his or her
estate.

                                  SECTION 10
                                ADMINISTRATION

                  10.1    PLAN ADMINISTRATOR. The Plan shall be administered
by the Committee. The Committee shall have the authority to control and
manage the operation and administration of the Plan.

                  10.2    ACTIONS BY COMMITTEE. Each decision of a majority
of the members of the Committee then in office shall constitute the final and
binding act of the Committee. The Committee may act with or without a meeting
being called or held and shall keep minutes of all meetings held and a record
of all actions taken by written consent.

                  10.3    POWERS OF COMMITTEE. The Committee shall have all
powers and discretion necessary or appropriate to supervise the
administration of the Plan and to control its operation in accordance with
its terms, including, but not by way of limitation, the following
discretionary powers:

                  (a)     To interpret and determine the meaning and validity
         of the provisions of the Plan and the options and to determine any
         question arising under, or in connection with, the administration,
         operation or validity of the Plan or the options;

                  (b)     To determine any and all considerations affecting
         the eligibility of any employee to become a Participant or to remain
         a Participant in the Plan;

                  (c)     To cause an account or accounts to be maintained
         for each Participant;

                  (d)     To determine the time or times when, and the number
         of shares for which, options shall be granted;

                  (e)     To establish and revise an accounting method or
         formula for the Plan;

                  (f)     To designate a custodian or broker to receive shares
         purchased under the Plan and to determine the manner and form in which
         shares are to be delivered to the designated custodian or broker;

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                  (g)     To determine the status and rights of Participants
         and their Beneficiaries or estates;

                  (h)     To employ such brokers, counsel, agents and
         advisers, and to obtain such broker, legal, clerical and other
         services, as it may deem necessary or appropriate in carrying out
         the provisions of the Plan;

                  (i)     To establish, from time to time, rules for
         the performance of its powers and duties and for the administration
         of the Plan;

                  (j)     To adopt such procedures and subplans as are
         necessary or appropriate to permit participation in the Plan by
         employees who are foreign nationals or employed outside of the
         United States;

                  (k)     To delegate to any one or more of its members or
         to any other person, severally or jointly, the authority to perform
         for and on behalf of the Committee one or more of the functions of
         the Committee under the Plan.

                  10.4    DECISIONS OF COMMITTEE. All actions,
interpretations, and decisions of the Committee shall be conclusive and
binding on all persons, and shall be given the maximum possible deference
allowed by law.

                  10.5    ADMINISTRATIVE EXPENSES. All expenses incurred in
the administration of the Plan by the Committee, or otherwise, including
legal fees and expenses, shall be paid and borne by the Employers, except any
stamp duties or transfer taxes applicable to the purchase of shares may be
charged to the account of each Participant. Any brokerage fees for the
purchase of shares by a Participant shall be paid by the Company, but fees
and taxes (including brokerage fees) for the transfer, sale or resale of
shares by a Participant, or the issuance of physical share certificates,
shall be borne solely by the Participant.

                  10.6    ELIGIBILITY TO PARTICIPATE. No member of the
Committee who is also an employee of an Employer shall be excluded from
participating in the Plan if otherwise eligible, but he or she shall not be
entitled, as a member of the Committee, to act or pass upon any matters
pertaining specifically to his or her own account under the Plan.

                  10.7    INDEMNIFICATION. Each of the Employers shall, and
hereby does, indemnify and hold harmless the members of the Committee and the
Board, from and against any and all losses, claims, damages or liabilities
(including attorneys' fees and amounts paid, with the approval of the Board,
in settlement of any claim) arising out of or resulting from the
implementation of a duty, act or decision with respect to the Plan, so long
as such duty, act or decision does not involve gross negligence or willful
misconduct on the part of any such individual.

                                   SECTION 11
                      AMENDMENT, TERMINATION, AND DURATION

                  11.1    AMENDMENT, SUSPENSION, OR TERMINATION. The Board,
in its sole discretion, may amend or terminate the Plan, or any part thereof,
at any time and for any reason.

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If the Plan is terminated, the Board, in its discretion, may elect to
terminate all outstanding options either immediately or upon completion of
the purchase of shares on the next Purchase Date, or may elect to permit
options to expire in accordance with their terms (and participation to
continue through such expiration dates). If the options are terminated prior
to expiration, all amounts then credited to Participants' accounts which have
not been used to purchase shares shall be returned to the Participants
(without interest thereon) as soon as administratively practicable.

                  11.2    DURATION OF THE PLAN. The Plan shall commence on
the date specified herein, and subject to Section 11.1 (regarding the Board's
right to amend or terminate the Plan), shall remain in effect for ten (10)
years from the effective date.

                                   SECTION 12
                               GENERAL PROVISIONS

                  12.1    PARTICIPATION BY SUBSIDIARIES. One or more
Subsidiaries of the Company may become participating Employers by adopting
the Plan and obtaining approval for such adoption from the Board. By adopting
the Plan, a Subsidiary shall be deemed to agree to all of its terms,
including (but not limited to) the provisions granting exclusive authority
(a) to the Board to amend the Plan, and (b) to the Committee to administer
and interpret the Plan. An Employer may terminate its participation in the
Plan at any time. The liabilities incurred under the Plan to the Participants
employed by each Employer shall be solely the liabilities of that Employer,
and no other Employer shall be liable for benefits accrued by a Participant
during any period when he or she was not employed by such Employer.

                  12.2    INALIENABILITY. In no event may either a
Participant, a former Participant or his or her Beneficiary, spouse or estate
sell, transfer, anticipate, assign, hypothecate, or otherwise dispose of any
right or interest under the Plan; and such rights and interests shall not at
any time be subject to the claims of creditors nor be liable to attachment,
execution or other legal process. Accordingly, for example, a Participant's
interest in the Plan is not transferable pursuant to a domestic relations
order.

                  12.3    SEVERABILITY. In the event any provision of the
Plan shall be held illegal or invalid for any reason, the illegality or
invalidity shall not affect the remaining parts of the Plan, and the Plan
shall be construed and enforced as if the illegal or invalid provision had
not been included.

                  12.4    REQUIREMENTS OF LAW. The granting of options and
the issuance of shares shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or securities
exchanges as the Committee may determine are necessary or appropriate.

                  12.5    COMPLIANCE WITH RULE 16b-3. Any transactions under
this Plan with respect to officers (as defined in Rule 16a-1 promulgated
under the 1934 Act) are intended to comply with all applicable conditions of
Rule 16b-3. To the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed null and void, to the extent
permitted by law and deemed advisable by the Committee. Notwithstanding any
contrary

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provision of the Plan, if the Committee specifically determines that
compliance with Rule 16b-3 no longer is required, all references in the Plan
to Rule 16b-3 shall be null and void.

                  12.6    NO ENLARGEMENT OF EMPLOYMENT RIGHTS. Neither the
establishment or maintenance of the Plan, the granting of options, the
purchase of shares, nor any action of any Employer or the Committee, shall be
held or construed to confer upon any individual any right to be continued as
an employee of the Employer nor, upon dismissal, any right or interest in any
specific assets of the Employers other than as provided in the Plan. Each
Employer expressly reserves the right to discharge any employee at any time,
with or without cause.

                  12.7    APPORTIONMENT OF COSTS AND DUTIES. All acts
required of the Employers under the Plan may be performed by the Company for
itself and its Subsidiaries, and the costs of the Plan may be equitably
apportioned by the Committee among the Company and the other Employers.
Whenever an Employer is permitted or required under the terms of the Plan to
do or perform any act, matter or thing, it shall be done and performed by any
officer or employee of the Employers who is thereunto duly authorized by the
Employers.

                  12.8    CONSTRUCTION AND APPLICABLE LAW. The Plan is
intended to qualify as an "employee stock purchase plan" within the meaning
of Section 423(b) of the Code. Any provision of the Plan which is
inconsistent with Section 423(b) of the Code shall, without further act or
amendment by the Company or the Committee, be reformed to comply with the
requirements of Section 423(b). The provisions of the Plan shall be
construed, administered and enforced in accordance with such Section and with
the laws of the State of California (excluding California's conflict of laws
provisions).

                  12.9    CAPTIONS. The captions contained in and the table
of contents prefixed to the Plan are inserted only as a matter of
convenience, and in no way define, limit, enlarge or describe the scope or
intent of the Plan nor in any way shall affect the construction of any
provision of the Plan.

                                    EXECUTION

                  IN WITNESS WHEREOF, inSilicon Corporation, by its duly
authorized officer, has executed this Plan.

                                       INSILICON CORPORATION

Dated:  January 12, 2000               By: /s/ David J. Power
                                          ----------------------------------
                                          Title: Vice President,
                                                 General Counsel

                                      9<PAGE>

                        INITIAL PUBLIC OFFERING AGREEMENT

                          dated as of November 30, 1999

                                     between

                            PHOENIX TECHNOLOGIES LTD.

                                       and

                              INSILICON CORPORATION

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                                TABLE OF CONTENTS

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                                                                                                                PAGE
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ARTICLE I             DEFINITIONS................................................................................1

         Section 1.1.          Definitions.......................................................................1

ARTICLE II            THE INITIAL PUBLIC OFFERING................................................................4

         Section 2.1.          Cooperation Before to the Initial Public Offering.................................4

         Section 2.2.          Conditions Precedent to the Initial Public Offering...............................5

ARTICLE III           INDEMNIFICATION............................................................................6

         Section 3.1.          Release of Claims.................................................................6

         Section 3.2.          Indemnification by inSilicon......................................................7

         Section 3.3.          Indemnification by Phoenix........................................................8

         Section 3.4.          Notice and Payment of Claims......................................................8

         Section 3.5.          Notice and Defense of Third-Party Claims..........................................9

         Section 3.6.          Insurance Proceeds...............................................................10

         Section 3.7.          Contribution.....................................................................10

         Section 3.8.          Subrogation......................................................................10

         Section 3.9.          No Third-Party Beneficiaries.....................................................11

         Section 3.10.         Remedies Cumulative..............................................................11

         Section 3.11.         Survival of Indemnities..........................................................11

         Section 3.12.         After-Tax Indemnification Payments...............................................11

ARTICLE IV            CERTAIN ADDITIONAL MATTERS................................................................11

         Section 4.1.          Company Officers and Board of Directors..........................................11

         Section 4.2.          The Company Certificate of Incorporation and Bylaws..............................11

         Section 4.3.          Insurance Policies and Claims Administration.....................................11

         Section 4.4.          Non-Solicitation of Employees....................................................13

ARTICLE V             ACCESS TO INFORMATION.....................................................................14

         Section 5.1.          Agreement For Exchange of Information............................................14

         Section 5.2.          Auditors and Audits; Annual and Quarterly Statements and Accounting..............15

         Section 5.3.          Confidentiality; Protection......................................................17

         Section 5.4.          Mail.............................................................................17

ARTICLE VI            DISPUTE RESOLUTION........................................................................18

         Section 6.1.          Dispute Resolution...............................................................18
</TABLE>

                                      -i-
<PAGE>

                                TABLE OF CONTENTS

                                   (CONTINUED)

<TABLE>
<CAPTION>

                                                                                                                PAGE
<S>                                                                                                             <C>
         Section 6.2.          Continuity of Service and Performance............................................19

ARTICLE VII           STANDSTILL; COVENANT NOT TO COMPETE.......................................................19

         Section 7.1.          Standstill.......................................................................19

         Section 7.2.          Non-Compete......................................................................19

ARTICLE VIII          MISCELLANEOUS.............................................................................20

         Section 8.1.          Termination......................................................................20

         Section 8.2.          Expenses.........................................................................20

         Section 8.3.          Notices..........................................................................21

         Section 8.4.          Amendment and Waiver.............................................................21

         Section 8.5.          Counterparts.....................................................................21

         Section 8.6.          Governing Law....................................................................22

         Section 8.7.          Entire Agreement.................................................................22

         Section 8.8.          Assignment.......................................................................22

         Section 8.9.          Parties in Interest..............................................................22

         Section 8.10.         Tax Sharing Agreement............................................................22

         Section 8.11.         Exhibits and Schedules...........................................................22

         Section 8.12.         Legal Enforceability.............................................................22

         Section 8.13.         Titles and Headings..............................................................23

         Section 8.14.         Conflicting Agreements...........................................................23
</TABLE>

                                      -ii-
<PAGE>
                        INITIAL PUBLIC OFFERING AGREEMENT

         This Initial Public Offering Agreement (this "Agreement") is entered
into effective as of November 30, 1999 by and between Phoenix Technologies,
Ltd., a Delaware corporation ("Phoenix"), and inSilicon Corporation, a
Delaware corporation and a wholly owned subsidiary of Phoenix ("inSilicon").

                                    RECITALS

         WHEREAS, the Board of Directors of Phoenix has determined that it is
in the best interests of Phoenix to separate the business and operations of
Phoenix engaged in the development and licensing of semiconductor
intellectual property cores, silicon subsystems, firmware stocks and drivers
(the "Business") from Phoenix's other operations by transferring the assets
of the Business to inSilicon and causing inSilicon to assume the liabilities
of the Business (the "Separation");

         WHEREAS, the parties have determined that it is desirable and in the
best interests of inSilicon to obtain funds for the operation of the Business
by causing inSilicon to sell, in an initial public offering (the "Initial
Public Offering"), additional shares of its common stock, par value $.001 per
share ("Common Stock");

         WHEREAS, it is appropriate and desirable to set forth certain
agreements that will govern certain matters relating to the Separation and
the Initial Public Offering and the relationship of Phoenix and inSilicon and
their respective subsidiaries after the Initial Public Offering.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, provisions and covenants
contained in this Agreement, the parties hereby agree as follows:

                                ARTICLE I

                               DEFINITIONS

         Section 1.1. DEFINITIONS. As used herein, the following terms have
the following meanings:

         "ACTION" means any claim, suit, arbitration, inquiry, proceeding or
investigation by or before any court, governmental or regulatory or
administrative agency or commission or any other tribunal or other
Governmental Authority.

         "AFFILIATE" of any specified Person means any other Person that,
directly or indirectly, controls, is controlled by or is under common control
with such specified Person.

         "AGREEMENT" has the meaning set forth in the preamble, as such
agreement may be amended and supplemented from time to time in accordance
with its terms.

<PAGE>

         "ANCILLARY AGREEMENTS" means each of the following agreements
between Phoenix and inSilicon dated as of November 30, 1999, as the same may
be amended from time to time: the Services and Cost-Sharing Agreement, the
Employee Matters Agreement, the Tax-Sharing Agreement, the Registration
Rights Agreement and the Technology Distributor Agreement.

         "BUSINESS" has the meaning set forth in the first recital of this
Agreement.

         "CLOSING DATE" means the first time at which any shares of Common
Stock are sold to the Underwriters pursuant to the Initial Public Offering in
accordance with the terms of the Underwriting Agreement.

         "COMMISSION" means the Securities and Exchange Commission.

         "COMMON STOCK" has the meaning set forth in the second recital of
this Agreement.

         "COMPANY BYLAWS" means the bylaws of inSilicon in the form to take
effect immediately prior to the Closing Date filed as an exhibit to the
Registration Statement.

         "COMPANY CERTIFICATE" means the restated certificate of
incorporation of inSilicon in the form to take effect immediately prior to
the Closing Date filed as an exhibit to the Registration Statement.

          "CONTRIBUTION AGREEMENT" means that certain Contribution Agreement
between inSilicon and Phoenix dated as of November 30, 1999, as the same may
be amended from time to time.

         "DISPUTES" has the meaning set forth in Section 6.1.

          "EFFECTIVE INITIAL PUBLIC OFFERING DATE" means the date on which
the Registration Statement is declared effective by the Commission.

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

         "GOVERNMENTAL AUTHORITY" means any federal, state, local, foreign or
international court, government, department, commission, board, bureau,
agency, official or other regulatory, administrative or governmental
authority.

         "INDEMNIFIED PARTY" has the meaning set forth in Section 3.4.

         "INDEMNIFYING PARTY" has the meaning set forth in Section 3.4.

         "INFORMATION" means information, whether or not patentable or
copyrightable, in written, oral, electronic or other tangible or intangible
forms, stored in any medium, including studies, reports, records, books,
contracts, instruments, surveys, discoveries, ideas, concepts, know-how,
techniques, designs, specifications drawings, blueprints, diagrams, models,
prototypes, samples, flow charts, data, computer data, disks, diskettes,
tapes, computer programs or other software, marketing plans, customer names,
communications by or to attorneys (including attorney-client privileged
communications), memos and other materials prepared by attorneys or under
their

                                      2
<PAGE>

direction (including attorney work product), and other technical, financial,
employee or business information or data.

         "INITIAL PUBLIC OFFERING" has the meaning set forth in the second
recital of this Agreement.

         "INSILICON CONTRACT" shall have the meaning set forth in the
Contribution Agreement.

         "INSILICON INDEMNITEES" has the meaning set forth in Section 3.3.

         "INSILICON'S AUDITORS" has the meaning set forth in Section 5.2(a).

         "INSURANCE CHARGES" has the meaning set forth in Section 4.3(c).

         "LIABILITY" shall have the meaning set forth in the Contribution
Agreement.

         "PERSON" means an individual, a general or limited partnership, a
corporation, a trust, a joint venture, an unincorporated organization, a
limited liability entity, any other entity and any Governmental Authority.

         "PHOENIX'S AUDITORS" has the meaning set forth in Section 5.2(b).

         "PHOENIX GROUP" means Phoenix and each Person (other than inSilicon
and its subsidiaries) that is an Affiliate of Phoenix immediately after the
Separation Date.

          "PHOENIX INDEMNITEES" has the meaning set forth

         "POLICY" has the meaning set forth in Section 4.3(a).

         "PROSPECTUS" means each preliminary, final or supplemental
prospectus forming a part of the Registration Statement.

         "REGISTRATION STATEMENT" means the registration statement on Form
S-1 filed by inSilicon with the Commission to effect the registration of the
Common Stock pursuant to the Securities Act, as such registration statement
may be amended from time to time.

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         "SEMICONDUCTOR INTELLECTUAL PROPERTY LIABILITIES" shall have the
meaning set forth in the Contribution Agreement.

         "SEPARATION" has the meaning set forth in the second recital of this
Agreement.

         "SEPARATION DATE" means November 30, 1999.

          "TAX" or "TAXES" has the meaning set forth in the Tax-Sharing
Agreement.

         "THIRD-PARTY CLAIM" has the meaning set forth in Section 3.5.

                                      3
<PAGE>

         Unless otherwise specified, any reference to any "subsidiary" or
"subsidiaries" of Phoenix shall not include inSilicon.

                                   ARTICLE II

                           THE INITIAL PUBLIC OFFERING

         Section 2.1. COOPERATION BEFORE TO THE INITIAL PUBLIC OFFERING. (a)
TRANSACTIONS BEFORE THE INITIAL PUBLIC OFFERING.

                  (i) Subject to the conditions specified in Section 3.3,
         Phoenix and inSilicon shall use their reasonable efforts to consummate
         the Initial Public Offering. Such actions shall include, but not
         necessarily be limited to, those specified in this Section 2.1.

                  (ii) inSilicon shall file the Registration Statement, and such
         amendments or supplements thereto, as may be necessary in order to
         cause the same to become and remain effective as required by law or by
         the Underwriters, including, but not limited to, filing such amendments
         to the Registration Statement as may be required by the Underwriting
         Agreement, the Commission or federal, state or foreign securities laws.
         inSilicon also shall prepare, file with the Commission and cause to
         become effective a registration statement registering the Common Stock
         under the Exchange Act, and any registration statements or amendments
         thereof which are required to reflect the establishment of, or
         amendments to, any employee benefit and other plans necessary or
         appropriate in connection with the Separation and the Initial Public
         Offering or the other transactions contemplated by this Agreement and
         the Ancillary Agreements.

                  (iii) inSilicon shall enter into the Underwriting Agreement,
         in form and substance reasonably satisfactory to inSilicon and shall
         comply with its obligations thereunder.

                  (iv) Phoenix and inSilicon shall consult with each other and
         the Underwriters regarding the timing, pricing and other material
         matters with respect to the Initial Public Offering.

                  (v) inSilicon shall use its best efforts to take all such
         action as may be necessary or appropriate under state securities and
         blue sky laws of the United States (and any comparable laws under any
         foreign jurisdictions) in connection with the Initial Public Offering.

                  (vi) inSilicon shall prepare, file and use best efforts to
         seek to make effective, a listing application for quotation of the
         Common Stock issued in the Initial Public Offering in the Nasdaq
         National Market, subject to official notice of issuance.

                  (vii) inSilicon shall participate in the preparation of
         materials and presentations as the Underwriters shall deem necessary or
         desirable.

                  (viii) inSilicon shall pay the costs and expenses set forth in
         Section 8.2.

                                      4
<PAGE>

         (b) PROCEEDS OF THE INITIAL PUBLIC OFFERING. The Initial Public
Offering will consist of a primary offering of Common Stock by inSilicon.
inSilicon will receive the net proceeds of the Initial Public Offering, but
shall remain subject to any obligations to Phoenix under this Agreement, the
Contribution Agreement or any Ancillary Agreement required to be paid
therefrom .

         Section 2.2. CONDITIONS PRECEDENT TO THE INITIAL PUBLIC OFFERING. In
no event shall the Initial Public Offering occur unless the following
conditions shall, unless waived by Phoenix in its sole discretion, have been
satisfied:

         (a) The Registration Statement shall have been filed and declared
effective by the Commission, and there shall be no stop-order in effect with
respect thereto.

         (b) The actions and filings with regard to state securities and blue
sky laws of the United States (and any comparable laws under any foreign
jurisdictions) described in Section 2.1 shall have been taken and, where
applicable, have become effective or been accepted.

         (c) inSilicon's Board of Directors, as named in the Registration
Statement, shall have been elected by Phoenix, as sole stockholder of
inSilicon, and the Company Certificate and Company Bylaws shall be in effect.

         (d) inSilicon and Phoenix shall have entered into the Underwriting
Agreement and all conditions to the obligations of inSilicon and the
Underwriters shall have been satisfied or waived.

         (e) The Common Stock shall have been approved for quotation in the
Nasdaq National Market, subject to official notice of issuance.

         (f) Each of the Ancillary Agreements, in form and substance
satisfactory to Phoenix, shall have been executed by the parties thereto and
shall remain in full force and effect and each of the transactions
contemplated by the Ancillary Agreements to be consummated on or before the
Effective Initial Public Offering Date shall have been consummated.

         (g) No preliminary or permanent injunction or other order, decree or
ruling issued by a court of competent jurisdiction or by a government,
regulatory or administrative agency or commission, and no statute, rule,
regulation or executive order promulgated or enacted by any Governmental
Authority, shall be in effect preventing the Initial Public Offering or any
of the other transactions contemplated by this Agreement or any Ancillary
Agreement shall be in effect.

         (h) Phoenix shall have been released from any Liabilities,
guarantees or other obligations with respect to any indebtedness or otherwise
of inSilicon or its subsidiaries.

         (i) Such other actions as the parties may, based upon the advice of
counsel, reasonably request to be taken before the Initial Public Offering in
order to assure the successful completion of the Initial Public Offering and
the other transactions contemplated by this Agreement shall have been taken.

         (j) This Agreement shall not have been terminated.

                                      5
<PAGE>

                                 ARTICLE III

                               INDEMNIFICATION

         Section 3.1. RELEASE OF CLAIMS. (a) Except as provided in Section
3.1(c), effective as of the Separation Date, inSilicon does hereby, for
itself and its Affiliates (other than any member of the Phoenix Group),
successors and assigns, and all Persons who at any time prior to the
Separation Date have been stockholders, directors, officers, agents or
employees of inSilicon (in each case, in their respective capacities as
such), remise, release and forever discharge Phoenix and each member of the
Phoenix Group, their respective successors and assigns, and all Persons who
at any time prior to the Separation Date have been stockholders, directors,
officers, agents or employees of Phoenix or any member of the Phoenix Group
(in each case, in their respective capacities as such), and their respective
heirs, executors, administrators, successors and assigns, from any and all
Liabilities whatsoever, whether at law or in equity (including any right of
contribution), whether arising under any contract or agreement, by operation
of law or otherwise, existing or arising from any facts or events occurring
or failing to occur or alleged to have occurred or to have failed to occur or
any conditions existing or alleged to have existed on or before the
Separation Date, including in connection with the transactions and all other
activities to implement the Separation and the Initial Public Offering.

         (b) Except as provided in Section 3.1(c), effective as of the
Separation Date, Phoenix does hereby, for itself and each member of the
Phoenix Group, successors and assigns, and all Persons who at any time prior
to the Separation Date have been stockholders, directors, officers, agents or
employees of Phoenix or any member of the Phoenix Group (in each case, in
their respective capacities as such), remise, release and forever discharge
inSilicon and its subsidiaries, their respective successors and assigns, and
all Persons who at any time prior to the Separation Date have been
stockholders, directors, officers, agents or employees of inSilicon or any of
its subsidiaries (in each case, in their respective capacities as such), and
their respective heirs, executors, administrators, successors and assigns,
from any and all Liabilities whatsoever, whether at law or in equity
(including any right of contribution), whether arising under any contract or
agreement, by operation of law or otherwise, existing or arising from any
facts or events occurring or failing to occur or alleged to have occurred or
to have failed to occur or any conditions existing or alleged to have existed
on or before the Separation Date, including in connection with the
transactions and all other activities to implement the Separation and the
Initial Public Offering.

         (c) Nothing contained in Sections 3.1(a) or (b) shall impair any
right of any Person to enforce this Agreement, the Contribution Agreement or
any Ancillary Agreement. Nothing contained in Sections 3.1(a) and (b) shall
release any Person from:

                  (i) any Liability, contingent or otherwise, assumed,
         transferred or assigned to such Person in accordance with, or any other
         Liability of any Person under, this Agreement, the Contribution
         Agreement or any Ancillary Agreement;

                  (ii) any Liability that the parties may have with respect to
         indemnification or contribution pursuant to this Agreement for claims
         brought against the parties by third Persons, which Liability shall be
         governed by the provisions of this Article III and, if

                                      6
<PAGE>

         applicable, the appropriate provisions of the Contribution Agreement
         or the Ancillary Agreements; or

                  (iii) any Liability the release of which would result in the
         release of any Person other than a Person released pursuant to this
         Section 3.1; provided that the parties agree not to bring suit or
         permit any of their subsidiaries to bring suit against any Person with
         respect to any Liability to the extent that such Person would be
         released with respect to such Liability by this Section 3.1 but for the
         provision of this clause (iii).

         (d) inSilicon shall not make, and shall not permit any of its
subsidiaries to make, any claim or demand or commence any Action asserting
any claim or demand, including any claim of contribution or indemnification,
against Phoenix or any member of the Phoenix Group or any other Person
released pursuant to Section 3.1(a), with respect to any Liabilities released
pursuant to Section 3.1(a). Phoenix shall not make, and shall not permit any
member of the Phoenix Group to make, any claim or demand or commence any
Action asserting any claim or demand, including any claim of contribution or
indemnification, against inSilicon or any of its subsidiaries or any other
Person released pursuant to Section 3.1(b), with respect to any Liabilities
released pursuant to Section 3.1(b).

         (e) It is the intention of each of Phoenix and inSilicon by virtue
of the provisions of this Section 3.1 to provide for a full and complete
release and discharge of all Liabilities existing or arising from all acts
and events occurring or failing to occur or alleged to have occurred or
failed to occur and all conditions existing or alleged to have existed on or
before the Separation Date, between or among inSilicon or any of its
subsidiaries, on the one hand, and Phoenix or any member of the Phoenix
Group, on the other hand (including any contractual agreements or
arrangements existing or alleged to exist between or among such Persons on or
before the Separation Date), except as expressly set forth in Section 3.1(c).
At any time, at the request of the other party, each party shall execute and
deliver, or shall cause such other appropriate Persons to execute and
deliver, releases reflecting the provisions hereof.

         Section 3.2. INDEMNIFICATION BY INSILICON. Except as provided in
Section 3.5 and except as otherwise expressly provided in the Contribution
Agreement or any of the Ancillary Agreements, from and after the Separation
Date, inSilicon shall indemnify, defend and hold harmless Phoenix, each
member of the Phoenix Group and each of their respective directors, officers,
employees and agents and each of the heirs, executors, successors and assigns
of any of the foregoing (collectively, the "Phoenix Indemnitees") from and
against any and all Liabilities of the Phoenix Indemnitees arising out of,
relating to or resulting from any of the following items (without
duplication):

         (a) the failure of inSilicon or any other Person to pay, perform or
otherwise promptly discharge any Semiconductor Intellectual Property
Liability or inSilicon Contract in accordance with their respective terms,
whether before or after the Separation Date;

         (b) the Business, any Semiconductor Intellectual Property Liability
or any inSilicon Contract;

                                      7
<PAGE>

         (c) any breach by inSilicon or any of its subsidiaries of this
Agreement, the Contribution Agreement or any of the Ancillary Agreements; and

         (d) any untrue statement or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading,
with respect to all information contained in the Registration Statement or
Prospectus, other than information pertaining solely to Phoenix.

         Section 3.3. INDEMNIFICATION BY PHOENIX. Except as provided in
Section 3.5 and except as otherwise expressly provided in the Contribution
Agreement or any of the Ancillary Agreements, from and after the Separation
Date, Phoenix shall indemnify, defend and hold harmless inSilicon and each of
its subsidiaries and each of their respective directors, officers, employees
and agents and each of the heirs, executors, successors and assigns of any of
the foregoing (collectively, the "inSilicon Indemnitees") from and against
any and all Liabilities of the inSilicon Indemnitees arising out of, relating
to or resulting from any of the following items (without duplication):

         (a) the failure of Phoenix or any other member of the Phoenix Group
or any other Person to pay, perform or otherwise promptly discharge any
Liability of the Phoenix Group other than the Semiconductor Intellectual
Property Liabilities in accordance with its terms, whether before or after
the Separation Date;

         (b) any Liability of any member of the Phoenix Group other than the
Semiconductor Intellectual Property Liabilities and the business of any
member of the Phoenix group other than the Business;

         (c) any breach by Phoenix or any member of the Phoenix Group of this
Agreement, the Contribution Agreement or any of the Ancillary Agreements; and

         (d) any untrue statement or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading,
with respect to the information pertaining solely to Phoenix contained in the
Registration Statement or Prospectus.

         Section 3.4. NOTICE AND PAYMENT OF CLAIMS. If any Phoenix Indemnitee
or inSilicon Indemnitee (the "Indemnified Party") determines that it is or
may be entitled to indemnification under this Article III (other than in
connection with any Action subject to Section 3.5), the Indemnified Party
shall deliver to the Person from whom such indemnification is sought (the
"Indemnifying Party"), a written notice specifying, to the extent reasonably
practicable, the basis for its claim for indemnification and the amount for
which the Indemnified Party reasonably believes it is entitled to be
indemnified. After the Indemnifying Party shall have been notified of the
amount for which the Indemnified Party seeks indemnification, the
Indemnifying Party shall, within 30 days after receipt of such notice, either
(i) pay the Indemnified Party such amount in cash or other immediately
available funds (or reach agreement with the Indemnified Party as to a
mutually agreeable alternative payment schedule) or (ii) object to the claim
for indemnification or the amount thereof by giving the Indemnified Party
written notice setting forth the grounds therefor. Any objection shall be
resolved in accordance with Article VI. If the Indemnifying

                                     8
<PAGE>

Party does not give such notice within such 30-day period, the Indemnifying
Party shall be deemed to have acknowledged its liability for such claim and
the Indemnified Party may exercise any and all of its rights under applicable
law to collect such amount.

         Section 3.5. NOTICE AND DEFENSE OF THIRD-PARTY CLAIMS. Promptly
following the earlier of (A) receipt of written notice of the commencement by
a third party of any Action against or otherwise involving any Indemnified
Party or (B) receipt of written information from a third party alleging the
existence of a claim against an Indemnified Party, in either case, with
respect to which indemnification may be sought pursuant to this Agreement (a
"Third-Party Claim"), the Indemnified Party shall give the Indemnifying Party
prompt written notice thereof. Failure of the Indemnified Party to give
notice as provided in this Section 3.5 shall not relieve the Indemnifying
Party of its obligations under this Agreement, except to the extent that the
Indemnifying Party is prejudiced by such failure to give notice. Such notice
shall describe the Third-Party Claim in reasonable detail.

         (a) Within 30 days after receipt of such notice, the Indemnifying
Party may by giving written notice thereof to the Indemnified Party, (i)
elect to assume the defense of such Third-Party Claim at its sole cost and
expense or (ii) object to the claim of indemnification for such Third-Party
Claim setting forth the grounds therefor. Any objection shall be resolved in
accordance with Article VI. If the Indemnifying Party does not give such
notice within such 30-day period, the Indemnifying Party shall be deemed to
have acknowledged its liability for such Third-Party Claim.

         (b) Any defense of a Third-Party Claim as to which the Indemnifying
Party has elected to assume the defense shall be conducted by counsel
employed by the Indemnifying Party and reasonably satisfactory to Phoenix in
the case of Phoenix Indemnitees and inSilicon in the case of inSilicon
Indemnitees. The Indemnified Party shall have the right to participate in
such proceedings and to be represented by counsel of its own choosing at the
Indemnified Party's sole cost and expense; PROVIDED that if the defendants or
parties against which relief is sought in any such claim include both the
Indemnifying Party and one or more Indemnified Parties and, in the reasonable
judgment of Phoenix in the case of Phoenix Indemnitees and inSilicon in the
case of inSilicon Indemnitees, a conflict of interest between such
Indemnified Parties and such Indemnifying Party exists in respect of such
claim, such Indemnified Parties shall have the right to employ one firm of
counsel selected by Phoenix for Phoenix Indemnitees or inSilicon for
inSilicon Indemnitees and in that event the reasonable fees and expenses of
such separate counsel (but not more than one separate counsel reasonably
satisfactory to the Indemnifying Party) shall be paid by such Indemnifying
Party. If the Indemnifying Party assumes the defense of a Third-Party Claim,
the Indemnifying Party may settle or compromise the claim without the prior
written consent of the Indemnified Party; PROVIDED that without the prior
written consent of Phoenix in the case of Phoenix Indemnitees and inSilicon
in the case of inSilicon Indemnitees, the Indemnifying Party may not agree to
any such settlement unless as a condition to such settlement the Indemnified
Party receives a written release from any and all liability relating to such
Third-Party Claim and such settlement or compromise does not include any
remedy or relief to be applied to or against the Indemnified Party, other
than monetary damages for which the Indemnifying Party shall be responsible
hereunder.

                                      9
<PAGE>

         (c) If the Indemnifying Party does not assume the defense of a
Third-Party Claim for which it has acknowledged liability for indemnification
under this Article III, Phoenix in the case of Phoenix Indemnitees and
inSilicon in the case of inSilicon Indemnitees may pursue the defense of such
Third-Party Claim and choose one firm of counsel in connection therewith. The
Indemnifying Party is required to reimburse Phoenix or inSilicon, as the case
may be, on a current basis for its reasonable expenses of investigation,
reasonable attorneys' fees and reasonable out-of-pocket expenses incurred by
Phoenix in the case of Phoenix Indemnitees and inSilicon in the case of
inSilicon Indemnitees in defending against such Third-Party Claim and the
Indemnifying Party shall be bound by the result obtained with respect
thereto, PROVIDED that the Indemnifying Party shall not be liable for any
settlement effected without the consent of the Indemnifying Party, which
consent shall not be unreasonably withheld.

         (d) The Indemnifying Party shall pay to the Indemnified Party in
cash the amount for which the Indemnified Party is entitled to be indemnified
(if any) no later than the later of (i) the date on which the Indemnified
Party makes any payment in satisfaction (partial or otherwise) of the
Third-Party Claim or (ii) the date on which such Indemnifying Party's
objection, if any, to its responsibility for indemnification under this
Article III has been resolved pursuant to Article VI or by settlement or
compromise or the final nonappealable judgment of a court of competent
jurisdiction.

         Section 3.6. INSURANCE PROCEEDS. The amount that any Indemnifying
Party is or may be required to pay to any Indemnified Party pursuant to this
Article III shall be reduced (including, without limitation, retroactively)
by any insurance proceeds or other amounts actually recovered by or on behalf
of such Indemnified Parties in reduction of the related Liability. If an
Indemnified Party shall have received the payment required by this Agreement
from an Indemnifying Party in respect of a Liability and shall subsequently
actually receive insurance proceeds, or other amounts in respect of such
Liability as specified above, then such Indemnified Party shall pay to such
Indemnifying Party a sum equal to the amount of such insurance proceeds or
other amounts actually received after deducting therefrom all of the
Indemnifying Party's costs and expenses associated with such Liability.

         Section 3.7. CONTRIBUTION. If the indemnification provided for in
this Article III is unavailable to an Indemnified Party in respect of any
Liability arising out of or related to information contained in or omitted
from the Registration Statement or the Prospectus, then the inSilicon
Indemnitees, or Phoenix Indemnitees, as the case may be, in lieu of
indemnifying the Phoenix Indemnitees or inSilicon Indemnitees, as the case
may be, shall contribute to the amount paid or payable by the Phoenix
Indemnitees or inSilicon Indemnitees, as the case may be, as a result of such
Liability in such proportion as is appropriate to reflect the relative fault
of inSilicon, on the one hand, and Phoenix, on the other hand, in connection
with the statements or omissions which resulted in such Liability. If the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information pertaining
solely to Phoenix, then Phoenix shall bear any resulting Liability;
otherwise, inSilicon shall bear any resulting Liability.

         Section 3.8. SUBROGATION. In the event of payment by an Indemnifying
Party to any Indemnified Party in connection with any Third-Party Claim, such
Indemnifying Party shall be subrogated to and shall stand in the first place
of such Indemnified Party as to any events or

                                      10
<PAGE>

circumstances in respect of which such Indemnified Party may have any right
or claim relating to such Third-Party Claim. Such Indemnified Party shall
cooperate with such Indemnifying Party in a reasonable manner, and at the
cost and expense of such Indemnifying Party, in prosecuting any subrogated
right or claim.

         Section 3.9. NO THIRD-PARTY BENEFICIARIES. This Article III shall
inure to the benefit of, and be enforceable by Phoenix, the Phoenix
Indemnitees, inSilicon and the inSilicon Indemnitees and their respective
successors and permitted assigns. The indemnification provided for by this
Article III shall not inure to the benefit of any other third party or
parties and shall not relieve any insurer who would otherwise be obligated to
pay any claim of the responsibility with respect thereto or, solely by virtue
of the indemnification provisions hereof, provide any subrogation rights with
respect thereto and each party agrees to waive such rights against the other
to the fullest extent permitted.

         Section 3.10. REMEDIES CUMULATIVE. The remedies provided in this
Article III shall be cumulative and shall not preclude assertion by any
Indemnified Party of any other rights or the seeking of any and all other
remedies against an Indemnifying Party. The procedures set forth in this
Article III, however, shall be the exclusive procedures governing any
indemnity action brought under this Article III or otherwise relating to
Liabilities.

         Section 3.11. SURVIVAL OF INDEMNITIES. The rights and obligations of
each of Phoenix and inSilicon and their respective Indemnitees under this
Article III shall survive the sale or other transfer by it of any assets or
businesses or the assignment by it of any Liabilities.

         Section 3.12. AFTER-TAX INDEMNIFICATION PAYMENTS. Except as
otherwise expressly provided in this Agreement, the Contribution Agreement or
in an Ancillary Agreement, indemnification payments made by either party
under this Article shall give effect to, and be reduced by the value of, any
and all applicable deductions, losses, credits, offsets or other items for
Federal, state or other Tax purposes attributable to the payment of the
indemnified Liability by the Indemnified Party.

                                   ARTICLE IV

                           CERTAIN ADDITIONAL MATTERS

         Section 4.1. COMPANY OFFICERS AND BOARD OF DIRECTORS. On or prior to
the Closing Date, Phoenix shall take and shall cause inSilicon to take all
actions necessary to appoint as officers and directors of inSilicon those
persons named in the Registration Statement to constitute the officers and
directors of inSilicon on the Closing Date.

         Section 4.2. THE COMPANY CERTIFICATE OF INCORPORATION AND BYLAWS.
Prior to the Closing Date, Phoenix shall take all action necessary to cause
the Company Certificate and Company Bylaws to be amended and restated
substantially in the form attached to the Registration Statement as exhibits
thereto.

         Section 4.3. INSURANCE POLICIES AND CLAIMS ADMINISTRATION.

                                      11
<PAGE>

         (a) MAINTENANCE OF INSURANCE COVERAGE PRIOR TO SEPARATION DATE.
Phoenix and inSilicon shall use reasonable efforts to maintain in full force
and effect at all times up to and including the Separation Date and for the
periods set forth in the Services and Cost-Sharing Agreement, its current
property and casualty insurance programs, including, without limitation,
primary and excess general liability, automobile, workers' compensation,
property and crime insurance policies (collectively, the "Policies" and
individually, a "Policy"). inSilicon and its subsidiaries shall retain with
respect to any insured claims relating to periods before the Separation Date
or termination of the applicable period set forth in the Services and
Cost-Sharing Agreement with respect to each such Policy (whichever is later),
all of their respective rights, benefits and privileges, if any, under such
Policies. To the extent not already provided for by the terms of a Policy,
Phoenix shall use reasonable efforts to cause inSilicon and its subsidiaries,
as appropriate, to be named as additional insureds under such Policy in
respect of Covered Claims arising or relating to periods prior to the
Separation Date or termination of the applicable period set forth in the
Services and Cost-Sharing Agreement with respect to each such Policy
(whichever is later); PROVIDED, however, that nothing contained herein shall
be construed to require Phoenix or any of its subsidiaries to pay any
additional premium or other charges in respect to, or waive or otherwise
limit any of its rights, benefits or privileges under, any such Policy to
effect the naming of inSilicon and its subsidiaries as such additional
insureds except as required by the Services and Cost-Sharing Agreement and
then only to the extent the charge, if any, is borne by inSilicon.

         (b) COMPANY RESPONSIBLE FOR ESTABLISHING INSURANCE COVERAGE ON AND
AFTER SEPARATION DATE. Except as provided under the Services and Cost-Sharing
Agreement or any other Ancillary Agreement, commencing on and as of the
Separation Date, inSilicon and each of its subsidiaries shall be responsible
for establishing and maintaining its own separate insurance programs
(including, without limitation, primary and excess general liability,
automobile, workers, compensation, property, director and officer liability,
fire, crime, surety and other similar insurance policies) for activities and
claims relating to any period on or after the Separation Date involving
inSilicon or any of its subsidiaries. Notwithstanding any other agreement or
understanding to the contrary, except as set forth in the Services and
Cost-Sharing Agreement or any such Ancillary Agreement or Section 4.3(c) with
respect to claims administration and financial administration of the
Policies, neither Phoenix nor any of its subsidiaries shall have any
responsibility for or obligation to inSilicon or its subsidiaries relating to
liability and casualty insurance matters for any period, whether before, at
or after the Separation Date except to the extent set forth in the Services
and Cost-Sharing Agreement.

         (c) ADMINISTRATION AND PROCEDURE. (i) Phoenix or a subsidiary of
Phoenix, as appropriate, shall be responsible for the claims administration
and financial administration of all Policies for insured claims relating to
the assets, ownership or operation of the Business prior to the Separation
Date or termination of the applicable period set forth in the Services and
Cost-Sharing Agreement with respect to each such Policy (whichever is later);
PROVIDED, HOWEVER, that such retention by Phoenix of the Policies and the
responsibility for claims administration and financial administration of the
Policies are in no way intended to limit, inhibit or preclude any right to
insurance coverage for any insured claims under the Policies by inSilicon.
Phoenix shall direct each insurance carrier to pay to inSilicon any proceeds
for the insured claims of inSilicon or, if Phoenix receives such proceeds, it
shall forward them promptly to inSilicon. inSilicon or a subsidiary thereof,
as appropriate, shall be responsible for all administrative and financial
matters

                                      12
<PAGE>

relating to insurance policies established and maintained by inSilicon and
its subsidiaries for claims relating to any period on or after the Separation
Date involving inSilicon or any of its subsidiaries.

                  (ii) inSilicon shall notify Phoenix of any insured claim
         relating to inSilicon or a subsidiary thereof under one or more of the
         Policies, and inSilicon agrees to cooperate and coordinate with Phoenix
         concerning any strategy Phoenix may reasonably elect to pursue to
         secure coverage and payment for such insured claim by the appropriate
         insurance carrier. Notwithstanding the foregoing, Phoenix shall not be
         entitled to settle any insured claim relating to inSilicon or a
         subsidiary thereof without inSilicon's consent, which consent will not
         be unreasonably withheld.

                  (iii) inSilicon or an appropriate subsidiary thereof shall
         assume responsibility for, and shall pay to the appropriate insurance
         carriers or otherwise, any premiums, retrospectively-rated premiums,
         defense costs, indemnity payments, deductibles, retentions or other
         charges, as appropriate (collectively, "Insurance Charges"), whenever
         arising, which shall become due and payable under the terms and
         conditions of any applicable Policy in respect of any liabilities,
         losses, claims, actions or occurrences, whenever arising or becoming
         known, involving or relating to any of the assets, businesses,
         operations or liabilities of inSilicon or any of its subsidiaries, to
         the extent set forth in Section 4.3(a) and any such charges that relate
         to the period after the Separation Date or, if later, termination of
         the applicable period set forth in the Services and Cost-Sharing
         Agreement with respect to each such Policy. To the extent that the
         terms of any applicable Policy provide that Phoenix or a subsidiary
         thereof, as appropriate, shall have an obligation to pay or guarantee
         the payment of any Insurance Charges, Phoenix or such subsidiary shall
         be entitled to demand that inSilicon or a subsidiary thereof make such
         payment directly to the Person entitled thereto. In connection with any
         such demand, Phoenix shall submit to inSilicon or a subsidiary thereof
         a copy of any invoice received by Phoenix or a subsidiary pertaining to
         such Insurance Charges, together with appropriate supporting
         documentation, if available. In the event that inSilicon or its
         subsidiary fails to pay any Insurance Charges when due and payable,
         whether at the request of the party entitled to payment or upon demand
         by Phoenix or a subsidiary of Phoenix, Phoenix or a subsidiary of
         Phoenix may (but shall not be required to) pay such Insurance Charges
         for and on behalf of inSilicon or its subsidiary and, thereafter,
         inSilicon or its subsidiary shall forthwith reimburse Phoenix or such
         subsidiary of Phoenix for such payment.

         Section 4.4. NON-SOLICITATION OF EMPLOYEES. Each party agrees not to
directly solicit or recruit the other party's employees for a period of one
year after the Separation Date if such solicitation or recruitment would be
disruptive or damaging or would interfere with the operation or business of
the other party. This prohibition on solicitation does not apply to actions
taken by a party (i) as a result of an employee's affirmative response to a
general recruitment effort carried out through a public solicitation or a
general solicitation or (ii) as a result of an employee's initiative.

                                      13
<PAGE>

                                  ARTICLE V

                            ACCESS TO INFORMATION

         Section 5.1. AGREEMENT FOR EXCHANGE OF INFORMATION. Each of Phoenix
and inSilicon agrees to provide, or cause to be provided, to each other, at
any time before or after the Separation Date, as soon as reasonably
practicable after written request therefor, any Information in the possession
or under the control of such party that the requesting party reasonably needs
(i) to comply with reporting, disclosure, filing or other requirements
imposed on the requesting party (including under applicable securities laws)
by a Governmental Authority having jurisdiction over the requesting party,
(ii) for use in any other judicial, regulatory, administrative or other
proceeding or in order to satisfy audit, accounting, claims, regulatory,
litigation or other similar requirements, (iii) to comply with its
obligations under this Agreement, the Contribution Agreement or any ancillary
Agreement or (iv) in connection with the ongoing businesses of Phoenix or
inSilicon, as the case may be; provided, however, that in the event that any
party determines that any such provision of Information could be commercially
detrimental, violate any law or agreement, or waive any attorney-client
privilege, the parties shall take all reasonable measures to permit the
compliance with such obligations in a manner that avoids any such harm or
consequence.

         (a) INTERNAL ACCOUNTING CONTROLS; FINANCIAL INFORMATION. Except as
provided in the Services and Cost-Sharing Agreement, after the Separation
Date, (i) each party shall maintain in effect at its own cost and expense
adequate systems and controls for its business to the extent necessary to
enable the other party to satisfy its reporting, accounting, audit and other
obligations, and (ii) each party shall provide, or cause to be provided, to
the other party and its subsidiaries in such form as such requesting party
shall request, at no charge to the requesting party, all financial and other
data and information as the requesting party determines necessary or
advisable in order to prepare its financial statements and reports or filings
with any Governmental Authority.

         (b) OWNERSHIP OF INFORMATION. Any Information owned by a party that
is provided to a requesting party pursuant to this Section 5.1 shall be
deemed to remain the property of the providing party. Unless specifically set
forth herein, nothing contained in this Agreement shall be construed as
granting or conferring rights of license or otherwise in any such Information.

         (c) RECORD RETENTION. To facilitate the possible exchange of
Information pursuant to this Section 5.1 and other provisions of this
Agreement after the Separation Date, each party agrees to use its reasonable
commercial efforts to retain all Information in their respective possession
or control on the Separation Date substantially in accordance with the
policies of Phoenix as in effect on the Separation Date. However, except as
set forth in the Tax Sharing Agreement, at any time after the Separation
Date, each party may amend their respective record retention policies at such
party's discretion; PROVIDED, however, that if a party desires to effect the
amendment within three (3) years after the Separation Date, the amending
party must give thirty (30) days prior written notice of such change in the
policy to the other party to this Agreement. No party will destroy, or permit
any of its subsidiaries to destroy, any Information that exists on the
Separation Date (other than Information that is permitted to be destroyed
under the current record retention policy of Phoenix) without first using its
reasonable commercial

                                      14
<PAGE>

efforts to notify the other party of the proposed destruction and giving the
other party the opportunity to take possession of such Information prior to
such destruction.

         (d) LIMITATION OF LIABILITY. No party shall have any liability to
any other party in the event that any Information exchanged or provided
pursuant to this Section 5.1 is found to be inaccurate, in the absence of
willful misconduct by the party providing such Information. No party shall
have any liability to any other party if any Information is destroyed or lost
after reasonable commercial efforts by such party to comply with the
provisions of Section 5.1(c).

         (e) OTHER AGREEMENTS PROVIDING FOR EXCHANGE OF INFORMATION. The
rights and obligations granted under this Section 5.1 are subject to any
specific limitations, qualifications or additional provisions on the sharing,
exchange or confidential treatment of Information set forth in this
Agreement, the Contribution Agreement and any Ancillary Agreement.

         (f) PRODUCTION OF WITNESSES; RECORDS; COOPERATION. After the
Separation Date, except in the case of a legal or other proceeding by one
party against the other party, each party shall use its reasonable commercial
efforts to make available to the other party, upon written request, the
former, current and future directors, officers, employees, other personnel
and agents of such party as witnesses and any books, records or other
documents within its control or which it otherwise has the ability to make
available, to the extent that any such Person (giving consideration to
business demands of such directors, officers, employees, other personnel and
agents) or books, records or other documents may reasonably be required in
connection with any legal, administrative or other proceeding in which the
requesting party may from time to time be involved, regardless of whether
such legal, administrative or other proceeding is a matter with respect to
which indemnification may be sought hereunder. The requesting party shall
bear all costs and expenses in connection therewith.

         Section 5.2. AUDITORS AND AUDITS; ANNUAL AND QUARTERLY STATEMENTS
AND ACCOUNTING. Each party agrees that, for so long as Phoenix is required in
accordance with United States generally accepted accounting principles to
consolidate inSilicon's results of operations and financial position:

         (a) SELECTION OF AUDITORS. inSilicon shall not select a different
accounting firm than Ernst & Young LLP (or its successors) to serve as its
(and its subsidiaries') independent certified public accountants
("inSilicon's Auditors") for purposes of providing an opinion on its
consolidated financial statements without Phoenix's prior written consent
(which shall not be unreasonably withheld).

         (b) DATE OF AUDITORS' OPINION AND QUARTERLY REVIEWS. inSilicon shall
use its reasonable commercial efforts to enable the inSilicon Auditors to
complete their audit such that they will date their opinion on inSilicon's
audited annual financial statements on the same date that Phoenix's
independent certified public accountants ("Phoenix's Auditors") date their
opinion on Phoenix's audited annual financial statements, and to enable
Phoenix to meet its timetable for the printing, filing and public
Dissemination of Phoenix's annual financial statements. inSilicon shall use
its reasonable commercial efforts to enable the inSilicon Auditors to
complete their quarterly review procedures such that they will provide
clearance on

                                      15
<PAGE>

inSilicon's quarterly financial statements on the same date that Phoenix's
Auditors provide clearance on Phoenix's quarterly financial statements.

         (c) ANNUAL AND QUARTERLY FINANCIAL STATEMENTS. inSilicon shall
provide to Phoenix on a timely basis all Information that Phoenix reasonably
requires to meet its schedule for the preparation, printing, filing, and
public dissemination of Phoenix's annual and quarterly financial statements.
Without limiting the generality of the foregoing, inSilicon will provide all
required financial Information with respect to inSilicon and its subsidiaries
to inSilicon's Auditors in a sufficient and reasonable time and in sufficient
detail to permit inSilicon's Auditors to take all steps and perform all
reviews necessary to provide sufficient assistance to Phoenix's Auditors with
respect to Information to be included or contained in Phoenix's annual and
quarterly financial statements. Similarly, Phoenix shall provide to inSilicon
on a timely basis all Information that inSilicon reasonably requires to meet
its schedule for the preparation, printing, filing, and public dissemination
of inSilicon's annual and quarterly financial statements. Without limiting
the generality of the foregoing, Phoenix will provide all required financial
Information with respect to Phoenix and its subsidiaries to Phoenix's
Auditors in a sufficient and reasonable time and in sufficient detail to
permit Phoenix's Auditors to take all steps and perform all reviews necessary
to provide sufficient assistance to inSilicon's Auditors with respect to
Information to be included or contained in inSilicon's annual and quarterly
financial statements.

         (d) IDENTITY OF PERSONNEL PERFORMING THE ANNUAL AUDIT AND QUARTERLY
REVIEWS. inSilicon shall authorize inSilicon's Auditors to make available to
Phoenix's Auditors both the personnel who performed or are performing the
annual audits and quarterly reviews of inSilicon and work papers related to
the annual audits and quarterly reviews of inSilicon, in all cases within a
reasonable time prior to inSilicon's Auditors' opinion date, so that
Phoenix's Auditors are able to perform the procedures they consider necessary
to take responsibility for the work of inSilicon's Auditors as it relates to
Phoenix's Auditors' report on Phoenix's financial statements, all within
sufficient time to enable Phoenix to meet its timetable for the printing,
filing and public dissemination of Phoenix's annual and quarterly statements.
Similarly, Phoenix shall authorize Phoenix's Auditors to make available to
inSilicon's Auditors both the personnel who performed or are performing the
annual audits and quarterly reviews of Phoenix and work papers related to the
annual audits and quarterly reviews of Phoenix, in all cases within a
reasonable time prior to the Auditors' opinion date, so that inSilicon's
Auditors are able to perform the procedures they consider necessary to take
responsibility for the work of Phoenix's Auditors as it relates to
inSilicon's Auditors' report on inSilicon's statements, all within sufficient
time to enable inSilicon to meet its timetable for the printing, filing and
public dissemination of inSilicon's annual and quarterly financial statements.

         (e) ACCESS TO BOOKS AND RECORDS. inSilicon shall provide Phoenix's
internal auditors and their designees access to inSilicon's and its
subsidiaries' books and records so that Phoenix may conduct reasonable audits
relating to the financial statements provided by inSilicon pursuant hereto as
well as to the internal accounting controls and operations of inSilicon and
its subsidiaries. Similarly, Phoenix shall provide inSilicon's internal
auditors and their designees access to Phoenix's and its subsidiaries' books
and records so that inSilicon may conduct reasonable audits relating to the
financial statements provided by Phoenix pursuant hereto as well as to the
internal accounting controls and operations of Phoenix and its subsidiaries.

                                      16
<PAGE>

         (f) NOTICE OF CHANGE IN ACCOUNTING PRINCIPLES. inSilicon shall give
Phoenix as much prior notice as reasonably practical of any proposed
determination of, or any significant changes in, its accounting estimates or
accounting principles from those in effect on the Separation Date. inSilicon
will consult with Phoenix and, if requested by Phoenix, inSilicon will
consult with Phoenix's independent public accountants with respect thereto.
Phoenix shall give inSilicon as much prior notice as reasonably practical of
any proposed determination of, or any significant changes in, its accounting
estimates or accounting principles from those in effect on the Separation
Date.

         (g) CONFLICT WITH THIRD-PARTY AGREEMENTS. Nothing in Sections 5.1
and 5.2 shall require inSilicon to violate any agreement with any third
parties regarding the confidentiality of confidential and proprietary
Information relating to that third party or its business; PROVIDED, however,
that in the event that inSilicon is required under Sections 5.1 and 5.2 to
disclose any such Information, inSilicon shall use commercially reasonable
efforts to seek to obtain such customer's consent to the disclosure of such
Information.

         Section 5.3. CONFIDENTIALITY; PROTECTION.

         (a) CONFIDENTIAL INFORMATION. Except as otherwise expressly provided
in this Agreement, each party and each of its subsidiaries shall hold and
shall cause its respective directors, officers, employees, agents,
consultants and advisors to hold, in strict confidence, unless compelled to
disclose by judicial or administrative process or, in the opinion of its
counsel, by other requirements of law, all Information concerning the other
party (except to the extent that such Information can be shown to have been
(i) in the public domain through no fault of such party, (ii) later lawfully
acquired on a non-confidential basis from other sources by the party to which
it was furnished, (iii) independently generated without reference to any
proprietary or confidential Information of the other party, or (iv)
Information that may be disclosed pursuant to any Ancillary Agreement).
Neither party shall release or disclose any such Information to any other
Person, except its auditors, attorneys, financial advisors, bankers and other
consultants and advisors who shall be advised of and agree to comply with the
provisions of this Section 5.3. For purposes of this Section 5.3,
confidential Information of third parties that is known to, in the possession
of or acquired by a party shall be deemed Information of that party.

         (b) PROTECTIVE ARRANGEMENTS. In the event that either party (or any
of its subsidiaries) either determines on the advice of its counsel that it
is required to disclose any information pursuant to applicable law or
receives any demand under lawful process or from any Governmental Authority
to disclose or provide information of the other party (or any of its
subsidiaries) that is subject to the confidentiality provisions hereof, such
party shall notify the other party prior to disclosing or providing such
Information and shall cooperate at the expense of the requesting party in
seeking any reasonable protective arrangements requested by such other party.
Subject to the foregoing, the Person that received such request may
thereafter disclose or provide Information to the extent required by such law
(as so advised by counsel) or by lawful process or such Governmental
Authority.

         Section 5.4. MAIL. After the Separation Date, each of Phoenix and
inSilicon may receive mail and other communications properly belonging to the
other. Accordingly, at all times

                                      17
<PAGE>

after the Separation Date, each of Phoenix and inSilicon authorizes the other
to receive and open all mail and other communications received by it and not
unambiguously intended for the other party or any of the other party's
officers or directors specifically in their capacities as such, and to retain
the same to the extent that they relate to the business of the receiving
party or, to the extent that they do not relate to the business of the
receiving party and do relate to the business of the other party, or to the
extent that they relate to both businesses, the receiving party shall
promptly contact the other party by telephone for delivery instructions and
such mail or other communications (or, in case the same relate to both
businesses, copies thereof) shall promptly be forwarded to the other party in
accordance with its delivery instructions. The foregoing provisions of this
Section 5.4 shall constitute full authorization to the postal authorities and
courier companies and all other persons to make deliveries to Phoenix or
inSilicon, as the case may be, addressed to either of them or to any of their
officers or directors specifically in their capacities as such. The
provisions of this Section 5.4 are not intended to and shall not be deemed to
constitute an authorization by either Phoenix or inSilicon to permit the
other to accept service of process on its behalf, and neither party is or
shall be deemed to be the agent of the other for service of process purposes
or for any other purpose.

                                   ARTICLE VI

                               DISPUTE RESOLUTION

         Section 6.1. DISPUTE RESOLUTION. Except as otherwise set forth in
any Ancillary Agreement, resolution of any and all disputes arising from or
in connection with this Agreement, whether based on contract, tort, or
otherwise (collectively, "Disputes"), shall be exclusively governed by and
settled in accordance with the provisions of this Section 6.1.

         (a) NEGOTIATION. The parties shall make a good faith attempt to
resolve any Dispute arising out of, relating to or resulting from this
Agreement through negotiation. Within thirty (30) days after notice of a
Dispute is given by either party to the other party, each party shall select
a first tier negotiating team comprised of vice president level employees of
such party and shall meet and make a good faith attempt to resolve such
Dispute and shall continue to negotiate in good faith in an effort to resolve
the Dispute or renegotiate the applicable section or provision without the
necessity of any formal proceedings. If the first tier negotiating teams are
unable to agree within thirty (30) days of their first meeting, then each
party shall select a second tier negotiating team comprised of the chief
executive officers of such party and shall meet within thirty (30) days after
the end of the first thirty (30) day negotiating period to attempt to resolve
the matter. During the course of negotiations under this Section 6.1(a), all
reasonable requests made by one party to the other for Information, including
requests for copies of relevant documents, will be honored. The specific
format for such negotiations will be left to the discretion of the designated
negotiating teams but may include the preparation of agreed upon statements
of fact or written statements of position furnished to the other party.

         (b) NON-BINDING MEDIATION. In the event that any Dispute arising out
of or related to this Agreement is not settled by the parties within fifteen
(15) days after the first meeting of the second tier negotiating teams under
Section 6.1(a), the parties will attempt in good faith to resolve such
Dispute by non-binding mediation in accordance with the American Arbitration

                                      18
<PAGE>

Association Commercial Mediation Rules. The mediation shall be held within
thirty (30) days of the end of such fifteen (15) day negotiation period of
the second tier negotiating teams. Except as provided below in Section
6.1(c), no litigation for the resolution of such dispute may be commenced
until the parties try in good faith to settle the dispute by such mediation
in accordance with such rules and either party has concluded in good faith
that amicable resolution through continued mediation of the matter does not
appear likely. The costs of mediation shall be shared equally by the parties
to the mediation. Any settlement reached by mediation shall be recorded in
writing, signed by the parties, and shall be binding on them.

         (c) PROCEEDINGS. Nothing herein, however, shall prohibit either
party from initiating litigation or other judicial or administrative
proceedings if such party would be substantially harmed by a failure to act
during the time that such good faith efforts are being made to resolve the
Dispute through negotiation or mediation. In the event that litigation is
commenced under this Section 6.1(c), the parties agree to continue to attempt
to resolve any Dispute according to the terms of Sections 6.1(a) and 6.1(b)
during the course of such litigation proceedings under this Section 6.1(c).

         (d) PAY AND DISPUTE. Except as provided herein or in any Ancillary
Agreement, in the event of any dispute regarding payment of a third-party
invoice (subject to standard verification of receipt of products or
services), the party named in a third party's invoice must make timely
payment to such third party, even if the party named in the invoice desires
to pursue the dispute resolution procedures outlined in this Section 6.1. If
the party that paid the invoice is found pursuant to this Section 6.1 to not
be responsible for such payment, such paying party shall be entitled to
reimbursement, with interest accrued at the prime interest rate announced by
Bank of America NT&SA plus one percent per annum compounded monthly for the
period such amount remains unpaid from the party found responsible for such
payment.

         Section 6.2. CONTINUITY OF SERVICE AND PERFORMANCE. Unless otherwise
agreed in writing, the parties will continue to provide service and honor all
other commitments under this Agreement and each Ancillary Agreement during
the course of dispute resolution pursuant to the provisions of this Article
VI with respect to all matters not subject to such Dispute.

                                  ARTICLE VII

                       STANDSTILL; COVENANT NOT TO COMPETE

         Section 7.1. STANDSTILL. Phoenix agrees that so long as Phoenix
beneficially owns, directly or indirectly, fifty percent (50%) or more of
inSilicon's outstanding voting securities, it shall not acquire by purchases
in "brokers' transactions" (as defined in the Securities Act) or in
transactions directly with a "market maker" (as defined in the Exchange Act)
during any twelve (12-) month period shares of Common Stock that exceed two
percent (2%) of the number of shares of Common Stock outstanding at the
commencement of that period, without inSilicon's prior consent.

         Section 7.2. NON-COMPETE.

                                      19
<PAGE>

         (a) During the "Phoenix Restricted Period," as defined below,
Phoenix agrees it will not carry on or become involved, directly or
indirectly (whether as owner, partner, agent, consultant or stockholder) in
any business or activity competitive with any business conducted by inSilicon
as of the Separation Date without the consent of inSilicon. For this purpose,
the "Phoenix Restricted Period" for any business or activity conducted by
inSilicon as of the Separation Date means the earliest of (i) November 30,
2004, (ii) the date Phoenix no longer owns, directly or indirectly, ten
percent (10%) or more of inSilicon's outstanding voting securities and (iii)
the date on which inSilicon no longer engages in such business or activity.

         (b) During the "inSilicon Restricted Period," as defined below,
inSilicon agrees it will not carry on or become involved, directly or
indirectly (whether as owner, partner, agent, consultant or stockholder) in
any business or activity competitive with any business conducted by Phoenix
as of the Separation Date (other than the Business) without the consent of
Phoenix. For this purpose, the "inSilicon Restricted Period" for any business
or activity conducted by Phoenix as of the Separation Date means the earliest
of (i) November 30, 2004, (ii) the date Phoenix no longer owns, directly or
indirectly, ten percent (10%) or more of inSilicon's outstanding voting
securities and (iii) the date on which Phoenix no longer engages in such
business or activity.

         (c) Each of Phoenix and inSilicon agrees that it will not
unreasonably withhold its consent to any request by the other to carry on or
become involved in any business or activity competitive with any business
conducted by the other as of the Separation Date, which request relates to
activities which occur following a "change in control" of the requesting
party. For this purpose, a "change of control" shall be deemed to have
occurred on the earliest date on or by which (i) the beneficial ownership of
the equity securities of the affected party on the part of any Person or
group (other than Phoenix in the case of inSilicon), together with the
beneficial ownership thereof on the part of the affiliates and/or associates
of such Person or group, first equals or exceeds fifty percent (50%) of the
equity securities of the affected party or (ii) any Person or group acquires
assets of the affected party, which together with any assets acquired from
such party by any affiliates and/or associates of such Person or group
constitute fifty percent (50%) or more of the assets of the affected party. A
party shall not be deemed to be "unreasonable" in withholding its consent if
the Person acquiring control of a party competes with the party from which
consent is sought.

                                  ARTICLE VIII

                                  MISCELLANEOUS

         Section 8.1. TERMINATION. This Agreement may be terminated and/or
the Initial Public Offering may be deferred, modified or abandoned at any
time prior to the Closing Date by and in the sole discretion of the Board of
Directors of Phoenix without the approval of inSilicon. In the event of such
termination, no party hereto (or any of its respective directors or officers)
shall have any liability to any other party pursuant to this Agreement.

         Section 8.2. EXPENSES. Except as specifically provided in Services
and Cost-Sharing Agreement or in this Agreement and except for the expenses
of Phoenix that are not third party

                                      20
<PAGE>

expenses, all costs and expenses incurred in connection with the
interpretation, execution, delivery and implementation of this Agreement and
with the consummation of the transactions contemplated by this Agreement
shall be paid by inSilicon. The expenses payable by inSilicon shall include
without limitation the filing, legal, accounting, printing and other
out-of-pocket expenditures in connection with (i) the preparation, printing
and filing of the Registration Statement and (ii) sale of the shares of
Common Stock in the Initial Public Offering, including, without limitation,
third party costs, fees and expenses relating to the Initial Public Offering,
and all of the reimbursable expenses of the Underwriters pursuant to the
Underwriting Agreement, and all of the costs of producing, printing, mailing
and otherwise distributing the Prospectus. After the Closing Date, all costs
and expenses that are not subject to the Services and Cost-Sharing Agreement
or any other agreement between the parties shall be borne by the party
incurring the expense.

         Section 8.3. NOTICES. All notices and communications under this
Agreement shall be in writing and any communication or delivery hereunder
shall be deemed to have been duly given when received addressed as follows:

         If to Phoenix, to:

                  411 East Plumeria Drive
                  San Jose, CA 94134
                  Attn:  General Counsel

         If to inSilicon, to:

                  411 East Plumeria Drive
                  San Jose, CA 94134
                  Attn:  General Counsel

         Any party may, by written notice so delivered to the other party,
change the address to which delivery of any notice shall thereafter be made.

         Section 8.4. AMENDMENT AND WAIVER. This Agreement may not be altered
or amended, nor may rights hereunder be waived, except by an instrument in
writing executed by the party or parties to be charged with such amendment or
waiver. No waiver of any terms, provision or condition of or failure to
exercise or delay in exercising any rights or remedies under this Agreement,
in any one or more instances shall be deemed to be, or construed as, a
further or continuing waiver of any such term, provision, condition, right or
remedy or as a waiver of any other term, provision or condition of this
Agreement. Notwithstanding the foregoing, this Agreement may not be altered
or amended, nor may rights hereunder be waived by inSilicon after the Closing
Date without the affirmative vote or written consent of a majority of the
directors of inSilicon who are not Affiliates of Phoenix.

         Section 8.5. COUNTERPARTS. This Agreement may be executed in
counterparts each of which shall be deemed an original instrument, but all of
which together shall constitute but one and the same Agreement.

                                      21
<PAGE>

         Section 8.6. GOVERNING LAW. This Agreement shall be construed in
accordance with, and governed by, the laws of the State of California,
without regard to the conflicts of law rules of such state.

         Section 8.7. ENTIRE AGREEMENT. This Agreement including the
schedules and the other agreements referenced specifically in this Agreement
constitute the entire understanding of the parties with respect to the
subject matter of this Agreement, superseding all negotiations, prior
discussions and prior agreements and understandings relating to such subject
matter.

         Section 8.8. ASSIGNMENT.

         (a) No party to this Agreement shall (i) consolidate with or merge
into any Person or permit any Person to consolidate with or merge into such
party (other than a merger or consolidation in which the party is the
surviving or continuing corporation), or (ii) sell, assign, transfer, lease
or otherwise dispose of, in one transaction or a series of related
transactions, all or substantially all of its assets, unless the resulting,
surviving or transferee Person expressly assumes, by instrument in form and
substance reasonably satisfactory to the other parties, all of the
obligations of the party under this Agreement.

         (b) Except as expressly provided in paragraph (a) above, neither
this Agreement nor any of the rights, interests or obligations hereunder
shall be assignable, directly or indirectly, by any party without the prior
written consent of the party, and any attempt to so assign without such
consent shall be void.

         Section 8.9. PARTIES IN INTEREST. Subject to Section 8.8, this
Agreement shall be binding upon, and shall inure to the benefit of, the
parties hereto and their respective successors and permitted assigns. Nothing
contained in this Agreement, express or implied, is intended to confer any
benefits, rights or remedies upon any person or entity other than Phoenix and
inSilicon, and Phoenix Indemnitees and inSilicon Indemnitees under Article
III hereof.

         Section 8.10. TAX SHARING AGREEMENT. Notwithstanding any other
provision of this Agreement to the contrary, any and all matters relating to
Taxes shall be exclusively governed by the Tax Sharing Agreement.

         Section 8.11. EXHIBITS AND SCHEDULES. The Exhibits and Schedules
shall be construed with and as an integral part of this Agreement to the same
extent as if the same had been set forth verbatim herein.

         Section 8.12. LEGAL ENFORCEABILITY. Any provision of this Agreement
which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof. Any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction. Without
prejudice to any rights or remedies otherwise available to any party hereto,
each party hereto acknowledges that damages would be an inadequate remedy for
any breach of the provisions of this Agreement and agrees that the
obligations of the parties hereunder shall be specifically enforceable.

                                      22
<PAGE>

         Section 8.13. TITLES AND HEADINGS. Titles and headings to Sections
herein are inserted for convenience of reference only and are not intended to
be a part of or to affect the meaning or interpretation of this Agreement.

         Section 8.14. CONFLICTING AGREEMENTS. In the event of conflict
between this Agreement and the Contribution Agreement, the provisions of this
Agreement and shall prevail.

                                      23
<PAGE>

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

                                       PHOENIX TECHNOLOGIES LTD.

                                       By:    /s/ Linda Moore
                                          ------------------------------------
                                       Name:  Linda V. Moore
                                       Title: VP, General Counsel & Secretary

                                       INSILICON CORPORATION

                                       By:    /s/ David J. Power
                                          ------------------------------------
                                       Name:  David J. Power
                                       Title: Vice President, General Counsel

                                      24

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