Document:

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                                                                   EXHIBIT 10.12

[***] = CONFIDENTIAL PORTIONS OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                         NON-EXCLUSIVE LICENSE AGREEMENT

THIS NON-EXCLUSIVE LICENSE AGREEMENT ("Agreement") is made by and between JDS
Uniphase Corporation, a Delaware corporation having offices at 1768 Automation
Parkway, San Jose, CA 95131 ("Licensor"), and Brillian Corporation, a Delaware
corporation having offices at 1600 N. Desert Drive, Tempe, AZ 85281
("Licensee").

NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants hereinafter recited, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, it is agreed as
follows:

I.    DEFINITIONS:

(a)   "Effective Date" means the date upon which this Agreement is signed by the
      Licensor and the Licensee.

(b)   "Licensed Product" means a Light Engine incorporating or manufactured with
      the Licensed Technology, made or sold by Licensee.

(c)   "Light Engine" means the UltreX 3(R) Liquid Crystal on Silicon (LCOS)
      three-panel light engine architecture for Rear Projection Television
      (RPTV) applications.

(d)   "Licensed Patents" means the patents, utility models and applications
      therefor, and including any and all divisionals, continuations,
      re-examinations, renewals, provisionals, continuations in part, and
      re-issues, set forth in EXHIBIT A to this Agreement, and also any of the
      foregoing that are owned or licensable by Licensor and which would be
      necessary for Licensee to exercise any rights hereunder (including without
      limitation for Licensee to make and have made Light Engines as herein
      provided).

(e)   "Licensed Know-How" means the proprietary know-how and trade secrets owned
      or licensable by JDSU as set forth in EXHIBIT B to this Agreement and also
      all such proprietary know-how and trade secrets as necessary or desirable
      to exercise the rights and licenses granted hereunder (including without
      limitation for Licensee to make and have made Light Engines as herein
      provided).

(f)   "Licensed Technology" means the Licensed Patents and Licensed Know-How,
      including any updates or improvements thereto made by Licensor.

(g)   "Royalty Rate" means $[***] for each Licensed Product sold by Licensee.

II.   As of the Effective Date and continuing for the period defined in SECTION
      XIV, Licensor grants to Licensee a non-exclusive, non-transferable (except
      as provided in SECTION XIII), royalty-bearing (as described in SECTION
      IX), worldwide right and license under the Licensed Technology (i) to
      make, have made (solely by an authorized assembler of Licensee for
      incorporation in a Licensor branded television) and use Licensed Products
      and (ii) to sell, offer for sale and lease world-wide such Licensed
      Products solely as a subassembly of a Licensor branded television.
      Notwithstanding the foregoing, Licensee's rights hereunder to make or have
      Licensed Products shall not extend to the manufacture of any individual
      part, component or subsystem of a Light Engine, whether such part,
      component or subsystem is manufactured by Licensor or purchased by
      Licensor from a third -party supplier, and shall be limited to the
      assembly of such parts, components and subsystems into a complete Light
      Engine unit.

(a)   The right to have Licensed Products made by an authorized assembler of
      Licensee by set forth above shall only apply where (i) the authorized
      assembler is party to a written agreement with Licensee with terms at
      least as restrictive as those set forth herein, particularly with respect
      to confidentiality and revision control, (ii) the specifications for the
      Light Engine were created by Licensor or Licensee (and not by such
      authorized assembler), (iii) the authorized assembler is manufacturing no
      more than 15% of the Light Engines manufactured by Licensee hereunder and
      (iv) shall not apply to any products in the form manufactured or marketed
      by said authorized assembler prior to Licensee furnishing said
      specifications. Licensee shall be liable to Licensor for any unauthorized
      disclosure or misuse of Licensor confidential information or the Licensed
      Technology by its authorized assembler.

III.  TECHNOLOGY TRANSFER: Licensor agrees to i) transfer the Licensed Know-How
      in accordance with the Technology Transfer Schedule set forth in EXHIBIT
      C, and ii) to provide to Licensee access to the Licensed Know-How through
      the following databases: [***]. Licensor shall maintain the database and
      incorporate changes as may be mutually agreed upon.

IV.   CROSS LICENSES; THIRD-PARTY PATENT CLAIM:

(a)   The license which is granted herein to Licensee may in the future be
      affected by cross-license agreements between Licensor and other parties.
      At the Effective Date, Licensor is not party to any cross-license
      agreement that, to the actual knowledge of Licensor's executive officers
      and attorneys working within Licensor's legal group ("Licensor's
      Knowledge"), is necessary for Licensee to exercise its license rights
      hereunder.

(b)   In the event that Licensor or Licensee shall receive any claim or
      assertion that the Licensed Products infringe any third-party patents, the
      recipient party shall promptly give notice to the other party, and
      Licensor and Licensee agree to cooperate in good faith to evaluate,
      resolve and dispute any such third-party claim. In the event Licensor
      shall enter into any license or other agreement whereby a third-party
      patent is licensed to Licensor for Light Engine applications, Licensor
      shall use reasonable commercial efforts to cause such license agreement to
      be extended to Licensee on the same economic terms as are applicable to
      Licensor for any Licensed Products to be manufactured by or for Licensee
      pursuant to this Agreement.

V.    REPRESENTATIONS AND WARRANTIES; NO IMPLIED LICENSE:

(a)   Licensor represents to Licensee that: (i) to Licensor's Knowledge, no
      third party has asserted or made a claim in writing to Licensor that the
      use, manufacture or sale of Licensor's Light Engine Products infringes any
      patent or other intellectual property right of such third party; and (ii)
      Licensor has the right to convey all rights and licenses conveyed
      hereunder.

(b)   Nothing in this Agreement shall be construed or interpreted as a grant by
      implication, inference, estoppel, or otherwise of any license or other
      right under any patents, or background patents, or patent applications, or
      software, or know-how, or trade-secrets, other than the express license
      granted to the Licensed Technology herein.

                                        1                  Initialed: ____ /____
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[***] = CONFIDENTIAL PORTIONS OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

VI.   DISCLAIMER:

(a)   Except as otherwise expressly provided herein, nothing contained in this
      Agreement shall be construed as:

      (1) a warranty or representation by Licensor as to the scope or validity
      of any patents, patent applications, invention disclosures, design
      patents, utility model patents or other rights included in the Licensed
      Technology; or

      (2) a warranty or representation that any manufacture, sale, import, use,
      or other disposition of products produced by Licensee or services provided
      by Licensee will be free from infringement of patents, design patents,
      utility patents, or other rights of third parties; or

      (3) any obligation on Licensor to pay maintenance fees, pay for counsel or
      otherwise file or prosecute any patent application, maintain or renew any
      patent rights in any country for issued patents or patent applications, or
      to file for patent protection in any country for inventions, or to defend
      any patent or patent application; or

      (4) a duty or requirement on Licensor to bring, file, or prosecute actions
      or suits against third parties for the misappropriation of or infringement
      of the Licensed Technology; or

      (5) conferring any right to use in advertising, publicity or otherwise,
      any trademark, trade names, or any contraction, abbreviation, or
      simulation thereof, of Licensor.

VII.  SUBSEQUENTLY DEVELOPED TECHNOLOGY: Licensor shall maintain configuration
      control over Licensed Product. In the event that Licensee desires to make
      changes to Licensed Product or Licensed Technology, including any changes
      that would affect the form, fit, function, specification or qualification
      of the Licensed Product, Licensee shall notify Licensor of the change in
      writing, prior to implementation of such change. Licensor shall modify the
      relevant database based upon such changes as are mutually agreed upon.
      Licensor shall own all right title and interest in and to any inventions,
      discoveries, or improvements made by Licensee to the Licensed Products or
      Licensed Technology, which shall be deemed Licensed Technology for
      purposes of this Agreement. Licensee agrees to provide any necessary
      documentation requested by Licensor in order to perfect Licensor's rights
      as set forth herein.

VIII. MARKING: Licensor agrees to clearly mark Licensed Product with the
      applicable Licensor patent numbers in accordance with instruction provided
      from time to time by Licensor.

IX.   ROYALTIES:

(a)   In consideration of the licenses herein granted by Licensor, Licensee
      agrees to pay Licensor as follows:

      (1) from the Effective Date continuing through [***] Licensor agrees to
      waive the payment of royalties on all Licensed Products sold and delivered
      by Licensee , and

      (2) during the period commencing on [***] and continuing for the term of
      this Agreement as specified in Section XIII, Licensee will pay to Licensor
      royalties on all Licensed Products leased, sold, or otherwise disposed of
      by Licensee at the Royalty Rate.

(b)   All royalty payments shall be made to Licensor in U.S. dollars. If
      Licensee fails to make such payments on or before the required dates, a
      supplemental royalty equal to one percent (1%) of the amount due shall be
      paid by Licensee for each month, or part of a month, that the payment is
      late.

(c)   Licensed Products shall be deemed to be sold, leased, or otherwise
      disposed of, when billed by Licensee. Once royalty has been accounted for,
      for any Licensed Product, no further royalty shall be payable thereon
      under this License Agreement.

X.    ACCOUNTING FOR ROYALTIES AND TAXES:

(a)   All computations relating to determination of the amounts of royalties due
      and payable pursuant to this Agreement shall be made in accordance with
      generally accepted accounting principles. Upon the reasonable request of
      Licensor, Licensee shall permit access to their books and records for the
      sole purpose of verifying the calculation of royalties due and payable
      pursuant to this Agreement. Licensor shall seek permission for an audit no
      more than once each fiscal year and shall bear the costs of the audit. All
      information concerning the use, lease, sale, or other disposition of
      Licensed Products, including without limitation, quantities of Licensed
      Products sold, customers, and other confidential business information of
      Licensee shall be made available to Licensor to the extent necessary to
      verify the calculation of royalties.

(b)   All royalties to be paid under Section VIII, in respect of the licenses
      granted pursuant to this Agreement, shall be paid on a fiscal quarterly
      basis, commencing on [***], and continuing on each January 1st, April 1st,
      July 1st and October 1st respectively, thereafter.

(c)   All payments of royalties pursuant to Section VIII of this Agreement,
      shall be made within thirty (30) days of the end of the fiscal quarterly
      period during which said royalties accrued, or within thirty (30) days of
      any shorter period as provided for herein, whichever occurs first.
      Royalties accounted for in any currency other than United States dollars
      shall be converted to United States dollars by using the prevailing rate
      of exchange for such currency and United States dollars quoted in the New
      York Foreign Exchange Market on the last business day of the reporting
      period in question.

(d)   On or before the date on which each royalty payment is payable, Licensee
      shall furnish to Licensor a written statement in the English Language,
      certified by an authorized representative of Licensee, concerning the
      computation of royalties due to or payable to Licensor, in respect of the
      applicable fiscal quarterly period. Each such certified statement payable
      under this Agreement to be readily determined and, in particular, shall
      set forth the following:

      (1) the total quantity of Licensed Product sold or otherwise disposed of
      for such fiscal quarterly reporting period; and

      (2) such additional information as Licensor may reasonably prescribe from
      time to time to enable Licensor to ascertain the computation of royalties.

(e)   All taxes imposed as a result of the existence of this Agreement or the
      performance hereunder shall be paid by the party required to do so by
      applicable law, provided however, that if so required by applicable law,
      Licensee shall withhold the amount of any national taxes on the payment to
      be made by Licensee to Licensor pursuant to this Agreement, and shall
      promptly effect payment thereof to the appropriate tax authorities, and
      shall transmit to Licensor official tax receipts or other evidence issued
      by said appropriate tax authorities sufficient to enable Licensor to
      support a claim for the United States income tax credit in respect of any
      such taxes so withheld and paid.

XI.   WAIVER OF REMEDIES: Subject to those warranties set forth in Section IV(a)
      hereof, Licensee explicitly releases, disclaims and waives all rights and
      remedies of law and all warranties, obligations, and liabilities of
      Licensor, express or implied, arising by law or by other means, with
      respect to any bug, defect, error omission, deficiency, or nonconformity
      in the Licensed Technology , including remedies which arise

                                        2                  Initialed: ____ /____
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      under any:

(a)   IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE;
      or

(b)   IMPLIED WARRANTY ARISING FROM A COURSE OF PERFORMANCE, COURSE OF DEALING,
      OR USAGE OF TRADE; or

(c)   ANY THIRD-PARTY CLAIM OF PATENT, COPYRIGHT OR OTHER INFRINGEMENT; or

(d)   TORT CLAIMS, WHETHER OR NOT ARISING IN WHOLE OR IN PART FROM FAULT,
      NEGLIGENCE, STRICT LIABILITY, OR PRODUCT LIABILITY.

XII.  LIMITATION OF LIABILITY: OTHER THAN FOR DAMAGES ARISING FROM A BREACH OF
      SECTION II(a), SECTION XV(a) ("CONFIDENTIALITY"), OR FOR OBLIGATIONS
      ARISING UNDER SECTION IV ("REPRESENTATIONS AND WARRANTIES; NO IMPLIED
      LICENSE"), NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY OR TO ANY
      THIRD PARTY FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES.

XIII. ASSIGNMENT: Neither this License Agreement nor any of the rights and
      benefits inuring herein to Licensee shall be assignable to any other
      person or party without the express prior written consent of Licensor. Any
      assignment in violation of this Section XII shall be null and void and be
      of no force and effect.

XIV.  TERM & TERMINATION:

(a)   Except as otherwise provided in this Section XIV, the licenses granted
      pursuant to this Agreement shall remain in force until 30 September 2005.
      Upon the earlier to occur of: (i) Licensor notifies Licensee in writing
      that it will no longer offer for sale complete Light Engines (directly or
      through its contract manufacturer) (the "LE Notice"), or (ii) Licensor is
      not offering for sale complete Light Engines (directly or through its
      contract manufacturer) prior to 30 September 2005, and provided that (x)
      this Agreement has not previously terminated, and (y) that Licensee is not
      then in material default of this Agreement (such earlier event hereinafter
      referred to as an "Early Trigger"), Licensee shall have the right, at its
      option and exercisable by Licensee on written notice to Licensor (1)
      within fifteen (15) days of receipt of the LE Notice with respect to an
      Early Trigger pursuant to Section XIV(a)(i) above, or (2) on or prior to
      30 September 2005 with respect to an Early Trigger pursuant to Section
      XIV(a)(ii) above, to (A) extend this Agreement to 30 June 2006,
      subject to termination pursuant to Sections XIV(b), XIV(c) or XIV(d) below
      (such extended license hereinafter referred to as, the "Extended
      License"), and/or (B) extend this Agreement in perpetuity, subject to
      termination pursuant to Sections XIV(b), XIV(c) or XIV(d) below (such
      extended license hereinafter referred to as, the "Perpetual License").

(b)   In the event that Licensee exercises its rights to the Extended License or
      the Perpetual License and Licensee is making the Licensed Products
      directly without a third-party contractor or assembler, the Royalty Rate
      shall remain as set forth in this Agreement. In the event that Licensee
      exercises its rights to the Perpetual License and Licensee has the
      Licensed Products made by Fabrinet or another authorized assembler as set
      forth in Section II above, this Agreement shall be modified and amended
      to: (i) delete the terms "to make" in Section II(ii) above, (ii) eliminate
      the 15% limitation on the amount of Light Engines that Licensee can have
      manufactured by a third party authorized assembler; and (iii) modify the
      royalty during such extension period to be an amount equal to the greater
      of: (x) $50 per unit, or (y) 5% of the Light Engine Revenue derived by
      Licensee from the sale of each television unit incorporating a Light
      Engine (where "Light Engine Revenue" shall mean that portion of the total
      revenue of Licensee from the sale of a television unit equal to that
      percentage of the total cost of goods sold of such television unit that is
      attributable to the total completed Light Engine). In the event the
      Royalty Rate is modified pursuant to Section XIV(b)(ii) above, then every
      six months following the effective date of the Perpetual License, the
      parties shall negotiate in good faith a fixed dollar amount for the
      Royalty Rate that they deem to be equal to such modified Royalty Rate. On
      or after 30 September 2007 the Perpetual License shall terminate
      immediately following any calendar month during the extension period for
      which Licensee shall pay Licensor the applicable royalty on less than
      1,000 Light Engine units per month as determined on a rolling twelve month
      basis. In the event Licensee exercises the option for the Extended License
      and/or Perpetual License pursuant to this Section XIV(b), such election
      shall serve as a full release of all claims against Licensor for any acts
      or omissions by Licensor for periods prior to 1 October 2005.

(c)   If Licensee fails to make any payment fully or timely as required by this
      Agreement, or in the event of any other material breach of this Agreement
      by either party, and if such failure or other material breach is not
      corrected within thirty (30) days after written notice complaining thereof
      is given to the defaulting party, then this Agreement may be terminated
      forthwith in its entirety by written notice to that effect from the
      complaining party, provided that such termination shall not affect any
      royalty or other obligation arising prior to such termination.

(d)   If at any time during the term of this Agreement: (i) either party
      consolidates with or merges with or into another corporation, company, or
      other entity, notwithstanding that such party may be the surviving entity
      of such consolidation or merger; or (ii) Licensee sells or otherwise
      transfers substantially all of its business or assets relating to Licensed
      Products; then the other party may terminate this Agreement at any time
      upon notice to the other party.

XV.   MISCELLANEOUS PROVISIONS:

(a)   CONFIDENTIALITY: Each party (the "Disclosing Party") may from time to time
      disclose to the other party (the "Receiving Party") certain non-public
      information regarding the business of the Disclosing Party (collectively,
      "Confidential Information"). The Disclosing Party shall mark all
      Confidential Information as "Confidential", "Proprietary" or the like. The
      Receiving Party agrees not to use the Confidential Information except for
      purposes of exercising its rights or fulfilling its obligations under his
      Agreement, and agrees not to disclose such Confidential Information to any
      third party (other than by Licensee under obligation of confidence).
      Licensee agrees that all Licensed Know-How and the data contained on the
      databases set forth in Section III are deemed Confidential Information of
      Licensor, irrespective of the marking of such information. Confidential
      Information of Licensor. The provisions of this SECTION XV(a) shall not
      apply to any disclosure of information which:

      (1) Is made with the prior written consent of the Disclosing Party; or

      (2) Is made to any governmental body or any other statutory authority or
      regulatory authority or court having jurisdiction to call therefor; or

      (3) Is made as otherwise may be required by law; or

      (4) is disclosed to independent legal counsel, accountants or consultants
      where there is a business need to know.

      Prior notification of any disclosure pursuant to items (ii) and (iii)
      above shall be provided by the Receiving Party to the Disclosing Part
      Licensor.

                                        3                  Initialed: ____ /____
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(b)   CHOICE OF LAW: This Agreement shall be construed and interpreted in
      accordance with the laws of the State of New York without regard to
      principles of conflicts of laws.

(c)   WAIVER: The failure of either party to assert a right hereunder or to
      insist upon compliance with any term or condition of this Agreement shall
      not constitute a waiver of that right or excuse similar subsequent failure
      to perform any such term or condition by the other party.

(d)   SUCCESSOR'S AND ASSIGNS: This Agreement shall inure to the benefit of and
      be binding upon the parties hereto and their respective successors and
      permitted assigns subject to Section XII above.

(e)   COUNTERPARTS: This Agreement may be executed in one or more counterparts
      for the convenience of the parties hereto, all of which together shall
      constitute one and the same instrument.

(f)   THIRD PARTIES: Except as specifically set forth or referred to in this
      Agreement, nothing herein expressly or implied is intended or shall be
      construed to confer upon or give to any other person other than Licensee
      and Licensor and their successors or assigns, any rights or remedies under
      or by reason of this Agreement.

(g)   INVALID PROVISIONS: Should any clause, sentence, paragraph, section, or
      article of this Agreement be judicially declared invalid, unenforceable,
      or void, such decision shall not have the effect of invalidating or
      voiding the remainder of this Agreement, and the parties hereto agree that
      the part or parts of this Agreement that are so held to be invalid,
      unenforceable, or void shall be deemed to have been stricken from this
      Agreement, and the remainder of this Agreement shall have the same force
      and full effect as if such part or parts had never been included herein.

(h)   SURVIVAL: The following provisions shall survive the expiration or
      termination of this Agreement: SECTION I ("DEFINITIONS"), SECTION IV
      ("CROSS LICENSES; THIRD-PARTY CLAIM"), SECTION IV ("REPRESENTATIONS AND
      WARRANTIES; NO IMPLIED LICENSE"), SECTION VI ("DISCLAIMER"), SECTION XI
      ("WAIVER OF REMEDIES"), SECTION XI ("LIMITATION OF LIABILITY"), SECTION
      XIV ("TERM AND TERMINATION; CROSS DEFAULT"), SECTION XV ("MISCELLANEOUS
      PROVISIONS"), SECTION XVI ("ENTIRE AGREEMENT") and SECTION XVII
      ("NOTICE").

XVI.  ENTIRE AGREEMENT: This Agreement sets forth the entire understanding
      between the parties as to the subject matter hereof and merges all prior
      discussions between them.

XVII. NOTICE: Any notice, request, instruction, or other communications or other
      document to be given hereunder by any party hereto to any other party
      hereto shall be in writing and delivered personally, telecopied, or sent
      by recognized overnight delivery service, and shall be deemed given when
      so delivered personally, telecopied (with appropriate confirmation of
      receipt), or received, as follows:

         If to Licensor:

         JDS Uniphase Corporation
         1768 Automation Parkway
         San Jose, CA  95131
         Attn: General Counsel
         Fax: 408-546-4350
         Phone: 408-546-5000

         If to Licensee:

         Brillian Corporation
         1600 N. Desert Drive
         Tempe, AZ 85281

         Attn:

IN WITNESS WHEREOF, this Agreement is accepted by the undersigned, which are
respectively duly authorized representatives of Licensor and Licensee.

JDS Uniphase Corporation                      Brillian Corporation

By:__/s/ Christopher S. Dewees_________       By:__/s/ Wayne A. Pratt___________
Print Name: Christopher S. Dewees             Print Name: Wayne A. Pratt
Title: Senior Vice President                  Title: Vice President and CFO
Date: December 10, 2004                       Date: December 10, 2004

                                        4                  Initialed: ____ /____
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                                    EXHIBIT A

                                LICENSED PATENTS

                                      [***]

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                                    EXHIBIT B

                                LICENSED KNOW-HOW

The Licensed Know-How includes, but is not limited to, technical data, drawings,
work instructions, bills of material, specifications, design information, test
requirements, process information, alignment techniques, and other information
available on the following JDSU proprietary databases related to the Light
Engine to which Licensee will be granted access:

[***]

Licensee shall be granted read only access and agrees that any changes required
to the database will be handled in accordance with the change control process
outlined in the Supply Agreement executed in conjunction with this Agreement.

FILE CODES:
[***]

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                                    EXHIBIT C

[*** 5 pages omitted]

FILE CODES:
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                                                                   EXHIBIT 10.13

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                               [JDS UNIPHASE LOGO]

10 December 2004

Brillian Corporation
1600 North Desert Drive
Tempe, AZ 85281

Attention:  Wayne A. Pratt
            Vice President, Chief Financial Officer

Subject:    LETTER AGREEMENT

Dear Mr. Pratt:

This Letter Agreement ("AGREEMENT") by and between JDS Uniphase Corporation
("JDSU") and Brillian Corporation ("Brillian) sets out the terms for the sale by
JDSU and purchase by Brillian of (i) the kernel material and projection lenses
as listed on Page 1 of Exhibit A (shipped to Brillian but not invoiced by JDSU
prior to the effective date of this Agreement), (ii) a quantity of one hundred
fifty (150) kernel material kits as listed on Page 2 of Exhibit A, and (iii) a
quantity of six hundred fifty (650) Light Engine Development Kits as listed on
Pages 3,4, and 5 of Exhibit A (collectively "Products") as further defined
below. JDSU and Brillian do hereby agree as follows:

1.    EXHIBITS. The description of the Products subject to this Agreement is
      provided in Exhibit A attached hereto. The purchase of Products shall be
      governed by the terms and conditions attached to this Agreement as Exhibit
      B. This Agreement shall be governed by and construed in accordance with
      Section 9 of Exhibit B.

2.    PURCHASE ORDER. Brillian shall issue a purchase order in the total amount
      of $1,368,814.18 which is hereby deemed accepted by JDSU in accordance
      with the terms of this Agreement covering (i) the kernel material and
      projection lenses as listed on Page 1 of Exhibit A (shipped to Brillian
      but not invoiced by JDSU prior to the effective date of this Agreement) at
      a total price of $140,266.18, (ii) a quantity of one hundred fifty (150)
      kernel material kits as listed on Page 2 of Exhibit A at a price of
      $390.32 per kit for a total price of $58,548, and iii) six hundred fifty
      (650) Light Engine Development Kits at a price of $1,800 per kit (each kit
      consisting of the items in the Bill of Materials and Commodity Materials
      listed on Pages 3, 4, and 5 of Exhibit A) for a total price of $1,170,000.
      The Product shall be delivered to Brillian within sixty (60) days from the
      issue date of the purchase order in accordance with a mutually acceptable
      shipping schedule. This Agreement shall only cover the purchase order
      issued by Brillian for the limited quantities described herein.

3.    ENTIRE AGREEMENT. This Agreement, including Exhibits A and B, expresses
      the entire understanding and agreement for both JDSU and Brillian with
      respect to the subject matter

Exhibit B Letter Agreement Final                        JDSU CONFIDENTIAL      1

<PAGE>

      covered in this Agreement and supersedes any and all previous agreements
      with reference to such subject matter (except any non-disclosure agreement
      between the parties). No addition, deletion or change to this Agreement
      shall be valid, unless in writing and signed by both Brillian and JDSU.

4.    EXECUTION. This Agreement may be signed by manual or facsimile signature
      in several counterparts, each of which when executed shall be deemed to be
      an original; such counterparts together shall constitute one and the same
      document. Please indicate your concurrence with this Agreement by signing
      in the space indicated below.

YOURS VERY TRULY,                       AGREED AND ACCEPTED:

JDS UNIPHASE CORPORATION                BRILLIAN CORPORATION

/s/ Christopher S. Dewees               /s/ Wayne A. Pratt

NAME: Christopher S. Dewees             NAME: Wayne A. Pratt

TITLE: Senior Vice President            TITLE: Vice President and CFO

DATE: December 10, 2004                 DATE: December 10, 2004

Exhibit B Letter Agreement Final                        JDSU CONFIDENTIAL      2

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                                    EXHIBIT A

                      SEE SEPARATELY ATTACHED SPREADSHEETS

                                      [*** 5 pages omitted]

Exhibit B Letter Agreement Final                        JDSU CONFIDENTIAL      3

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                                    EXHIBIT B

                    JDS UNIPHASE TERMS AND CONDITIONS OF SALE

These Terms and Conditions of Sale and Software license (collectively "Terms")
are Exhibit B to the Letter Agreement ("Agreement") between JDS Uniphase
Corporation, ("JDSU") and Brillian Corporation ("CUSTOMER") dated ________ .

1. PRODUCTS

1.1 "Products" shall mean the Products identified in the Agreement.

2. ORDERS: Customer has issued and JDSU has accepted a written order from
Customer (the "PURCHASE ORDER").

3. PRICES: All prices are (a) FCA JDSU factory [Incoterms, 2000] (shipping costs
and risk of loss from the FCA point of shipment are the responsibility of
Customer) and (b) exclusive of Taxes (as defined herein) and all handling or
other charges including without limitation insurance, brokerage fees,
transportation or special packaging ("CHARGES") and (c) in U.S. currency unless
otherwise specified by JDSU. All sales are final. Title to Products shall pass
from JDSU to Customer upon delivery to the shipping carrier at the FCA point.
Any tax or other charge which JDSU is liable to collect on behalf of any
governmental authority ("TAXES") as a result of the sale, use or delivery of
Products, including without limitation, duties, value added and withholding
taxes (but not including taxes on JDSU's income), is the responsibility of the
Customer, and if paid by JDSU shall be charged to Customer as a separate item on
the invoice, to the extent possible.

4. TERMS OF PAYMENT: Net one hundred twenty (120) days from the date of
shipment. If at any time Customer is delinquent in the payment of any invoice or
is otherwise in breach of this Agreement, JDSU may, at its discretion, withhold
shipment (including partial shipments) of any order and may, at its option,
require Customer to pre-pay for further performance or shipments. All payments
not received when due shall be subject to an additional charge of one and one
half percent (1.5%) per month (annual rate 19.56%) of the unpaid amount or the
maximum rate permitted by law, whichever is less, until the date of payment.
Customer grants JDSU a security interest in Products (excluding services)
purchased under this Agreement to secure payment for those Products purchased.
If requested by JDSU, Customer agrees to execute financing statements to perfect
such security interest. There is no set-off right for the Customer.

5. PERFORMANCE AND SHIPPING: Performance and shipping dates specified or
communicated by JDSU to the Customer are approximate dates (however JDSU shall
make commercially reasonable efforts to meet such dates) and the failure to
perform or ship on such dates, despite such efforts, shall not be considered a
breach by JDSU. JDSU shall be permitted to make partial shipments of Products.
Delivery shall be deemed made upon transfer of possession to the carrier at the
FCA point. All claims for shortage of Products ordered or for incorrect charges
must be presented to JDSU within ten (10) days after receipt by Customer of the
particular shipment of Products. Customer shall be responsible for all Charges.
Unless given written instruction, JDSU shall select the carrier. JDSU shall not
be liable for damages or penalty for delay in delivery or for failure to give
notice of any delay, and the carrier shall not be deemed to be an agent of JDSU.
Notwithstanding any provision of this Agreement, each Product shall be deemed
accepted by Customer upon delivery.

Exhibit B Letter Agreement Final                        JDSU CONFIDENTIAL      4

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6. CANCELLATION: The Customer may not cancel, terminate, suspend performance of,
or issue a hold on, the Purchase Order, in whole or in part, without the prior
written consent of JDSU, which consent, if given, shall be upon terms that will
compensate JDSU for any loss or damage therefrom, including but not limited to
any work in process or services performed, the price of Products shipped to,
manufactured for, or held separately for, the Customer, and loss of profits,
incurred costs, and a reasonable allocation of general and administrative
expenses relating to the Products.

7. LIMITED PRODUCT WARRANTY: Notwithstanding any provision to the contrary (but
subject to the operation of any law to the extent it cannot be excluded), JDSU's
sole and exclusive obligations to the Customer for any Product (other than
Software, as defined and warranted below) made by JDSU and sold hereunder are to
repair returned Product or provide a replacement Product, at JDSU's sole option,
for any Product which has been returned to JDSU under the RMA procedure (as
defined below) and which in the reasonable opinion of JDSU is determined to be
defective in workmanship, material or not in compliance with the JDSU
specification applicable to the Product and has in fact failed under normal use
on or before, one (1) year from the date of original shipment of the Product.
All Products, which are prototypes, experimental, alpha, beta, field trial or
unqualified Products, are not warranted. All third parties' Products or
components (including software) sold by JDSU carry only the original
manufacturer's warranty to the extent such warranty is transferable to Customer.
JDSU will coordinate the return of Product or components supplied by third
parties in accordance with the applicable manufacturer's warranty provided such
Product or components are returned to JDSU in accordance with the RMA procedure
set forth in Section 8. Any Product repaired or replaced under warranty is only
warranted for the period of time remaining in the original warranty for the
Product. JDSU reserves the right, at its sole option, to issue a credit note or
cash refund for any defective Product as an alternative to repair or
replacement. The warranty provided herein shall extend to any Product which has
proved defective and has failed through normal use, but excludes and does not
cover any Product or parts thereof which has been accidentally damaged,
disassembled, modified, misused, repaired or reworked (by any party other than
JDSU or its authorized agents), improperly stored or handled, used in
conjunction with another product that is electronically or mechanically
incompatible or of an inferior quality, or used in applications which exceed the
Product specifications or ratings, neglected, improperly installed or otherwise
abused or is used in hazardous activities. Customer must claim under the
warranty in writing not later than thirty (30) days after the claimed defect is
discovered. The Customer must make all claims under these warranties and no
claim will be accepted from any third party. The warranties set forth herein are
non-transferable. NOTWITHSTANDING ANY PROVISION OF THIS AGREEMENT OR OTHER
RELATED DOCUMENTATION (INCLUDING WITHOUT LIMITATION ANY SPECIFICATIONS) TO THE
CONTRARY, THE PROVISIONS OF WARRANTIES SET FORTH HEREIN CUSTOMER'S SOLE AND
EXCLUSIVE REMEDIES FOR ANY DEFECTIVE OR NONCONFORMING PRODUCTS OR SERVICES.

8. RETURN MATERIAL AUTHORIZATION PROCEDURES: JDSU will only accept Products
returned under the JDSU Return Material Authorization process ("RMA"). Customer
shall obtain a RMA number from JDSU prior to returning any Product and return
the Product prepaid and insured to JDSU to the FCA point. Where any Product is
returned without an itemized statement of claimed defects, JDSU will not
evaluate the Product but will return it to the Customer at the Customer's
expense.

Exhibit B Letter Agreement Final                        JDSU CONFIDENTIAL      5

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9. SOFTWARE LICENSE AND WARRANTY: For software developed by JDSU and contained
in any Product and all related documentation (collectively "Software"), JDSU
does not transfer ownership (which shall remain solely with JDSU) but only
grants the Customer a perpetual, non-exclusive license to use the Software only
in conjunction with a single unit of JDSU Product.. Such license is transferable
only with the transfer of ownership of the Product in which it is used. Except
for making a backup or archival copy or as permitted by law and provided that
the said copies contains all of the JDSU proprietary notices contained in the
original Software, Customer shall not (a) modify, translate, reproduce, copy,
reverse engineer, decompile or disassemble all or any portion of the Software,
(b) distribute, market, disclose, rent, lease or create derivative works, or
sublicense the use of, the Software to any third party, or (c) permit or
authorize anyone within Customer's reasonable control to do any acts in (a) or
(b). JDSU warrants that the Software under normal use and service as originally
delivered to Customer will function substantially in accordance with the
functional description set out in the Product specification and/or user manual
supplied with the Software for a period of ninety (90) days from the date of
shipment. JDSU's sole liability and Customer's sole remedy for a breach of this
Software warranty shall be JDSU's commercially reasonable efforts to rectify the
non-conformity or, if after repeated efforts JDSU is unable to rectify the
non-conformity, JDSU shall accept return of the Product containing the
non-conforming Software and shall issue a credit to Customer for all amounts
paid by Customer for the corresponding Product. This warranty is void if failure
of the Software has resulted from accident, misuse, abuse, misapplication or
modification. JDSU's Software is provided to non-Department of Defense (DOD)
agencies of the United States Government with RESTRICTED RIGHTS and its
supporting documentation is provided with LIMITED RIGHTS. Use, duplication, or
disclosure by the United States Government is subject to the restrictions as set
forth in subparagraph "C" of the Commercial Computer Software - Restricted
Rights clause at FAR 52.227-19. In the event the sale is to a DOD agency, the
Government's rights in Software, supporting documentation, and technical data
are governed by the restrictions in the Technical Data Commercial Items clause
at DFARS 252.227-7015 and DFARS 227.7202. If Customer breaches any provision of
this Agreement with respect to any Software, then (a) JDSU may terminate
Customer's license for the Software and related documentation by delivering to
Customer notice thereof, and (b) upon receipt of the notice, Customer shall
destroy or deliver to JDSU all copies of the Software.

10. LIMITATION OF LIABILITY: EXCEPT FOR THE WARRANTIES STATED HEREIN FOR THE
CUSTOMER, NO WARRANTY, CONDITION OR REPRESENTATION, EXPRESS, IMPLIED, ORAL OR
STATUTORY, IS PROVIDED TO THE CUSTOMER OR ANY THIRD PARTY, INCLUDING, WITHOUT
LIMITATION, ANY WARRANTY, CONDITION OR REPRESENTATION: (A) OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, SATISFACTORY QUALITY, OR ARISING FROM A COURSE
OF DEALING, USAGE, OR TRADE PRACTICE; (B) THAT THE PRODUCTS WILL BE FREE FROM
INFRINGEMENT OR VIOLATION OF ANY RIGHTS, INCLUDING INTELLECTUAL PROPERTY RIGHTS,
OF THIRD PARTIES; OR (C) THAT THE OPERATION OF THE SOFTWARE WILL BE
UNINTERRUPTED OR ERROR FREE. THIS DISCLAIMER AND EXCLUSION SHALL APPLY EVEN IF
THE EXPRESS WARRANTY HEREIN FAILS OF ITS ESSENTIAL PURPOSE. THE CUSTOMER'S SOLE
AND EXCLUSIVE REMEDIES HEREUNDER AND THE ONLY LIABILITY OF JDSU IS EXPRESSLY
LIMITED TO THE TERMS OF THE AGREEMENT. NEITHER PARTY SHALL BE LIABLE TO THE
OTHER, OR ANY THIRD PARTY, FOR ANY OTHER SPECIAL, CONSEQUENTIAL, INCIDENTAL,
EXEMPLARY OR INDIRECT COSTS OR

Exhibit B Letter Agreement Final                        JDSU CONFIDENTIAL      6

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DAMAGES, INCLUDING WITHOUT LIMITATION, LITIGATION COSTS, INSTALLATION AND
REMOVAL COSTS, LOSS OF DATA, PRODUCTION OR PROFIT ARISING FROM ANY CAUSE
WHATSOEVER, REGARDLESS OF THE FORM OF THE ACTION, WHETHER IN CONTRACT, TORT
(INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, EVEN IF ADVISED OF THE
POSSIBILITY OF SUCH COSTS OR DAMAGES. FOR PURPOSES OF THIS PROVISION, EACH PARTY
INCLUDES SUCH PARTY'S DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, REPRESENTATIVES,
SUBCONTRACTORS AND SUPPLIERS. IN NO EVENT SHALL THE TOTAL COLLECTIVE CUMULATIVE
LIABILITY OF EITHER PARTY, ITS EMPLOYEES, OFFICERS, AGENTS AND DIRECTORS EXCEED
THE AMOUNT PAID TO JDSU FOR PRODUCTS FROM WHICH SUCH LIABILITY AROSE DURING THE
TWELVE (12) MONTH PERIOD PRECEDING THE DATE OF THE MOST RECENT CLAIM.

11. EXPORT RESTRICTIONS: Customer shall obtain all licenses, permits and
approvals required by any government and shall comply with all applicable laws,
rules, policies and procedures of the applicable government and other competent
authorities. Customer will indemnify and hold JDSU harmless for any violation or
alleged violation by Customer of such laws, rules, policies or procedures.
Customer shall not transmit, export or re-export, directly or indirectly,
separately or as part of any system, the Products or any technical data
(including processes and services) received from JDSU, without first obtaining
any license required by the applicable government, including without limitation,
the United States Government and/or any other applicable competent authority.
Customer also certifies that none of the products or technical data supplied by
JDSU will be sold or otherwise transferred to, or made available for use by or
for, any entity that is engaged in the design, development, production or use of
nuclear, biological or chemical weapons or missile technology.

12. RIGHTS IN INTELLECTUAL PROPERTY AND TOOLING: All right, title, and interest
in and to the designs, models, patterns, specifications, copyrights, patents,
trade secrets, trade-marks and other intellectual property in the Products and
related materials shall remain vested in JDSU or its third party suppliers.
Customer shall not copy, make extracts from, translate or otherwise modify any
of the Products or related documentation provided by JDSU. All right, title and
interest in and to any inventions, discoveries, improvements, methods, ideas,
computer and other apparatus programs and related documentation, other works of
authorship fixed in any tangible medium of expression, mask works, or other
forms of intellectual property, whether or not subject to statutory protection,
which are made, created, developed, written, conceived or first reduced to
practice by JDSU solely, jointly or on its behalf, in the course of, arising out
of, or as a result of work performed under an order, and any related tooling,
set-up, fitting-up and preparation charges whether or not invoiced, shall belong
to and be the sole and exclusive property of JDSU. Customer agrees not to
reverse engineer all or any portion of any Product nor allow or assist others to
do so. Customer acknowledges the goodwill associated with JDSU's trade-marks,
and shall not obscure, remove or alter of any trademarks, patent numbers,
labels, serial numbers affixed to any Product, related documentation or
packaging, without the express prior written consent of JDSU.

13 GENERAL TERMS:

13.1 The validity, interpretation and performance of this Agreement shall be
governed by and construed under the applicable laws of the State of New York and
the United States of America, as if performed wholly within the state and
without giving effect to the principles of conflict of

Exhibit B Letter Agreement Final                        JDSU CONFIDENTIAL      7

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laws. The parties specifically disclaim the application of the United Nations
Convention on Contracts for the International Sale of Goods. 13.2 Neither party
shall be liable for delay or failure in performance whatsoever due to acts of
God, shortage of supplies, transportation difficulties, labor disputes, riots
war, fire, explosion, epidemics, or other occurrences beyond such party's
reasonable control or due to unforeseen circumstances.

13.3 Waiver by either party of any provision herein must be in writing and shall
not be deemed to be a waiver of such provision or other provision in the future.

13.4 Each party shall hold confidential and shall not use, disclose or permit
others to use any confidential information identified as such in writing or
orally by the other partyJDSU or information which such party knows or ought to
reasonably know is confidential, proprietary or trade secret information of the
other party, including, without limitation, trade secrets embodied in Products.

13.5 Neither this Agreement nor any rights under this Agreement, other than
monies due or to become due, shall be assigned or otherwise transferred by
Customer (by operation of law or otherwise) without the prior written consent of
JDSU, which consent shall not be unreasonably withheld. This Agreement shall
bind and inure to the benefit of the successors and permitted assigns of the
parties.

13.6 In the event that any of the terms of this Agreement, apart from payment,
become or are declared to be illegal by any court of competent jurisdiction,
such terms shall be null and void and shall be deemed deleted from this
Agreement, but only to the extent that such term is illegal, it being the intent
and agreement of the parties that the Agreement shall be deemed amended by
modifying such term to the extent necessary to make it legal while preserving
its intent or, if that is not possible, by substituting therefore another term
that is legal and achieves the same objective. All remaining terms of this
Agreement shall remain in full force and effect.

13.7 Neither party has the right or authority to, and shall not, assume or
create any obligation of any nature whatsoever on behalf of the other party or
bind the other party in any respect whatsoever. JDSU neither assumes nor
authorizes any third party, person or entity to assume or accept any liability
or obligation, or to make any commitment for JDSU with regard to JDSU services
or the Products.

13.9 This Agreement constitutes the entire agreement between the parties hereto
concerning the subject matter of this Agreement, apart from existing
non-disclosure agreements, and there are no understandings, agreements,
representations, conditions, warranties, or other terms, express or implied,
which are not specified herein. This Agreement may only be modified by a written
document executed by authorized representatives of JDSU and Customer.

Exhibit B Letter Agreement Final                        JDSU CONFIDENTIAL      8

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