<PAGE>

                                                                   EXHIBIT 10.6

                                   PIXELWORKS, INC.

                          2000 EMPLOYEE STOCK PURCHASE PLAN

The following constitute the provisions of the 2000 Employee Stock Purchase Plan
of Pixelworks, Inc.

       1.     PURPOSE.  The purpose of the Plan is to provide employees of
the Company and its Designated Subsidiaries with an opportunity to purchase
Common Stock of the Company through accumulated payroll deductions. It is the
intention of the Company to have the Plan qualify as an "Employee Stock Purchase
Plan" under Section 423 of the Internal Revenue Code of 1986, as amended. The
provisions of the Plan, accordingly, shall be construed so as to extend and
limit participation in a manner consistent with the requirements of that section
of the Code.

       2.     DEFINITIONS.

              (a)    "BOARD" shall mean the Board of Directors of the Company.

              (b)    "CODE" shall mean the Internal Revenue Code of 1986, as
amended.

              (c)    "COMMON STOCK" shall mean the common stock of the Company.

              (d)    "COMPANY" shall mean Pixelworks, Inc., an Oregon
corporation, and any Designated Subsidiary of the Company.

              (e)    "COMPENSATION" shall mean all base straight time gross
earnings and commissions, but exclusive of payments for overtime, shift premium,
incentive compensation, incentive payments, bonuses and other compensation.

              (f)    "DESIGNATED SUBSIDIARY" shall mean any Subsidiary which has
been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan.

              (g)    "EMPLOYEE" shall mean any individual who is an Employee of
the Company for tax purposes whose customary employment with the Company is at
least twenty (20) hours per week and more than five (5) months in any calendar
year. For purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of
absence approved by the Company. Where the period of leave exceeds 90 days and
the individual's right to re-employment is not guaranteed either by statute or
by contract, the employment relationship shall be deemed to have terminated on
the 91st day of such leave.

              (h)    "ENROLLMENT DATE" shall mean the first Trading Day of each
Offering Period.


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              (i)    "EXERCISE DATE" shall mean the last Trading Day of each
Purchase Period.

              (j)    "FAIR MARKET VALUE" shall mean, as of any date, the value
of Common Stock determined as follows:

                     (1)    If the Common Stock is listed on any established
stock exchange or a national market system, including without limitation the
Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market,
its Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day on or before the date of such determination, as
reported in The Wall Street Journal or such other source as the Board deems
reliable;

                     (2)     If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean of the closing bid and asked prices for the
Common Stock for the last quotation day on or before the date of such
determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable;

                     (3)    In the absence of an established market for the
Common Stock, the Fair Market Value thereof shall be determined in good faith by
the Board; or

                     (4)     For purposes of the Enrollment Date of the first
Offering Period under the Plan, the Fair Market Value shall be the initial price
to the public as set forth in the final prospectus included within the
registration statement in Form S-1 filed with the Securities and Exchange
Commission for the initial public offering of the Company's Common Stock (the
"Registration Statement").

       (k)    "OFFERING PERIODS" shall mean the periods of approximately
twenty-four (24) months during which an option granted pursuant to the Plan may
be exercised, commencing on the first Trading Day on or after February 1 and
August 1 of each year and terminating on the last Trading Day in the periods
ending twenty-four months later.

       (l)    "PLAN" shall mean this 2000 Employee Stock Purchase Plan.

       (m)  "PURCHASE PERIOD" shall mean the approximately six month period
commencing after one Exercise Date and ending with the next Exercise Date,
except that the first Purchase Period of any Offering Period shall commence on
the Enrollment Date and end with the next Exercise Date.

       (n)    "PURCHASE PRICE" shall mean 85% of the Fair Market Value of a
share of Common Stock on the Enrollment Date or on the Exercise Date, whichever
is lower; PROVIDED HOWEVER, that the Purchase Price may be adjusted by the Board
pursuant to Section 20.

              (o)    "RESERVES" shall mean the number of shares of Common Stock
covered by each option under the Plan which have not yet been exercised and the
number of shares of Common Stock which have been authorized for issuance under
the Plan but not yet placed under option.


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              (p)    "SUBSIDIARY" shall mean a corporation, domestic or foreign,
of which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

              (q)    "TRADING DAY" shall mean a day on which national stock
exchanges and the Nasdaq System are open for trading.

       3.     ELIGIBILITY

              (a)    Any Employee who shall be employed by the Company on a
given Enrollment Date shall be eligible to participate in the Plan.

              (b)     Any provisions of the Plan to the contrary
notwithstanding, no Employee shall be granted an option under the Plan (i) to
the extent that, immediately after the grant, such Employee (or any other person
whose stock would be attributed to such Employee pursuant to Section 424(d) of
the Code) would own capital stock of the Company and/or hold outstanding options
to purchase such stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of the capital stock of the
Company or of any Subsidiary, or (ii) to the extent that his or her rights to
purchase stock under all employee stock purchase plans of the Company and its
subsidiaries accrues at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) worth of stock (determined at the fair market value of the shares at
the time such option is granted) for each calendar year in which such option is
outstanding at any time.

       4.     OFFERING PERIODS. The Plan shall be implemented by consecutive,
overlapping Offering Periods with a new Offering Period commencing on the first
Trading Day on or after February 1 and August 1 each year, or on such other date
as the Board shall determine, and continuing thereafter until terminated in
accordance with Section 20 hereof. The Board shall have the power to change the
duration of Offering Periods (including the commencement dates thereof) with
respect to future offerings without shareholder approval if such change is
announced at least five (5) days prior to the scheduled beginning of the first
Offering Period to be affected thereafter.

       5.     PARTICIPATION.

              (a)    An eligible Employee may become a participant in the Plan
by completing a subscription agreement authorizing payroll. deductions in the
form of Exhibit A to this Plan and filing it with the Company's payroll office
prior to the applicable Enrollment Date.

              (b)     Payroll deductions for a participant shall commence on the
first payroll following the Enrollment Date and shall end on the last payroll in
the Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10 hereof.


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       6.     PAYROLL DEDUCTIONS.

              (a)    At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day
during the Offering Period in one percent (1%) increments of not less than two
percent (2%) or greater than ten percent (10%) of the Compensation which he or
she receives on each pay day during the Offering Period.

              (b)    All payroll deductions made for a participant shall be
credited to his or her account under the Plan and shall be withheld in whole
percentages only. A participant may not make any additional payments into such
account.

              (c)    A participant may discontinue his or her participation in
the Plan as provided in Section 10 hereof, or may increase or decrease the rate
of his or her payroll deductions during the Offering Period by completing or
filing with the Company a new subscription agreement authorizing a change in
payroll deduction rate. The Board may, in its discretion, limit the number of
participation rate changes during any Offering Period. The change in rate shall
be effective with the first full payroll period following five (5) business days
after the Company's receipt of the new subscription agreement unless the Company
elects to process a given change in participation more quickly. A participant's
subscription agreement shall remain in effect for successive Offering Periods
unless terminated as provided in Section 10 hereof.

              (d)    Notwithstanding the foregoing, to the extent necessary to
comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a
participant's payroll deductions may be decreased to zero percent (0%) at any
time during a Purchase Period. Payroll deductions shall recommence at the rate
provided in such participant's subscription agreement at the beginning of the
first Purchase Period which is scheduled to end in the following calendar year,
unless terminated by the participant as provided in Section 10 hereof.

              (e)    At the time the option is exercised, in whole or in part,
or at the time some or all of the Company's Common Stock issued under the Plan
is disposed of, the participant must make adequate provision for the Company's
federal, state, or other tax withholding obligations, if any, which arise upon
the exercise of the option or the disposition of the Common Stock. At any time,
the Company may, but shall not be obligated to, withhold from the participant's
compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Employee.

       7.     GRANT OF OPTION. On the Enrollment Date of each Offering Period,
each eligible Employee participating in such Offering Period shall be granted an
option to purchase on each Exercise Date during such Offering Period (at the
applicable Purchase Price) up to a number of shares of the Company's Common
Stock determined by dividing such Employees payroll deductions accumulated prior
to such Exercise Date and retained in the Participant's account as of the
Exercise Date by the applicable Purchase Price; provided that in no event shall
an Employee be permitted to purchase during each Purchase Period more than
two thousand five hundred (2,500) shares of the Company's Common Stock
(subject to any adjustment pursuant to Section 19), and provided further that
such purchase shall be subject to the limitations set forth in Sections 3(b),
8(b) and 12 hereof. The Board may, for future Offering Periods, increase or
decrease, in its absolute discretion, the maximum number of shares of the


                                      -4-

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Company's Common Stock an Employee may purchase during each Purchase Period of
such Offering Period. Exercise of the option shall occur as provided in Section
8 hereof, unless the participant has withdrawn pursuant to Section 10 hereof.
The option shall expire on the last day of the Offering Period.

       8.     EXERCISE OF OPTION.
              (a)    Unless a participant withdraws from the Plan as provided in
Section 10 hereof, his or her option for the purchase of shares shall be
exercised automatically on the Exercise Date, and the maximum number of full
shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account; provided that in no event shall an Employee be permitted to purchase
during each Purchase Period more than two hundred percent (200%) of the number
of shares that the Employee could purchase if the Purchase Price was limited to
eight-five percent (85%) of the Fair Market Value of a share of Common Stock on
the Enrollment Date. No fractional shares shall be purchased; any payroll
deductions accumulated in a participant's account which are not sufficient to
purchase a full share shall be retained in the participant's account for the
subsequent Purchase Period or Offering Period, subject to earlier withdrawal by
the participant as provided in Section l0 hereof. Any other monies leftover in a
participant's account after the Exercise Date shall be returned to the
participant. During a participant's lifetime, a participant's option to purchase
shares hereunder is exercisable only by him or her.

              (b)    If the Board determines that, on a given Exercise Date, the
number of shares with respect to which options are to be exercised may exceed
(i) the number of shares of Common Stock that were available for sale under the
Plan on the Enrollment Date of the applicable Offering Period, or (ii) the
number of shares available for sale under the Plan on such Exercise Date, the
Board may in its sole discretion (x) provide that the Company shall make a pro
rata allocation of the shares of Common Stock available for purchase on such
Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall
be practicable and as it shall determine in its sole discretion to be equitable
among all participants exercising options to purchase Common Stock on such
Exercise Date, and continue all Offering Periods then in effect, or (y) provide
that the Company shall make a pro rata allocation of the shares available for
purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform
a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants exercising options to purchase
Common Stock on such Exercise Date, and terminate any or all Offering Periods
then in effect pursuant to Section 20 hereof. The Company may make pro rata
allocation of the shares available on the Enrollment Date of any applicable
Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares for issuance under the Plan by the Company's
shareholders subsequent to such Enrollment Date.


                                      -5-

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       9.     DELIVERY. As promptly as practicable after each Exercise Date on
which a purchase of shares occurs, the Company shall arrange the delivery to
each participant, as appropriate, of a certificate representing the shares
purchased upon exercise of his or her option.

       10.    WITHDRAWAL.

              (a)    A participant may withdraw all but not less than all the
payroll deductions credited to his or her account and not yet used to exercise
his or her option under the Plan at any time by giving written notice to the
Company in the form of Exhibit B to this Plan. All of the participants payroll
deductions credited to his or her account shall be paid to such participant
promptly after receipt of notice of withdrawal and such participants option for
the Offering Period shall be automatically terminated, and no further payroll
deductions for the purchase of shares shall be made for such Offering Period. If
a participant withdraws from an Offering Period, payroll deductions shall not
resume at the beginning of the succeeding Offering Period unless the participant
delivers to the Company a new subscription agreement.
              (b)    A participants withdrawal from an Offering Period shall not
have any effect upon his or her eligibility to participate in any similar plan
which may hereafter be adopted by the Company or in succeeding Offering Periods
which commence after the termination of the Offering Period from which the
participant withdraws.

       11.    TERMINATION OF EMPLOYMENT.

       Upon a participant's ceasing to be an Employee, for any reason, he or she
shall be deemed to have elected to withdraw from the Plan and the payroll
deductions credited to such participant's account during the Offering Period but
not yet used to exercise the option shall be returned to such participant or, in
the case of his or her death, to the person or persons entitled thereto under
Section 15 hereof, and such participant's option shall be automatically
terminated. The preceding sentence notwithstanding, a participant who receives
payment in lieu of notice of termination of employment shall be treated as
continuing to be an Employee for the participant's customary number of hours per
week of employment during the period in which the participant is subject to such
payment in lieu of notice.

       12.    INTEREST.     No interest shall accrue on the payroll deductions
of a participant in the Plan.

       13.    STOCK.

              (a)    Subject to adjustment upon changes in capitalization of the
Company as provided in Section 19 hereof, the maximum number of shares of the
Company's Common Stock which shall be made available for sale under the Plan
shall be one million (1,000,000) shares, plus an annual increase to be added on
the first day of the Company's fiscal year beginning in 2005 equal to the lesser
of (i) the number of shares of Common Stock issued pursuant to the Plan during
the immediately preceding fiscal year of the Company, (ii) two percent (2%) of
the outstanding shares of Common Stock on the first day of the Company's fiscal
year for which the increase is being made or (iii) a lesser amount determined by
the Board.


                                      -6-

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              (b)    The participant shall have no interest or voting right in
shares covered by his option until such option has been exercised.
              (c)    Shares to be delivered to a participant under the Plan
shall be registered in the name of the participant or in the name of the
participant and his or her spouse.

       14.    ADMINISTRATION. The Plan shall be administered by the Board or a
committee of members of the Board appointed by the Board. The Board or its
committee shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claim filed under the Plan. Every finding, decision and
determination made by the Board or its committee shall to the full extent
permitted by law, be final and binding upon all parties.

       15.    DESIGNATION OF BENEFICIARY.

              (a)    A participant may file a written designation of a
beneficiary who is to receive any shares and cash, if any, from the
participant's account under the Plan in the event of such participant's death
subsequent to an Exercise Date on which the option is exercised but prior to
delivery to such participant of such shares and cash. In addition, a
participant may file a written designation of a beneficiary who is to receive
any cash from the participant's account under the Plan in the event of such
participant's death prior to exercise of the option. If a participant is
married and the designated beneficiary is not the spouse, spousal consent
shall be required for such designation to be effective.

              (b)    Such designation of beneficiary may be changed by the
participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under the
Plan who is living at the time of such participant's death, the Company shall
deliver such shares and/or cash to the executor or administrator of the estate
of the participant, or if no such executor or administrator has been appointed
(to the knowledge of the Company), the Company, in its discretion, may deliver
such shares and/or cash to the spouse or to any one or more dependents or
relatives of the participant or if no spouse, dependent or relative is known to
the Company, then to such other person as the Company may designate.

       16.    TRANSFERABILITY.  Neither payroll deductions credited to a
participant's account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15 hereof) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect except that the Company may treat such act as an election to withdraw
funds from an Offering Period in accordance with Section 10 hereof.

       17.    USE OF FUNDS. All payroll deductions received or held by the
Company under the Plan may be used by the Company for any corporate purpose, and
the Company shall not be obligated to segregate such payroll deductions.


                                      -7-

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       18.    REPORTS. Individual accounts shall be maintained for each
participant in the Plan. Statements of account shall be given to participating
Employees at least annually, which statements shall set forth the amounts of
payroll deductions, the Purchase Price, the number of shares purchased and the
remaining cash balance, if any.
       19.    ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION,
              LIQUIDATION, MERGER OF ASSET SALE

              (a)     CHANGES IN CAPITALIZATION. Subject to any required action
by the shareholders of the Company, the Reserves, the maximum number of shares
each participant may purchase each Purchase Period (pursuant to Section 7), as
well as the price per share and the number of shares of Common Stock covered by
each option under the Plan which has not yet been exercised shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of shares of Common Stock effected without
receipt of consideration by the Company, provided, however, that conversion of
any convertible securities of the Company shall not be deemed to have been
"effected without receipt of consideration."  Such adjustment shall be made by
the Board, whose determination in that respect shall be final, binding and
conclusive. Except as expressly provided herein, no issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an option.

              (b)    DISSOLUTION OR LIQUIDATION.  In the event of the proposed
dissolution or liquidation of the Company, the Offering Period then in progress
shall be shortened by setting a new Exercise Date (the "New Exercise Date"), and
shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board. The New
Exercise Date shall be before the date of the Company's proposed dissolution or
liquidation. The Board shall notify each participant in writing, at least ten
(10) business days prior to the New Exercise Date, that the Exercise Date for
the participant's option has been changed to the New Exercise Date and that the
participant's option shall be exercised automatically on the New Exercise Date,
unless prior to such date the participant has withdrawn from the Offering Period
as provided in Section 10 hereof.

              (c)     MERGER OR ASSET SALE.  In the event of a proposed sale of
all or substantially all of the assets of the Company, or the merger of the
Company with or into another corporation, each outstanding option shall be
assumed or an equivalent option substituted by the successor corporation or a
Parent or Subsidiary of the successor corporation. In the event that the
successor corporation refuses to assume or substitute for the option, any
Purchase Periods then in progress shall be shortened by setting a new Exercise
Date (the "New Exercise Date") and any Offering Periods then in progress shall
end on the New Exercise Date. The New Exercise Date shall be before the date of
the Company's proposed sale or merger. The Board shall notify each participant
in writing, at least ten (10) business days prior to the New Exercise Date, that
the Exercise Date for the participant's option has been changed to the New
Exercise Date and that the participant's option shall be exercised automatically
on the New Exercise Date, unless prior to such date the participant has
withdrawn from the Offering Period as provided in Section 10 hereof.


                                      -8-

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       20.    AMENDMENT OR TERMINATION.

              (a)     The Board of Directors of the Company may at any time and
for any reason terminate or amend the Plan. Except as provided in Section 19
hereof, no such termination can affect options previously granted, provided that
an Offering Period may be terminated by the Board of Directors on any Exercise
Date if the Board determines that the termination of the Offering Period or the
Plan is in the best interests of the Company and its shareholders. Except as
provided in Section 19 and this Section 20 hereof, no amendment may make any
change in any option theretofore granted which adversely affects the rights of
any participant. To the extent necessary to comply with Section 423 of the Code
(or any successor rule or provision or any other applicable law, regulation or
stock exchange rule), the Company shall obtain shareholder approval in such a
manner and to such a degree as required.

              (b)    Without shareholder consent and without regard to whether
any participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation, and establish such other limitations or procedures
as the Board (or its committee) determines in its sole discretion advisable
which are consistent with the Plan.

              (c)    In the event the Board determines that the ongoing
operation of the Plan may result in unfavorable financial accounting
consequences, the Board may, in its discretion and, to the extent necessary or
desirable, modify or amend the Plan to reduce or eliminate such accounting
consequence including, but not limited to:

                     (1)    altering the Purchase Price for any Offering Period
including an Offering Period underway at the time of the change in Purchase
Price;

                     (2)    shortening any Offering Period so that Offering
Period ends on a new Exercise Date, including an Offering Period underway at the
time of the Board action; and

                     (3)    allocating shares.

                     Such modifications or amendments shall not require
stockholder approval or the consent of any Plan participants.

       21.    NOTICES.      All notices or other communications by a participant
to the Company under or in connection with the Plan shall be deemed to have been
duly given when received in the form


                                      -9-

<PAGE>

specified by the Company at the location, or by the person, designated by the
Company for the receipt thereof.
       22.    CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued
with respect to an option unless the exercise of such option and the issuance
and delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange upon which the shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

              As a condition to the exercise of an option, the Company may
require the person exercising such option to represent and warrant at the time
of any such exercise that the shares are being purchased only for investment and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law.

       23.    TERM OF PLAN. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
shareholders of the Company. It shall continue in effect for a term of ten (10)
years unless sooner terminated under Section 20 hereof

       24.    AUTOMATIC TRANSFER TO LOW PRICE OFFERING PERIOD. To the extent
permitted by any applicable laws, regulations, or stock exchange rules if the
Fair Market Value of the Common Stock on any Exercise Date in an Offering Period
is lower than the Fair Market Value of the Common Stock on the Enrollment Date
of such Offering Period, then all participants in such Offering Period shall be
automatically withdrawn from such Offering Period immediately after the exercise
of their option on such Exercise Date and automatically re-enrolled in the
immediately following Offering Period as of the first day thereof.


                                      -10-

<PAGE>

                                    EXHIBIT A

                                PIXELWORKS, INC.

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                              SUBSCRIPTION AGREEMENT

        Original Application               Enrollment Date:____________________
        Change in Payroll Deduction Rate
        Change of Beneficiary(ies)


1.     ____________________________________ hereby elects to participate in the
       Pixelworks, Inc. 2000 Employee Stock Purchase Plan (the "Employee Stock
       Purchase Plan") and subscribes to purchase shares of the Company's Common
       Stock in accordance with this Subscription Agreement and the Employee
       Stock Purchase Plan.

2.     I hereby authorize payroll deductions from each paycheck in the amount of
       _________ % of my Compensation on each payday (from 2% to 10%) during the
       Offering Period in accordance with the Employee Stock Purchase Plan.
       (Please note that no fractional percentages are permitted.)

3.     I understand that said payroll deductions shall be accumulated for the
       purchase of shares of Common Stock at the applicable Purchase Price
       determined in accordance with the Employee Stock Purchase Plan. I
       understand that if I do not withdraw from an Offering Period, any
       accumulated payroll deductions will be used to automatically exercise my
       option.

4.     I have received a copy of the complete Employee Stock Purchase Plan. I
       understand that my participation in the Employee Stock Purchase Plan is
       in all respects subject to the terms of the Plan. I understand that my
       ability to exercise the option under this Subscription Agreement is
       subject to shareholder approval of the Employee Stock Purchase Plan.

5.     Shares purchased for me under the Employee Stock Purchase Plan should be
       issued in the name(s) of (Employee or Employee and Spouse only):________
       ________________________________________________________________________.

6.     I understand that if I dispose of any shares received by me pursuant to
       the Plan within 2 years after the Enrollment Date (the first day of the
       Offering Period during which I purchased such shares) or one year after
       the Exercise Date, I will be treated for federal income tax purposes as
       having received ordinary income at the time of such disposition in an
       amount equal to the excess of the fair market value of the shares at the
       time such shares were purchased by me over the price which I paid for the
       shares. I AGREE TO NOTIFY THE COMPANY IN WRITING WITHIN 30 DAYS AFTER THE
       DATE OF ANY DISPOSITION OF MY SHARES AND I WILL MAKE ADEQUATE PROVISION
       FOR FEDERAL, STATE OR OTHER TAX WITHHOLDING OBLIGATIONS, IF ANY, WHICH
       ARISE UPON THE DISPOSITION OF THE COMMON STOCK.   The Company may, but
       will not be

EXHIBIT A-1

<PAGE>

       obligated to, withhold from my compensation the amount necessary to
       meet any applicable withholding obligation including any withholding
       necessary to make available to the Company any tax deductions or
       benefits attributable to sale or early disposition of Common Stock by
       me. If I dispose of such shares at any time after the expiration of
       the 2-year and 1-year holding periods, I understand that I will be
       treated for federal income tax purposes as having received income only
       at the time of such disposition, and that such income will be taxed as
       ordinary income only to the extent of an amount equal to the lesser of
       (1) the excess of the fair market value of the shares at the time of
       such disposition over the purchase price which I paid for the shares,
       or (2) 15% of the fair market value of the shares on the first day of
       the Offering Period. The remainder of the gain, if any, recognized on
       such disposition will be taxed as capital gain.

7.     I hereby agree to be bound by the terms of the Employee Stock Purchase
       Plan. The effectiveness of this Subscription Agreement is dependent upon
       my eligibility to participate in the Employee Stock Purchase Plan.

8.     In the event of my death, I hereby designate the following as my
       beneficiary(ies) to receive all payments and shares due me under the
       Employee Stock Purchase Plan:

NAME: (Please print)
                    -----------------------------------------------------------
                        (First)          (Middle)         (Last)

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

Relationship

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

Employee's Social Security Number:
                                  ---------------------------------------------

Employee's Address:
                   ------------------------------------------------------------

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

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

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

Dated:
      ----------------    -----------------------------------------------------
                          Signature of Employee


                          -----------------------------------------------------
                          Spouse's Signature (If beneficiary other than spouse)


EXHIBIT A-2

<PAGE>

                                      EXHIBIT B

                                  PIXELWORKS, INC.

                         2000 EMPLOYEE STOCK PURCHASE PLAN

                                NOTICE OF WITHDRAWAL


       The undersigned participant in the Offering Period of the Pixelworks,
Inc. 2000 Employee Stock Purchase Plan which began on ________________ _____,
20___ (the "Enrollment Date") hereby notifies the Company that he or she hereby
withdraws from the Offering Period. He or she hereby directs the Company to pay
to the undersigned as promptly as practicable all the payroll deductions
credited to his or her account with respect to such Offering Period. The
undersigned understands and agrees that his or her option for such Offering
Period will be automatically terminated. The undersigned understands further
that no further payroll deductions will be made for the purchase of shares in
the current Offering Period and the undersigned shall be eligible to participate
in succeeding Offering Periods only by delivering to the Company a new
Subscription Agreement.

                                             Name and Address of Participant:

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

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

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

                                             Signature:

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

                                             Date:
                                                  -----------------------------