Document:

Wafer Foundry Service Agreement, dated November 3, 2003

 Exhibit 10.5 
  
  
 CONFIDENTIAL TREATMENT REQUESTED BY PIXELPLUS CO., LTD. THIS EXHIBIT HAS BEEN REDACTED.
REDACTED MATERIAL IS MARKED WITH “*” AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
 WAFER FOUNDRY SERVICE AGREEMENT 
  
 THIS SUPPLY AGREEMENT (this “Agreement”) is made and entered on this 3rd day of November, 2003, by and between PixelPlus Co., Ltd., having its registered office at 1017, Ingae-dong, Paldal-gu, Suwon-si, Kyunggi-do (“Pixel”); Dongbu Electronics Co., Ltd., having
its registered office at 891-10, Daechi-dong, Kangnam-gu, Seoul (“Dongbu”); and T2Net Technology Co., Ltd., a distributor of Dongbu, having its registered office at A2, 1st basement floor, Tourist Terminal, 40-969, Hangangro-3ga, Yongsan-gu, Seoul (“T2Net”) for the provision of certain wafer foundry service for CMOS
Image Sensor as follows: 
  

	Article 1	Products 

  
 The products to be processed by Dongbu upon Pixel’s request through T2Net (the “Products”) shall be as described in Attachment 1 hereto and detailed commercial terms (i.e., method of payment and credit
lines of Pixel and T2Net, etc.) thereof shall be as stated in Attachment 2 hereto. The parties hereto may modify, amend, and/or change, the Products and/or the specifications thereof, by mutual agreement in writing among the parties. 
  

	Article 2	Purchase Order and Rolling Forecast 

  

	1.	Pixel shall issue the relevant process order to T2Net at least 70 days prior to the expected delivery date of the Products pursuant to Paragraph 5 below, and T2Net shall immediately
issue its process order to Dongbu upon receipt of the process order from Pixel. Within 10 days of the receipt of the process order from T2Net, Dongbu shall notify T2Net of its intent whether or not to accept such order in writing, and T2Net shall
immediately notify Pixel thereof through issuance of offer sheet and commercial invoice to Pixel. Then, Pixel shall open irrevocable local L/C to T2Net. Provided, however, if Dongbu fails to notify of its intent within the above period, the relevant
order shall be deemed to have been accepted, and T2Net may notify Pixel of such acceptance. 

  

	2.	The process order shall state order date, name of the Products, quantity, price, delivery date and place, and other necessary matters. 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  

	3.	T2Net shall request wafer FAB service to Dongbu upon its confirmation of the L/C opened by Pixel or receipt of cash, and Dongbu shall proceed with wafer FAB service upon receipt of
the request from T2Net. 

  

	4.	The matters not specifically stated in the process order shall be determined pursuant to this Agreement, and in case of any discrepancy or conflict between the terms of the process
order and those of this Agreement, terms of this Agreement shall prevail. 

  

	5.	Pixel shall provide T2Net with a 6 month order plan at the end of every month during the term of this Agreement, and T2Net shall notify such order plan to Dongbu immediately. For
allocation of Fab manufacturing capacity and preservation of the opportunity costs of Dongbu, T2Net and Pixel shall have the following obligations with respect to Dongbu and T2Net, respectively: 

  

	 	a.	First Month : Obligation to purchase ***% of the manufactured Products 

  

	 	b.	Second Month: Obligation to purchase **% of the manufactured Products 

  

	 	c.	Third Month: Obligation to purchase **% of the manufactured Products 

  

	 	d.	Fourth Month and Thereafter: Materials for the calculation of fab capacity 

  

	6.	If Pixel performs its obligations in Paragraph 5 above, Dongbu shall not unilaterally modify or change the number of the Products capable of being manufactured based on its own FAB
manufacturing plan. Provided, however, that the number may be change upon mutual consent of the parties. 

  

	Article 3	Modification and/or Change of Order 

  

	1.	Pixel (with respect to T2Net) and T2Net (with respect to Dongbu) shall not change or cancel all or a part of the process order accepted pursuant to Article 3 hereof without prior
written consent of T2Net or Dongbu, as the case may be. 

  

	2.	Notwithstanding Paragraph 1 above, Pixel and T2Net may cancel the relevant process order by giving Dongbu a written notice thereof at least 30 days prior to the scheduled delivery
date. 

  

	3.	In the event that Pixel and T2Net cancels the process order pursuant to Paragraph 2 above, Pixel shall pay to T2Net, and T2Net shall pay to Dongbu, the following amount depending on
the processing steps taken by Dongbu at the time of such cancellation: 

  

	 	a.	Commencement of M/P (before GATE): **% of the contract price of the Products 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  

	 	b.	Before Metal 1 Contact: **% of the contract price of the Products 

  

	 	c.	Before Metal 2 Contact: **% of the contract price of the Products 

  

	 	d.	After Metal 3 Contact: ***% of the contract price of the Products 

  

	Article 4	Price 

  

	1.	The price of the Products shall be as stated in a separate agreement on price determination among the parties. 

  

	2.	Unless stated otherwise in the process order, the price of the Products shall include packaging fees, freight charges, unloading expenses and insurance premium, and any and all
expenses related thereto (provided, in case of overseas delivery, all expenses under FCA(FOB) term shall apply). 

  

	Article 5	Delivery and Inspection 

  

	1.	Dongbu shall carry out an inspection on the Products based on the standards agreed between Dongby and Pixel upon completion of its process, and deliver the Products to T2Net in
accordance with the method and procedure of delivery agreed between Dongbu and T2Net. Thereafter, T2Net shall deliver the Products to Pixel in accordance with the method and procedures of delivery agreed between T2Net and Pixel.

  

	2.	Responsibilities on any and all risks (i.e., theft, loss, damage, etc.) with respect to the Products shall be transferred from Dongbu to T2Net upon Dongbu’s delivery of the
Products to the designated delivery place and to T2Net or its designated person. This shall apply mutatis mutandis to the delivery of the Products from T2Net to Pixel. The title to the Products shall be transferred from Dongbu to T2Net, and then, to
Pixel when price payment is made in full by T2Net to Dongbu and Pixel to T2Net, respectively. 

	Article 6	Acceptance Test 

  

	1.	Pixel shall conduct acceptance tests on the Products supplied by Dongbu via T2Net in accordance with the specifications stated in Attachment 1 hereto, notify T2Net of the result of
such acceptance tests in writing within 30 days of the delivery of the relevant Products, and then, T2Net shall immediately notify Dongbu of the same in writing. Provided, however, that in case where Pixel fails to provide such written notice within
the above-mentioned time period, the relevant Products shall be deemed to have been accepted by Pixel. 

  

	2.	If Pixel finds any defects in the Products, it shall notify as such to T2Net in writing, and T2Net shall immediately notify the same to Dongbu. Pixel shall, at its own cost and
responsibility, return the defective Products to Dongbu. Dongbu shall replace and redeliver defective-free Products to Pixel within 6 weeks of the receipt of the defective Products. 

  

	Article 7	Payment 

  

	1.	Payment of the prices under this Agreement shall be made as follows: 

  

	 	a.	Payment of the prices payable by Pixel shall be made in cash or irrevocable local L/C negotiable at site. Pixel shall open such L/C at least 8 weeks before the scheduled delivery
date and immediately deliver the relevant documents to T2Net thereafter. 

  

	 	b.	T2Net shall pay the prices for the relevant Products to Dongbu in accordance with the terms of the distributorship agreement executed by and between Dongbu and T2Net.

  

	2.	Payment to be made under this Agreement shall be made in Korean Won, and the basis exchange rate shall be average monthly closing rate for the immediately preceding month announced
by Korea Exchange Bank. Provided, however, that the relevant parties may agree to use different currencies for the payments. 

  

	Article 8	Yield 

  

	1.	Pixel shall deliver the results of Wafer Sort Test (by Wafer and by Lot) to Dongbu within 45 days of the delivery of the relevant Products. Provided, however, that in cases where
Dongbu raises any objection to the results of such Wafer Sort Test delivered by Pixel, the parties shall consult to each other to re-calculate the yield of the relevant Products. 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  

	2.	The standard yield of the Products shall be based on the wafers passed the EPM(PCM), and mean the average yield after Wafer Sort Test on ** Lots of the Products ordered by Pixel, be
confirmed by the parties upon mutual consultation and be stated in item 9 of Attachment 1 hereto. Provided, however, that the price of the first * Lots of the Products shall be the price separately determined and stated in the price agreement among
parties, regardless of the yield. 

  

	3.	If the yield calculated pursuant to Paragraph 1 above deviates from the range of the standard yield pursuant to Paragraph 2, the shortage/excess shall be resolved in accordance with
the Attachment 1 hereto. 

  

	4.	Pixel shall actively assist Dongbu in determining yield for the first ** Lots (i.e., sufficient explanation and assistance on test audit, if necessary). 

  

	Article 9	Warranty 

  

	1.	Dongbu hereby warrant that the Products supplied to Pixel via T2Net pursuant to this Agreement are in strict compliance with the specifications stated in Attachment 1 hereto, and
will be free of any and all defects for a period of 90 days after the delivery of the relevant Products. Provided, however, that such warranty shall not apply in cases where the defects occurs for the reasons attributable to Pixel, including GDS
DATA provided by Pixel or certain request of Pixel. 

  

	2.	If any defect exist or is found within the warranty period in Paragraph 1 above, Pixel shall immediate notify Dongbu of such defect and return the defective Products in accordance
with the standards and procedures of Dongbu. Dongbu shall replace and/or repair such defective Products and re-deliver the Products to Pixel. In such cases, T2Net shall faithfully discharge its duties as the distributor of Dongbu.

  

	3.	If Dongbu fails to perform under this Article, Dongbu shall indemnify Pixel of any direct, actual loss or damage incurred by Pixel. Provided, however, that the aggregate damages
payable by Dongbu shall not exceed the aggregate price of the relevant Products paid by Pixel to Dongbu via T2Net. 

	Article 10	Infringement of Intellectual Property Rights 

  
 If the Products infringes intellectual property rights of any third party and such third party brings a claim or action against the parties, Pixel shall defend and/or
resolve such claim or action at its costs and responsibilities and indemnify Dongbu and T2Net for any and all loss or damage incurred by Dongbu and/or K2Net related to. Provided, however, the above provision shall not apply in cases where the
infringement was caused by Dongbu or a third party’s process technology. 
  

	Article 11	Confidentiality 

  
 Each party hereto shall not disclose any confidential information/business secrets of the other parties received or obtained hereunder to a third party during the term of this Agreement and for 3 years of termination
or expiration of this Agreement. 
  

	Article 12	Term and Termination 

  

	1.	This Agreement shall be effective for a period of 1 year after the execution and the term of this Agreement shall be automatically extended for a period of 1 year, unless a party
hereto gives the other parties a written notice of termination at least 1 month before the expiration of the term or any subsequent term, as the case may be. 

  

	2.	If any party hereto breaches this Agreement and fails to correct such breach within 30 days after receipt of the other parties’ notice thereof, the other parties may terminate
this agreement immediately upon delivery of a written notice thereof. 

  

	3.	In the occurrence of any of the followings to a party hereto, the other parties may terminate this Agreement upon delivery of a 15 day prior notice to such party:

  

	 	a.	Notes and/or checks issued, endorsed, guaranteed by a party hereto has been dishonored or transactions thereof are suspended against such party; 

  

	 	b.	Proceeding for attachment, provisional attachment, or provisional disposition of major assets of a party has been commenced against such party; 

  

	 	c.	Proceeding for bankruptcy, composition or liquidation has been commenced against a party hereto; or 

	 	d.	If this Agreement is terminated pursuant to Paragraph 2 or 3 of this Article 12, the party who is responsible for such termination shall indemnify the other parties of any and all
loss or damage incurred by such other parties due to the termination in cash. 

  

	Article 13	Miscellaneous 

  

	1.	Each party shall not assign or transfer all or a part of its rights and/or obligations hereunder to a third party without prior written consent of the other parties.

  

	2.	If any force majeure event (i.e., enactment/amendment of the applicable law, calamity, fire, war, government actions, etc.) occurs to a party thereto after the execution of this
Agreement and thereby hindering upon such party’s performance of its obligations in whole or in part, such party shall immediately notify the other parties as such, and such party shall not be responsible for its failure to perform under this
Agreement during the period in which such force majeure event persists. 

  

	3.	Any matters not stipulated in this Agreement or any differences in interpretation of the provisions in this Agreement shall be settled by the parties upon mutual consultation with
each other, and if the parties fail to reach an agreement through consultation, then, the matter shall be settled in accordance with the prevailing business custom and/or practices. If there is no such prevailing business practice, the parties shall
settle the matter in accordance with the applicable law. 

  

	4.	Any dispute arising out of, or in connection with, this Agreement shall be submitted before the Seoul Central District Court. 

  

	5.	This Agreement shall not be amended, changed or modified unless all parties hereto execute a written instrument for such amendment, change, or modification.

  
 IN WITNESS WHEREOF, this Agreement has been prepared in
duplicates, and after they are executed and seals have been affixed thereto, each party shall keep a set. 
  
 November 3, 2003 

 PixelPlus Co., Ltd. 
 1017, Ingae-dong, Paldal-gu, Suwon-si, Kyunggi-do 
 5th Floor Kyunggi Building Representative Director Seo Kyu Lee 

			
		
	 By:
	 	 /s/ Seo Kyu Lee

	 Name:
	 	 Seo Kyu Lee

  
 Dongbu Electronics Co., Ltd. 
 891-10, Daechi-dong, Kangna-gu, Seoul 
 Dongbu Finance Center 
 Representative Director Dae Geun Yoon 

			
		
	 By:
	 	 /s/ Dae Geun Yoon

	 Name:
	 	 Dae Geun Yoon

  
 T2Net
Technology Co., Ltd. 
 40-969, Hangangro-3ga, Yongsan-gu, Seoul 
 A2, 1st Basement Floor, Tourist Terminal 
 Representative Director An Ho Seung 

			
		
	 By:
	 	 /s/ An Ho Seung

	 Name:
	 	 An Ho Seung

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  
 [Attachment #1] 
  
 Product Specifications and Price Determination Standard 
  

	1.	Technology: 0.25μm 2Poly 3 Metal 

  

	2.	Product: CMOS Image Sensor 

  

	3.	Business Type: Unprobed 8 inch Wafer COT 

  

	4.	Specifications: 

  

					
	 Product

	  	 Number of Net Die
 (8 inch Wafer)

	  	Current Production Stage

	 ****μm VGA CIS
	  	*****	  	In mass production
	 ****μm Mega CIS
	  	***	  	In mass production
	 ****μm Improved VGA CIS
	  	*****	  	In initial production
	 ****μm CIF CIS
	  	*****	  	In initial production

  

	5.	Standard Yield (Ys): (per wafer contracted yield of the contracted product after Wafer Sort Test) 

  

	 	•	 	Ys: Standard yield ç Of the consecutive ** Lots, average yield of wafers on or above the scrap limit yield 

  

	 	•	 	Average yield limit: On or above Probe Yield of **% 

  

	 	•	 	Ys-*%, Ys+*%: The Probe yield compensation limit range 

  

	 	•	 	Probe yield scrap limit: **% 

  

	 	•	 	R: Rejected wafer ç wafers below the probe yield scrap limit 

  

	 	•	 	Ya: Average yield ç excluding rejected wafer 

  

	 	•	 	N: Number of non-rejected wafer 

  

	6.	Price Adjustment upon Testing Results and Compensation Method thereof 

  

	 	•	 	If Ya < Ys-*%, 

  
 Number of compensated wafer + R + [1-Ya/(Ys-*%)]* N 
  

	 	•	 	Ya > Ys+*%, 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  
 Number of compensated wafer + R + [1-Ya/(Ys+*%)]* N 
  

	 	•	 	If Ys-*% £ Y £ Ys+*%, 

  
 The price of the wafers within the rage of the Standard Yield shall be determined pursuant to agreed price agreement (provided, however, that in cases of increase of manufacturing cost of the Products or changes in
market conditions, etc., the price may be adjusted upon mutual agreement between the parties). 
  

	 	•	 	Compensation Method: Settlement with wafers after computation of quarterly total average yield. 

  

	 	•	 	At (the commencement of) the mass production stage (1st order), the parties shall re-adjust the standard yield upon mutual agreement between the parties in 6 months.

 [Attachment #2] 
  
 Basic Agreement on Transactions 
  
 THIS BASIC AGREEMENT (this “Agreement”) is entered into for the purposes of setting forth the terms and conditions of extending credit and settlement of the
accounts between Pixel and T2Net with respect to the CMOS Image Sensor Wafer Foundry Service Agreement (the “Main Agreement”) dated as of November 3, 2003, by and between PixelPlus Co., Ltd., having its registered office at 1017,
Ingae-dong, Paldal-gu, Suwon-si, Kyunggi-do (“Pixel”); Dongbu Electronics Co., Ltd., having its registered office at 891-10, Daechi-dong, Kangnam-gu, Seoul (“Dongbu”); and T2Net Technology Co., Ltd., a distributor of Dongbu,
having its registered office at A2, 1st basement floor, Tourist Terminal, 40-969, Hangangro-3ga, Yongsan-gu, Seoul
(“T2Net”), and the parties agree to faithfully perform under this Agreement. 
  

	1.	Basic Agreement 

  
 In principle, any and all terms of this Agreement shall comply with and be in observance of the Main Agreement. 
  

	2.	Issuance of Purchase Order 

  
 Pixel shall issue relevant purchase order to T2Net at least 70 days prior to the expected delivery date, together with the relevant purchaser order from the end customer.
Furthermore, in the event the discrepancy rate in terms of quantity between the purchase order issued by Pixel and the purchase order by the end customer exceeds 10%, request for manufacture of wafers to Dongbu shall be made upon mutual consultation
between Pixel and T2Net. 
  

	3.	Settlement of the Account 

  
 The purchase price for the products delivered by T2Net to Pixel shall be settled on a monthly basis, and shall be paid within 60 days from the issuance of the relevant
bill. 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  

	4.	Extension of Credit 

  
 With respect to the products to be manufactured upon request of Pixel, the maximum credit to be extended by T2Net to Pixel shall be *********** Won, and any excessive amount thereof may be adjusted by written
agreement between Pixel and T2Net. 
  
 PixelPlus Co., Ltd. 
  
 1017, Ingae-dong, Paldal-gu, Suwon-si, Kyunggi-do 
  
 5th Floor Kyunggi Building Representative Director Seo Gyu Lee 
  
 Dongbu Electronics Co., Ltd. 
  
 891-10,
Daechi-dong, Kangna-gu, Seoul 
  
 Dongbu Finance Center 
  
 Representative Director Dae Geun Yoon 
  
 T2Net Technology Co., Ltd. 
  
 40-969, Hangangro-3ga, Yongsan-gu, Seoul 
  
 A2, 1st Basement Floor, Tourist
Terminal 
  
 Representative Director An Ho Seung 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  
 Agreement on Price 
  
 THIS AGREEMENT (this “Agreement”) is to set forth the agreed terms on determination
of the purchase price of the CMOS Image Sensor products to be manufactured pursuant to the Wafer Foundry Service Agreement dated as of November 3, 2003 by and between PixelPlus and T2Net and shall be effective from the date hereof. 

 
 2. Price of the Products 
  
 ·   US$***** (excluding VAT) 
  

	 	*	Provided, price of mlenz Skip shall be US$*****. 

  

	 	1)	The payment shall be made in Korean Won, and exchange rate shall be the average closing selling basis rate announced by Korea Exchange Bank for the immediately preceding month of
the month in which the relevant delivery is made. 

  

	 	2)	Price adjustment may be made upon mutual consultation between the parties, if such adjustment becomes necessary due to increase of manufacturing costs or change of the market
conditions. 

  
 2. Payment: Section 7.1(a) shall apply mutatis
mutandis. 
  
 November 3, 2003Basic Agreeement, dated September 17, 2004

 Exhibit 10.6 
  
  
 CONFIDENTIAL TREATMENT REQUESTED BY PIXELPLUS CO., LTD. THIS EXHIBIT HAS BEEN REDACTED.
REDACTED MATERIAL IS MARKED WITH “*” AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
 BASIC AGREEMENT 
  
 THIS BASIC AGREEMENT (this “Agreement”) is made and entered into by and between Dongbu Electronics Co., Ltd. (“Dongbu”) and PixelPlus Co., Ltd.
(“Pixel”) for provision of information (i.e., products designs, etc.), products test, and manufacturing of the products of Dongbu as follows: 
  
 Article 1 (Objectives) 
  
 Dongbu is to manufacture, test, and supply the CIS (CMOS IMAGE SENSOR) products (the “Products”) to Sharp Japan (“Sharp”), based on the information, including drawings of design and particulars of
manufacturing process, etc., provided by Pixel. In regard thereto, the parties are to set forth herein rights and obligations of the parties, and define basic understandings, scope of works, and responsibilities of the parties. 
  
 Article 2 (Dongbu’s Responsibilities) 
  

	2.1	Upon receipt of a purchase order from Sharp, Dongbu shall immediately notify Pixel of the details of such order (i.e., quantity, purchase price, delivery date, etc.) and provide
Pixel with documents evidencing such order. 

  

	2.2	Upon receipt of a purchase order from Sharp, Dongbu shall, upon its sole responsibility and costs, secure the raw materials and manufacture the Products by the delivery date as
requested by Sharp. Provided, however, that if agreed by Sharp, delivery date may be extended, and Dongbu shall manufacture the Products by such extended delivery date. 

  

	2.3	Dongbu shall manufacture the Products using the information (i.e., drawings of design and particulars of manufacturing process, etc.) provided by Pixel and in accordance with the
quality standards (in cases of any modification by Sharp, revised standards) as determined by Sharp and described in Attachment 1 hereto. 

  
 Article 3 (Pixel’s Responsibilities) 
  

	3.1	Within seven (7) days of receiving notice of purchase order and materials related thereto from Dongbu, Pixel shall, upon mutual consultation with Dongbu, enter into an
individual agreement with Dongbu with respect to manufacturing of the Products by Dongbu, pursuant to which Pixel is to provide Dongbu with drawings on product design, particulars of manufacturing process, testing services, etc.

  

	3.2	In cases of any conflict between this Agreement and the individual agreement in Paragraph 1 above, this Agreement shall supersede over the individual agreement, unless expressly
stated otherwise. 

 Article 4 (Payment and Adjustment of Service Fees, etc.) 
  

	4.1	The consideration to be paid to Pixel for its provision of the information such as drawings of product design and particulars of manufacturing process and PROBE TEST on the final
Products (the “Service Fees”) shall be as Attachment 2 (Fee/Cost Schedule) hereto, and the Service Fees to be actually paid to Pixel shall be calculated based on the number of the Products passing the product test run by Pixel.

  

	4.2	In the event that Dongbu returns all or a part of the contract price paid by Sharp to Sharp due to the reasons attributable to Pixel, Pixel shall return the portion of the Service
Fees corresponding (and related to) the amount of refund made by Dongbu to Sharp. 

  

	4.3	The actual Service Fees to be paid to Pixel shall be calculated based on the number of the Products passing the monthly PROBE TEST, and Pixel shall submit an invoice thereon to
Dongbu by the 27th day of the relevant month (if such day is a holiday, the immediately following day), and Donngbu
shall pay the invoiced amount within 30 days of the receipt of the invoice. Provided, however, that Dongbu shall issue a certificate of purchase, in which the amounts are stated in USD, in form and substance requested by Pixel for its acquisition of
raw materials for export purposes. 

  

	4.4	If the test-passing rate of the Products exceeds the standard pre-determined by the parties, the parties shall consult with each other for price adjustment.

  
 Article 5 (Details of Information and Services to be provided
by Pixel) 
  
 The information and services to be provided by Pixel to Dongbu
shall be as follows: 
  

	 	a.	Design drawings of CIS (CMOS IMAGE SENSOR); 

  

	 	b.	Information on particulars of manufacturing process of CIS Wafer; 

  

	 	c.	Final PROBE TEST; and 

  

	 	d.	Other materials, information, and/or services necessary for transactions/activities contemplated herein. 

  
 Article 6 (Change/Modification of Design) 
  

	6.1	The parties hereto may agree upon change or modification of the design if requested by Sharp, or in cases of development of new technology or rationalization of the manufacturing
process. 

  

	6.2	The party who propose the change/modification of the design drawing shall be solely responsible for damages to be paid to a third party for defective products or on product
liability claim resulting from change/modification of the design drawing. 

	6.3	If additional costs incurs due to change/modification of the design drawing, in principle, the party who request such change/modification shall bear the additional costs.
Furthermore, if additional costs incurs due to design change requested by Sharp, the parties shall agree on costing sharing arrangement for such additional costs upon mutual consultation between the two. 

  
 Article 7 (Product Test, etc.) 
  

	7.1	Dongbu shall have its Products be subject to product tests run by Pixel before supplying the same to Sharp. 

  

	7.2	Pixel shall carry out PROBE TEST on the Products manufactured by Dongbu to sort out the defective Products in accordance with the quality standards stated in Attachment 1 hereto.

  

	7.3	Pixel shall report the detailed results of the test, indicating the Products meeting the quality standards in Attachment 1 hereto and the details of the defects on the Products
failing the test, to Dongbu within three (3) business days of the completion of the test in writing or through email. 

  

	7.4	In the event that the passing rate of the Products substantially drops, Dongbu shall consult with Pixel to locate the root causes thereof and take necessary measures to improve
quality of the Products. 

  

	7.5	The scope of the test to be run by Pixel shall be limited to see whether the Products manufactured by Dongbu based on the information provided by Pixel each item of the quality
standards in Attachment 1 hereto, and shall not extended to the items not specified in such quality standards. As such, Pixel shall not be responsible for any defects, which fall outside the scope of Pixel’s test (in terms of the products or
standards). 

  
 Article 8 (Confidentiality and Non-Competition of
Dongbu) 
  

	8.1	Dongbu shall not disclose any confidential information/business secrets of Pixel received or obtained hereunder, such as design drawings and particulars of manufacturing process, to
a third party during the term of this Agreement and even after the termination of this Agreement. 

  

	8.2	Dongbu shall not, during the term of this Agreement and even after the termination of this Agreement, supply the same or similar products as the Products to a third party other than
Sharp, using information provided by Pixel, without prior consent of Pixel. 

  

	8.3	Dongbu shall keep the information and materials provided by Pixel separately from those of Dongbu, have the staff perusing the information to keep record thereof, and report the
same to Pixel at the end of each calendar month. 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  

	8.4	Dongbu shall, upon consultation with Pixel, minimize the number of staff members who would have access to the information provided by Pixel, and Pixel shall reserve the right to
demand reduction or replacement of such staff members to Dongbu. If demanded as such by Pixel, Dongbu shall make necessary changes as demanded by Pixel, unless there exists justifiable circumstances not to do so. 

  

	8.5	If Dongbu fails to comply with the provisions in Paragraphs 1 and/or 2 above, Dongbu shall pay Pixel either the monthly average of the Service Fees paid in the immediately preceding
year (if the period is less than one year, monthly average of the Service Fees paid since the execution of this Agreement, or if the period is less than one month, *****% of the Service Fees payable to Pixel) or the total amount of profit realized
by Dongbu upon breach of contract, whichever is greater. 

  
 Article 9 (Confidentiality of Pixel) 
  
 Pixel shall not disclose
any confidential information/business secrets of Dongbu received or obtained hereunder to a third party during the term of this Agreement and even after the termination of this Agreement. 
  
 Article 10 (Intellectual Property Rights, etc.) 
  

	10.1	In performing under this Agreement, either party shall not infringe upon a third party’s intellectual property rights, including patent, trade mark, utility design, or
copyrights, etc., and shall indemnify the other party of any loss or damages incurred by the other party due to its infringement of a third party’s intellectual property rights. If either party pays out damages to a third party for the
infringement, such party may recover the portion of the damages paid by such party, corresponding to the other party’s contribution from the other party. 

  

	10.2	Any intellectual property rights obtained in the performance of this Agreement shall belong to the party who is responsible for developing or inventing the same, unless the parties
agree separately otherwise. If it is unclear as to who has the ownership of such new intellectual property rights, it shall be presumed that the party, who has the intellectual property rights on original technology or basis information, has such
ownership. 

  
 Article 11 (Technical Support) 
  
 In the event that Sharp requests any technical support, either party shall immediately
response to such request. Each party shall bear its own costs related thereto. 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  
 Article 12 (Third Party Liability) 
  
 In principle, Dongbu shall be responsible for any loss or damage to Sharp or a third party
resulting from the defective Products. Provided, however, that if such product liability was attributable to the information provided by Pixel, or Pixel’s negligence in conducting product tests in accordance with the quality standards in
Attachment 1 hereto, Pixel shall be responsible for such loss or damage. 
  
 Article 13 (Subcontract) 
  
 Pixel may subcontract with a third
party for research on design drawings, testing services, or other ancillary activities thereof, with prior written consent of Dongbu. 
  
 Article 14 (Termination) 
  

	14.1	In the event of any of the followings, Pixel may request Dongbu to cure or correct the situation upon delivery of notice thereof to Dongbu, and if Dongbu fails to cure or correct as
requested by Pixel, Pixel may terminate this Agreement: 

  

	 	a.	If Dongbu fails to notify Pixel of the purchase order made by Sharp or fails to provide Pixel with necessary materials; 

  

	 	b.	If Dongbu fails to deliver the Products by the schedule delivery date without obtaining consent thereof from Sharp; 

  

	 	c.	If Dongbu fails to pay Pixel of the relevant Service Fees when due; 

  

	 	d.	If Dongbu supplys the Products to Sharp without product test by Pixel; 

  

	 	e.	If Dongbu fails to perform under Article 10.1; 

  

	 	f.	If the monthly average passing rate is **% or below for three (3) consecutive months; 

  

	 	g.	If Dongbu unilaterally reduce the number of the Products to be separately supplied to Pixel due to the increase of the number of the Products to be supplied to Sharp; or

  

	 	h.	If Dongbu fails to perform other obligations of Dongbu hereunder. 

  

	14.2	In the event of any of the followings, Dongbu may request Pixel to cure or correct the situation upon delivery of notice thereof to Pixel, and if Pixel fails to cure or correct as
requested by Dongbu, Dongbu may terminate this Agreement: 

  

	 	a.	If Pixel fails to provide the information such as design drawings, particulars of manufacturing process or product test service as requested by Dongbu in time or the quality of the
information and/or service is not sufficient and thereby hindering upon normal manufacturing process of the Products; 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  

	 	b.	If Pixel fails to perform under Article 10.1; or 

  

	 	c.	If Pixel fails to perform other obligations of Pixel hereunder. 

  

	14.3	In the occurrence of any of the followings, either party may immediately terminate this Agreement: 

  

	 	a.	If an application is filed or proceeding has been commenced against the other party for bankruptcy, liquidation, corporate restructuring, composition, etc.;

  

	 	b.	If the performance under this Agreement becomes practically impossible for the other party due to deterioration of its financial conditions, such as insolvency, forfeiture on major
manufacturing facilities, etc.; 

  

	 	c.	If the other party fails to perform under Articles 8 or 9; or 

  

	 	d.	If the agreement between Dongbu and Sharp has been terminated, monthly volume of the purchase order from Sharp stays at ***** or below for three (3) consecutive months, or
other event occurs to prevent Dongbu and Sharp to continue their normal business relationship for the supply of the Products. 

  
 Article 15 (Post Termination Measures) 
  

	15.1	Upon termination of this Agreement, Dongbu and/or Pixel shall notify Sharp of the termination and may enter into a separate contract with Sharp for the supply of the Products. In
such case, either party shall not raise any objection or claim against the other. 

  

	15.2	Upon termination of this Agreement, either party may seek damages against the other party if this Agreement is terminated for the reasons attributable to the other party.

  

	15.3	Upon termination of this Agreement, the parties shall immediately return any and all data, documents, drawings, etc. containing confidential information of the other party to the
other party, destroy any and all discs, computer files, etc., recording such confidential information, and issue a certificate confirming as such to the other party. 

  
 Article 16 (Jurisdiction) 
  
 Any dispute arising out of, or in connection with, this Agreement shall be submitted before the Seoul Central District Court. 
  
 Article 17 (Term and Renewal) 
  
 The term of this Agreement shall be for a period of one year after the execution, and shall
be automatically renewed on the same terms and conditions, unless either party gives the other party a 30 day prior notice of its intent not to renew this Agreement. 

 Article 18 (Others) 
  
 Any matters not stipulated in this Agreement or any differences in interpretation of the provisions in this Agreement shall be settled by the parties upon mutual
consultation with each other, and if the parties fail to reach an agreement through consultation, then, the matter shall be settled in accordance with the applicable laws. If there is no such applicable law, the parties shall follow the prevailing
business custom and/or practices. 

 IN WITNESS WHEREOF, this Agreement has been prepared in duplicates, and after they are executed and seals have been
affixed thereto, each party shall keep a set. 
  
 September 17, 2004 
  
 Dongbu Electronics Co., Ltd. 
 891-10, Daechi-dong, Kangnam-gu, Seoul 
 Representative
Director    Dae Keun Yoon 
  

			
		
	By:	 	 /s/ Dae Keun Yoon

	 Name:
	 	 Dae Keun Yoon

  
 PixelPlus Co., Ltd. 
 #502, Kyunggi Bldg., 1017, Youngae-dong, Paldal-gu, Suwon-si, Kyunggi-do 
 Representative Director    Seo Kyu Lee 
  

			
		
	 By:
	 	 /s/ Seo Kyu Lee

	 Name:
	 	 Seo Kyu Lee

  
 [Attachment 1. Quality Standards]

  
 [Attachment 2. Fee/Cost Schedule] 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  
 [Attachment 1. Quality Standards] 
  
 ***** 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  
 ***** 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  
 ***** 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN OMITTED 
  
 [Attachment 2. Fee/Cost Schedule] 
  
 Price of each Product shall be as follows (for the Products in good condition) and may be
adjusted upon mutual consultation between the parties. 
  

				
	 Product

	  	Price

	 PO2030K1
	  	$	****
	 PO2010D
	  	$	****

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