Document:

DATUM TELEGRAPHIC INC.

                             STOCK OPTION AGREEMENT

         This Agreement made as of the     day of     , 1998.

         BETWEEN:

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

                           (the "Optionee")

         AND:

                    DATUM   TELEGRAPHIC   INC.,  a  body  corporate  having  its
                    registered  office at 3000 Royal  Centre,  1055 West Georgia
                    Street, Vancouver, British Columbia

                           (the "Company")

         WHEREAS the  Directors of the Company have  authorized  the granting of
options  to  purchase  shares in the  capital  of the  Company to certain of its
[senior] employees.

         NOW THEREFORE THIS AGREEMENT WITNESSETH:

         DEFINITION

         1. In this  Agreement the term "share" or "shares"  means,  as the case
may be, one or more Class B Common shares without par value in the capital stock
of the Company as constituted at the date of this Agreement.

         GRANTING OF OPTION

         2.  The  Company   hereby   irrevocably   grants  to  the   Optionee  a
non-assignable,  non-transferable  option  to  purchase  ________  shares in the
capital  stock of the Company (the  "Option") at a price of $____ per share (the
"Option Price") on the terms and conditions hereinafter set forth.

<PAGE>

         EXERCISE OF OPTION

         3. Subject to  paragraphs 6, 7 and 9 hereof the Option may be exercised
by the Optionee  from time to time during the period  commencing  on the date of
this Agreement until and including May 31, 2002 (the "Expiry Date") by notice in
writing to the Company to that effect as follows:

         (a) at any time but only once  during  the  period  January  1, 1999 to
         December 31, 1999 up to shares;

         (b) at any time but only once  during  the  period  January  1, 2000 to
         December 31, 2000, up to shares;

         (c) at any time but only once  during  the  period  January  1, 2001 to
         December 31, 2001, up to shares;

         (d) at any time but only once  during  the  period  January  1, 2002 to
         December 31, 2002, up to shares; and

         Any such  notice  given to the  Company (an  "Exercise  Notice")  shall
specify the number of shares with respect to which the Option is being exercised
and shall be  accompanied  by a cheque  drawn on a  Canadian  chartered  bank in
favour of the  Company in full  payment  of the  Option  Price for the number of
shares then being purchased.

         DELIVERY OF SHARE CERTIFICATE

         4. The  Company  shall,  within 30 business  days after  receipt of the
Exercise  Notice deliver to the Optionee a share  certificate  representing  the
number of shares with respect to which the Option was exercised and issued as of
the date of receipt of the Exercise Notice by the Company.

         FILING WITH REGULATORY AUTHORITIES

         5.  If,  during  the  term  of  this  Agreement,  the  Company  files a
prospectus with a securities regulatory authority in Canada, then this Agreement
will be required  to be filed with and  approved  by the  securities  regulatory
authorities  having  jurisdiction  over the  Company  as well as with any  stock
exchange (the "Exchange") upon which the shares of the Company are to be listed,
in which case the Optionee hereby agrees to be bound by any  modification of the
terms  and  conditions  of  the  Option  as may be  required  by the  securities
regulatory authorities or the Exchange.

         CAPITAL REORGANIZATION

         6. If the authorized capital of the Company as presently constituted is
consolidated  into a lesser number of shares or subdivided into a greater number
of  shares,  the  number of  shares  in  respect  of which  the  option  remains
unexercised shall be decreased or increased  proportionately as the case may be,
and the then prevailing  purchase price to be paid by the Optionee for each such
share shall be  correspondingly  decreased or increased  as  applicable.  If the
Company  shall  determine  to  amalgamate  or merge  with any other  company  or
companies (and the right to do so is hereby expressly  reserved)  whether by way
of  statutory  amalgamation,  sale of its assets and  undertaking,  or otherwise
howsoever,  then and in each such event the number of shares in the  corporation
resulting  from  such  amalgamation  or merger in  respect  of which the  Option
remains  unexercised shall be such number of shares in that corporation as would
have been acquired by the Optionee  pursuant to the  amalgamation  or merger had
the  Option  been  fully  exercised  immediately  prior  to  the  date  of  such
amalgamation or merger and the then  prevailing  purchase price of the shares to
be paid by the  Optionee  shall be  correspondingly  decreased  or  increased as
applicable.

<PAGE>

         FURTHER ISSUANCES

         7. If at any time prior to May 30, 1999 the Company  issues shares from
treasury to investors at a subscription  price of less than $1.00 per share (the
"Price"),  the  Optionee  will  waive his  pre-emptive  rights in respect of any
issuance  by the  Company to Fractal  Capital  Corp.,  Rudy and  Patricia  North
Foundation,  Permez  Petroleums Ltd., Rolabe Holdings Ltd. and Barry Lando of an
additional block of shares equal to the difference  between the number of shares
that could be purchased with $400,000 at the Price and 400,000.

         ASSIGNMENT OF OPTION

         8. The Option is not  assignable or  transferable  to any person except
that the Option may be assigned with the prior written consent of the Company to
a personal corporation beneficially wholly owned by the Optionee.

         TERMINATION OF OPTION

         9. In the event of the death of the Optionee during any one of the four
periods of time set forth in  Section  3(a) to (d) hereof  (the  "Yearly  Option
Periods"),  the Option will terminate on the earlier of the Expiry Date and that
date which is 6 months  after the date of death of the  Optionee  during which 6
months the personal  representative of the Optionee may exercise the unexercised
part of the Option  available  to the  Optionee in the Yearly  Option  Period in
which the death occurred.

         In the event of the  termination of the employment of the Optionee with
the Company:

         (a)        for cause,  the Option shall  terminate  immediately and the
                    Optionee  shall not be entitled to exercise any  unexercised
                    part of the  Option  or to any  compensation  in  connection
                    therewith;

         (b)      for any other reason,  the Option shall terminate  immediately
                  except that the Optionee may for a period of 30 days  exercise
                  any unexercised  part of the Option  available to the Optionee
                  in the Yearly Option Period in which the termination  occurred
                  but will not be entitled to any compensation in respect of any
                  part of the Option which may not be exercised.

<PAGE>

         NOTICE

         10. Any notice  required to be given under this  Agreement  shall be in
writing and shall be deemed to be well and sufficiently given if delivered or if
mailed by prepaid registered mail in Canada to any party hereof at their address
as  aforesaid  or at such  other  address  as either  party from time to time in
writing advise.  Any such notice given as aforesaid shall be deemed to have been
given if delivered,  when  delivered,  or if mailed,  on the third  business day
after the mailing thereof.

         AMENDMENT OF MATERIAL TERMS

         11. The Board may approve the amendment or  modification  of the Option
agreed to with the  Optionee at any time if the Board deems it  advisable in the
circumstances.  However,  any  amendment  of the Option  which would  materially
change the benefits  under the Option shall be effective  only upon the approval
by  ordinary  resolution  of the  members of the  Company  entitled to vote at a
general  meeting of the Company.  Any  amendment to any  provision of the Option
shall be subject  to  approval,  if  required,  by any  regulatory  body  having
jurisdiction over the securities of the Company.

         TIME OF THE ESSENCE

         12.      Time shall be of the essence of this Agreement.

         SUCCESSORS

         13. This  Agreement  shall enure to the benefit of and be binding  upon
the heirs,  executors,  administrators and permitted assigns of the Optionee and
the successors of the Company.

         IN WITNESS  WHEREOF the parties hereto have caused these presents to be
executed as of the day and year first above written.

         SIGNED,  SEALED  AND  DELIVERED  by in  the           )
presence of:
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         Name                                                  )

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         Address                                               )

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         Occupation                                            )

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         DATUM TELEGRAPHIC INC.                                )

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         Per:     _____________________________                )

                  Authorized Signatory                         )Datum Telegraphic Inc. Stock Option Assumption Agreement

         THIS OPTION  ASSUMPTION  AGREEMENT (the "Agreement") is entered into as
of July ____,  2000,  by and among Datum  Telegraphic  Inc., a British  Columbia
corporation ("Denman"),  PMC-Sierra, Inc., a Delaware corporation ("Pender") and
the undersigned holder of Denman Options (the "Optionee").

         WHEREAS Pender,  600444 B.C. Ltd., a British Columbia corporation and a
wholly-owned  subsidiary of Pender ("Pender Newco"), Denman and the State Street
Bank and Trust  Company of  California,  N.A. (as trustee)  have entered into an
acquisition  agreement dated as of June 26, 2000 (the  "Acquisition  Agreement")
(capitalized  terms  used  and not  otherwise  defined  herein  shall  have  the
respective meanings ascribed to them in the Acquisition Agreement);

         WHEREAS under the Acquisition Agreement, Denman has agreed to assign to
Pender  and  Pender  has  agreed to  assume,  on  certain  conditions,  Denman's
obligations  under the option agreement between Denman and the Optionee attached
hereto as  Schedule 1 (the  "Option  Agreement")  with  respect to the number of
unexercised  and  outstanding  options to  purchase  shares of Denman  listed in
Schedule 2 attached hereto (the "Denman Options"); and

         WHEREAS,  it is a condition precedent to completion of the transactions
contemplated  by the  Acquisition  Agreement  that the Optionee and Pender enter
into this Agreement.

         NOW THEREFORE,  in consideration of the mutual promises made herein and
other  good and  valuable  consideration,  the  sufficiency  of which is  hereby
acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows:

1.  Assumption  of Denman  Options.  From and after the Closing  Time,  Denman's
obligations  under the Option  Agreement  with  respect to each  Denman  Option,
whether  vested or  unvested,  will be assumed by Pender and the Denman  Options
shall  continue  to have,  and be  subject  to,  the same  terms and  conditions
provided in the Option Agreement  (including,  without  limitation,  any vesting
schedule or  repurchase  rights),  except  that (i) each  Denman  Option will be
exercisable  for that number of whole shares of Pender Common Stock equal to the
product of the number of Denman  Common  Shares that were issuable upon exercise
of such Denman Option,  whether vested or not,  immediately prior to the Closing
Time multiplied by the Exchange Ratio,  rounded down to the nearest whole number
of shares of Pender Common Stock,  and (ii) the per share exercise price for the
shares of Pender Common Stock issuable upon exercise of such Denman Options will
be equal to the quotient  determined by dividing the exercise price per share of
Denman  Capital  Stock at which such Denman Option was  exercisable  immediately
prior to the Closing Time by the Exchange Ratio, rounded up to the nearest whole
cent.

2.  Company  deemed to refer to Pender.  From and after the  Closing  Time,  the
phrase  "the  Company" as it is used in the Option  Agreement  will be deemed to
refer to Pender and Pender's  address for the purpose of providing  notice under
the Option  Agreement is 105 - 8555 Baxter  Place,  Burnaby,  British  Columbia,
Canada, V5A 4V7.

3.  Relationship  of  Optionee  to  Pender.  Pender and the  Optionee  agree and
acknowledge with the other that upon completion of the transactions contemplated
in the  Acquisition  Agreement and at the Closing  Time,  the Optionee will be a
director,  officer  or  employee  of Pender  or of an  affiliate,  associate  or
subsidiary of Pender.

<PAGE>

4. Representations,  Warranties and Covenants of Optionee.  Optionee represents,
warrants       and       covenants       to       Pender       as       follows:
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(i)      Optionee is the beneficial owner of the Denman Options.

(ii) The Denman Options are as of the date hereof, and at all times up until the
Closing Time will be, free and clear of any security interests,  liens, pledges,
claims, options, charges or other encumbrances.

(iii)  Optionee has full power and  authority to make,  enter into and carry out
the terms of this Agreement.

5.  Section  116 Income Tax Act  (Canada).  Optionee  represents,  warrants  and
covenants     to    Pender     that    it    is    not,     and    at    Closing
------------------------------------  it will not be, a  non-resident  of Canada
for the purposes of the Income Tax Act (Canada).

6. Further Acts. The Optionee shall promptly do, execute, deliver or cause to be
done,  executed and  delivered  all further  -------------  acts,  documents and
things in connection with this Agreement that Pender may reasonably  require for
the purposes of giving effect to this Agreement.

7. Entire Agreement. This Agreement and the Acquisition Agreement constitute and
express the whole  agreement of the parties with  respect to the  assumption  by
Pender of Denman's  obligations  under the Option  Agreement  with the intention
that all  promises,  representations  and  understandings  relative  thereto are
merged herein.

8.  Option  Agreement.  Subject  to the terms of this  Agreement,  the terms and
conditions  of the  Option  Agreement  are in full  -----------------  force and
effect.

9. Governing  Law. This Agreement  shall be construed and enforced in accordance
with the laws of British Columbia. -------------

10. Notice.  Each notice,  demand or  communication  required or permitted to be
given  under this  Agreement  will be in writing  and will be  delivered  to the
person to whom it is  addressed at the address for such person which is recorded
from time to time in the  records of Pender,  and the date of  delivery  of such
notice, demand or communication will be the date of receipt by the addressee.

11. Successors and Assigns.  This Agreement shall enure to the benefit of and be
binding upon Pender and its successors and ------------------------  assigns and
this  Agreement  shall enure to the benefit of and be binding  upon the Optionee
and the Optionee's legal representatives.

12. Counterparts.  This Agreement may be signed by facsimile and in counterparts
each  of  which  shall  be  deemed  to  be an  original  ------------  and  such
counterparts together shall form one and the same agreement.

<PAGE>

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

         PMC-SIERRA, INC.                           DATUM TELEGRAPHIC INC.

         By:                                        By:
             -----------------------------------

         Name:                                      Name:
               ---------------------------------

         Title:                                     Title:
                --------------------------------

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

         Witness (Print Name):                  [ NAME OF INDIVIDUAL ]

                                                Address:

         OR

         [NAME OF COMPANY]

         By:

         Name:

         Title:

<PAGE>

                                   Schedule 1

                          See Attached Option Agreement

<PAGE>

                                   Schedule 2

         Option to purchase  ___________ shares of Denman,  which option will be
exercisable  for  ___________  shares of Pender  Common Stock from and after the
Closing Time.

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