Document:

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                                   EXHIBIT 10.7

                              STOCK PURCHASE AGREEMENT

       THIS STOCK PURCHASE AGREEMENT (this "Agreement"), is effective this
30th day of June, 1995, by and among DSP GROUP, INC., a Delaware corporation
("DSPG"), KENWOOD CORPORATION, a Japanese corporation ("Kenwood"), TOMEN
ELECTRONICS CORP., a Japanese corporation ("Tomen"), and NOGATECH, INC., a
California corporation ("Noga").

                                       RECITALS

       A.     DSPG is the owner of two thousand (2,000) shares of Common
Stock of Noga (the "Common Stock"), and four million four hundred forty-four
thousand four hundred forty-four (4,444,444) shares of Series A Preferred
Stock of Noga (the "Preferred Stock", and together with the Common Stock, the
"Shares").

       B.     Scitex Corporation, Ltd ("Scitex"), DSPG's predecessor in
interest to one thousand (1,000) shares of Common Stock and two million
(2,000,000) shares of Preferred Stock (collectively, the "Scitex Shares") and
DSPG entered into a Preincorporation Agreement (the "Preincorporation
Agreement") dated December 31, 1992, for the formation of Noga.

       C.     DSPG California, Scitex and Noga entered into a Stock Purchase
Agreement effective January 1, 1993 (the "DSPG Stock Purchase Agreement"),
pursuant to which Scitex acquired the Scitex Shares from Noga.

       D.     Scitex, DSPG and Noga entered into a Stock Purchase Agreement,
effective April 24, 1994, pursuant to which DSPG acquired the Scitex Shares
from Scitex (the "Scitex Purchase Agreement", and together with the
Preincorporation Agreement (the "Ancillary Agreements")).

       E.     DSPG, Noga and its subsidiary Nogatech, Ltd. ("Noga Ltd")
entered into a Technology Retransfer Agreement (together with the documents
represented by the Exhibits thereto, the "Technology Retransfer Agreement"),
in the form attached hereto as Exhibit A, on June 29, 1995.

       F.     Subject to the terms and conditions hereof, DSPG desires to
sell to Kenwood and Tomen, and Kenwood and Tomen desire to acquire from DSPG
the Shares, all as set forth below.

                                      AGREEMENT

       NOW, THEREFORE, in consideration of the mutual covenants and
agreements hereinafter contained and other valuable consideration, the
receipt and adequacy of which is hereby acknowledged, the

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parties hereby agree as follows:

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       1.     SALE AND PURCHASE OF SHARES.

              a.     THE KENWOOD PURCHASE.  DSPG hereby agrees to sell,
assign, transfer, convey and deliver one thousand (1,000) shares of the
Common Stock and two million two hundred twenty-two thousand two hundred
twenty-two (2,222,222) shares of the Preferred Stock (collectively, the
"Kenwood Shares") to Kenwood, and Kenwood hereby agrees to purchase the
Kenwood Shares from DSPG for the purchase price (the "Kenwood Purchase
Price") of Seven Hundred Fifty Thousand United States Dollars (U.S. $750,000)
at the Closing (as defined below), payable by wire transfer to DSPG in
immediately available funds on the Closing Date (as defined below).

              b.     THE TOMEN PURCHASE.  DSPG hereby agrees to sell, assign,
transfer, convey and deliver one thousand (1,000) shares of the Common Stock
and two million two hundred twenty-two thousand two hundred twenty-two
(2,222,222) shares of the Preferred Stock (collectively, the "Tomen Shares")
to Tomen, and Tomen hereby agrees to purchase the Tomen Shares from DSPG for
the purchase price (the "Tomen Purchase Price") of Seven Hundred Fifty
Thousand United States Dollars (U.S. $750,000), payable by  wire transfer to
DSPG in immediately available funds on the Closing Date.

              c.     CLOSING.  Subject to the terms and conditions hereof,
the closing of the purchase and sale of the Shares (the "Closing") shall be
held via facsimile transmittal and wire transfers through DSPG's counsel,
Pezzola & Reinke, A Professional Corporation, on August 11, 1995 at 2:00
p.m., Pacific Standard Time, or at such other time and place upon which
Kenwood, Tomen and DSPG shall agree (the date of the Closing is herein
referred to as the "Closing Date").

              d.     AT THE CLOSING:

                     i)     Kenwood shall deliver as full and complete
payment for the Kenwood Shares, the Kenwood Purchase Price;

                     ii)    Tomen shall deliver as full and complete payment
for the Tomen Shares, the Tomen Purchase Price;

                     iii)   DSPG shall deliver to Kenwood and Tomen their
respective original certificates of their respective Shares executed on the
reverse side of the certificates, or on assignments separate from
certificates, to show the transfer of the Kenwood Shares to Kenwood and the
transfer of the Tomen Shares to Tomen; and

                     iv)    DSPG and Noga shall deliver a duly executed
Technology Retransfer Agreement to one another.

       2.     CONDITIONS PRECEDENT.  As a condition precedent to the

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obligations of the parties hereto, the parties must receive effective the
Closing Date a copy of an executed Mutual Release between DSPG and Nathan
Hod, in the form attached hereto as Exhibit B.

       3.     REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASERS.
Kenwood and Tomen (together, the "Purchasers") each severally represent,
warrant and covenant to DSPG the following as of the date of this Agreement
and as of the Closing Date on its behalf:

              a.     PURCHASE ENTIRELY FOR OWN ACCOUNT.  The Shares to be
purchased by each Purchaser will be acquired for investment for such
Purchaser's own account and not with a view to the resale or distribution of
any part thereof, and each Purchaser has no present intention of selling,
granting any participation in, or otherwise distributing the same.  By
executing this Agreement, each Purchaser further represents that it does not
have any contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participation to such person or to any third person,
with respect to any of its respective Shares.

              b.     RELIANCE UPON PURCHASERS' REPRESENTATIONS.  Each
Purchaser understands that its respective Shares are not registered under the
Securities Act of 1933, as amended (the "Act"), on the grounds that the sale
provided for in this Agreement and the issuance of Shares hereunder is exempt
from registration under the Act, and that DSPG's reliance on such exemption
is based, in part, on each Purchaser's representations set forth herein.
Each Purchaser realizes that the basis for the exemption may not be present
if it has in mind merely acquiring its respective Shares for a fixed or
determinable period in the future, or for a market rise, or for sale if the
market does not rise.

              c.     RECEIPT OF INFORMATION.  Each Purchaser believes it has
received all the information it considers necessary or appropriate for
deciding whether to purchase its respective Shares.  Each Purchaser further
represents that it has had an opportunity to ask questions and receive
answers from Noga's officers regarding the business, properties, prospects
and financial condition of Noga, and to obtain additional information (to the
extent Noga possessed such information or could acquire it without
unreasonable effort or expense) necessary to verify the accuracy of any
information furnished to it or to which such Purchaser had access.
Specifically, each Purchaser acknowledges receipt of, among other things, the
Technology Retransfer Agreement.

              d.     INVESTMENT EXPERIENCE.  Each Purchaser and its  officers
are experienced in evaluating and investing in securities of companies in the
development stage and acknowledges that it is able to fend for itself, can
bear the economic risk of its investment, and has such knowledge and
experience in financial and

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business matters that it is capable of evaluating the merits and risks of the
investment in its respective Shares.

              e.     RESTRICTED SECURITIES.  Each Purchaser understands that
its respective Shares may not be sold, transferred or otherwise disposed of
without registration under the Act or an exemption therefrom, and that in the
absence of an effective registration statement covering such Shares, or an
available exemption from registration under the Act, such Shares must be held
indefinitely.  In particular, each Purchaser is aware that its respective
Shares may not be sold pursuant to Rule 144 promulgated under the Act unless
all of the conditions of Rule 144 are met.  Among the conditions for use of
Rule 144 is the availability of current information to the public about Noga.
 Such information is not now available and each Purchaser understands that
Noga has no present plans to make such information available.

              f.     LEGENDS.  To the extent applicable, each certificate or
other document evidencing any of the Shares shall be endorsed with
appropriate securities legends; and each Purchaser covenants that, except to
the extent such restrictions are waived by Noga, such Purchaser shall not
transfer its respective Shares represented by any such certificate without
complying with the restrictions on transfer described in the following legend
endorsed on such certificate:

       "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
       THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
       TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED ABSENT AN
       EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR COMPLIANCE WITH
       RULE 144 PROMULGATED UNDER SUCH ACT, OR UNLESS THE COMPANY HAS
       RECEIVED AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND
       ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED."

              g.     RISKS OF INVESTMENT.  Each Purchaser represents that it:
(a) has such knowledge and experience in financial and business matters as to
be capable of evaluating the merits and risks of its prospective investment
in its respective Shares; (b) has received from DSPG all the information it
has requested and considers necessary or appropriate for deciding whether to
purchase its respective Shares, and has been given the opportunity to examine
all relevant documents and to ask questions of, and to receive answers from,
the management of Noga concerning Noga and its affairs, and to obtain any
additional information necessary to verify the accuracy of the information
given such Purchaser, and that no representations have been made to such
Purchaser concerning its respective Shares, Noga, its business, prospects or
other matters, except as expressly made herein; (c) has the ability to bear
the economic risks of its prospective investment; and (d) is able, without
materially impairing its financial condition, to hold its respective Shares
for an indefinite period of time and to suffer complete loss of its
investment.

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              h.     CORPORATE AUTHORITY.  Each Purchaser represents that it
has full corporate authority to purchase its respective Shares in accordance
with this Agreement, as evidenced by the signature binding such Purchaser on
the signature page hereinbelow and all other approvals necessary to purchase
its respective Shares.

              i.     CAPITALIZATION.  Each Purchaser acknowledges that the
capitalization of Noga as of the Closing Date shall be as set forth on
Exhibit C attached hereto, and shall include options granted by Noga to
Messrs. Heiman and Hod conditioned upon the Closing occurring. Additionally,
each Purchaser understands that Noga may be obligated to grant an additional
option for Twelve Thousand Five Hundred (12,500) shares of Common Stock at an
exercise price of Ten Cents ($0.10) per share to Michael Corwin.

              j.     DEBT TO CHIEF SCIENTIST.  Each Purchaser acknowledges
and agrees to the following:

              The unaudited June 30, 1995 financial statement (the "Financial
       Statement") attached hereto as Exhibit D shows an obligation to the Chief
       Scientist of Israel (the "Chief Scientist") of One Hundred Fifty Thousand
       United States Dollars (U.S. $150,000) (the "Obligation").  This is the
       initial payment that is now due to the Chief Scientist.  The Chief
       Scientist is owed sixteen percent (16%) of the royalty income received by
       Noga from Zen Research, N.V. ("Zen"), up to an aggregate maximum of Four
       Hundred Two Thousand United States Dollars (U.S. $402,000).  DSPG has
       caused Noga to pay One Hundred Fifty Thousand United States Dollars (U.S.
       $150,000) of the Obligation to the Chief Scientist.  Noga has entered
       into an agreement with Zen to arrange for payment by Noga of all sums
       still owing to the Chief Scientist.

              k.     Each Purchaser acknowledges and agrees that  as of June
30, 1995, any prior arrangement for DSPG to loan money to Noga shall
terminate, and DSPG shall have no further arrangement requiring it to loan
any money to Noga.

       4.     REPRESENTATIONS OF DSPG.  DSPG represents, warrants and
covenants to each Purchaser that:

              a.     OWNERSHIP.  DSPG is the owner of the Shares.  The Shares
have not been encumbered, pledged or mortgaged in any manner whatsoever.  All
approvals necessary to transfer the respective Shares to each Purchaser have
been obtained.  DSPG has the full corporate power to sell the Shares in
accordance with this Agreement, as evidenced by the signature binding DSPG on
the signature page hereinbelow.

              b.     TECHNOLOGY AGREEMENT.  The Technology Retransfer
Agreement has been duly executed by DSPG.

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              c.     ORGANIZATION AND CORPORATE POWER.  Noga is a corporation
duly incorporated and validly existing under the laws of the State of
California, and Noga is qualified to do business in every jurisdiction in
which its ownership of property or conduct of business requires it to
qualify.  Noga has all requisite corporate power and authority and all
material licenses, permits, and authorizations necessary to own and operate
its properties and to carry on its business as now conducted.  The copies of
Noga's charter documents and Bylaws furnished to Purchasers reflect all
amendments made thereto at any time prior to the date of this Agreement and
are correct and complete.

              d.     SUBSIDIARIES.  Noga does not own or hold any rights to
acquire any shares of stock or any other security or interest in any other
corporation or entity, except for Nogatech Ltd., its wholly-owned Israeli
subsidiary.

              e.     CONDUCT OF BUSINESS; LIABILITIES.  Noga is not in
default under, and no condition exists that with notice or lapse of time
would constitute a default of Noga under (i) any mortgage, loan agreement,
evidence of indebtedness, or other instrument evidencing borrowed money to
which Noga is a party or by which Noga or the properties of Noga are bound or
(ii) any judgment, order, or injunction of any court, arbitrator, or
governmental agency that would reasonably be expected to affect materially
and adversely the business, financial condition, or results of operations of
Noga taken as a whole.

              f.     FINANCIAL STATEMENTS.  Except as disclosed in Section 9
herein, (i) the unaudited balance sheet and income statement of Noga as of
June 30, 1995, in the form attached to this Agreement as Exhibit D, fairly
presents the financial position of Noga as of June 30, 1995 (the "Financial
Statements"); and (ii)  the Proforma Balance Sheet attached hereto as Exhibit
E sets forth Noga's financial position after the effect of the Technology
Retransfer Agreement.

              g.     NO UNDISCLOSED LIABILITIES. Except for (i) liabilities
and obligations disclosed in Section 9 herein; (ii) liabilities and
obligations incurred in the ordinary course of business since June 30, 1995
("Statement Date"); and (iii) liabilities or obligations described in this
Agreement, neither Noga nor any of the property of Noga is subject to any
material liability or obligation that was required to be included or
adequately reserved against in the Financial Statements or described in the
notes thereto and was not so included, reserved against, or described.

              h.     ABSENCE OF CERTAIN CHANGES.  Since the Statement Date
there has not been:

                     i)     any material adverse change in the business,

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financial condition, operations, or assets of Noga;

                     ii)    any damage, destruction, or loss, whether covered
by insurance or not materially adversely affecting the properties or business
of Noga;

                     iii)   any sale or transfer by Noga of any tangible or
intangible asset other than in the ordinary course of business, any mortgage
or pledge or the creation of any security interest, lien, or encumbrance on
any such asset, or any lease of property, including equipment, other than tax
liens with respect to taxes not yet due and contract rights of customers in
inventory;

                     iv)    any material transaction not in the ordinary
course of business of Noga;

                     v)     the making of any material loan, advance, or
guaranty to or for the benefit of any person except the creation of accounts
receivable in the ordinary course of business; or

                     vi)    an agreement to do any of the foregoing.

              i.     TITLE AND RELATED MATTERS.  Noga has good and marketable
title to all of its property, real and personal, and other assets included in
the Financial Statements (except properties and assets sold or otherwise
disposed of subsequent to the Statement Date in the ordinary course of
business or as contemplated in this Agreement), free and clear of all
security interests, mortgages, liens, pledges, charges, claims, or
encumbrances of any kind or character, except (i) statutory liens for
property taxes not yet delinquent or payable subsequent to the date of this
Agreement and statutory or common law liens securing the payment or
performance of any obligation of Noga, the payment or performance of which is
not delinquent, or that is payable without interest or penalty subsequent to
the date on which this representation is given, or the validity of which is
being contested in good faith by Noga; (ii) the rights of customers of Noga
with respect to inventory under orders or contracts entered into by Noga in
the ordinary course of business; (iii) claims, easements, liens, and other
encumbrances of record pursuant to filings under real property recording
statutes; and (iv) as described in the Financial Statements or the notes
thereto.

              j.     LITIGATION.  There are no material actions, suits,
proceedings, orders, investigations, or claims pending or, to the best of
DSPG's and Noga's knowledge, overtly threatened against Noga or any property
of either, at law or in equity, or before or by any governmental department,
commission, board, bureau, agency, or instrumentality.

              k.     TAX MATTERS.  Noga has prepared in a substantially
correct manner and has filed all federal, state, local, and foreign tax
returns and reports heretofore required to be filed by

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them and have paid all taxes shown as due thereon, and no taxing authority
has asserted any deficiency in the payment of any tax or informed Noga that
it intends to assert any such deficiency or to make any audit or other
investigation of Noga for the purpose of determining whether such a
deficiency should be asserted against Noga.

              l.     COMPLIANCE WITH LAWS.  To the best of DSPG's knowledge,
Noga is, in the conduct of its business, in substantial compliance with all
laws, statutes, ordinances, regulations, orders, judgments, or decrees
applicable to them, the enforcement of which, if Noga was not in compliance
therewith, would have a materially adverse effect on the business of Noga,
taken as a whole.  Neither DSPG nor Noga have received any notice of any
asserted present or past failure by Noga to comply with such laws, statutes,
ordinances, regulations, orders, judgments, or decrees.

              m.     DISCLOSURE.  Neither this Agreement nor any of the
schedules, attachments, written statements, documents, certificates, or other
items prepared or supplied to Purchasers by or on behalf of Noga or DSPG with
respect to this purchase contain any untrue statement of a material fact or
omit a material fact necessary to make each statement contained herein or
therein not misleading.

              n.     PATENTS, TRADEMARKS, TRADE NAMES, ETC.  To Noga's best
knowledge, the use of its patents, trademark, trade name, service marks, and
copyrights by it does not materially infringe on any patents, trademarks, or
copyrights or any other rights of any person.  To Noga's best knowledge, it
has not operated and is not operating its business in a manner that infringes
the proprietary rights of any other person in any patents, trademarks, trade
names, service marks, copyrights, or confidential information.

       5.     RELEASE OF VARIOUS AGREEMENTS.  Upon delivery to DSPG of the
payment for the Shares by each Purchaser:

              a.     DSPG RELEASE.  DSPG releases any claims or rights that
it may have against Noga, or Noga's subsidiary or affiliated companies,
concerning the Ancillary Agreements, and/or any other agreements (except in
connection with any representations and warranties made by Noga in this
Agreement and the Technology Retransfer Agreement and Noga's obligations
under the Technology Retransfer Agreement) by and between DSPG and Noga, or
any of Noga's subsidiaries, concerning Noga.  Each of DSPG and Noga agree
that the pre-emptive rights in Section 7 of the DSPG Stock Purchase Agreement
no longer exists in favor of DSPG; that the Registration Rights stated in
Section 10 of the DSPG Stock Purchase Agreement shall no longer be effective
for DSPG but shall be transferred to its transferees; the right to choose
board seats stated in Section 9 of the DSPG Stock Purchase Agreement shall no
longer exist in favor of DSPG; any arrangement for DSPG to loan money to Noga
shall terminate as of June 30, 1995; and the

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Technology Retransfer Agreement shall remain in full force and effect.

              b.     NOGA RELEASE.  Noga releases any claims or rights that
it may have against DSPG, or DSPG's subsidiary or affiliated companies,
concerning the Ancillary Agreements, and/or any other agreements (except in
connection with any representations and warranties made by DSPG in this
Agreement) by and between DSPG and Noga, or any of DSPG's subsidiaries,
concerning DSPG, except as specifically set forth herein.  In addition, Noga
releases DSPG from any agreement to provide services to Noga, including
without limitation, services for accounting, facilities, personnel support
and payroll.

       6.     DSPG TECHNOLOGY.  Noga agrees that to the extent that it was
using technology and confidential information of DSPG which had been
disclosed to Noga by DSPG, Noga will discontinue such use, except to the
extent that such use is consistent with the terms of the Technology
Retransfer Agreement.  Additionally, Noga agrees to return to DSPG on the
Closing Date, all technology and confidential information of DSPG which had
been delivered to Noga by DSPG, subject to the terms of the Technology
Retransfer Agreement.

       7.     EMPLOYEE MATTERS.  DSPG represents and warrants to each
Purchaser and Noga, that it has no present intention of hiring employees of
Noga.  DSPG agrees, for a period ending June 30, 1997, not to solicit or
recruit any employees of Noga.

       8.     DSPG GUARANTY.

              a.     REPLACEMENT GUARANTY.  Purchasers shall use its best
efforts to either replace DSPG by August 31, 1995 as the guarantor under the
Guaranty (the "Guaranty"), dated November 3, 1994, issued by DSPG to the
lessor (the "Lessor") under the Lease, dated November 3, 1994, between Lessor
and Noga Ltd, as lessee, for the property located at Mivtza Kadesh 2, Givat
Shmuel, 54100, Israel, or to obtain a satisfactory replacement (collectively,
the "Replacement Guaranty").

              b.     INDEMNIFICATION.  From and after the Closing Date and
until a Replacement Guaranty has become effective  (the "Replacement
Period"), Noga and Noga Ltd shall indemnify and hold DSPG, its successors and
assigns, harmless from, against and in respect of any and all loss, liability
and damage (including the payment of reasonable attorneys' fees), arising out
of or resulting from any and all losses, liabilities and obligations, or
claims or causes of action of any nature, arising during the Replacement
Period in connection with to the Guaranty.

       9.     CONTINGENT LIABILITY.       The parties hereto acknowledge and
agree that (i) there is a contingent liability (the "Contingent Liability")
of Noga in the amount of up to $170,000

<PAGE>

claimed by SCI Systems, Inc.("SCI") in connection with the return of certain
materials related to Noga purchase order number 89028; (ii) neither the
Contingent Liability nor the related inventory is reflected on Exhibits D or
E hereto; (iii) SCI has indicated that it may attempt to seek recovery of the
Contingent Liability from both Noga and DSPG; (iv) DSPG denies responsibility
for payment of any portion of the Contingent Liability; (v) Noga acknowledges
that Noga, rather than DSPG, is responsible for any amounts due SCI in
connection with the Contingent Liability;(vi) in the event that DSPG
determines or is required to pay any amounts to SCI in connection with the
Contingent Liability, DSPG shall give Noga fourteen (14) days written notice
prior to informing SCI of such determination or making any payment, as
applicable; and (vii) in the event SCI recovers any amount from DSPG in
connection with the Contingent Liability, Noga shall indemnify and hold DSPG
harmless from, against, and in respect of any and all loss, liability, and
damage (including the payment of reasonable attorney's fees), arising out of
or resulting from any and all losses, liabilities and obligations, or claims
or causes of action of any nature, in connection with the Contingent
Liability.

       10.    MISCELLANEOUS.

              a.     ENTIRE AGREEMENT.  This Agreement and the Exhibits
hereto constitute the entire agreement and understanding between the parties
with respect to the subject matters herein, and supersede and replace any
prior agreements and understandings, whether oral or written between and
among them with respect to such matters.  The provisions of this Agreement
may be waived, altered, amended or repealed, in whole or in part, only upon
the written consent of all parties to this Agreement.

              b.     SUCCESSORS AND ASSIGNS.  Subject to any provisions
herein with regard to assignment, all covenants and agreements herein shall
bind and inure to the benefit of the respective heirs, executors,
administrators, successors and assigns of the parties hereto.

              c.     APPLICABLE LAW.  This Agreement shall be governed by,
and construed in accordance with, the laws of the State of California,
applicable to contracts between California residents entered into and to be
performed entirely within the State of California.

              d.     ATTORNEYS' FEES; COSTS.  In the event a party breaches
this Agreement, the breaching party shall pay all costs and attorneys' fees
incurred by the other party in connection with such breach, whether or not
any arbitration or litigation is commenced.

              e.     ARBITRATION.  Any dispute between the parties arising
out of this Agreement shall be submitted to final and binding arbitration in
the City and County of Santa Clara, State of California, under the Commercial
Arbitration Rules of the

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American Arbitration Association then in effect, upon written notification
and demand of either party therefor.  In the event either party demands such
arbitration, the American Arbitration Association shall be requested to
submit a list of prospective arbitrators consisting of persons experienced in
matters involving corporate law.  The provisions of California Code of Civil
Procedure ?1283.05 and the laws of the State of California are incorporated
herein and shall be applicable to the arbitration.  In making the award, the
arbitrator shall award recovery of costs and expenses of the arbitration and
reasonable attorneys' fees to the prevailing party.  Any award may be entered
as a judgment in any court of competent jurisdiction.  Should judicial
proceedings be commenced to enforce or carry out this provision or any
arbitration award, the prevailing party in such proceedings shall be entitled
to reasonable attorneys' fees and costs in addition to other relief.  Either
party shall have the right, prior to receiving an arbitration award, to
obtain preliminary relief from a court of competent jurisdiction to:  (i)
avoid injury or prejudice to that party; (ii) to protect the rights of any
party; or (iii) to obtain possession or property in order to avoid a material
risk of damage to or loss of that property.

              f.     NOTICES.  All notices, requests, demands, instructions
or other communications required or permitted to be given under this
Agreement shall be in writing and shall be deemed to have been duly given
upon delivery, if delivered personally, or if given by prepaid telegram, or
mailed first-class, postage prepaid, registered or certified mail, return
receipt requested, shall be deemed to have been given seventy-two (72) hours
after such delivery, to the address set forth on the signature page below.

Either party hereto may change the address to which such communications are
to be directed by giving written notice to the other party hereto of such
change in the manner above provided.

              g.     SURVIVAL.  The representations, warranties, covenants
and agreements made herein shall survive the closing of the transactions
contemplated hereby.

              h.     DESCRIPTIVE HEADINGS.  The headings used herein and in
any of the documents attached hereto as exhibits, are descriptive only and
for the convenience of identifying provisions, and are not determinative of
the meaning or effect of any such provisions.

              i.     COUNTERPARTS.  This Agreement may be executed in any
number of counterparts, each of which may be executed by less than all of the
parties, each of which shall be enforceable against the parties actually
executing such counterparts, and all of which together shall constitute one
instrument.

                    (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.)

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              j.     VENUE.  ANY ACTION OR PROCEEDING ARISING DIRECTLY OR
INDIRECTLY FROM THIS AGREEMENT SHALL BE LITIGATED OR ARBITRATED AS
APPROPRIATE IN A STATE OR FEDERAL COURT IN THE COUNTY OF SANTA CLARA, STATE
OF CALIFORNIA.

       IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

DSP GROUP, INC.                        KENWOOD CORPORATION
a Delaware corporation                 a Japanese corporation
3120 Scott Boulevard                   Alive Mitake
Santa Clara, CA  95054                 2-5, Shibuya 1-chome, Shibuya-ku
                                       Tokyo, 150, JAPAN

By: /s/ Karin Pitcock                  By: /s/ Takes Suzuki
   ---------------------------------      ---------------------------------
       Karin Pitcock                      (Signature)
       Corporate Secretary
                                           Derecker
                                          ---------------------------------
                                          (Print Name & Title)

NOGATECH, INC.                         TOMEN ELECTRONICS CORP.
a California corporation               a Japanese corporation
3120 Scott Boulevard
Santa Clara, CA 95054                  ------------------------------------

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

                                       ------------------------------------
                                       (Print Address)

By: /s/ Eli Porat                      By: /s/ Shizeyuki Nazawa
   ---------------------------------      ---------------------------------
       Eli Porat                          (Signature)
       President
                                            President
                                          ---------------------------------
                                          (Print Name & Title)

<PAGE>

                                   EXHIBIT A

                    FORM OF TECHNOLOGY RETRANSFER AGREEMENT

<PAGE>

                                   EXHIBIT B

                            FORM OF MUTUAL RELEASE

<PAGE>

                                   EXHIBIT C

                              CAPITALIZATION CHART

                              ISSUED CAPITAL STOCK
                    (AFTER SALE BY DSPG OF ALL ITS INTEREST)
                            ON A FULLY-DILUTED BASIS(1)

<TABLE>
<CAPTION>
Shareholder             Type of Security                    Number of Shares       Percentage
-----------             ----------------                    ----------------       ----------
<S>                     <C>                                 <C>                    <C>
Kenwood/Tomen           Series A Preferred                      4,444,444            71.46%
Kenwood/Tomen           Common Stock                                2,000             0.03%
Nathan Hod              Common Stock                              565,000             9.08%
Nathan Hod              Options for Common Stock                  750,000            12.06%
Arieh Heiman            Options for Common Stock                  451,825             7.26%
Mike Campbell           Common Stock                                6,250             0.10%

TOTALS                                                          6,219,519           100.00%
</TABLE>

(1)    Does not include potential grant of option for 12,500 shares to Michael
       Corwin.

<PAGE>

                                  EXHIBIT D

                             FINANCIAL STATEMENTS

<PAGE>

                                  EXHIBIT E

                        PROFORMA FINANCIAL STATEMENTS<PAGE>

                                    EXHIBIT 10.8

                                    NOGATECH, INC.
                     SERIES A PREFERRED STOCK PURCHASE AGREEMENT

       THIS SERIES A PREFERRED STOCK PURCHASE AGREEMENT is entered into as of
February 28, 1996, by and among NOGATECH, INC., a California corporation
(hereinafter the "Corporation"), and Dr. Arie Heiman or any nominee company
including one in formation (hereinafter referred to as the "Investor").

                                       RECITALS

       A.     The Corporation desires to raise money by the sale of Series A
Preferred Stock to the Investor.

       B.     The Investor desires to purchase shares of Series A Preferred
Stock from the Corporation, and the Corporation desires to sell shares of
Series A Preferred Stock to the Investor, on the terms and conditions
hereinafter set forth.

                                      AGREEMENT

       NOW, THEREFORE, in consideration of the mutual agreements, covenants,
representations and warranties contained in this Agreement, the parties agree
as follows:

       1.     AUTHORIZATION AND SALE OF PREFERRED STOCK.

              a.     AUTHORIZATION.  The Corporation will authorize on, or
before, the Closing the sale and issuance of up to seventy-four thousand one
hundred seventy-four (74,074) shares of its Series A Convertible Preferred
Stock (hereinafter the "Series A Preferred Stock") to the Investor, having
the rights, privileges and preferences as set forth in the Amended and
Restated Articles of Incorporation (hereinafter the "Articles") in the form
attached to this Agreement as Exhibit A.

              b.     SALE OF SERIES A PREFERRED STOCK.  Subject to the terms
and conditions hereof, the Corporation will issue and sell to the Investor,
seventy-four thousand seventy-four (74,074) shares of Series A Preferred
Stock (the "Shares") at a per share purchase price of 3,375/10,000 U.S.
Dollars ($0.3375), for an aggregate purchase price of Twenty-five Thousand
U.S. Dollars (U.S. $25,000) (the "Purchase Price").

       2.     ISSUANCE AND PAYMENT.

              a.     CLOSING.  Subject to the terms and conditions hereof,
the closing of the purchase and sale of the Shares (hereinafter the
"Closing") shall be held (via facsimile transmittal and wire transfers or
cashier's check) at the Corporation's counsel's offices located at 1999
Harrison Street,

<PAGE>

Suite 1300, Oakland, California, on, or about, December 28, 1995, at 5:00
p.m., local time, or at such other time and place upon which the Corporation
and the Investor shall agree (the date of the Closing is hereinafter referred
to as the "Closing Date").  If Investor chooses to wire the Purchase Price,
the wire transfer of the Purchase Price (plus an additional Fifteen Dollars
($15.00) for international wire transfers) shall be sent to Pezzola &
Reinke's Attorney Trust Account at:  SUMMIT BANK, 2969 Broadway, Oakland, CA
94611; for deposit into ACCOUNT No. 01-20019741 (Summit Bank's telephone
number is (510) 839-8800 and its ABA Number is 121138958).  The wire
instructions shall include a message identifying the name of the Investor as
the originator of the wire.  If Investor chooses to send a cashier's check,
it shall be made payable to "Pezzola & Reinke Trust Account for the benefit
of Nogatech, Inc." and shall identify Investor as the originator.

              b.     ISSUANCE OF SHARES. At the Closing, or as soon as
practical thereafter, the Corporation will deliver to the Investor a
certificate, registered in its name, representing the Shares to be purchased
by the Investor, against payment of the purchase price therefor, by cashier's
check payable to the Corporation, or by wire transfer through the
Corporation's counsel, Pezzola & Reinke, or as otherwise instructed by the
Corporation.

       3.     CORPORATION'S WARRANTIES.  The Corporation hereby represents
and warrants effective as of the Closing as follows:

              a.     CORPORATE ORGANIZATION AND STANDING.  The Corporation is
a corporation duly organized, existing and in good standing under the laws of
the State of California.  The Corporation has the requisite corporate power
to carry on its business as presently conducted, and as proposed or
contemplated to be conducted in the future, and to enter into and carry out
the provisions of this Agreement and the transactions contemplated hereby.
The Corporation is not presently qualified to do business as a foreign
corporation in any jurisdiction where the failure to be so qualified would
materially and adversely affect the Corporation's business.

              b.     SUBSIDIARIES.  The Corporation has no subsidiaries or
affiliated companies and does not otherwise own or control, directly or
indirectly, any equity interest in any corporation, association or business
entity, except for its Israeli subsidiary, Nogatech, Ltd.

              c.     CORPORATE CAPITALIZATION.

                     i.     Immediately prior to, or simultaneously with, the
Closing, the Corporation's authorized capital stock shall include only two
authorized classes of capital stock consisting of (i) sixteen million
(16,000,000) shares of Preferred Stock,

                                      -2-
<PAGE>

fifteen million (15,000,000) shares of which shall be designated as Series A
Convertible Preferred Stock, and (ii) forty million (40,000,000) shares of a
sole class of Common Stock.

                     ii.    Except as contemplated or set forth in this
Agreement, there are no outstanding preemptive or other rights, options,
warrants, conversion rights or agreements for the purchase or acquisition
from the Corporation of any shares of its capital stock.

                     iii.   As of the date hereof, the Corporation does not
have any declared and unpaid dividends (whether payable in cash, securities
or other consideration).

              d.     AUTHORIZATION.  All corporate action on the part of the
Corporation, its directors and shareholders necessary for the authorization,
execution, delivery and performance of this Agreement by the Corporation, the
authorization, sale, issuance and delivery of the Series A Preferred Stock
(and the Common Stock issuable upon conversion of the Series A Preferred
Stock) and the performance of all of the Corporation's obligations hereunder
has been taken or will be taken prior to the Closing.  This Agreement, when
executed and delivered by the Corporation, shall constitute a valid and
binding obligation of the Corporation, enforceable in accordance with its
terms, except as may be limited by principles of public policy, and subject
to laws of general application relating to bankruptcy, insolvency and the
relief of debtors and rules of law governing specific performance, injunctive
relief or other equitable remedies.  The Shares, when issued in compliance
with the provisions of this Agreement, will be validly issued, will be fully
paid and nonassessable, and will have the rights, preferences and privileges
described in the Articles; the Common Stock issuable upon conversion of the
Shares has been duly and validly reserved and, when issued in compliance with
the provisions of this Agreement and the Articles, will be validly issued,
fully paid and nonassessable; and the Shares and such Common Stock will be
free of any liens or encumbrances, assuming the Investor takes the Shares
with no notice thereof, other than any liens or encumbrances created by or
imposed upon the Shares hereunder; provided, however, that the Shares (and
the Common Stock issuable upon conversion thereof) may be subject to
restrictions on transfer under state and/or federal securities laws.

              e.     FINANCIAL STATEMENTS.  The Corporation has made
available to the Investor the consolidated audited Balance Sheet and
Statement of Operations of the Corporation, together with its subsidiaries,
for the period ended August 31, 1995 (collectively the "Financial
Statements").  The Financial Statements are complete and correct in all
material respects.  To the Corporation's knowledge, the Financial Statements
accurately set out and describe the Corporation's financial condition and
operating results and that of its subsidiary as of the dates, and during the
periods, indicated therein.  To the Corporation's

                                      -3-
<PAGE>

knowledge, since August 31, 1995 there has not been any material change in
the assets, liabilities, financial condition or operations of the Corporation
or its subsidiary, from that reflected in the Financial Statements, except
changes in the ordinary course of business which have not been, either in any
case or in the aggregate, materially adverse.

              f.     MATERIAL LIABILITIES.  Neither the Corporation nor its
subsidiary has any material liabilities or obligations, absolute or
contingent (individually or in the aggregate), except (i) the liabilities and
obligations set forth in the Financial Statements; (ii) liabilities and
obligations which have been incurred subsequent to August 31, 1995 in the
ordinary course of business which have not been, either in any case or in the
aggregate, materially adverse; and (iii) liabilities and obligations under a
lease for its principal offices and leases for equipment and liabilities and
obligations under sales, procurement and other contracts and arrangements
entered into in the normal course of business.

              g.     LITIGATION.  There are no actions, proceedings or, to
the Corporation's best knowledge, investigations pending, or any threat
thereof, against or affecting the Corporation which, either individually or
in the aggregate, might result in any material adverse change in the
business, prospects, condition, affairs or operations of the Corporation or
in any of its properties or assets, or in any material impairment of the
right or ability of the Corporation to carry on its business as proposed to
be conducted, and none which questions the validity of this Agreement or any
action taken or to be taken in connection herewith.

              h.     GOVERNMENTAL CONSENTS.  To the Corporation's knowledge,
no consent, approval, order, authorization or registration, qualifications,
designation, license, declarations or filings with any Federal or state
governmental authority is required on the part of the Corporation in
connection with the consummation of the transactions contemplated herein,
except for applicable security law filings and the IITSSA filing set forth in
Section 4(h) below.

              i.     REGISTRATION RIGHTS.  The Corporation has granted
registration rights to the current holders of the shares of Series A
Convertible Preferred Stock, as successors in interest to the prior holders
of such shares, pursuant to the terms and conditions set forth in a Stock
Purchase Agreement dated as of January 1, 1993 (the "1993 Agreement"), among
the Corporation, DSP Group, Inc. and Scitex Corporation, Ltd.  Except as
provided hereunder and in the 1993 Agreement, the Corporation is not a party
to any "registration rights agreement" or any similar

                                      -4-
<PAGE>

agreement pursuant to which any person would have the right to cause, under
any circumstances, the registration of securities under the Securities Act of
1933, as amended (the "Securities Act").

              j.     DISCLOSURE.  No representation or warranty by the
Corporation in this Agreement or in any statement or certificate furnished or
to be furnished to the Investor pursuant hereto or in connection with the
transactions contemplated hereby contains or will contain any untrue
statement of a material fact or omits or will omit to state a material fact
necessary to make the statements made therein, in the light of the
circumstances under which they were made, not misleading.

              k.     SURVIVAL OF REPRESENTATIONS.  All representations made
by the Corporation in or under this Agreement shall be true and accurate as
of the Closing.

       4.     INVESTOR REPRESENTATIONS AND WARRANTIES.  The Investor
represents and warrants to the Corporation that:

              a.     INVESTMENT.  The Investor is acquiring the Shares and
any shares of Common Stock issuable pursuant to conversion of the Shares
(hereinafter collectively the "Securities") for investment for their own
account, and not with a present intention to resell in connection with, any
distribution thereof, and they have no present intention of selling or
distributing any such Securities.  It understands that the Securities have
not been registered under the Securities Act by reason of a specific
exemption from the registration provisions of the Securities Act which
depends upon, among other things, the bona fide nature of the investment as
expressed herein.

              b.     RULE 144.  The Investor acknowledges that because the
Securities have not been registered under the Securities Act, the Securities
must be held indefinitely unless subsequently registered under the Securities
Act or an exemption from such registration is available.  The Investor is
aware of the provisions of Rule 144 promulgated under the Securities Act
which permits limited resale of shares purchased in a private placement under
certain circumstances.

              c.     NO PUBLIC MARKET.  The Investor understands that no
public market now exists for any securities issued by the Corporation and
that it is uncertain whether a public market will ever exist for any such
securities.

              d.     ACCESS TO DATA.  The Investor has had an opportunity to
discuss the Corporation's business, management and financial affairs with its
management and to obtain any additional information given to it necessary or
appropriate for deciding whether or not to purchase the Securities.  The
Investor acknowledges that no representations or warranties have been made

                                      -5-
<PAGE>

by the Corporation or any agent thereof except as set forth in this Agreement.

              e.     INVESTMENT EXPERIENCE.  The Investor is an  "accredited
investor" as that term is defined in Regulation D promulgated by the
Securities and Exchange Commission.

              f.     PREVIOUS INVESTMENTS.  The Investor is an investor in
securities of companies in the development stage and acknowledges that it is
able to fend for itself, can bear the economic risk of its investment and has
such knowledge and experience in financial or business matters that it is
capable of evaluating the merits and risks of the investment contemplated
herein.

              g.     RISKS.  The Investor understands that an investment in
the Corporation involves a high degree of risk and is suitable only for an
investor who can afford a loss of their entire investment and who have no
need for liquidity from their investment.

              h.     IITSSA COMPLIANCE.  The Investor shall provide to the
Corporation all such information as is necessary to complete the forms
required to be filed by the Corporation with the U.S. Department of Commerce,
Bureau of Economic Analysis, under the International Investment and Trade in
Services Survey Act, as amended, and regulations issued thereunder.

              i.     GOVERNMENTAL CONSENTS.  To the Investor's knowledge, no
consent, approval, order, authorization or registration, qualifications,
designation, license, declarations or filings with any Israeli governmental
authority is required on the part of the Investor in connection with the
consummation of the transactions contemplated herein.

              j.     RESTRICTIONS ON TRANSFER RE REGULATION S.

                     PLEASE INITIAL WHERE INDICATED BELOW

______INITIAL i.     NOT A "U.S. PERSON". The Investor hereby certifies that
(i) it is not a "U.S. Person" as defined under Rule 902, Section (o) of
Regulation S promulgated under the Securities Act, incorporated herein by
reference and is not acquiring the Securities for the account or benefit of
any U.S. Person, and (ii) it is acquiring the Securities in an "offshore
transaction" as defined under Section (i) of such Rule 902, incorporated
herein by reference.

              ii.    TRANSFER RESTRICTIONS.  The Corporation

                                      -6-
<PAGE>

shall not register any transfer of the Securities not made in accordance with
the provisions of Regulation S.  In addition to any other restrictions on
transfer set forth in this Agreement, the Investor agrees to transfer the
Securities only (i) in accordance with the provisions of Regulation S,
pursuant to registration under the Securities Act, or pursuant to an
available exemption from registration, and (ii) in accordance with any
applicable state securities laws. Unless so registered or exempt therefrom,
such transfer restrictions shall include but not be limited to and the
Investor warrants and represents the following:

                     (i)    Investor shall not sell the Securities to any
U.S. Person, whether directly or indirectly, or for the account or benefit of
any such U.S. Person for a period of at least one year after the purchase of
the Securities;

                     (ii)   Any other offer or sale of the Securities shall
be made only if any subsequent purchaser certifies in writing that it is not
a U.S. Person and is not acquiring the Securities for the account or benefit
of any U.S. Person or is a U.S. Person who purchased the Securities in a
transaction that did not require registration under the Securities Act; and

                     (iii)  Any transferee of the Securities shall agree in
writing to resell the Securities only in accordance with the provisions of
Regulation S, pursuant to registration under the Securities Act, or pursuant
to an available exemption from registration.

       5.     RESTRICTIVE LEGENDS.  Each certificate or other written
documentation representing any of the Securities which the Investor is
purchasing or may purchase hereunder and any other securities issued upon any
stock split, stock dividend, recapitalization, merger, consolidation or
similar event (unless no longer required in the opinion of the counsel for
the Corporation) shall be stamped or otherwise imprinted with legends
substantially in the following form:

       "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
       REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
       QUALIFIED UNDER ANY STATE SECURITIES LAW, AND MAY NOT BE SOLD,
       TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE
       REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, OR
       THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE
       SECURITIES SATISFACTORY TO THE CORPORATION, STATING THAT SUCH
       SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
       REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND
       THE QUALIFICATION REQUIREMENTS UNDER STATE

                                      -7-
<PAGE>

       LAW."

       "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
       RESTRICTIONS ON TRANSFER PURSUANT TO REGULATION S PROMULGATED UNDER THE
       SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED,
       ASSIGNED OR HYPOTHECATED EXCEPT PURSUANT TO THE PROVISIONS UNDER
       REGULATION S OR PURSUANT TO REGISTRATION UNDER SUCH ACT OR PURSUANT TO AN
       AVAILABLE EXEMPTION FROM SUCH REGISTRATION."

       The Corporation shall be entitled to enter stop transfer notices on
its stock books with respect to the Securities.

       6.     AFFIRMATIVE COVENANTS OF THE CORPORATION.  So long as the
Investor owns of record and beneficially at least fifty percent (50%) of the
Series A Preferred Stock shares purchased by it hereunder, until the
Corporation effects a registered underwritten public offering of its common
stock, the Corporation shall deliver to such Investor internally prepared
quarterly and annual financial statements.

       7.     REGISTRATION RIGHTS.  At any time after three (3) years from
the Closing Date, or eighteen (18) months after the Corporation's initial
public offering, whichever is earlier, Persons holding at least twenty
percent (20%) of the Common Stock issuable upon conversion of all the Series
A Preferred Stock may request registration by the Corporation of their
shares, if the anticipated aggregate gross cash proceeds would exceed Ten
Million Dollars ($10,000,000). In such event, the Corporation will use its
best efforts to cause such shares to be registered.  The Corporation shall
only be obligated to effect two (2) registrations under these demand
registration rights provisions.  Persons holding Series A Preferred Stock or
Common Stock issuable upon conversion of the Series A Preferred Stock, shall
be entitled to S-3 registration rights no more often than once per every
eighteen (18) month period on form S-3, if available for use by the
Corporation, for an aggregate offering price of at least One Million Dollars
($1,000,000) per offering.  Persons holding Series A Preferred Stock or
Common Stock issuable upon conversion of the Series A Preferred Stock shall
be entitled to unlimited "piggyback" registrations on a registration of the
Corporation's equity, subject to a prorata cutback with all those holding
"piggyback" registration rights in the underwriters' discretion and
reasonable lock-ups as requested by underwriters.  The registration expenses
(exclusive of underwriting discounts and commissions) shall be borne by the
Corporation for all permitted registrations.

       8.     NEGATIVE COVENANTS.  The Corporation shall not, without the
vote or written consent of the holders of a majority of the shares of Series
A Stock, voting as a separate class:

                                      -8-
<PAGE>

                     i.     create any new class or series of shares having
preference over the Series A Stock;

                     ii.    merge, consolidate, or reorganize, where such
merger, consolidation, or reorganization results in the change of a majority
of the members of the Board of Directors;

                     iii.   sell all or substantially all of its assets or
sell more than 50% of the Corporation's Common Stock in one transaction or
series of related transactions.

                     iv.     enter into a transaction with a related party on
terms and conditions which are not done in the ordinary course of business or
which are not done on terms and conditions which represent a fair value to
the Corporation.

       9.     MISCELLANEOUS.

              a.     SURVIVAL.  The covenants and agreements made herein
shall survive the Closing of the transactions contemplated hereby and shall
end when fewer than fifty percent (50%) of the Shares are outstanding or upon
the consummation of an initial public offering of any of the Corporations'
shares.

              b.     SUCCESSORS AND ASSIGNS.  Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors and administrators of
the parties hereto.

              c.     ENTIRE AGREEMENT.  This Agreement and the exhibits
attached hereto and the other documents delivered pursuant hereto constitute
the full and entire understanding and agreement between and among the parties
with regard to the subjects hereof and thereof.

              d.     NOTICE.  Any notice, payment, report or other
communication required or permitted to be given by one party to any other
party by this Agreement shall be in writing and either (i) served personally
on the other party or parties; (ii) sent by express, registered or certified
first class mail, postage prepaid, addressed to the other party or parties at
its or their address or addresses as indicated next to their signatures
below, or to such other address as any addressee shall have theretofore
furnished to the other parties by like notice; (iii) delivered by commercial
courier to the other party or parties; or (iv) sent by facsimile.  Such
notice shall be deemed received on the second day after transmittal if sent
by one day courier together with a transmission of such notice by facsimile
if the recipient has the capability to receive a facsimile at its address and
if sent by other methods shall be deemed received upon receipt.

                                      -9-
<PAGE>

              e.     FINDER'S AND BROKER'S FEES.  The Corporation and
Investor each represents and warrants that it has retained no finder or
broker in connection with the transactions contemplated by this Agreement.
Each party hereby agrees to indemnify and to hold the other harmless from any
liability for any finder's or broker's fee to any broker or other person or
firm (and the costs and expenses of defending against such liability or
asserted liability) for which such indemnifying person, or any of its
employees or representatives, are responsible.

              f.     TITLES AND SUBTITLES.  The titles of the Sections and
subsections of this Agreement are for the convenience of reference only and
are not to be considered in construing this Agreement.

              g.     COUNTERPARTS.  This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all of which
together shall constitute one instrument.

              h.     APPLICABLE LAW.  This Agreement shall be governed by and
construed in accordance with the laws of the State of California applicable
to contracts between California residents entered into and to be performed
entirely within the State of California.

              i.     USE OF PROCEEDS.  The Corporation may use the proceeds
of this financing for (i) working capital purposes; or (ii) capital
investment.

              j.     ARBITRATION.  Any dispute between the parties arising
out of this Agreement shall be submitted to final and binding arbitration in
the City of Cupertino, County of Santa Clara, State of California, under the
Commercial Arbitration Rules of the American Arbitration Association then in
effect, upon written notification and demand of either party therefor.  In
the event either party demands such arbitration, the American Arbitration
Association shall be requested to submit a list of prospective arbitrators
consisting of persons experienced in matters involving securities offerings.
The provisions of California Code of Civil Procedure Section 1283.05 and the
laws of the State of California are incorporated herein and shall be
applicable to the arbitration.  In making the award, the arbitrator shall
award recovery of costs and expenses of the arbitration and reasonable
attorneys' fees to the prevailing party.  Any award may be entered as a
judgment in any court of competent jurisdiction.

                     (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

                                      -10-
<PAGE>

Should judicial proceedings be commenced to enforce or carry out this
provision or any arbitration award, the prevailing party in such proceedings
shall be entitled to reasonable attorneys' fees and costs in addition to
other relief. Either party shall have the right, prior to receiving an
arbitration award, to obtain preliminary relief from a court of competent
jurisdiction to avoid injury or prejudice to that party.

       IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year hereinabove first written.

CORPORATION:

NOGATECH, INC.
a California corporation
20300 Stevens Creek Boulevard, 4th Fl.
Cupertino, California 95014

By: /s/ N. Hod
   ----------------------------------
            (Signature)

-------------------------------------
       (Print Name and Title)

<TABLE>
<CAPTION>
Investor:                                              Number of Shares:
---------                                              -----------------
<S>                                                    <C>
DR ARIE HEIMAN                                              74,074
</TABLE>

 /s/ Heiman
-------------------------------------
            (Signature)

-------------------------------------
         (Print and Name)

-------------------------------------
          (Print Address)

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

                                      -11-

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