Document:

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                                                                   EXHIBIT 10.42

                    MASTER CONFIDENTIAL DISCLOSURE AGREEMENT

                                     BETWEEN

                              ESS TECHNOLOGY, INC.

                                       AND

                                  VIALTA, INC.

                         EFFECTIVE AS OF AUGUST 20, 2001

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                    MASTER CONFIDENTIAL DISCLOSURE AGREEMENT

        This Master Confidential Disclosure Agreement ("AGREEMENT") is effective
as of August 20, 2001 ("EFFECTIVE DATE"), between ESS TECHNOLOGY, INC., a
California corporation ("ESS"), and VIALTA, Inc., a California corporation
("VIALTA"). ESS and Vialta are sometimes referred to herein as the "party" or
the "parties."

        WHEREAS, the Board of Directors of each of ESS and Vialta have
determined that it is in the best interest of ESS and its stockholders to
separate ESS's existing businesses into two independent businesses;

        WHEREAS, as part of the foregoing, ESS and Vialta have entered into a
Distribution Agreement (as defined below), which provides, among other things,
for the separation of certain Vialta assets and Vialta liabilities, the initial
public offering of Vialta stock, the distribution of such stock and the
execution and delivery of certain other agreements in order to facilitate and
provide for the foregoing; and

        WHEREAS, also as part of the foregoing, the parties further desire to
enter into this Agreement to provide for the protection of their Confidential
Information (as defined below).

        NOW, THEREFORE, in consideration of the mutual promises of the parties,
and of good and valuable consideration, it is agreed by and between the parties
as follows:

                                    AGREEMENT

        1. Definitions. The following terms, when capitalized herein, shall have
the meanings set forth below in this Section 1. Unless indicated otherwise, all
other capitalized terms which are used but are not otherwise defined herein
shall have the meanings ascribed to them in the Distribution Agreement.

               1.1 "ANCILLARY AGREEMENTS" means the items and agreements listed
in Section 2.1 of the Distribution Agreement and all agreements and documents
contemplated by such agreements.

               1.2 "CONFIDENTIAL INFORMATION" shall mean any and all financial,
technical, commercial or other information of ESS or Vialta, as appropriate
(whether written or oral), including, without limitation, all information,
notes, client lists and records, reports, analyses, financial statements,
compilations, studies, forms, business or management methods, marketing data,
fee schedules, information technology systems and programs, projections,
forecasts or trade secrets of ESS or Vialta, as applicable, whether or not such
Confidential Information is disclosed or otherwise made available to one party
by the other party pursuant to this Agreement. Confidential Information shall
also include the terms and provisions of this Agreement and any transactions
consummated or documents executed by the parties pursuant to this Agreement.
Confidential Information does not include any information that (i) is or becomes
generally available to and known by the public (other than as a result of an
unpermitted disclosure directly or indirectly by the Receiving Party or its
affiliates, advisors or representatives); (ii) hereafter becomes available to
the

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Receiving Party on a nonconfidential basis from a source other than the
Disclosing Party or its affiliates, advisors or representatives, provided that
such source is not and was not bound by a confidentiality agreement with or
other obligation of secrecy to the Disclosing Party; or (iii) has already been
independently developed without any involvement by the Disclosing Party, or is
hereafter independently acquired or developed, by the Receiving Party without
violating any confidentiality agreement with or other obligation of secrecy to
the Disclosing Party.

               1.3 "CONFIDENTIALITY PERIOD" means in perpetuity, after either
(A) the Distribution Date with respect to Confidential Information of the
Disclosing Party that is known to or in the possession of the Receiving Party as
of the Distribution Date or (B) the date of disclosure with respect to
Confidential Information that is disclosed by the Disclosing Party to the
Receiving Party after the Distribution Date.

               1.4 "DISCLOSING PARTY" means the party owning or disclosing the
relevant Confidential Information.

               1.5 "DISPUTES" has the meaning set forth in Section 6 ("Dispute
Resolution").

               1.6 "DISTRIBUTION AGREEMENT" means the Distribution Agreement
between the parties.

               1.7 "DISTRIBUTION DATE" has the meaning set forth in the
Distribution Agreement.

               1.8 "PERSON" means any individual, a partnership, a corporation,
a limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization, or governmental entity or any
department, agency or political subdivision thereof.

               1.9 "RECEIVING PARTY" means the non-owning party or recipient of
Confidential Information from the Disclosing Party.

               1.10 "RESIDUALS" means information (that is not protected by
trade secret laws or by a patent of the Disclosing Party) retained in the
unaided memory of an individual who has had access to Confidential Information
without conscious attempt by such individual to memorize such information.

               1.11 "SUBSIDIARY" has the meaning defined for that term in the
Distribution Agreement.

               1.12 "THIRD PARTY" means a Person other than ESS, its
Subsidiaries and their respective employees and Vialta, its Subsidiaries and
their respective employees.

               1.13 "TRANSACTION AGREEMENTS" means the Distribution Agreement
and the Ancillary Agreements.

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        2.     Confidentiality.

               2.1 Confidentiality and Non-use Obligations. During the
Confidentiality Period, the Receiving Party shall (i) protect the Confidential
Information of the Disclosing Party by using the same degree of care, but no
less than a reasonable degree of care, to prevent the unauthorized use,
dissemination, or publication of the Confidential Information as the Receiving
Party uses to protect its own Confidential Information of a like nature, (ii)
not use such Confidential Information except as expressly permitted under this
Agreement, in the Transaction Agreements or in any other agreements entered into
between the parties in writing, without prior written consent of the Disclosing
Party, and (iii) maintain all Confidential information in trust and confidence
and (iv) not disclose such Confidential Information to any Third Party, except
as expressly permitted under this Agreement, in the Transaction Agreements or in
any other agreements entered into between the parties in writing, without prior
written consent of the Disclosing Party.

               2.2 Disclosure To Sublicensees. The Receiving Party has the right
to disclose to its permitted sublicensees portions of Confidential Information
as reasonably necessary in the exercise of the Receiving Party's right to grant
sublicenses that is expressly granted under any Transaction Agreement, subject
to the sublicensee's agreement in writing to confidentiality and non-use terms
at least as protective of the Disclosing Party's Confidential Information as the
provisions of this Agreement.

               2.3 Contract Manufacturers. The Receiving Party has the right to
disclose to its permitted contract manufacturers portions of the Confidential
Information as reasonably necessary in the exercise of the Receiving Party's
"have made" rights that are expressly granted under any Transaction Agreement,
subject to the contract manufacturer's agreement in writing to confidentiality
and non-use terms at least as protective of the Disclosing Party's Confidential
Information as the provisions of this Agreement.

               2.4 Residuals. Notwithstanding any other provision of this
Agreement, the Receiving Party shall be free, and the Disclosing Party hereby
grants to the Receiving Party, except as otherwise provided in this Section 2.4
("Residuals") the right, to use for any purpose the Residuals resulting from
access to or work with the Confidential Information of the Disclosing Party.
However, neither party may use Residuals in the other party's field of business
as such field exists on the Separation Date. The Receiving Party shall have no
obligation to pay royalties for any use of Residuals. However, this Section 2.4
("Residuals") does not grant the Receiving Party any rights under any patents,
copyrights or trade secrets of the Disclosing Party and does not operate to
relieve the Receiving Party from paying royalties to the Disclosing Party under
any future patent, trade secret or copyright license between them.

               2.5 Compelled Disclosure. If the Receiving Party or any of its
respective Subsidiaries believes that it will be compelled by a court or other
authority to disclose Confidential Information of the Disclosing Party, it shall
(i) give the Disclosing Party prompt and timely written notice so that the
Disclosing Party may take steps to oppose such disclosure and (ii) cooperate
with the Disclosing Party in its attempts to oppose such disclosure. If the
Receiving Party complies with the above, it shall not be prohibited from
complying with such requirements to disclose, but shall cooperate with the
Disclosing Party to take all reasonable steps to make such disclosure subject to
a

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suitable protective order or otherwise prevent unrestricted or public
disclosure. Notwithstanding anything to the contrary, the parties may
permissibly disclose Confidential Information in public filings before the
Securities and Exchange Commission associated with the Distribution Agreement
and Ancillary Agreements.

               2.6 No Restriction On Disclosing Party. Nothing in this Agreement
shall restrict the Disclosing Party from using, disclosing, or disseminating its
own Confidential Information in any way provided that, in so doing, it does not
use, disclose or disseminate any Confidential Information of the Receiving
Party.

               2.7 No Restriction On Reassignment. This Agreement shall not
restrict reassignment of the Receiving Party's employees.

               2.8 Third Party Restrictions. Nothing in this Agreement
supersedes any restriction imposed by Third Parties on their Confidential
Information, and there is no obligation on the Disclosing Party to conform Third
Party agreements to the terms of this Agreement.

        3.     Warranty Disclaimer.

        EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL CONFIDENTIAL INFORMATION IS
PROVIDED ON AN "AS IS, WHERE IS" BASIS AND THAT NEITHER PARTY NOR ANY OF ITS
SUBSIDIARIES HAS MADE OR WILL MAKE ANY WARRANTY WHATSOEVER WITH RESPECT TO
CONFIDENTIAL INFORMATION, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT
LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, TITLE, ENFORCEABILITY OR NON-INFRINGEMENT.

        4.     Confidentiality of Agreement.

               4.1 Obligations. Each party agrees that the Transaction
Agreements and the terms and conditions thereof shall be treated as Confidential
Information and that neither party will disclose such terms or conditions to any
Third Party without the prior written consent of the other party, provided,
however, that each party may disclose such terms and conditions of the
Transaction Agreements marked as confidential:

                      4.1.1 as required by any court or other governmental body
(subject to Section 2.5("Compelled Disclosure"));

                      4.1.2 as otherwise required by law (subject to Section 2.5
("Compelled Disclosure"));

                      4.1.3 in confidence, to legal counsel of the parties, and
their respective accountants, and other professional advisors to the extent
necessary and appropriate;

                      4.1.4 in confidence to the parties' respective banks,
investors and other financing sources and their advisors to the extent necessary
and appropriate;

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                      4.1.5 in connection with the enforcement of the
Transaction Agreements to the extent necessary and appropriate; or

                      4.1.6 in confidence, in connection with an actual or
prospective merger or acquisition or similar transaction involving a party
hereto, to the extent necessary and appropriate.

               4.2 Ownership of Confidential Information. All Confidential
Information of Discloser, and any Derivatives thereof whether created by such
Discloser or the other party, as Recipient, shall remain the property of
Discloser, and no license or other rights to Discloser's Confidential
Information or Derivatives is granted or implied hereby. For purposes of this
Agreement, "DERIVATIVES" shall mean: (a) for copyrightable or copyrighted
material, any translation, abridgment, revision or other form in which an
existing work may be recast, transformed or adapted; (b) for patentable or
patented material, any improvement thereon; and (c) for material which is
protected by trade secret, any new material derived from such existing trade
secret material, including new material which may be protected under copyright,
patent and/or trade secret laws. All materials (including, without limitation,
documents, drawings, models, apparatus, sketches, designs, lists and all other
tangible media of expression) furnished by Discloser, Recipient, and which are
designated in writing to be the property of Discloser, shall remain the property
of Discloser.

        5.     Term And Termination.

               5.1 Term. This Agreement shall remain in full force and effect
unless and until terminated by the mutual written agreement of the parties.

               5.2 Survival. Sections 4 ("Confidentiality of Agreement") (with
respect to Confidential Information acquired or disclosed prior to the date of
termination), 3 ("Warranty Disclaimer"), 4 ("Confidentiality of Agreement"), 6
("Dispute Resolution"), and 7 ("Miscellaneous Provisions") shall survive any
termination of this Agreement.

        6. Dispute Resolution. Any and all controversies, disputes or claims
arising out of, relating to, in connection with or resulting from this Agreement
(or any amendment thereto or any transaction contemplated hereby or thereby),
including as to its existence, interpretation, performance, non-performance,
validity, breach or termination, including any claim based on contract, tort,
statute or constitution and any claim raising questions of law, whether arising
before or after termination of this Agreement, shall be deemed a Dispute as
defined in Section 4.6 of the Distribution Agreement and shall be resolved
exclusively by, in accordance with, and subject to the procedures and
limitations set forth in, Section 4.6 of the Distribution Agreement.

        7.     Miscellaneous Provisions.

               7.1 Incorporation of Distribution Agreement. The miscellaneous
provisions provided in Article V of the Distribution Agreement are incorporated
herein by reference as though set forth in full, excepting only Section 5.15 of
the Distribution Agreement.

               7.2 Other Agreements. This Agreement is not intended to address,
and should not be interpreted to address, the matters expressly covered by the
Distribution Agreement and/or the

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other Ancillary Agreements. In the event of a conflict between this Agreement
and the Distribution Agreement and/or any other Ancillary Agreement executed in
connection herewith, the provisions of this Agreement shall prevail.

               7.3 Injunctive Relief. A breach by either party of any of the
promises or agreements contained herein will result in irreparable and
continuing damage to the other party for which there will be no adequate remedy
at law, and such other party shall be entitled to injunctive relief and/or a
decree for specific performance, and such other relief as may be proper
(including monetary damages if appropriate).

               7.4 Export Restrictions. Both parties shall adhere to all
applicable laws, regulations and rules relating to the export of technical data,
and shall not export or reexport any technical data, any products received from
Disclosing Party, or the direct product of such technical data, to any
proscribed country listed in such applicable laws, regulations and rules unless
properly authorized.

               7.5 No Implied Rights. Nothing contained in this Agreement shall
be construed as conferring any rights by implication, estoppel or otherwise,
under any intellectual property right, other than the rights expressly granted
in this Agreement with respect to Confidential Information.

               7.6 Infringement Suits. Neither party shall have any obligation
hereunder to institute any action or suit against Third Parties for
misappropriation of any of its Confidential Information or to defend any action
or suit brought by a Third Party that alleges infringement of any intellectual
property rights by the Receiving Party's authorized use of the Disclosing
Party's Confidential Information.

        WHEREFORE, the parties have signed this Master Confidential Disclosure
Agreement effective as of the Effective Date.

ESS TECHNOLOGY, INC.                         VIALTA, INC.

By: /s/ ROBERT L. BLAIR                      By: /s/ FRED S.L. CHAN
   --------------------------------             --------------------------------

Name:  Robert L. Blair                       Name:  Fred S.L. Chan
      -----------------------------                -----------------------------

Title: President & CEO                       Title: Chairman & CEO
      -----------------------------                -----------------------------

                                       6<PAGE>   1
                                                                   EXHIBIT 10.43

                     MASTER TRANSITIONAL SERVICES AGREEMENT

                                     BETWEEN

                              ESS TECHNOLOGY, INC.

                                       AND

                                  VIALTA, INC.

                         EFFECTIVE AS OF AUGUST 20, 2001

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                     MASTER TRANSITIONAL SERVICES AGREEMENT

        This Master Transitional Services Agreement (the "AGREEMENT") is
effective as of August 20, 2001 between ESS Technology, Inc., a California
corporation ("ESS"), having an office at 48401 Fremont Boulevard, Fremont,
California and Vialta, Inc., a Delaware corporation ("VIALTA"), having an office
at 48460 Fremont Boulevard, Fremont, California. ESS and Vialta are sometimes
referred to herein individually as a "PARTY" or collectively as the "PARTIES."

        1. Definitions. The following terms, when capitalized herein, shall have
the meanings set forth below in this Section 1. Unless indicated otherwise, all
other capitalized terms which are used but are not otherwise defined herein
shall have the meanings ascribed to them in the Distribution Agreement.

               1.1 "ADDITIONAL SERVICES" shall have the meaning set forth in
Section 3.5.

               1.2 "ANCILLARY AGREEMENTS" has the meaning set forth in Section
2.1 of the Master Distribution Agreement.

               1.3 "DISPUTES" shall have the meaning set forth in Section 4.6 of
the Master Distribution Agreement.

               1.4 "DISTRIBUTION DATE" shall have the meaning set forth in
Section 3.2 of the Master Distribution Agreement.

               1.5 "ESS TECHNOLOGY GROUP" shall have the meaning set forth in
Section 6.11 of the Master Distribution Agreement.

               1.6 "IMPRACTICABLE" shall have the meaning set forth in Section
3.3.

               1.7 "MASTER CONFIDENTIAL DISCLOSURE AGREEMENT" shall mean that
certain Master Confidential Disclosure Agreement dated August 20, 2001 between
ESS and Vialta.

               1.8 "MASTER DISTRIBUTION AGREEMENT" shall mean that certain
Master Distribution Agreement dated August 20, 2001 between ESS and Vialta.

               1.9 "SERVICE(S)" shall have the meaning set forth in Section 3.1.

               1.10 "SUBCONTRACTOR" shall have the meaning set forth in Section
9.

               1.11 "SUBSIDIARY" shall have the meaning set forth in Section
6.25 of the Master Distribution Agreement.

               1.12 "TRANSITION SERVICE SCHEDULE" shall have the meaning set
forth in Section 2.1.

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               1.13 "VIALTA GROUP" shall have the meaning set forth in Section
6.28 of the Master Distribution Agreement.

        2.     Transition Service Schedules.

               2.1 Transition Service Schedules. This Agreement will govern
individual transitional services as requested by Vialta and provided by ESS, the
details of which are set forth in the Transition Service Schedules (each
transition service schedule, a "TRANSITION SERVICE SCHEDULE") attached to this
Agreement. Each Service shall be covered by this Agreement upon execution of a
Transition Service Schedule in the form attached hereto.

               2.2 Operation of Schedules. For each Service, the Transition
Service Schedule shall be signed by a duly authorized representative of each
party and set forth, among other things, the time period during which the
Service will be provided if different from the term of this Agreement determined
pursuant to Section 4 a summary of the Service to be provided; a description of
the Service; and the estimated charge, if any, for the Service and any other
terms applicable thereto. Obligations regarding each Transition Service Schedule
shall be effective upon execution of this Agreement, or, if a particular
Transition Service Schedule is amended or a new Transition Service Schedule is
executed after the execution of this Agreement, the obligations created by such
amendment or new Transition Service Schedule shall be effective upon execution
of such amendment or such new Transition Service Schedule. This Agreement and
all the Transition Service Schedules shall be defined as the "AGREEMENT" and the
Transition Service Schedules are incorporated herein as though set forth in
full.

        3.     Services.

               3.1 Services Generally. Except as otherwise provided herein, for
the term determined pursuant to Section 4, ESS shall provide or cause to be
provided to Vialta the service(s) described in the Transition Service
Schedule(s) attached hereto. The service(s) described on a single Transition
Service Schedule shall be referred to herein as a "SERVICE." Collectively, the
services described on all the Transition Service Schedules (including Additional
Services) shall be referred to herein as "SERVICES."

               3.2 Service Boundaries. Except as provided in a Transition
Service Schedule for a specific Service: (i) ESS shall be required to provide
the Services only to the extent and only at the locations such Services are
being provided by ESS for Vialta immediately prior to the Distribution Date; and
(ii) the Services will be available only for purposes of conducting the business
of Vialta substantially in the manner it was conducted prior to the Distribution
Date.

               3.3 Impracticability. ESS shall not be required to provide any
Service to the extent the performance of such Service becomes "Impracticable" as
a result of a cause or causes outside the reasonable control of ESS despite the
ESS's good faith diligent efforts to provide the relevant Service including
unfeasible technological requirements, or to the extent the performance of

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such Services (i) would require ESS to violate any applicable laws, rules or
regulations or (ii) would result in the material breach of any software license
or other applicable contract.

               3.4 Additional Resources. Except as provided in a Transition
Service Schedule for a specific Service, in providing the Services, ESS shall
not be obligated to: (i) hire any additional employees; (ii) maintain the
employment of any specific employee; (iii) purchase, lease or license any
additional equipment or software; or (iv) pay any costs related to the transfer
or conversion of Vialta's data to Vialta or any alternate supplier of Services.
Prior to executing a Transition Service Schedule, the parties shall in good
faith attempt to determine whether any of actions described in immediately
preceding clauses (i), (ii) or (iii) would be required for ESS to perform the
contemplated Services.

               3.5 Additional Services. From time to time after the Distribution
Date, the parties may identify Services other than those described on the
Transition Service Schedules attached hereto, that ESS shall provide to Vialta
in accordance with the terms of this Agreement (the "ADDITIONAL SERVICES").
Accordingly, the parties shall execute additional Transition Service Schedules
for such Additional Services pursuant to Section 2.1.

               3.6 Obligations As To Additional Services. Except as set forth in
the next sentence, ESS shall be obligated to perform, at a charge determined
using the principles for determining fees under Section 5.1, any Additional
Service that: (i) was provided by ESS immediately prior to the Distribution Date
and that Vialta reasonably believes was inadvertently or unintentionally omitted
from the list of Services described in the Transition Service Schedules attached
hereto, or (ii) is in the reasonable opinion of the parties necessary or
desirable to effectuate an orderly transition of Vialta's business under the
Master Distribution Agreement unless such performance would significantly
disrupt ESS's operations or materially increase the scope of its responsibility
under this Agreement. If ESS reasonably believes the performance of Additional
Services required under subparagraphs (i) or (ii) would materially and adversely
disrupt its operations or materially increase the scope of its responsibility
under this Agreement, ESS and Vialta shall negotiate in good faith to establish
terms under which ESS shall provide such Additional Services, but ESS shall not
be obligated to provide such Additional Services if, following good faith
negotiation, the parties are unable to reach agreement on such terms.

        4. Term. The term of this Agreement shall commence on the Distribution
Date and shall remain in effect until one (1) year after the Distribution Date
(the "EXPIRATION DATE"), unless earlier terminated under Section 7. This
Agreement may be extended by the parties in writing, either in whole or with
respect to one or more of the Services; provided, however, that such extension
shall only apply to the Services for which the Agreement was extended. The
parties shall be deemed to have extended this Agreement with respect to a
specific Service if the Transition Service Schedule for such Service specifies a
completion date beyond the aforementioned Expiration Date. The parties may agree
on an earlier expiration date respecting a specific Service by specifying such
date on the Transition Service Schedule for that Service.

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        5.     Compensation.

               5.1 Charges For Services. Vialta shall pay ESS the charges, if
any, set forth on the Transition Service Schedules for each of the Services
listed therein as adjusted, from time to time, in accordance with the processes
and procedures established under Section 5.4 and Section 5.5. Such fees shall
include the actual costs, as determined using the process described in such
Transition Service Schedule, of providing the Services, unless specifically
indicated otherwise on a Transition Service Schedule. The parties also intend
for charges to be easy to administer and justify and, therefore, they hereby
acknowledge it may be counterproductive to try to recover every cost, charge or
expense, particularly those that are insignificant or de minimus. The parties
shall use good faith efforts to discuss any situation in which the actual charge
for a Service is reasonably expected to exceed the estimated charge, if any, set
forth on a Transition Service Schedule for a particular Service; provided,
however, that the incurrence of charges in excess of any such estimate on such
Transition Service Schedule shall not justify stopping the provision of, or
payment for, Services under this Agreement.

               5.2 Payment Terms. ESS shall bill Vialta monthly for all charges
pursuant to this Agreement. Such bills shall be accompanied by reasonable
documentation or other reasonable explanation supporting such charges. Vialta
shall pay ESS for all Services provided hereunder within forty-five (45) days
after receipt of an invoice therefor. Late payments shall bear interest at the
lesser of 12% per annum or the maximum rate allowed by law.

               5.3 Performance Under Ancillary Agreements. Notwithstanding
anything to the contrary contained herein, Vialta shall not be charged under
this Agreement for any obligations that are specifically required to be
performed under the Master Distribution Agreement or any other Ancillary
Agreement and any such other obligations shall be performed and any charge
therefore levied in accordance with the terms of the Master Distribution
Agreement or such other Ancillary Agreement.

               5.4 Error Correction; True-Ups; Accounting. The parties shall
reasonably agree in writing on a process and procedure for conducting internal
audits and making adjustments to charges as a result of the movement of
employees and functions between parties, the discovery of errors or omissions in
charges, as well as a true-up of amounts owed. In no event shall such processes
and procedures extend beyond two (2) years after completion of a Service.

               5.5 Pricing Adjustments. In the event of a tax audit adjustment
relating to the pricing of any or all Services provided pursuant to this
Agreement in which it is determined by a taxing authority that any of the
charges, individually or in combination, did not result in an arm's-length
payment, as determined under internationally accepted arm's-length standards,
then the parties, including any ESS subcontractor providing Services hereunder,
may agree to make corresponding adjustments to the charges in question for such
period to the extent necessary to achieve arm's-length pricing. Any adjustment
made pursuant to this Section 5.5, at any time during the term of this Agreement
or after termination of this Agreement shall be reflected in the parties'

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legal books and records, and the resulting underpayment or overpayment shall
create, respectively, an obligation to be paid in the manner specified in
Section 5.2 ("Payment Terms") or shall create a credit against amounts owed
under this Agreement.

        6.     General Obligations; Standard Of Care.

               6.1 Performance Metrics: ESS. Subject to Section 3.4 and any
other terms and conditions of this Agreement, ESS shall maintain sufficient
resources to perform its obligations hereunder and under the Transition Service
Schedules. Specific performance metrics for ESS for a specific Service may be
set forth in the corresponding Transition Service Schedule. Where none are set
forth, ESS shall provide Services in accordance with the policies, procedures
and practices in effect before the Distribution Date relating to or in
connection with Vialta's business operations and shall exercise the same care
and skill as it exercises in performing similar services for itself.

               6.2 Performance Metrics: Vialta. Specific performance metrics for
Vialta for a specific Service may be set forth in the corresponding Transition
Service Schedule. Where none is set forth, Vialta shall use reasonable efforts,
in connection with receiving Services, to follow the policies, procedures and
practices in effect before the Distribution Date including providing information
and documentation sufficient for ESS to perform the Services as they were
performed before the Distribution Date and making available, as reasonably
requested by ESS, adequate personnel and timely decisions, approvals and
acceptances in order that ESS may accomplish its obligations hereunder in a
timely manner.

               6.3 Transitional Nature Of Services; Changes. The parties
acknowledge the transitional nature of the Services and that ESS may make
changes from time to time in the manner of performing the Services if (i) ESS is
making similar changes in performing similar services for itself (ii) such
change does not adversely impact Vialta, and (iii) if ESS furnishes to Vialta
sixty (60) days prior written notice regarding such changes.

               6.4 Responsibility For Errors; Delays. ESS's sole responsibility
to Vialta:

                      6.4.1 for errors or omissions in Services, other than
errors or omissions attributable to ESS's gross negligence or willful
misconduct, shall be to furnish correct information, payment and/or adjustment
in the Services, at no additional cost or expense to Vialta; provided Vialta
must advise ESS of any such error or omission of which it becomes aware.

                      6.4.2 for failure to deliver any Service because of
Impracticability, shall be to make any portion of the Services which are not
Impracticable available and/or to resume performing the Services which are or
have become Impracticable as promptly as reasonably practicable.

               6.5 Good Faith Cooperation; Consents. The parties will use good
faith efforts to cooperate with each other in all matters relating to the
provision and receipt of Services. Such cooperation shall include exchanging
information, performing true-ups and adjustments, and

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obtaining all third party consents, licenses, sublicenses or approvals necessary
to permit each party to perform its obligations hereunder and under any
Transition Service Schedule (including by way of example, not by way of
limitation, rights to use third party software needed for the performance of
Services). The reasonable and documented costs of obtaining such third party
consents, licenses, sublicenses or approvals shall be borne by Vialta. The
parties will maintain in accordance with their respective standard document
retention procedures, documentation supporting the information relevant to cost
calculations contained in the Transition Service Schedules and cooperate with
each other in making such information available as needed in the event of a tax
audit, whether in the United States or any other country.

               6.6 Alternatives. If ESS is unable to provide any Service because
of a failure to obtain necessary consents, licenses, sublicenses or approvals
pursuant to Section 6.6 or because of Impracticability, the parties shall
mutually and reasonably determine the best alternative approach. Until such
alternative approach is found or the problem otherwise resolved to the
satisfaction of the parties, ESS shall use diligent efforts to continue
providing the Service. To the extent a mutually agreed upon alternative approach
requires payment above and beyond that which is included in ESS's charge for the
Service in question, the parties shall share equally in making any such payment
unless they otherwise agree in writing.

        7. Termination. Vialta may terminate this Agreement, either with respect
to all or with respect to any one or more of the Services provided to Vialta
hereunder, for any reason or for no reason, at any time upon thirty (30) days
prior written notice to ESS. In addition, subject to the provisions of Section
11 ("Dispute Resolution"), either party may terminate this Agreement with
respect to a specific Service if the other party materially breaches a material
provision with regard to that particular Service and does not cure such breach
(or does not take substantial steps required under the circumstances to cure
such breach) within thirty (30) days after being given written notice of the
breach.

               7.1 Survival. In the event of any termination with respect to one
or more, but less than all Services, this Agreement shall continue in full force
and effect with respect to any Services not terminated in accordance with the
terms of this Agreement.

               7.2 User IDs, Passwords. Each of the parties shall use good faith
efforts at the termination or expiration of this Agreement, any specific Service
hereunder or any Transition Service Schedule attached hereto to ensure that all
applicable user IDs and passwords issued to such party by the other party are
canceled or returned, as applicable.

        8. Relationship Between the Parties. It is expressly acknowledged that
the parties are "independent contractors," and nothing in this Agreement is
intended and nothing shall be construed to allow either party to exercise
control or direction over the manner or method by which the other party performs
the Services that are the subject matter of this Agreement; provided, that the
Services to be provided hereunder shall be furnished in a manner consistent with
the standards governing such Services and the provisions of this Agreement. Each
party understands and agrees that

                                      -6-
<PAGE>   8

(i) neither party will withhold on behalf of the other party any sums for income
tax, unemployment insurance, social security or any other withholding pursuant
to any law or requirement of any governmental body or make available any of the
benefits afforded to its employees, (ii) all of such payments, withholdings and
benefits, if any, are the sole responsibility of the party incurring the
liability, and (iii) each party will indemnify and hold the other harmless from
any and all loss or liability arising with respect to such payments,
withholdings and benefits, if any.

        9. Subcontractors. With Vialta's prior written consent, ESS may engage a
"Subcontractor" to perform all or any portion of ESS's duties under this
Agreement, provided that any such Subcontractor agrees in writing to be bound by
confidentiality obligations at least as protective as the terms of Section 10,
regarding confidentiality, and provided further that ESS remains responsible for
the performance of such Subcontractor. As used in this Agreement,
"SUBCONTRACTOR" will mean any individual, partnership, corporation, firm,
association, unincorporated organization, joint venture, trust or other entity
engaged to perform hereunder.

        10. Confidentiality. The terms of the Master Confidential Disclosure
Agreement between the parties shall apply to any Confidential Information (as
defined therein) which is the subject matter of this Agreement.

        11. Dispute Resolution. Any and all controversies, disputes or claims
arising out of, relating to, in connection with or resulting from this Agreement
(or any amendment thereto or any transaction contemplated hereby or thereby),
including as to its existence, interpretation, performance, non-performance,
validity, breach or termination, including any claim based on contract, tort,
statute or constitution and any claim raising questions of law, whether arising
before or after termination of this Agreement, shall be deemed a Dispute as
defined in Section 4.6 of the Distribution Agreement and shall be resolved
exclusively by, in accordance with, and subject to the procedures and
limitations set forth in, Section 4.6 of the Distribution Agreement.

        12.    Miscellaneous.

               12.1 Incorporation of Distribution Agreement. The miscellaneous
provisions provided in Article V of the Distribution Agreement are incorporated
herein by reference as though set forth in full, excepting only Section 5.15 of
the Distribution Agreement.

               12.2 Other Agreements. This Agreement is not intended to address,
and should not be interpreted to address, the matters expressly covered by the
Distribution Agreement and/or the other Ancillary Agreements. In the event of a
conflict between this Agreement and the Distribution Agreement and/or any other
Ancillary Agreement executed in connection herewith, the provisions of this
Agreement shall prevail.

                                      -7-
<PAGE>   9

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed
in duplicate originals by its duly authorized representatives.

ESS TECHNOLOGY, INC.,                        VIALTA, INC.,

By:    /s/ ROBERT L. BLAIR                   By:    /s/ FRED S.L. CHAN
      -----------------------------                -----------------------------

Name:  Robert L. Blair                       Name:  Fred S.L. Chan
      -----------------------------                -----------------------------

Title: President & CEO                       Title: Chairman & CEO
      -----------------------------                -----------------------------

                                      -8-
<PAGE>   10

                TRANSITION SERVICE SCHEDULE TO MASTER TRANSITIONAL SERVICES
                AGREEMENT

        1.      TRANSITION SERVICE SCHEDULE #: ___________________ (To be
                inserted by responsible individual or department.)

        2.      FUNCTIONAL AREA: ___________________

        3.      START/END DATE: The Services start on the effective date of the
                Master Transitional Services Agreement between ESS Technology,
                Inc. ("ESS") and Vialta, Inc. ("VIALTA") to which this
                Transition Service Schedule is attached and end on the
                conclusion of the term of the Master Services Agreement unless
                otherwise indicated below.

        Indicate below if other start/end date:

        START DATE: ___________________

        END DATE: ___________________

        If Start and End dates vary by service and/or country, please indicate
in Section 5 ("List of Services to be Provided per Country and Site").

        4.      SUMMARY OF SERVICES (Describe the service to be provided in
                appropriate detail.)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
SERVICE NAME                             DESCRIPTION
--------------------------------------------------------------------------------
<S>                                      <C>

--------------------------------------------------------------------------------
</TABLE>

        5.      LIST OF SERVICES TO BE PROVIDED PER COUNTRY AND SITE: (List all
                the services to be provided at each site. Enter Start Date and
                End Date if different than Section 3 ("Start/End Date").

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
COUNTRY          SITE           SERVICE(S)      START DATE      END DATE
-------------------------------------------------------------------------------
<S>              <C>            <C>             <C>             <C>

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

-------------------------------------------------------------------------------
</TABLE>

        6.      PERFORMANCE PARAMETERS/SERVICE LEVEL: (State minimum performance
                expected from each service, if applicable.):

        7.      ESTIMATED TOTAL COMPENSATION: ___________________

        8.      DESCRIBE COST METHODOLOGY AND COST DRIVERS AFFECTING ESTIMATED
                TOTAL COMPENSATION (Describe on an individual service basis if
                necessary.):

        9.      DESCRIBE THE PROCESS BY WHICH THE COST OF SERVICES WILL BE
                ADJUSTED IN THE INSTANCE OF AN INCREASE/REDUCTION IN THE
                SERVICES PROVIDED: (Describe on an individual service basis if
                necessary.)

<PAGE>   11

        10.   SOFTWARE: Will software be used or included with the Services to
              be provided under this Transition Service Schedule? ___ Yes ___ No

                    If yes, will source code be provided?         ___ Yes ___ No

                    List software to be provided:

               Software Application         Number of Licenses to be Provided
               --------------------         ---------------------------------

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

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

Upon execution of this Transition Service Schedule by both parties, this
Transition Service Schedule is hereby deemed incorporated into and made part of
that certain Master Transitional Services Agreement between ESS, Inc. and
Vialta, Inc.

ESS TECHNOLOGY, INC.,                        VIALTA, INC.,

By:                                          By:
      -----------------------------                -----------------------------
      (Authorized Signature)                       (Authorized Signature)

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

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

                                      -2-

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