Document:

Exhibit
10.2

THIS WARRANT AND THE COMMON STOCK
ISSUABLE UPON THE EXERCISE HEREOF (COLLECTIVELY, THE “SECURITIES”) HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT UNDER THE ACT WITH RESPECT TO
THE SECURITIES OR DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL IN FORM AND
SUBSTANCE SATISFACTORY TO THE COMPANY THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE
OR HYPOTHECATION IS IN COMPLIANCE WITH THE ACT OR UNLESS SOLD IN FULL COMPLIANCE WITH RULE 144 UNDER THE
ACT.

WARRANT TO PURCHASE COMMON STOCK

OF

CRDENTIA CORP.

Crdentia
Corp., a Delaware corporation (the “Company”), hereby certifies that,
for value received
AudioStocks, Inc. (including any successors and assigns, the “Holder”),
is entitled, subject to the terms set forth below, to purchase, in whole or in
part, from the Company at any time or from time to time, before 5:00 PM,
Pacific time on the first to occur of (i) ten (10) days preceding the closing
date of any reorganization, consolidation or merger of the Company, transfer of
all or substantially all of the assets of the Company or any simultaneous sale
of more than a majority of the then outstanding securities of the Company other
than a mere reincorporation transaction, or
(ii) the fifth anniversary of the Date of Issuance as defined below (such
earlier date being referred to herein as the “Expiration Date”),
1,000,000 shares of the Company’s Common Stock, $0.001 par value per share (the
“Warrant Shares”) following the occurrence of the Triggering Event, as
defined in Section 2 below, subject to adjustment as provided herein. The
purchase price per share of such Common Stock upon exercise of this Warrant
(the “Exercise Price”), shall be $0.60, subject to adjustment as
provided herein.

1.                    Exercise Period.  This
Warrant may be exercised by the Holder at any time or from time to time after the Date of Issuance, as defined below, but
before 5:00 PM, Pacific Time on the Expiration Date (the “Exercise
Period”).

2.                    Triggering Event.  This
Warrant shall be issued and become effective on June 25, 2007 (the “Date of
Issuance”) immediately upon the signing of the AudioStocks, Inc. Services
Agreement (the “Services Agreement”) and is being issued as a signing
bonus to Holder as consideration for entering into the Services Agreement and
any and all services required thereunder (the “Triggering Event”).

3.                    Exercise of Warrant: Number of Warrant Shares; Termination.

3.1            Exercise
of Warrant; Partial Exercise.  This Warrant may be exercised in full or in
part by the Holder with respect to any or all of the Warrant Shares by
surrender of this

	
  Holder

  	
   

  	
   

  	
   

  	
   

  	
  Company

  	
   

  

 

 1
 

Warrant, together with the form of subscription
attached hereto as Schedule 1, duly executed by the Holder, to the
Company at its principal office, accompanied by payment, in cash or by
certified or official bank check payable to the order of the Company, of the
aggregate Exercise Price for the Warrant Shares to be purchased hereunder. For
any partial exercise hereof, the Holder
shall designate in a notice of exercise or net issue election notice that
number of shares of Common Stock that he, she or it wishes to purchase.
On any such partial exercise, the Company at its expense shall forthwith issue
and deliver to the Holder a new warrant of like tenor, in the name of the
Holder, which shall be exercisable for such number of shares of Common Stock represented by this Warrant which have not been
purchased upon such exercise.

3.2            Mandatory
Exercise.  On or before June 29, 2007, Holder shall
exercise this Warrant, in part, for a minimum of 66,666 Warrant Shares.

4.                    When Exercise Effective.  The exercise of this Warrant pursuant to
Section 3 shall be deemed to
have been effected immediately prior to the close of business on the business
day on which this Warrant is surrendered to
the Company as provided in Section 3.1, or on such later date as is
specified in the form of subscription, and at such time the person in whose
name any certificate for shares of Common Stock shall be issuable upon such
exercise, as provided in Section 5, shall
be deemed to be the record holder of such Common Stock for all purposes.

5.                    Delivery on Exercise.  As
soon as practicable after the exercise of this Warrant, in full or in part
pursuant to Section 3, the Company at its expense (including the payment
by it of any applicable issue taxes and transfer agency fees) will cause to be
issued in the name of and delivered to the
Holder, or as the Holder may direct, a certificate or certificates for the
number of fully paid and non-assessable full shares of Common Stock to
which the Holder shall be entitled on such exercise.

6.                    Adjustments.  The number and kind of shares
of Common Stock (or any shares of stock or other securities which may be)
issuable upon the exercise of this Warrant and the Exercise Price shall be
subject to adjustment from time to time upon the happening of certain events,
as follows:

6.1            Dividends,
Distributions, Stock Splits or Combinations.  If the Company shall at any
time or from time to time after the date hereof (a) make or issue, or fix a
record date for the determination of holders of Common Stock (or any shares of
stock or other securities which may be issuable upon the exercise of this
Warrant) entitled to receive, a dividend or other distribution payable in
additional shares of common or preferred stock (as the case may be), (b)
subdivide its outstanding shares of Common Stock (or any shares of stock or
other securities which may be issuable upon the exercise of this Warrant) into
a larger number of shares of Common Stock (or any shares of stock or other
securities which may be issuable upon the exercise of this Warrant) or (c)
combine its outstanding shares of Common Stock (or any shares of stock or other
securities which may be issuable upon the exercise of this Warrant) into a
smaller number of shares of Common Stock (or any shares of stock or other
securities which may be issuable upon the exercise of this Warrant), then and
in each such event the Exercise Price then in effect and the number of shares
issuable upon exercise of this Warrant shall be appropriately adjusted.

	
  Holder

  	
   

  	
   

  	
   

  	
   

  	
  Company

  	
   

  

 

 2
 

6.2           Reclassification or Reorganization.  If
the Common Stock (or any shares of stock or other securities which may be)
issuable upon the exercise of this Warrant shall be changed into the same or
different number of shares of any class or classes of stock, whether by capital
reorganization, reclassification or otherwise (other than a subdivision or
combination of shares or stock dividend provided for in Section 6.1 above, or
pursuant to a Corporate Transaction), then and in each such event the Holder
shall be entitled to receive upon the exercise
of this Warrant the kind and amount of shares of stock and other securities and
property receivable upon such reorganization, reclassification or other
change to which a holder of the number of shares of Common Stock (or any shares
of stock or other securities which may be) issuable upon the exercise of this
Warrant would have received if this Warrant had been exercised immediately prior to such reorganization, reclassification or
other change, all subject to further adjustment as provided herein.

6. 3          Notice of Adjustments and Record Dates.  The
Company shall promptly notify the Holder in writing of each adjustment or
readjustment of the Exercise Price and the number of shares of Common Stock (or
any shares of stock or other securities which may be) issuable upon the exercise of this Warrant. Such notice shall state the
adjustment or readjustment and show in reasonable detail the facts on
which that adjustment or readjustment is based. In the event of any taking by
the Company of a record of the holders of Common Stock (or any shares of stock
or other securities which may be issuable upon the exercise of this Warrant)
for the purpose of determining the holders thereof who are entitled to receive
any dividend or other distribution, the Company shall notify Holder in writing
of such record date at least twenty (20) days prior to the date specified
therein.

6.4.          When Adjustments To Be Made.  No
adjustment in the Exercise Price shall be required by this Section 6 if such
adjustment either by itself or with other adjustments not previously made would require an increase or decrease of less than
one percent (1%) in such price. Any adjustment representing a change of
less than such minimum amount which is postponed shall be carried forward and
made as soon as such adjustment, together with other adjustments required by
this Section 6 and not previously made, would result in a minimum adjustment.
Notwithstanding the foregoing, any adjustment carried forward shall be made no
later than ten (10) business days prior to the Expiration Date. All
calculations under this Section 6.4 shall be made to the nearest cent. For the
purpose of any adjustment, any specified event shall be deemed to have occurred at the close of business on the date
of its occurrence.

6.5           Certain Other Events.  If
any change in the outstanding Common Stock (or any shares of stock or other
securities which may be issuable upon the exercise of this Warrant) or any
other event occurs as to which the other provisions of this Section 6 are not
strictly applicable or if strictly applicable would not fairly protect the
purchase rights of the Holder of the Warrant in accordance with such
provisions, then the Board shall make an adjustment in the number and class of
shares available under this Warrant, the Exercise Price or the application of
such provisions, so as to protect such purchase rights as aforesaid. The
adjustment shall be such as will give the
Holder, upon exercise of this Warrant, the same aggregate Exercise Price and
the same total number, class and kind of shares as the Holder would have
owned had this Warrant been exercised prior
to the event and had the Holder continued to hold such shares until after the event
requiring adjustment.

	
  Holder

  	
   

  	
   

  	
   

  	
   

  	
  Company

  	
   

  

 

 3
 

7.                    Replacement of Warrant.  On
receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Warrant and, in the case of
any such loss, theft or destruction of this Warrant, on delivery of an
indemnity agreement reasonably satisfactory in form and amount to the Company
or, in the case of any such mutilation, on
surrender and cancellation of such Warrant, the Company at its expense will
execute and deliver to the Holder, in lieu thereof, a new warrant of like
tenor.

8.                    No Rights or Liability as a Stockholder.  This
Warrant does not entitle the Holder hereof to any voting rights or other rights
as a stockholder of the Company. No provisions hereof, in the absence of
affirmative action by the Holder to purchase Common Stock, and no enumeration herein of the rights or privileges of
the Holder, shall give rise to any liability of the Holder as a
stockholder of the Company.

9.                    Miscellaneous.

9.1                   Transfer of Warrant.  This
Warrant and the rights set forth herein shall be freely transferable or assignable by the Holder upon notice to the
Company.

9.2           Notices.  Any notice required or
permitted under this Warrant shall be in writing and shall be hand delivered,
sent by facsimile or other electronic medium, by registered or certified mail, postage prepaid, or by
nationally recognized overnight carrier to the Company or to the Holder
at the address set forth below or to such other address as may be furnished in
writing to the other party hereto. Such notice shall be deemed effectively
given (i) if hand delivered, upon delivery,
(ii) if sent by facsimile or other electronic medium, when confirmed, if sent
during the normal business hours of the recipient (if not sent during the
normal business hours of the recipient, then on the next business day), (iii)
if sent by mail, five days after having been sent, or (iv) if sent by
nationally recognized overnight courier, one day after deposit with such
courier:

(i) if to the Company to:

Crdentia Corp.

5001 LBJ Freeway, Suite 850

Dallas,
Texas 75244

Attn:
John Kaiser, CEO

Phone: (972) 850-0780

Fax:      (972) 850-3058

and (ii) if to the Holder, to:

Audiostocks, Inc.

2038 Corte del Nogal, Suite 110

Carlsbad, California 92011

Phone: (760) 804-8844

Fax:      (760) 804-8845

	
  Holder

  	
   

  	
   

  	
   

  	
   

  	
  Company

  	
   

  

 

 4
 

9.3                  Amendments and Waivers.  Any
term of this Warrant may be amended and the observance of any other term of
this Warrant 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 Holder.

9.4           Severability.  If
one or more provisions of this Warrant are held to be unenforceable under applicable law, such provision shall be excluded
from this Warrant and the balance of the Warrant shall be interpreted as
if such provision were so excluded and shall be enforceable in accordance with
its terms.

9.5                  Governing Law.  This
Warrant shall be governed by and construed and enforced in accordance with the
laws of the State of California as applied to agreements among California
residents entered into and to be performed entirely within California. Any
dispute arising in connection with this
Warrant shall be resolved by litigation filed in Superior Court in the County of San Diego, State of California. Any
such litigation shall be adjudicated in accordance with the laws of the State of California in a “bench
trial” before a judge. Both the Company and the Holder expressly waive
their right to a jury trial.

9.6           Further Action.  The
Company agrees to execute, acknowledge, and deliver any further assurances and
documents requested by the Holder, and the Company will take any other action
consistent with the terms of this Warrant that may be requested by the Holder,
in order to further the purposes and intentions of this Warrant.

SIGNATURE PAGE FOLLOWS

	
  Holder

  	
   

  	
   

  	
   

  	
   

  	
  Company

  	
   

  

 

 5
 

IN WITNESS WHEREOF, the
undersigned have caused this Warrant to be executed by its officers thereunto duly authorized.

	
  COMPANY:

  	
  CRDENTIA CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James TerBeest

  	
   

  
	
   

  	
   

  	
   

  	
  James Ter Beest

  	
   

  
	
   

  	
   

  	
   

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  HOLDER:

  	
  AUDIOSTOCKS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Luis Leung

  	
   

  
	
   

  	
   

  	
   

  	
  Luis Leung

  	
   

  
	
   

  	
   

  	
   

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

	
  Holder

  	
   

  	
   

  	
   

  	
   

  	
  Company

  	
   

  

 

 6
 

SCHEDULE
1

FORM OF SUBSCRIPTION

(To be signed only on
exercise of Warrant)

To:                              Crdentia Corp.

The undersigned, the holder of the Warrant attached
hereto, hereby irrevocably elects to exercise the purchase rights represented
by such Warrant for, and to purchase thereunder,                                    shares
of common stock of Crdentia Corp., and herewith makes payment of $                             therefor,
and requests that the certificates for such shares be issued in the name of, and
delivered to                                          ,
whose address is                                               .

	
   

  	
   

  
	
   

  	
  (Signature must conform in
  all respects to name of

  
	
   

  	
  the Holder as
  specified on the face of the Warrant)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
				

 

	
  Holder

  	
   

  	
   

  	
   

  	
   

  	
  Company

  	
   

  

 

 7EXHIBIT 10.17

CONFIDENTIAL
TREATMENT

FOUNDRY MANUFACTURING
AGREEMENT

THIS FOUNDRY
MANUFACTURING AGREEMENT (the “Agreement”) is entered into on February 27, 2007 (the “Effective
Date”) by and between
OmniVision International Holding Ltd.,
a Cayman Islands company, having its registered office at Second Floor, Zephyr House, Mary Street, P.
O. Box 709, George Town, Grand Cayman, Cayman Islands, British West Indies
(“OmniVision”) and Powerchip Semiconductor Corp., a company duly incorporated
under the laws of the Republic of China, having its principal office located at
No. 12, Li-Hsin Rd. 1, Hsinchu Science Park, Hsinchu, Taiwan, R.O.C. (“PSC”).  OmniVision and PSC are each a “Party” and
collectively the “Parties”.

RECITALS

WHEREAS,
OmniVision intends to have a manufacturing source for its CMOS image sensor
products;

WHEREAS,
PSC is in the business of providing foundry services for integrated circuits;

WHEREAS, the Parties wish to exploit and further jointly develop certain pixel
related process technology (the
“Target Technology” as defined herein) for PSC to process certain CMOS Image
Sensors (CIS) products of OmniVision design (the “Products” as defined herein) at
PSC.

NOW,
THEREFORE, in consideration of the foregoing and the
covenants and promises contained in this Agreement, the Parties agree as
follows:

SECTION I 

DEFINITIONS

1.1           “Additional Contributions”
shall mean the resources contributed by the parties in furtherance of this
Agreement as set forth in Exhibit E.

1.2           “Background Technology” shall
have the meaning set forth in Section 5.1.

1.3           “Development Schedule” shall
have the meaning set forth in Exhibit A.

1.4           “Intellectual Property Right(s)”
shall mean any and all intellectual property rights associated with
technologies, processes, procedures, products, designs, inventions (whether
patentable or not), discoveries, know-how, and documents thereof, including,
without limitation: patents, utility models and the like issued anywhere in the
world, and applications therefor, including any additions, continuations,
continuations-in-part, divisions, reissues, renewals and extensions based
thereon; copyrights and all other literary property and rights in works of
authorship, as well as all rights, title and interest in and to all copyrights,
copyright registrations, certificates of copyrights and copyrighted 

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

Confidential

 1
 

interests;
all mask work rights, mask work applications, and mask work registrations; and
trade secrets.

1.5           “Processes” shall mean the
processes and technologies represented by the Target Technology jointly
developed by PSC and OmniVision which will be used by PSC to provide foundry
services to OmniVision for the manufacture of the Products during the term of
this Agreement.

1.6           “Products” shall mean OmniVision integrated
circuit products containing CMOS image sensors with specifications set forth in
Exhibit A, to be manufactured by PSC for OmniVision under this Agreement.

1.7            “Proprietary
Technology” shall have the meaning set
forth in Section 5.1.

1.8           “Qualification” shall have the meaning set forth in
Section 2.1.

1.9           “Quality
and Reliability Specifications”
shall mean the parametric, electrical, process flow, quality, and reliability
specifications, as well as other standards or requirements, for the Products.
The initial set of Quality and Reliability Specifications adopted by OmniVision
will be furnished to PSC within fifteen (14) days after the Effective Date.

1.10         “Target Technology” shall have
the meaning set forth in Exhibit C.

SECTION II 

PROCESS DEVELOPMENT; QUALIFICATIONS

2.1           Both
Parties shall make good faith efforts to develop the Processes in accordance
with the Development Schedule.  The Processes shall be tested at PSC for the
Products prior to production (the “Qualifications”)
so that the
Products manufactured by the Processes will conform to the Quality and
Reliability Specifications.  PSC shall make good faith efforts complete the
Qualifications at least one month before the production date in accordance with
the Development
Schedule, such that OmniVision can plan and place
its wafer order accordingly. Each Party shall give the other party 90-day prior written notice in
the event that the Party  expects 
not to meet the above schedule for any
reason, and the
Parties will discuss in good faith for expeditious resolution.

2.2           OmniVision shall, upon the full Qualification of the
Processes and throughout the remainder term of this Agreement, provide PSC on a
monthly basis, six-month rolling forecasts (each a “Rolling Forecast”) of the
estimated volume requirements, as initially set forth in Exhibit B.
Notwithstanding the foregoing, PSC agrees that, as a pre-condition to
OmniVision’s commitment to purchase, the terms and conditions set forth
elsewhere in this Agreement (including, without limitation, wafer price,
capacity reserve and quality, reliability and yield requirements) shall be
satisfied and continue to be satisfied. Loading volumes for the remaining
months of a Rolling Forecast shall represent the bona fide 

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 

 2
 

projection of
the demands by OmniVision based on the current market condition, and are
provided to PSC for planning purposes and not binding upon OmniVision.

2.3           PSC
shall confirm the Rolling Forecast within 5 working days after receipt and
shall make commercially reasonable efforts to provide capacity per OmniVision
forecasts.

2.4           [***]

SECTION III 

PURCHASE AND SUPPLY

3.1           OmniVision will place purchase orders (each a “Purchase Order”) for the quantities of
Products required by OmniVision.  A
Purchase Order shall include any and all purchase information released or
issued by OmniVision specifically relating thereto, including any and all
reasonable instructions that shall govern the particular purchases.

3.2           PSC shall notify OmniVision in writing within five (5) working days upon receipt of a Purchase Order, either to accept the
Purchase Order or to suggest the way in which PSC wishes to modify the Purchase
Order.  A Purchase Order placed by
OmniVision shall be deemed accepted by PSC absent a timely, written notice of
intent to modify. In the event of modification, PSC and OmniVision shall
consult with each other immediately to resolve the differences in good faith.

3.3           OmniVision
will make a refundable, interest-bearing deposit in the amount of four (4) million US Dollars (the “Deposit”) into PSC’s designated bank account on the Effective
Date as a down payment, in the form of wire transfer.

3.4           The prices for the Products shall be consistent with Exhibit
B.  Unless otherwise agreed to by the
Parties in writing, payment terms shall be net thirty (30) days from the date
OmniVision receives an invoice; provided however, that OmniVision shall not be
invoiced earlier than the actual shipment of the Products.  PSC may issue quotations from time to time so
long as no terms and conditions of such quotations shall contradict with this
Agreement.  If there is any discrepancy
or contradiction between the terms and conditions of this Agreement and those
of any quotation, this Agreement shall prevail.

SECTION IV 

SHIPMENT AND ACCEPTANCE; WARRANTIES

4.1           The Products shall be packed and labeled according to
OmniVision requirements which will
contain the trademark, logo or other indicia of OmniVision and suitable for shipment
according to a standard not less than the then prevailing manufacturing
practices of the industry. PSC shall deliver the Products to OmniVision or its
designated party on the
trade term of FCA
or pursuant to other applicable delivery term as agreed by both Parties in
writing.  Title and risk of loss to the
Products shall pass to OmniVision consistent with the terms and conditions of
INCOTERMS 2000.

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 3
 

4.2           Upon the receipt of the Products by OmniVision or its
designated party, OmniVision shall notify PSC within fifteen  (15)
days (the “Acceptance Period”), in writing, if there is any obvious visual
defect other than the failure of the Products to meet the Quality and
Reliability Specifications (for example, broken or damaged package boxes, wrong
products or incorrect quantity of the Products).  If the rejection is based on a failure of the
Products to meet the Quality and Reliability Specifications, the Parties shall
follow the procedure set forth in Section 4.3  below, and OmniVision may request that any pending and unshipped
Purchase Orders be held until the origin and nature of the problems is
ascertained, and such request shall be honored by PSC.

4.3           PSC warrants that the Products delivered hereunder shall
meet the Quality and Reliability Specifications and shall be free from defects
in material and workmanship under normal and intended use of the Product. If
there is any defect in the Products, the Parties shall promptly enter into a
discussion upon notification by OmniVision to reach a mutual agreement on the
best solution, and PSC shall as soon as reasonably practicable repair, replace
or credit OmniVision for such non-conforming Products, or take other reasonable
actions to cure the problems to the satisfaction of OmniVision.

4.4           OmniVision may, with PSC’s consent, such consent not to be
unreasonably withheld, send its representatives to visit PSC’s production
facilities. Such visit shall be conducted during PSC’s
normal working
hours. While staying on the production facilities, OmniVision’s representatives
shall fully comply with PSC’s internal rules and regulations.

4.5           PSC shall keep records of all process and production control
information and summaries of production monitors
concerning the manufacture of the Products for a period of five
 (5) years from the date of
production, and upon OmniVision’s request, shall provide OmniVision such
process and production control information.

4.6           THE LIABILITY FOR ANY CLAIM
ARISING FROM ANY CAUSE INCLUDING, BUT NOT LIMITED TO, THE MANUFACTURE, SALE, OR
DELIVERY OF ANY PRODUCTS, SHALL IN NO EVENT EXCEED THE TOTAL AMOUNT FOR THE
PURCHASE AND SALE OF THE PRODUCTS UNDER THIS AGREEMENT FOR WHICH THE DEFAULTING PARTY HAS BREACHED
CONTRACTUAL OBLIGATIONS.

4.7           EXCEPT WITH RESPECT TO CONFIDENTIAL OBLIGATION UNDER
SECTION 5.4, NEITHER PARTY SHALL BE LIABLE FOR ANY SPECIAL, INCIDENTAL OR
CONSEQENTIAL DAMAGES ARISING IN ANY WAY OUT OF THIS AGREEMENT, HOWEVER CAUSED, INCLUDING, WITHOUT LIMITATION, DAMAGES
FOR LOST PROFITS, LOSS  OF DATA, OR COSTS FOR PROCUREMENT OF
SUBSTITUTE GOODS OR SERVICE.

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 4
 

4.8           Each
party disclaims any indemnification of IPR infringement arising from this
development or foundry business.

SECTION V 

INTELLECTUAL PROPERTY RIGHTS AND PROPRIETARY INFORMATION

5.1           OmniVision and PSC agree to cooperate in good faith
and develop the leading-edge process technologies, as
listed in more detail in Exhibit C (“Target Technology”), to achieve time-to-market,
cost-efficiency, and superior quality reliability and yield standards.  The
Target Technology, together with all Intellectual Property Rights (the “IPRs”)
contained therein, shall be jointly owned
by PSC and OmniVision.  The IPRs
of the Product design are proprietary to OmniVision (“OmniVision Proprietary
Technology”) and shall be solely owned by OmniVision.  The IPRs of certain processes that are
proprietary to PSC (“PSC Proprietary Technology”) shall be solely owned by
PSC.  Each of OmniVision and PSC
shall contribute its process
technologies to the joint development as Background Technology, listed in attached Exhibit C.  Each OmniVision and PSC shall separately own
the respective background technology (“Background Technology”), together with
all improvements thereof, as part of respective OmniVision or PSC Proprietary
Technology (collectively, “Proprietary Technology”). For avoidance of doubt, the ownership of the Intellectual Property Rights under this Agreement is
as illustrated in Exhibit D. 
Each Party will use its
intellectual property to accomplish the development of Target Technology.

5.2           The Parties agree that PSC will not have the right to use
the Target Technology or OmniVision Proprietary Technology to provide foundry
service either for its own or to any third party without obtaining OmniVision’s
prior written consent.  Notwithstanding
the foregoing, PSC may continue to pursue the business in existence as of the
Effective Date and PSC may freely contact any customers for any business under
any technologies other than the Target Technology hereunder and OmniVision
Proprietary Technology.  In the event
that OmniVision or OVT will license its Products using the process developed
under this Agreement to any third party, PSC will have the right
to provide foundry service to such licensee.  PSC shall be granted a non-exclusive
non-transferable license, without right to sublicense, to use the OmniVision
Proprietary Technology for the sole purpose contemplated herein.

5.3           The term “Proprietary
Information”
shall mean any information provided by a Party that is identified as
proprietary and/or confidential and disclosed to the other Party under this
Agreement.  For written Proprietary
Information, it shall be clearly marked “Confidential”
or “Proprietary”. All oral disclosures of
Proprietary Information shall be identified as such prior to disclosure and
confirmed in writing by the disclosing Party (“Discloser”)
within thirty (30) days of disclosure. In case of disagreement, the receiving
Party (“Recipient”) must make a written objection thereto within thirty (30)
days after receipt of the written information or written confirmation of orally
disclosed information.  Notwithstanding
the foregoing, the Rolling Forecasts and Quality and Reliability 

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 5
 

Specifications
shall be deemed the Proprietary Information of OmniVision without marking. The
Proprietary Information shall not include information that: (1) is now or
subsequently in the public domain or otherwise becomes available to the public
other than by Recipient’s breach of this Agreement; (2) has been rightfully in
Recipient’s possession before the disclosure of such Proprietary Information by
Discloser, as sufficiently proved by Recipient’s written records; (3) is
rightfully received by Recipient from a third party entitled to do so; (4) is
independently developed by Recipient without use of any Proprietary Information
of Discloser and can be sufficiently proved so by Recipient’s written records;
or (5) is properly authorized by Discloser for release or disclosure.

5.4           Except as otherwise expressly provided herein, for a period
of five (5) years starting from the date of each disclosure, Recipient agrees
to maintain the Proprietary Information disclosed by Discloser in strict
confidence, not to make use thereof other than for the performance of this
Agreement, to release it only to employees who have a need to know the same,
and not to release or disclose it to any third party without the prior written
consent of Discloser. Recipient shall be jointly and severally liable for any
and all damages arising from the breach of this confidentiality obligation by
its employees who have or had access to the Proprietary Information. In the event that when OmniVision discloses aforementioned Proprietary Information to
OVT, OVT shall
likewise be bound by terms and conditions of this Agreement. Any breach of the confidential obligation hereof by OVT will be deemed breach of this Agreement
by OmniVision.

5.5           All Proprietary Information and any copies shall remain the
property of Discloser. Upon expiration or termination of this Agreement,
Recipient shall immediately return the original and all copies of Proprietary
Information in all tangible forms, or if stored electronically in digital form,
shall erase and destroy all of the Proprietary Information so stored and shall
furnish Discloser with a statement signed by Recipient’s duly authorized
representative stating that all such Proprietary Information has been destroyed
or erased.

5.6           Recipient agrees and acknowledges that due to the unique
nature of the Proprietary Information, remedy at law for any breach of the
obligations hereunder may be inadequate, that any such breach may result in
irreparable and significant harm to Discloser, and that Discloser is entitled
to seek injunctive or other equitable relief in addition to remedies it might
have at law.

5.7           Notwithstanding the foregoing, Recipient may disclose or
produce any Proprietary Information if and to the extent required by any
discovery request, subpoena, court order or governmental action or requirement;
provided, that Recipient gives Discloser reasonable advance notice of the same
(e.g., so as to afford Discloser a reasonable opportunity to appear, object and
obtain a protective order or other appropriate relief regarding such
disclosure).

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 6
 

SECTION VI 

TERM AND TERMINATION

6.1           The term of this Agreement shall be five
(5) years
(the “Initial Term”) from the Effective Date, unless it is terminated earlier
in accordance with Section 6.2.  At the
expiration of the Initial Tem, this Agreement may be extended for additional
terms upon mutual agreement (each additional term, a “Renewal Term;” together
with the Initial Term, the “Term”).

6.2           This Agreement may be terminated by a Party if the other
Party: (i) gives 180 days advance written notice; (ii) breaches any material
provision of this Agreement and does not cure or remedy such breach within
sixty (60) days after receiving notice of the breach; or (iii) becomes the
subject of a voluntary or involuntary petition in bankruptcy or any proceeding
relating to insolvency, receivership, liquidation, or composition for the
benefit of creditors if such petition or proceeding is not dismissed with
prejudice within sixty (60) days after filing.

6.3           Sections 4.3 (Warranties), 5.1
through 5.7 (Intellectual Property Rights and Proprietary Information), 6.3
(Effect of Termination) and Section VII (Miscellaneous) shall survive any
termination and expiration of this Agreement. Except as set forth in this
Agreement, all other rights and obligations of the Parties under this Agreement
shall terminate upon the effective date of termination of this Agreement.

SECTION VII 

MISCELLANEOUS

7.1           Assignment.  Neither Party shall assign this Agreement or
any right, obligation, or interest under this Agreement, nor delegate or
subcontract any work or obligation to be performed under this Agreement,
without the other Party’s prior written consent except to an affiliate or to a
successor by virtue of a merger, consolidation, reorganization or sale of all
or substantially all of its assets related to this Agreement. Any attempted
assignment or delegation in contravention of this section shall be null and
void, and ineffective in law or in equity; provided that OmniVision may assign
this Agreement, in whole or in part, to an affiliate, provided that such
affiliate shall notify PSC in advance and be bound to all the obligations of
OmniVision and its own under this Agreement. This Agreement shall inure to the
benefit of and be binding upon the Parties and their respective successors and
permitted assigns.

7.2           Waiver. The waiver by either Party
of any default or breach of this Agreement shall not constitute a waiver of any
other or subsequent default or breach.

7.3           Relationship of the Parties. The relationship of the
Parties hereto is that of independent contractors. Neither Party nor its agents
or employees shall be deemed to be the agents, employee, joint venture, partner or fiduciary of the other Party. Neither Party
shall have 

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 7
 

the right to
bind the other Party, transact any business in the other Party’s name or on the
other Party’s behalf or incur any liability for or on behalf of the other
Party.

7.4           Non-Publicity.  No publicity or information regarding the
existence or contents of this Agreement shall be given or released by either
Party without the prior written consent of the other Party, except for required
by applicable laws or regulations (inclusive of stock exchange regulations) or
in connection with a permitted assignment of this Agreement.

7.5           Dispute Resolution.  The Parties will attempt to resolve any
dispute arising under or in connection with this Agreement in good faith. If a
dispute is not resolved within ninety (90) days after written notice of
the dispute, then the dispute will be submitted to and resolved by the courts
in Taiwan in accordance with the laws of Taiwan if the respondent is PSC, and
to the courts in California, USA in accordance with the laws of the State of
California, USA if the respondent is OmniVision; provided that either Party
will be permitted to seek injunctive or temporary relief in any court of competent
jurisdiction.

7.6           Force Majeure.  Neither Party shall be responsible for any
delay, failure to perform or non-performance (the “Event of Default”) under
this Agreement if such an Event of Default is attributable to unforeseeable
circumstances or causes beyond its control, including but not limited to, labor
dispute, strike, labor shortage or stoppage, embargo, war or act of war
(whether an actual declaration is made or not), insurrection, riot, or civil
commotion, act of public enemy or sabotage, act of any governmental authority,
judicial action, acts of civil and military authorities, short or reduced
supply of fuel or raw materials, fire, floods, earthquakes or other types of
Act of God.  In such event, the performance
so affected by the force majeure event shall be extended corresponding to the
period of time such force majeure event exists.

7.7           Notices.

All notices
required or permitted to be sent by either Party to the other Party under this
Agreement shall be in English and sent by registered mail or an express
delivery service, postage or shipping cost prepaid, by personal delivery or by
fax. Any notice given by fax shall be followed by a confirmation copy within
three (3) working days. Unless changed by written notice given by a Party to
the other Party, the addresses and fax numbers of the respective Parties shall
be as follows:

To PSC: 

Powerchip Semiconductor Corp.  

No. 12, Li-Hsin Rd. 1

Hsinchu Science Park, Hsinchu, Taiwan, R.O.C.

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 8
 

Attention: Alec
Chen with Logic Product Division

Tel: +886-3-5795000 Ext. 2139

Fax: +886-3-5792014

To OmniVision:

OmniVision International Holding, Ltd.

Second Floor, Zephyr
House, Mary Street

P. O. Box 709, George Town

Grand Cayman, Cayman Islands, British West Indies

Attention: James He, Director

With a copy to:

OmniVision Technologies Inc.

1341 Orleans Drive

Sunnyvale, CA 94089

Attention: General Counsel

Tel: 408-542-3000

Fax: 408-542-3001

7.8           Export Regulations. The export of commodities
or technical data from the United States of America, and/or the re-export from
foreign countries of commodities or technical data or direct products of
technical data of United States of America origin may be conditioned upon the
issuance of an export license by the government of the United States of
America. Each Party represents that it will not export or re-export any
commodities or technical data or direct products of technical data in
furtherance of this Agreement unless and until it has complied in all respects
with the United States of America Export Control Regulations or the
corresponding Taiwan export regulations, and/or other applicable foreign export
laws and regulations.

7.9           Governing
Law.  This Agreement
shall be governed by and construed in accordance with the laws of State of
California, USA, without regard to its conflict of laws provisions.  Disputes arising hereunder which cannot be resolved amicably
between the Parties shall be submitted to the courts in Taiwan in accordance with the
laws of Taiwan if the respondent is PSC, and to the courts in California, USA
in accordance with the laws of the State of California, USA if the respondent
is OmniVision.

7.10         Severability. If any provision in this
Agreement shall be held to be invalid, illegal or unenforceable according to
its terms by any court or tribunal having competent jurisdiction over the
Parties and subject matter, such holding shall not affect the validity of the
other provisions of this Agreement and the Parties intend to give such other 

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 9
 

provisions the full force and effect as if this Agreement
contained no such invalid provisions at the outset..

7.11         Headings. The section headings used in
this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

7.12         Entire Agreement. This Agreement, together with
its Exhibit(s), shall constitute the entire agreement between the Parties with
respect to the subject matter hereof and supersede and replace all prior or
contemporaneous understandings, agreements, dealings, and negotiations, oral or
written, regarding the subject matter. No modification, alteration or amendment
of this Agreement shall be effective unless in writing and signed by both
Parties. No waiver of any breach or failure by either Party to enforce any
provision of this Agreement shall be deemed a waiver of any other or subsequent
breach or a waiver of future enforcement of that or any other provision.  The language governing this Agreement will be
English and the English version of this Agreement will be deemed the original.

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

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 10
 

IN WITNESS WHEREOF
the Parties hereto have caused this Agreement to be duly executed on their
behalf by their duly authorized officers and representatives on the date first
given above.

	
  OMNIVISION INTERNATIONAL 

  HOLDING, LTD.

  	
   

  	
  POWERCHIP SEMICONDUCTOR CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:

  	
  /S/ SHAW HONG

  	
   

  	
   

  	
  BY:

  	
  /S/ BRIAN SHIEH

  	
   

  
	
   

  	
   

  	
   

  
	
  NAME: SHAW HONG

  	
   

  	
  NAME: BRIAN SHIEH

  
	
   

  	
   

  	
   

  
	
  TITLE: DIRECTOR

  	
   

  	
  TITLE: PRESIDENT

  
	
   

  	
   

  	
   

  
	
  DATE: FEB. 26, 2007

  	
   

  	
  DATE: FEB. 27, 2007

  
							

 

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 11
 

EXHIBIT A

DEVELOPMENT SCHEDULE 

I.              Product Specifications and Schedule

1.             The following represents the Products
specifications of OmniVision and the bona fide development schedule (the “Products
Schedule”).

[***]

2.             OmniVision will make good faith efforts to develop the Products in
accordance with the Product schedule.  In
the event that OmniVision expects not
to meet the Product Schedule
for any reason, OmniVision shall give PSC 90 days prior written notice.

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 12
 

EXHIBIT B

PURCHASING SPECIFICATIONS

I.              Wafer Loads

1.             Volume Forecasts: the following represents bona
fide projection of production volume of OmniVision for the Products in year
2008:

[***]

2.             PSC will make commercially reasonable efforts to
provide capacity per OmniVision above forecast. 
Upon Process Qualification, OmniVision will provide PSC with a 6-month
monthly rolling forecast for the Products and PSC will confirm it within 5
working days after receipt.

II.            Wafer Price and Conditions

1.             Wafer Prices
for the Products:

[***]

2.             [***]

3.            The prices shall be subject to the quality, reliability and
yield standards pursuant to OmniVision requirements, in particular, Price Adjustment
set forth in III.2 below.

4.             Test-run wafers: OmniVision is responsible for
test-run wafers after Products Tapeout; PSC is responsible for test-run wafers
prior to Product Tapeout.

5.             [***]

6.             [***]

7.             [***]

III.           Yield Requirements and Price Adjustments

1.             [***]

2.             [***]

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 13
 

EXHIBIT C

TARGET AND BACKGROUND
TECHNOLOGY 

I.              Target Technology

The following is the list
of Target Technology to
be jointly developed by
OmniVision and PSC based on certain pixel related process technology under this
Agreement, and the ownership shall be co-owned by OmniVision and PSC for IP
developed during the course of joint development.

[***]

II.            Background Technology

OmniVision agrees to contribute the following
background technology (“OmniVision Background Technology”) to the joint
development, and PSC acknowledges that such technology shall be owned by
OmniVision exclusively.

[***]

***         Confidential treatment
requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. 
Omitted portions have been filed separately with the Commission.

 14
 

EXHIBIT D

Illustration
of Ownership of Intellectual Property Rights

Note: OVI  in
the above chart refers to OmniVision.

***         Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and
Exchange Commission.  Omitted portions
have been filed separately with the Commission.

 15
 

EXHIBIT E

ADDITIONAL CONTRIBUTION
OF RESOURCES

Each Party will provide the
following resources towards the development of the Target Technology at its own
expense:

	
  OmniVision

  	
   

  	
  PSC

  
	
  Two OmniVision process integration engineers on PSC site: 1 from July,
  2007 and another at a later time to be determined.

  	
   

  	
  Engineering support as
  necessary and reasonably requested by OmniVision.

  
	
  Test Run Wafer  (after
  OmniVision Tape Out)

  	
   

  	
  Test Run Wafer  (before OmniVision Tape Out)

  
	
  Tape Out Mask

  	
   

  	
  TEG Mask

  
	
  [***]

  	
   

  	
  Current available
  equipments

  

 

[***]

***         Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and
Exchange Commission.  Omitted portions
have been filed separately with the Commission.

 16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]