Document:

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                                                                   EXHIBIT 10.25

                      [LETTERHEAD OF VIRATA APPEARS HERE]

17 June, 1999

Mr D Greatwood
87 Back Street
Ashwell
Hertfordshire
SG7 5PS

Dear Duncan

Re: Promotion to VP Marketing
------------------------------------------------------------------

I am delighted to tell you that effective 15 June, 1999, you have been promoted
to VP Marketing.

In line with this promotion your salary will be increased to (Pounds)85,000pa,
effective also 15 June, 1999.

Duncan, congratulations on this well deserved promotion. I am very much looking
forward to working with you in your new role.

Yours sincerely

/s/ Michael Gulett

Michael Gulett
President & Chief Operating Officer

<PAGE>

                               [LOGO OF VIRATA]

                        VIRATA LIMITED ("The Employer")

                 SUMMARY OF TERMS AND CONDITIONS OF EMPLOYMENT

Date:                10 December, 1998

Statement of Terms of Employment pursuant to the Employment Protection
(Consolidation) Act 1978. This statement, which supersedes all previous
statements, sets out particulars of the terms and conditions under which you are
employed.

1.  Name of "the Employee":                      Duncan Greatwood

2.  Address:                                     87 Back Street
                                                 Ashwell
                                                 Herts
                                                 SG7 5PS

3.  (a)   Date of Birth:                         26 October, 1967

    (b)   National Insurance Number:             NP 56 47 65A

4.  (a)   Date Employment began:                 24 November, 1997

    (b)   Date of Continuous Employment
          (If different from above):

5.  Job Title:                                   VP Product Management

6.  Basic Hours of Work:                         9am - 5.30pm

7.  Salary Payment Day:                          28th day of each month

8.  Holiday Entitlement:                         22 days pro rata, plus one
                                                 extra day for every year worked
                                                 to maximum of 25. (Qualifying
                                                 period commences 1/1/98)

9.  Notice of Termination:                       One month either side

10. Place of Employment:                         Mount Pleasant House, Cambridge

11. Salary:                                      (Pounds)80,000pa

<PAGE>

1.   CONTINUITY OF EMPLOYMENT

     Your period of continuous employment with the Employer began on the date
     specified on page 1. Employment with any previous employer does not count
     as part of your period of continuous employment.

2.   JOB DESCRIPTION

     You are employed in the capacity specified on page 1 but it is expected
     that if necessary you may be required to undertake other work of which you
     are capable and/or for which you have trained or will receive training from
     the Employer.

3.   SALARY

     Your salary is paid by bank credit transfer at monthly intervals as
     specified on page 1, one month in arrears. Salaries will be reviewed
     annually.

4.   TRAVEL/EXPENSES

     You may from time to time be expected to travel on behalf of the Company.
     All travel and subsistence expenses wholly and necessarily incurred by you
     on the Employer's business will be reimbursed on production of the relevant
     receipts and vouchers.

5.   HOURS OF WORK

     Your basic hours of work are those specified on page 1.

     You will be required to work such hours as are necessary for the proper
     performance of your duties. Payment to salaried staff for overtime work
     will only be made in circumstances agreed in advance by the Employer.

6.   ANNUAL HOLIDAYS

     The holiday year runs from 1 January to 31 December. Up to 5 days can be
     carried forward to the following year to be used by 31 May.

     You are entitled to holidays as specified on page 1.

     In addition you will be entitled to all statutory Bank Holidays unless
     required to work on that day in which case you will receive an extra day's
     holiday to be taken at a time to be agreed with the Employer or at the
     Employer's discretion pay in lieu.

     If employment commences or terminates during a specific holiday year,
     holiday entitlement for that year will be calculated on the period actually
     worked, pro rata on the basis of completed calendar months.

     If at the time of termination of employment you have exceeded your holiday
     entitlement, your final payment will be reduced accordingly.

     In any event you must give at least four weeks notice of your intention to
     take a holiday, and the Employer, whilst making every effort to meet your
     wishes, reserves the right to refuse permission if your absence would
     result in inadequate staffing.

7.   SICKNESS AND INJURY

     If you are late for work, or absent from whatever cause, a telephone call
     should be made by you or by someone on your behalf. Notification should be
     made as soon as possible to inform the Employer (HR Manager) of the reason
     for absence and the probable length of time you will be absent.

     If you are absent from work due to sickness or injury which continues for
     more than seven days (including weekends) you must provide the Employer
     with a Medical certificate on the eighth day of sickness or injury.
<PAGE>

     Thereafter Medical Certificates must be provided to the Employer on a
     weekly basis.

8.   SICKNESS PAY

     The Employer will continue to pay you when you are absent through illness.
     You will continue to receive your full salary for the following maximum
     periods:

     Years Service                         Maximum total sick pay in one year

     Up to one year                        4 weeks

     Over one year/under three years       8 weeks

     Three years and over                  13 weeks

     These periods will be cumulative over the course of twelve months and any
     payments beyond these maximum periods will be at the discretion of the
     Employer. State sick pay will be deducted from any sum of sickness pay
     which you receive.

9.   BENEFIT PACKAGE

     The Employer operates a benefits package for all eligible employees.
     Details of this package will be given to you when you become eligible.

10.  CONFIDENTIALITY

     You may not disclose any information of a confidential nature relating to
     the Company or any of its associated companies or their business or trade
     secrets or in respect of which the Company owes an obligation of confidence
     to any third party during your employment except in the proper course of
     your employment or within five years after the termination of your
     employment.

11.  NOTICE OF TERMINATION

     Notice of termination will be in writing and will be as required under the
     provisions of the Employment Protection (Consolidation) Act 1978 or any
     amendment thereof unless specified otherwise on page 2.

     Should you wish to terminate your employment with the Employer, you will be
     required to give notice in writing as specified on page 2.

12.  INVENTIONS

     Any invention, discovery, improvement or design in or relating to apparatus
     of a type made, assembled, sold, designed or in the process of development
     by the Employer or in or relating to the manufacture of such apparatus or
     otherwise suitable for the purposes of the business of the Employer which
     is made by you in the course of your employment with the Employer shall be
     promptly disclosed by you to your immediate superior.

     Copyright and similar rights in all work done in the course of your
     employment shall belong to the Employer.

     As between the Employer and you, the ownership of all inventions made by
     you in the course of your employment will be determined in accordance with
     Section 39 of the Patents Act 1977.

     At the Employer's request you will during or after your employment with the
     Employer, do everything necessary at the Employer's expense to obtain
     letters patent, including any extension thereof, design, copyright and
     similar protection for the same in any part of the world, and to vest
     exclusively in the Employer all letters patent, including any extension
     thereof, design, copyright and any other protection relating thereto.

<PAGE>

13.  GRIEVANCE PROCEDURE

     If you have any grievance regarding your employment, you should approach
     your immediate superior orally or in writing. If the matter is not resolved
     then appeal can be made to the Board of Directors.

14.  DISCIPLINARY PROCEDURE

     Matters of discipline will in the first instance be dealt with by your
     immediate superior with an appeal to the Board of Directors.

15.  SAFETY

     You are responsible for taking reasonable care for the health and safety of
     yourself and other persons who may be affected by your acts and omissions
     at work and for complying with any rules and regulations which the Employer
     may produce in this respect.

16.  CHANGES

     In respect of any changes in the terms and conditions of employment you
     will be notified in writing of any such changes within one month of any
     such change.

     FOR AND ON BEHALF OF VIRATA LIMITED

Signed        /s/ Michael Gulett
       --------------------------------------------------

Date            10 Dec 1998
     ----------------------------------------------------

ACKNOWLEDGEMENT BY THE EMPLOYEE

I agree that the preceding provisions from the basis of my Contract of
Employment and acknowledg receipt of a statement of which the foregoing is a
true copy.

Signed      /s/ Duncan Greatwood
       -----------------------------------------------------------

Date   ___________________________________________________________<PAGE>

                                                                   EXHIBIT 10.27

                         REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this "Agreement") is entered into as of
February 10, 2000 by and among Virata Corporation, a Delaware corporation
(the "Company"), and David Y. Wong, as Securityholder Agent (the "Securityholder
Agent") of the persons whose names and addresses are set forth in Schedule 1
                                                                  ----------
attached hereto (each an "Investor" and together the "Investors"), for the
express benefit of such Investors.

                                    RECITALS

     WHEREAS, the Investors were each holders of shares of the capital stock of
D2 Technologies, Inc., a California corporation ("D2");

     WHEREAS, pursuant to the terms and conditions of that certain Agreement and
Plan of Merger, dated as of January 23, 2000 (the "Merger Agreement"), at the
Effective Time (as defined in the Merger Agreement) the Investors each became
holders of shares of the common stock, par value $0.001 per share, of the
Company ("Common Stock").

     WHEREAS, in connection with entering into the Merger Agreement, the Company
agreed to grant the Investors certain registration rights with respect to the
shares of Common Stock issued to the Investors at the Effective Time (as defined
in the Merger Agreement) pursuant to the Merger Agreement.

                                   AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing recitals, the mutual
promises hereinafter set forth, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

1.  Definitions

     The following terms, as used herein, shall have the following meanings:

     "Commission" means the Securities and Exchange Commission.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder, as they each may, from time to
time, be in effect.

     "Merger" means the merger of D2 with a wholly-owned subsidiary of the
Company that is contemplated by the Merger Agreement.

     "Merger Shares" means the aggregate number of shares of Common Stock
received by the Investors in the Merger pursuant to the Merger Agreement in
exchange for the shares of D2 capital stock (allocated among them on a pro rata
basis, based on the number of shares of capital stock held by each) that were
outstanding at the Effective Time.
<PAGE>

     "Merger Effective Date" means the date on which the Effective Time has
occurred.

     "Rights Holders" means the Investors during such time as they hold
Registrable Shares, and any persons or entities to whom the rights granted under
this Agreement are transferred in accordance with Section 13 hereof.

     "Registrable Shares" means:

         (a) In the case of any Registration Statement on Form S-1, fifteen
    percent (15%) of the Merger Shares (the "S-1 Registrable Shares") and, in
    the case of any Registration Statement on Form S-3, the difference between
    (i) fifteen percent (15%) of the Merger Shares and (ii) the number of Merger
    Shares previously registered pursuant to any Registration Statement of Form
    S-1 ("S-3 Registrable Shares") and

         (b) any other securities issued in respect of the shares described in
    Paragraph (a) of this definition (because of stock splits, stock dividends,
    reclassifications, recapitalizations, or similar events), which securities
    shall be the same type of Registrable Shares as the shares from which they
    were issuable;

provided, however, that shares which are Registrable Shares shall cease to be
Registrable Shares:

         (i) upon any sale or other transfer of such shares pursuant to a
    Registration Statement or Rule 144 under the Securities Act or any similar
    provision then in force); or

         (ii) if such shares are capable of being distributed pursuant to Rule
    144(k) under the Securities Act and the Company removes all restrictive
    legends on and stop transfer instructions with respect to such shares; or

         (iii)  upon any sale or transfer to a person or entity to which,
    pursuant to Section 13 of this Agreement, the rights provided by this
    Agreement are not transferable.

     "Registration Statement" means a registration statement filed by the
Company with the Commission for a public offering and sale of Common Stock
(other than a registration statement covering only securities proposed to be
issued in exchange for securities or assets of another person or entity or in
connection with an employee benefit plan).

     "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder, as they each may, from time to
time, be in effect.

     "S-1 Piggy Back Registration Rights" means the rights of the Rights Holders
to have their Registrable Shares registered on the terms and conditions of this
Agreement pursuant to a Registration Statement on Form S-1 (or any successor
form thereto) under the Securities Act that is filed by the Company as
contemplated in Subsection 2.01(a) of this Agreement.

     "S-3 Registration Rights" means the rights of the Rights Holders to have
their Registrable Shares registered on the terms and conditions of this
Agreement pursuant to a Registration Statement on Form S-3 (or any successor
form thereto) under the Securities Act that is filed by the Company as
contemplated in Subsection 2.01(a) of this Agreement.

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<PAGE>

2.  Registration Rights

     2.01  If the Company proposes to file:

         (a) a Registration Statement of Form S-1 for shares of Common Stock to
    be issued by the Company or to be sold by any stockholder of the Company (an
    "S-1 Piggyback Registration Statement") at any time during the 180-day
    period commencing on the Merger Effective Date, or

         (b) a Registration Statement on Form S-3 for the registration under the
    Securities Act of sales of any shares owned by any of the Company's
    stockholders (an "S-3 Registration Statement") at any time during the period
    from the Merger Effective Date to the date that such Shares cease to be
    Registrable Shares, (the "S-3 Registration Period"),

then, the Company will, prior to such filing, give written notice to all Rights
Holders of its intention to do so and, upon the written request of Rights
Holders holding in the aggregate at least thirty percent (30%) of the
Registrable Shares given within twenty (20) days after the Company provides such
notice (which request shall state the intended method of disposition of such
Registrable Shares), the Company shall use its best efforts to cause all
Registrable Shares which the Company has been requested by such Rights Holders
to register to be registered under such S-1 Piggy Back Registration Statement or
S-3 Registration Statement, as the case may be; provided, however, that the
Company shall have the right to postpone or withdraw any registration effected
pursuant to this subsection 2.01 without incurring any liability for doing so to
any Rights Holder.  Subject to subsection 2.02 below, if any Registrable Shares
are to be registered pursuant to this subsection 2.01, then the Company shall
provide notice of such fact to all Rights Holders, and all Rights Holders will
then have the right to register all of their Registrable Shares under such S-1
Piggy Back Registration Statement or S-3 Registration Statement, as the case may
be.  In the event the Company and its underwriters, if any, permit all
Registrable Shares eligible to be registered on Form S-1 to be registered under
an S-1 Piggy Back Registration Statement without any Cutback (as hereinafter
defined), and such Registration Statement (i) is declared effective by the SEC
by no later than the 180th day after the Merger Effective Date and (ii) remains
effective for the Applicable Registration Period, then, the S-1 Piggy Back
Registration Rights under this subsection 2.01 and the demand registration
rights under Section 2.03 shall terminate at the end of such time period;
provided, however, that the S-3 Registration Rights shall remain in full force
and effect until the end of the S-3 Registration Rights Period.

     2.02  In connection with any registration under subsection 2.01 above
involving an underwriting, the Company shall not be required to include any
Registrable Shares in such registration unless the holders thereof accept the
terms of the underwriting as agreed upon between the Company and the
underwriters selected by it (provided that such terms must be consistent with
this Agreement and the terms customarily included in agreements of this nature
for underwritten public offerings).  If in the opinion of the managing
underwriter it is appropriate because of marketing factors to limit the number
of Registrable Shares to be included in the offering, then the Company shall be
required to include in the registration only that number of Registrable Shares,
if any, which the managing underwriter believes should be included therein;
provided, however, that no persons or entities other than the Company, the
Rights Holders and

                                       3
<PAGE>

persons or entities holding other registration rights granted by the Company
shall be permitted to include securities in the offering. If the number of
Registrable Shares to be included in the offering in accordance with the
foregoing is less than the total number of shares which the holders of
Registrable Shares have requested to be included ("Cutback"), then the holders
of Registrable Shares who have requested registration and other holders of
securities entitled to include securities in such registration shall participate
in the registration pro rata based upon their total ownership of Common Stock
(giving effect to the conversion into Common Stock of all securities convertible
thereinto). If any holder would thus be entitled to include more securities than
such holder requested to be registered, the excess shall be allocated among
other requesting holders pro rata in the manner described in the preceding
sentence.

     2.03  Subject to Section 2.01, at any time after the date which is one
hundred and twenty (120) days after the Merger Effective Date, Rights Holders
holding in the aggregate at least a majority of the Registrable Shares may
request, in writing, that the Company effect the registration under the
Securities Act on Form S-1 (or any successor form) of all or any portion of the
S-1 Registrable Shares.  If the holders initiating the registration intend to
distribute the Registrable Shares by means of an underwriting, they shall so
advise the Company in their request.   Upon receipt of any such request, the
Company shall promptly give written notice of such proposed registration to all
Rights Holders.  All Rights Holders shall have the right, by giving written
notice to the Company within twenty (20) days after the Company provides its
notice, to elect to participate in such registration.  In the event such
registration is underwritten, the right of other Rights Holders to participate
shall be conditional on such Rights Holders' participation in such underwriting.
All Rights Holders who have elected to participate in the registration may
participate in the registration up to the number of S-1 Registrable Shares which
they hold, subject to no Cutback.  Thereupon, the Company shall, as
expeditiously as practicable, use its best efforts to effect the registration on
Form S-1 (or any successor form) of the amount of Registrable Shares so
requested to be registered.

     2.04  Except as hereinafter set forth in Section 2.05 or Section 3.04, the
Company shall not be required to effect more than one (1) registration pursuant
to subsection 2.03 above; provided, however, that no registration statement
filed pursuant to Section 2.03 shall count as a registration statement that
satisfies the Company's registration obligations under Section 2.03, and such
obligations shall continue in full force and effect, if (i)  the Registration
Statement is not declared effective by the SEC within 60 days after the date it
was originally filed with the SEC, (ii) the Company fails to maintain the
effectiveness of the Registration Statement for the Applicable Registration
Period, or (iii) a majority of the Rights Holders elect to terminate the
Registration Statement provided that they agree to pay or reimburse the Company
for all Registration Expenses (as hereinafter defined) of such registration as
contemplated by Section 4 below.

     2.05  If at the time of the receipt of a request to register Registrable
Shares pursuant to subsection 2.03 above, the Company is engaged or has fixed
plans to file a Registration Statement with the Commission within thirty (30)
days after the time of the request in a registered public offering or is engaged
in any other activity which, in the good faith determination of the Company's
Board of Directors, would be adversely affected by the requested registration to
the material detriment of the Company , then the Company may at its option,
within five (5) business days after the receipt of the Registration Request,
direct that such

                                       4
<PAGE>

request be delayed for a period not in excess of three (3) months from the
effective date of such public offering or thirty (30) days after the date of
commencement of such other material activity, as the case may be, such right to
delay a request to be exercised by the Company not more than once in any one
year period; provided further, however, that in the event of a delay caused by a
pending registered public offering by the Company, the Company shall use its
best efforts to cause to be registered in and sold without Cutback pursuant to
the registration statement for such public offering the Registrable Shares that
would have been eligible to be registered in the requested Registration
Statement that is being delayed. In the event of any such delay, the duration of
the time periods within which the Rights Holders are entitled to exercise their
registration rights under Sections 2.01 and 2.03 shall be extended for a period
of time equal to the duration of such delay.

     2.06  If a required registration pursuant to subsection 2.03 above is an
underwritten offering, the Company may select a managing underwriter to
administer the offering as long as such underwriter is of recognized standing.

3.  Registration Procedures

     3.01  If and whenever the Company is required by the provisions of this
Agreement to use its best efforts to effect the registration under the
Securities Act of any of the Registrable Shares, subject to Section 2.05, the
Company shall:

         (a) as expeditiously as practical prepare and file with the Commission
    a Registration Statement with respect to such Registrable Shares and, its
    best efforts to cause that Registration Statement to become effective as
    soon as possible thereafter;

         (b) as expeditiously as practicable prepare and file with the
    Commission any amendments and supplements to the Registration Statement and
    the prospectus included in the Registration Statement as may be necessary to
    keep the Registration Statement effective, in the case of a firm commitment
    underwritten public offering, until each underwriter has completed the
    distribution of all securities purchased by it and, in the case of any other
    offering, until the earlier of the sale of all Registrable Shares covered
    thereby and ninety (90) days after the effective date thereof (each, an
    "Applicable Registration Period");

         (c) as expeditiously as practicable furnish to each selling Rights
    Holder such reasonable numbers of copies of the prospectus, including a
    preliminary prospectus, in conformity with the requirements of the
    Securities Act, and such other documents, as the selling Rights Holder may
    reasonably request in order to facilitate the public sale or other
    disposition of the Registrable Shares owned by the selling Rights Holder;
    and

         (d) as expeditiously as reasonably practicable use its best efforts to
    register or qualify the Registrable Shares covered by the Registration
    Statement under the securities or Blue Sky laws of such states as the
    selling Rights Holders shall reasonably request, and do any and all other
    acts and things that may be necessary or desirable to enable the selling
    Rights Holders to consummate the public sale or other disposition in such
    states of the Registrable Shares owned by the selling Rights Holder;
    provided, however, that the

                                       5
<PAGE>

    Company shall not be required in connection with this subsection 3.01(d) to
    qualify as a foreign corporation or execute a general consent to service of
    process in any jurisdiction.

     3.02  If the Company has delivered preliminary or final prospectuses to the
selling Rights Holders and after having done so the prospectus is amended to
comply with the requirements of the Securities Act, the Company shall promptly
notify the selling Rights Holders and, if requested, the selling Rights Holders
shall immediately cease making offers of Registrable Shares and return all
prospectuses to the Company.  The Company shall promptly but, in any such event,
by no later than the 30th day following the request by the Company that the
Rights Holders cease their sales of shares, provide the selling Rights Holders
with revised prospectuses and, following receipt of the revised prospectuses,
the selling Rights Holders shall be free to resume making offers of the
Registrable Shares.  In such event, however, at the time the Rights Holders are
permitted to resume making such offers the Applicable Registration Period shall
be extended for a number of days equal to the period during which the Rights
Holders were required to cease selling their Registrable Shares pursuant to this
Section 3.02.

     3.03  Following the effectiveness of a Registration Statement (and the
making of any required filings with any state securities commissions), the
Company may direct the selling Rights Holders to suspend sales of the
Registrable Securities, as provided herein, if one or more of the following
events (a "Suspension Event") occurs:

         (a) an underwritten primary offering by the Company where the Company
    is advised by the underwriters for such offering that sale of Registrable
    Shares under the Registration Statement would have a material adverse effect
    on the primary offering (a "Public Offering Suspension Event"); or

         (b) pending negotiations relating to, or consummation of, a transaction
    or the occurrence of an event (a "Material Event Suspension"):

               (i) that would require additional disclosure of material
          information by the Company in the Registration Statement (or such
          filings) the absence of which would make the Registration Statement
          materially misleading; and

               (ii) as to which the Company has a bona fide business purpose for
          preserving confidentiality; or

               (iii)  which renders the Company unable to comply with Commission
          requirements;

in each case under circumstances that would make it impractical or inadvisable
(i) to take any action with respect to the Registration Statement (or such
filings), the effectiveness or continued effectiveness thereof, or (ii) to
promptly amend or supplement the Registration Statement on a post-effective
basis, as applicable; provided, however, that:

         (x) in the case of any Public Offering Suspension Event, the Company
    shall use its best efforts to cause to be registered in and sold without
    Cutback, pursuant to the underwritten registration statement for such public
    offering, the Registrable Shares that were subject to the Suspension Event;

                                       6
<PAGE>

         (y) in the case of any Public Offering Suspension Event, the period of
    suspension shall terminate (A) within thirty (30) days if the registration
    statement therefor is not filed with the Commission prior thereto, (B) if
    the registration statement is filed with the Commission within such 30 day
    period, but is not declared effective within the succeeding 60 days, on the
    earlier of the termination of such 60 day period or the withdrawal of such
    registration statement by the Company; and

         (z) in the case of a Material Event Suspension under subsection (ii),
    the duration of the suspension shall terminate on the earlier of the public
    announcement of such Suspension Event and the expiration of thirty (30) days
    from the commencement of the suspension and, in the case of a Material Event
    Suspension under subsections (i) or (iii), the Company shall use its best
    efforts to cause the duration of the suspension to terminate as soon as
    reasonably practicable.

     If, despite the exercise of its best efforts, the Company is not able to
include all of such Registrable Shares in such registered public offering, as
contemplated by clause (x) above, or in case of any Material Event Suspension,
then, at the election of the holders of a majority of the Registrable Shares
included in the Suspended Registration Statement, (A) the duration of the
Applicable Time Period of the Suspended Registration Statement shall be extended
for a period of time equal to the duration of the suspension or (B) such Rights
Holders shall terminate their participation in the suspended Registration
Statement, in which case that Registration Statement shall not count as a
Registration Statement for purposes of Section 2 of this Agreement, such Holders
shall not be responsible for paying or reimbursing the Company for any of the
Registration Expenses incurred with respect to such Suspended Registration and
the respective time periods within which the Registrable Holders may exercise
their registration rights under Section 2.01 and 2.03 shall each be extended for
a period of time equal to the period of the suspension resulting from the
Suspension Event.

     3.04  In the case of a Suspension Event, the Company shall give written
notice (a "Suspension Notice") to the selling Rights Holders to suspend sales of
the Registrable Shares so that the Company may correct or update the
Registration Statement (or such filings); provided, however, that such
suspension shall continue no longer than the applicable period of time set forth
in Section 3.03 above.  The selling Rights Holders agree that they will not
effect any sales of the Registrable Shares pursuant to such Registration
Statement (or such filings) at any time during the period from the date they
received a Suspension Notice from the Company to such date as of which the
Suspension Period shall expire as provided in clauses (y) and (z) of Section
3.03 above.  If so directed by the Company, selling Rights Holders will deliver
to the Company all copies of the prospectus covering the Registrable Shares held
by them at the time of receipt of the Suspension Notice.  The selling Rights
Holders may recommence effecting sales of the Registrable Shares pursuant to the
Registration Statement (or such filings) following further written notice to
such effect (an "End of Suspension Notice") from the Company, which End of
Suspension Notice shall be accompanied by copies of the supplemented or amended
prospectus necessary to resume such sales; provided, however, that such End of
Suspension Notice shall be delivered, in the case of a Public Offering
Suspension Event, on the earlier to occur of the consummation of the public
offering and the date set forth in clause (y) of Section 3.03 above, and in the
case of a Material Event Suspension, at the applicable date set forth in clause
(z) of Section 3.03.

                                       7
<PAGE>

4.  Allocation Of Expenses

     The Company will pay all Registration Expenses of any registration under
this Agreement; provided, however, that, except as otherwise provided in Section
3.03, if a registration is withdrawn at the request of the Rights Holders
requesting such registration (other than as a result of information concerning
the business or financial condition of the Company which is made known to the
Rights Holders after the date on which such registration was requested) and if
the requesting Rights Holders elect not to have such registration counted as a
registration requested under Section 2, the requesting Rights Holders shall pay
the Registration Expenses of such registration pro rata in accordance with the
number of their Registrable Shares included in such registration (provided such
registration was requested pursuant to Section 2.03 hereof).  For purposes of
this Section 4, the term "Registration Expenses" shall mean all expenses
incurred by the Company in complying with this Agreement, including, without
limitation, all registration and filing fees, exchange listing fees, printing
expenses, fees and expenses of counsel for the Company and the reasonable fees
and expenses of one counsel selected by the selling Rights Holders to represent
the selling Rights Holders, state Blue Sky fees and expenses, and the expense of
any special audits incidental to or required by any such registration, but
excluding underwriting discounts, selling commissions and the fees and expenses
of any selling Rights Holder's own counsel, or other out-of-pocket expenses of
the Rights Holders or their agents (other than the counsel selected to represent
all selling Rights Holders).

5.  Indemnification And Contribution

     5.01  In the event of any registration under the Securities Act of any
Registrable Shares pursuant to this Agreement, the Company will indemnify and
hold harmless the seller of such Registrable Shares, each underwriter of such
Registrable Shares, and each other person, if any, who controls such seller or
underwriter within the meaning of the Securities Act or the Exchange Act against
any losses, claims, damages or liabilities, joint or several, to which such
seller, underwriter or controlling person may become subject under the
Securities Act, the Exchange Act, state securities or Blue Sky laws or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any Registration Statement
under which such Registrable Shares were registered under the Securities Act,
any preliminary prospectus or final prospectus contained in the Registration
Statement, or any amendment or supplement to such Registration Statement, or
arise out of or are based upon the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading; and the Company will reimburse such seller, underwriter
and each such controlling person for any legal or any other expenses reasonably
incurred by such seller, underwriter or controlling person in connection with
investigating or defending any such loss, claim, damage, liability or action as
and when incurred by them; provided, however, that the Company will not be
liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon any untrue statement or omission made
in such Registration Statement, preliminary prospectus or final prospectus, or
any such amendment or supplement, in reliance upon and in conformity with
information furnished to the Company, in writing, by or on behalf of such
seller, underwriter or controlling person specifically for use in the
preparation thereof; (provided, further, however, that the foregoing indemnity
agreement

                                       8
<PAGE>

with respect to any registration statement or prospectus relating to the
Registrable Securities shall not inure to the benefit of any seller in such
offering, its officers, directors or agents, or controlling persons if:

         (a) a copy of a prospectus (as then amended or supplemented if the
    Company shall have furnished any amendments or supplements thereto) for such
    offering was not sent or given by or on behalf of such selling shareholder
    to the person ("Asserting Person") asserting any losses, claims, damages or
    liabilities as a result of an untrue statement of a material fact contained
    in any registration statement or prospectus relating to the Registrable
    Securities (as amended or supplemented if the Company shall have furnished
    any amendments or supplements thereto) or caused by any omission or alleged
    omission to state therein a material fact required to be stated therein or
    necessary to make the statements therein not misleading and if such
    prospectus (as so amended or supplemented) would have cured the defect
    giving rise to such losses, claims, damages or liabilities; or

         (b) such selling shareholder sold Registrable Securities to the
    Asserting Person during the period between the date of a Suspension Notice
    and the date of a End of Suspension Notice.

     5.02  In the event of any registration under the Securities Act of any of
the Registrable Shares pursuant to this Agreement, each seller of Registrable
Shares, severally and not jointly, will indemnify and hold harmless the Company,
each of its directors and officers and each underwriter (if any) and each
person, if any, who controls the Company or any such underwriter within the
meaning of the Securities Act or the Exchange Act, against any losses, claims,
damages or liabilities, joint or several, to which the Company, such directors
and officers, underwriter or controlling person may become subject under the
Securities Act, Exchange Act, state securities or Blue Sky laws or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement under which
such Registrable Shares were registered under the Securities Act, any
preliminary prospectus or final prospectus contained in the Registration
Statement, or any amendment or supplement to the Registration Statement, or
arise out of or are based upon any omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, if the statement or omission was made in reliance upon
and in conformity with information relating to such seller furnished in writing
to the Company by or on behalf of such seller specifically for use in connection
with the preparation of such Registration Statement, prospectus, amendment or
supplement; provided, however, that the obligations of such Rights Holders
hereunder shall be limited to an amount equal to the proceeds to each Rights
Holder of Registrable Shares sold in connection with such registration.  The
terms of any underwriting agreement entered into by the Company to effect a
registration of the Registrable Securities shall require the underwriter to
indemnify and hold harmless the Company, its officers, directors, controlling
persons and agents and each selling Rights Holder on substantially the same
basis as that of the indemnification of the Company by each selling holder as
provided in this Section 5.

     5.03  Each party entitled to indemnification under this Section 5
("Indemnified Party") shall give notice to the party required to provide
indemnification ("Indemnifying Party") promptly after such Indemnified Party has
actual knowledge of any claim as to which indemnity

                                       9
<PAGE>

may be sought, and shall permit the Indemnifying Party to assume the defense of
any such claim or any litigation resulting therefrom; provided, however, that
counsel for the Indemnifying Party, who shall conduct the defense of such claim
or litigation, shall be approved by the Indemnified Party (whose approval shall
not be unreasonably withheld); and provided, further, that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Section 5 (except to the extent
such failure to give notice has resulted in increased losses, damages or
liabilities for the Indemnifying Party). The Indemnified Party may participate
in such defense at such party's expense and the Indemnified Party and not the
Indemnifying Party shall bear or be responsible for the expenses thereof,
unless:

         (a) the Indemnifying Party and the Indemnified Party shall have
    mutually agreed to the retention of such counsel, or

         (b) the named parties to any such proceeding (including any impleaded
    parties) include both the Indemnified Party and the Indemnifying Party and
    representation of both parties by the same counsel would be inappropriate
    due to actual or potential differing interests between them.

No Indemnifying Party, in the defense of any such claim or litigation shall,
except with the consent of each Indemnified Party, consent to entry of any
judgement or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect of such claim or
litigation, and no Indemnified Party shall consent to entry of any judgement or
settle such claim or litigation without the prior written consent of the
Indemnifying Party, which shall not be unreasonably withheld.

     5.04  In order to provide for just and equitable contribution to joint
liability under the Securities Act in any case in which either:

         (a) any holder of Registrable Shares exercising rights under this
    Agreement, or any controlling person of any such holder, makes a claim for
    indemnification pursuant to this Section 5 but it is judicially determined
    (by the entry of a final judgement or decree by a court of competent
    jurisdiction and the expiration of time to appeal or the denial of the last
    right of appeal) that such indemnification may not be enforced in such case
    notwithstanding the fact that this Section 5 provides for indemnification in
    such case; or

         (b) contribution under the Securities Act may be required on the part
    of any such selling Rights Holder or any such controlling person in
    circumstances for which indemnification is provided under this Section 5;

then, in each such case, the Company and such Rights Holder will contribute to
the aggregate losses, claims, damages or liabilities to which they may be
subject (after contribution from others) in such proportions as is appropriate
to reflect the relative fault of the Indemnifying Party and Indemnified Parties
in connection with the actions which resulted in such losses, claims, damages,
liabilities or expenses, as well as any other relevant equitable considerations;
provided, however, that, in any such case:

                                       10
<PAGE>

         (i) no such holder will be required to contribute any amount in excess
    of the proceeds to it of all Registrable Shares sold by it pursuant to such
    Registration Statement; and

         (ii) no person or entity guilty of fraudulent misrepresentation, within
    the meaning of Section 11(f) of the Securities Act, shall be entitled to
    contribution from any person or entity who is not guilty of such fraudulent
    misrepresentation.

6.  Indemnification With Respect To Underwritten Offering

     In the event that Registrable Shares are sold pursuant to a Registration
Statement in an underwritten offering, the Company agrees to enter into an
underwriting agreement containing customary representations and warranties with
respect to the business and operations of an issuer of the securities being
registered and customary covenants and agreements to be performed by such
issuer, including, without limitation, customary provisions with respect to
indemnification by the Company of the underwriters of such offering.

7.  Information By Rights Holder

     Each Rights Holder including Registrable Shares in any registration shall
furnish to the Company such information regarding such Rights Holder and the
distribution of such Right Holder's Registrable Shares proposed by such Rights
Holder as the Company may reasonably request in writing and as shall be required
in connection with any registration, qualification or compliance referred to in
this Agreement.

8.  "Stand-Off" Agreement

     Each Rights Holder, if requested by the Company and the managing
underwriter of a firmly underwritten offering by the Company of Common Stock or
other securities of the Company pursuant to a Registration Statement, shall
agree not to sell publicly or otherwise transfer, pledge or dispose of any
Registrable Shares or other securities of the Company held by such Rights Holder
for a specified period of time (not to exceed 120 days) following the effective
date of such Registration Statement; provided, that (i) all officers and
directors of the Company enter into similar agreements and (ii) the Rights
Holder's Registrable Shares have, to the extent requested by such Rights Holder,
been included in and are sold to the underwriters in such offering.

9.  No Limitations On Subsequent Registration Rights

     Nothing contained in this Agreement shall prohibit the Company from
granting to any holder or prospective holder of any securities of the Company
registration rights which would allow such holder or prospective holder to
include securities of the Company in any Registration Statement filed by the
Company.

                                       11
<PAGE>

10.  Rule 144 Requirements

     The Company agrees to:

         (a) comply with the requirements of Rule 144(c) under the Securities
    Act with respect to current public information about the Company;

         (b) use its reasonable efforts to file with the Commission in a timely
    manner all reports and other documents required of the Company under the
    Securities Act and the Exchange Act (at any time after it has become subject
    to such reporting requirements); and

         (c) furnish to any holder of Registrable Shares upon request:

               (i) a written statement by the Company as to its compliance with
          the requirements of Rule 144(c) under the Securities Act, and the
          reporting, requirements of the Securities Act and the Exchange Act (at
          any time after it has become subject to such reporting requirements);

               (ii) a copy of the most recent annual or quarterly report of the
          Company; and

               (iii)  such other reports and documents of the Company as such
          holder may reasonably request to avail itself of any similar rule or
          regulation of the Commission allowing it to sell any such securities
          without registration.

11.  Mergers, Etc.

     The Company shall not, directly or indirectly, enter into any merger,
consolidation or reorganization in which the Company shall not be the surviving
corporation or in which, although it is the surviving corporation, it becomes a
subsidiary of another corporation or entity (a "Parent Entity'), unless the
proposed surviving corporation or Parent Entity, as the case may be, shall,
prior to such merger, consolidation or reorganization, agree in writing to
assume the obligations of the Company under this Agreement; and for such
purpose, references hereunder to "Registrable Shares" shall be deemed to be
references to the securities which the Rights Holders would be entitled to
receive in exchange for Registrable Shares under any such merger, consolidation
or reorganization; provided, however, that the provisions of this Section 11
shall not apply in the event of any merger, consolidation or reorganization in
which the Company is not the surviving corporation and does not become a
subsidiary of a Parent Entity, if all stockholders are entitled to receive in
exchange for their Registrable Shares consideration consisting solely of:

         (a)  cash; or

         (b) securities of the acquiring corporation which may be immediately
    sold to the public without registration under the Securities Act.

                                       12
<PAGE>

12.  Termination

     All of the Company's obligations to register Registrable Shares under this
Agreement shall terminate upon the last to occur of (i) the sale of all
Registrable Shares by the Holders thereof pursuant to this Agreement, (ii) the
earliest date as of which all Registrable Shares have ceased being Registrable
Shares or (iii) the expiration of the S-3 Registration Period (as the same may
have been extended pursuant to Section 2.05 or Section 3.03 above).

13.  Transfers Of Rights

     This Agreement, and the rights and obligations of each Rights Holder
hereunder, may only be assigned (including assignment by law) by such Rights
Holder to:

         (a) any partner or retired partner of the Rights Holder, if the Rights
    Holder is a partnership;

         (b) any family member or trust for the benefit of the Rights Holder, if
    the Rights Holder is an individual; and

         (c) any entity controlled by, controlling or under common control with
    the Rights Holder;

provided that the transferee provides written notice of such assignment to the
Company and agrees in writing to be bound by the terms and conditions hereof.

14.  Other Public Offerings

     This Agreement is not intended to and shall not preclude the Company from
listing its Common Stock on any reputable non-United States exchange.

15.  Notices

     All notices, requests, consents, and other communications under this
Agreement shall be in writing and shall be delivered by hand or mailed by first-
class certified or registered mail, return receipt requested, postage prepaid:

         (a) if to the Company, to 2933 Bunker Hill Lane, Suite 201, Santa
    Clara, California 95054, Attention: Company Secretary, or to such other
    address or addresses as may from time to time be furnished in writing by the
    Company to the Rights Holders, with a copy to Gregory J. Conklin, Gibson,
    Dunn & Crutcher LLP, One Montgomery Street, Suite 3100, San Francisco,
    California  94104; or

         (b) if to an Investor, to its address set forth on Schedule 1 attached
                                                            ----------
    hereto, or to such other address or addresses as may from time to time be
    furnished to the Company in writing by such Investor.

     Notices provided in accordance with this Section 15 shall be deemed
delivered upon personal delivery or two business days after deposit in the mail.

                                       13
<PAGE>

16.  Entire Agreement

     This Agreement embodies the entire agreement and understanding between the
parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings relating to such subject matter.

17.  Amendments And Waivers

     Any term of this Agreement may be amended and the observance of any term of
this Agreement may be waived (either generally or in a particular instance and
either retroactively or prospectively), only with the written consent of the
Company and the holders of a majority of the Registrable Shares; provided,
however, that this Agreement may be amended with the consent of the holders of
less than all but at least a majority of the Registrable Shares only in a manner
which affects the rights of all Registrable Shares in the same fashion.  No
waivers of or exceptions to any term, condition or provision of this Agreement,
in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such term, condition or provision.

18.  Counterparts

     This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original, but all of which shall be one and the same
instrument.

19.  Severability

     The invalidity or unenforceability of any provision of this Agreement shall
not affect the validity or enforceability of any other provision of this
Agreement.

20.  Governing Law

     This Agreement shall be governed by and construed in accordance with the
internal laws of the State of California without reference to conflict of laws
principles thereof.

21.  Section Headings

     The heading of each Section, Subsection or other subdivision of this
Agreement is for reference purposes only and shall not limit or control the
meaning thereof.

                    [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       14
<PAGE>

     IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
duly executed on its behalf as of the day and year first above written.

                              COMPANY:

                              VIRATA CORPORATION

                              By: /s/ Charles Cotton
                                 ----------------------
                                 Name:  Charles Cotton
                                 Title: Chief Executive Officer

                              SECURITYHOLDER AGENT:

                              /s/ David Y. Wong
                              ------------------------
                              David Y. Wong

                                       15
<PAGE>

                                                                      SCHEDULE 1

                                   INVESTORS
                                   ---------

_______________________
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Telephone:
Telecopier:

_______________________
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Telephone:
Telecopier:

_______________________
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_______________________
_______________________
Telephone:
Telecopier:

_______________________
_______________________
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_______________________
Telephone:
Telecopier:

_______________________
_______________________
_______________________
_______________________
Telephone:
Telecopier:

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