Document:

<PAGE>

      AMENDMENT NO. 2 TO LOAN & SECURITY AGREEMENT (ACCOUNTS AND INVENTORY)

         This Amendment dated as of October 1, 2000 among Troy Group, Inc.
("Troy"), Troy Systems International, Inc. ("TSI"), Troy XCD, Inc. ("Troy
XCD") and each other Person which becomes a signatory hereto (collectively
"Borrower") and Comerica Bank - California ("Bank").

                                    RECITALS:

         A. Troy, TSI, Troy XCD and Bank executed that certain Loan and
Security Agreement dated as of October 20, 1998 as supplemented by
(i) Addendum A to Loan & Security Agreement (LIBOR), (ii) Addendum B to
Loan & Security Agreement, (iii) Environmental Rider, (iv) Addendum A to
Environmental Rider, (v) Equipment Rider and (vi) Inventory Rider (Revolving
Advance), each dated as of October 20, 1998 (as so supplemented and as
amended by Amendment No. 1 (as defined below), the "Agreement").

         B. Borrower and Bank executed that certain Amendment No. 1 to Loan
and Security Agreement (Accounts and Inventory) dated as of October 28, 1999
("Amendment No. 1").

         C. Troy, TSI, Troy XCD and Bank further desire to amend the
Agreement as set forth below.

         The parties agree as follows:

         1. Section 2.la of the Agreement is amended in its entirety to read
as follows:

                  "2.1a (1) IN ADDITION TO THE LOAN MADE BY BANK FROM TIME TO
         TIME UNDER SECTION 2.1 OF THIS AGREEMENT, UPON THE REQUEST OF BORROWER
         MADE AT ANY TIME AND FROM TIME TO TIME FROM THE DATE HEREOF THROUGH
         OCTOBER 1, 2001, AND SO LONG AS NO EVENT OF DEFAULT HAS OCCURRED, BANK
         SHALL LEND TO BORROWER SUMS NOR TO EXCEED TEN MILLION DOLLARS
         ($10,000,000) IN AGGREGATE PRINCIPAL AMOUNT ("ACQUISITION COMMITMENT
         AMOUNT"), SUBJECT TO THE TERMS OF THIS AGREEMENT. THE PROCEEDS OF THE
         ACQUISITION LOAN SHALL BE USED SOLELY TO FINANCE PERMITTED
         ACQUISITIONS. THE FIRST $3,000,000 OF ADVANCES OF THE ACQUISITION LOAN
         MAY BE USED BY BORROWER TO FINANCE UP TO 100% OF THE PURCHASE PRICE OF
         PERMITTED ACQUISITIONS, AND THEREAFTER, IN RESPECT OF THE PROCEEDS OF
         THE ACQUISITION LOAN IN EXCESS OF $3,000,000, THE AGGREGATE ADVANCES
         MADE BY BANK IN RESPECT OF EACH PERMITTED ACQUISITION SHALL NOT EXCEED
         50% OF THE PURCHASE PRICE OF SUCH PERMITTED ACQUISITION.

                  "(2) THE INDEBTEDNESS OUTSTANDING UNDER THE ACQUISITION LOAN
         SHALL BE EVIDENCED BY THE ACQUISITION NOTE. THE PRINCIPAL INDEBTEDNESS
         OUTSTANDING UNDER THE ACQUISITION NOTE SHALL BE REPAID IN SIXTY (60)
         INSTALLMENTS EACH EQUAL TO 1/60TH OF THE PRINCIPAL AMOUNT OUTSTANDING
         UNDER THE ACQUISITION NOTE ON THE OCTOBER 1, 2001, COMMENCING ON
         NOVEMBER 1, 2001 AND ON THE FIRST DAY OF EACH MONTH THEREAFTER UNTIL
         OCTOBER 1, 2006 WHEN THE ENTIRE UNPAID BALANCE OF PRINCIPAL AND
         INTEREST THEREON SHALL BE DUE AND PAYABLE IN FULL. INTEREST SHALL BE
         PAYABLE MONTHLY ON THE FIRST DAY OF EACH MONTH. PREPAYMENTS OF THE
         ACQUISITION LOAN SHALL BE APPLIED TO INSTALLMENTS DUE THEREUNDER IN THE
         INVERSE ORDER OF THEIR MATURITIES.

<PAGE>

                  "(3) COMPANY SHALL PAY BANK A NONREFUNDABLE UNUSED FEE EQUAL
         TO ONE QUARTER OF ONE PERCENT (.25%) TIMES THE AVERAGE DAILY UNUSED
         PORTION OF THE ACQUISITION COMMITMENT AMOUNT. THE UNUSED FEE SHALL
         ACCRUE FROM OCTOBER 1, 2000 THROUGH THE OCTOBER 1, 2001. THE UNUSED FEE
         SHALL BE PAYABLE QUARTERLY IN ARREARS COMMENCING ON JANUARY 1, 2001 AND
         ON APRIL 1, 2001, JULY 1, 2001, AND OCTOBER 1, 2001."

                  "(4) IN ADDITION TO THE BASE RATE OPTION AND THE LIBOR RATE
         OPTION, COMMENCING OCTOBER 1, 2001, BORROWER SHALL HAVE THE OPTION TO
         SELECT THE FIXED RATE AS THE APPLICABLE INTEREST RATE FOR THE ENTIRE
         INDEBTEDNESS OUTSTANDING UNDER THE ACQUISITION LOAN. IN THE EVENT
         BORROWER SELECTS THE FIXED RATE AS THE APPLICABLE INTEREST RATE WITH
         RESPECT TO THE ACQUISITION LOAN, THE FIXED RATE SHALL BE THE APPLICABLE
         INTEREST RATE UNTIL THE MATURITY DATE OF THE ACQUISITION LOAN.

                  "(5) IN THE EVENT THE BORROWER SELECTS THE FIXED RATE AS THE
         APPLICABLE INTEREST RATE WITH RESPECT TO THE ACQUISITION LOAN, THE BANK
         DOES NOT HAVE TO ACCEPT ANY PREPAYMENT OF PRINCIPAL UNDER THE
         ACQUISITION NOTE EXCEPT AS DESCRIBED BELOW OR AS REQUIRED UNDER
         APPLICABLE LAW. THE BORROWER MAY PREPAY PRINCIPAL OF THE ACQUISITION
         NOTE IN INCREMENTS OF $50,000 AT ANY TIME AS LONG AS THE BANK IS
         PROVIDED WRITTEN NOTICE OF THE PREPAYMENT. THE NOTICE OF PREPAYMENT
         SHALL CONTAIN THE FOLLOWING INFORMATION: (a) THE DATE OF PREPAYMENT
         (THE "PREPAYMENT DATE") AND (b) THE AMOUNT OF PRINCIPAL TO BE PREPAID.
         ON THE PREPAYMENT DATE, THE BORROWER WILL PAY TO THE BANK, IN ADDITION
         TO THE OTHER AMOUNTS THEN DUE ON THE ACQUISITION NOTE UNDER THE
         AGREEMENT, THE PREPAYMENT AMOUNT DESCRIBED BELOW. THE BANK, IN ITS SOLE
         DISCRETION, MAY ACCEPT ANY PREPAYMENT OF PRINCIPAL EVEN IF NOT REQUIRED
         TO DO SO UNDER THE AGREEMENT AND MAY DEDUCT FROM THE AMOUNT TO BE
         APPLIED AGAINST PRINCIPAL THE OTHER AMOUNTS REQUIRED AS PART OF THE
         PREPAYMENT AMOUNT.

                  "(6) IF THE BANK EXERCISES ITS RIGHT TO ACCELERATE THE PAYMENT
         OF THE ACQUISITION NOTE PRIOR TO MATURITY, THE BORROWER WILL PAY TO THE
         BANK, IN ADDITION TO THE OTHER AMOUNTS THEN DUE UNDER THE AGREEMENT, ON
         THE DATE SPECIFIED BY THE BANK AS THE PREPAYMENT DATE, THE PREPAYMENT
         AMOUNT. THE BANK'S DETERMINATION OF THE PREPAYMENT AMOUNT WILL BE
         CONCLUSIVE IN THE ABSENCE OF OBVIOUS ERROR OR FRAUD.

                  "(7) THE PREPAYMENT AMOUNT IS THE SUM OF: (i) THE AMOUNT OF
         PRINCIPAL WHICH THE BORROWER HAS ELECTED TO PREPAY OR THE AMOUNT OF
         PRINCIPAL WHICH THE BANK HAS REQUIRED THE BORROWER TO PREPAY BECAUSE OF
         ACCELERATION, AS THE CASE MAY BE (THE "PREPAID PRINCIPAL AMOUNT"),
         (ii) INTEREST ACCRUING ON THE PREPAID PRINCIPAL AMOUNT UP TO, BUT NOT
         INCLUDING, THE PREPAYMENT DATE, (iii) FIVE HUNDRED DOLLARS ($500) PLUS
         (iv) THE PRESENT VALUE, DISCOUNTED AT THE REINVESTMENT RATES (AS
         DEFINED BELOW), OF THE POSITIVE AMOUNT BY WHICH (A) THE INTEREST THE
         BANK WOULD HAVE EARNED HAD THE PREPAID PRINCIPAL AMOUNT BEEN PAID
         ACCORDING AT THE ACQUISITION NOTE'S AMORTIZATION SCHEDULE AT THE
         ACQUISITION NOTE'S INTEREST RATE EXCEEDS (B) THE INTEREST THE BANK
         WOULD EARN BY REINVESTING THE PREPAID PRINCIPAL AMOUNT AT THE
         REINVESTMENT RATES.

                  "(8) "REINVESTMENT RATES" MEAN THE PER ANNUM RATES OF INTEREST
         EQUAL TO ONE HALF PERCENT (1/2%) ABOVE THE RATES OF INTEREST REASONABLY
         DETERMINED BY THE BANK TO BE IN EFFECT NOT MORE THAN SEVEN DAYS PRIOR
         TO THE PREPAYMENT DATE IN THE SECONDARY MARKET

<PAGE>

         FOR UNITED STATES TREASURY OBLIGATIONS IN AMOUNT(S) AND WITH
         MATURITY(IES) WHICH CORRESPOND (AS CLOSELY AS POSSIBLE) TO THE
         PRINCIPAL INSTALLMENT AMOUNT(S) AND THE PAYMENT DATE(S) AGAINST WHICH
         THE PREPAID PRINCIPAL AMOUNT WILL BE APPLIED."

         2. This Amendment shall be effective as of October 1, 2000.

         3. Except as expressly set forth herein, all of the terms and
conditions of the Agreement shall remain in full force and effect.

COMERICA BANK - CALIFORNIA                    TROY GROUP, INC.
                                              TROY SYSTEMS INTERNATIONAL, INC.
                                              TROY XCD, INC.

By:     /s/ Barbara Snyder                    By:    /s/ Del Conrad
        ------------------------                     ------------------------

Its:    Vice President                        The CFO of each of the Borrowers
        ------------------------<PAGE>
                                                                 Exhibit 10.49

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                  CONTRACT

Contract No.: UTPAS-H22Kii1206                                   Project No.

The Buyer:                                The Seller:

Zhejiang Telecommunications Corporation,  UTStarcom (China) Ltd.
Shaoxing Branch                           11th Floor, CNT Manhattan Building,
                                          No. 6 Chao Yang Men Bei Da Jie Street,
                                          Beijing, 100027

Tel:  0575-5134567                        Tel: (010)-65542030
Fax:  0575-5124855                        Fax: (010)-65542058

         This contract is made between the Buyer and the Seller, whereby the
Buyer agrees to buy and the Seller agrees to sell the under-mentioned
commodities according to the terms and conditions as stipulated hereinafter:

     1.   Total Contract Price: [*]

     2.   Name of Commodities: PAS Wireless Access System

               (Please refer to the attached list for quantity, specifications
               and unit price.)

     3.   Date of Shipment: [*].

     4.   Place of Destination: Shaoxing Telecommunications Corporation (He He
          Qiao), Zhuji Telecommunications Bureau, Xinchang County
          Telecommunications Bureau, Bianzhou Telecommunications Bureau and
          Shangyu Telecommunications Bureau.

     5.   Packing:

               The goods shall be packed in new strong cases suitable for long
          distance transportation and well protected against dampness, moisture,
          shook and rust. The Seller shall be liable for any damage to the goods
          on account of improper packing.

     6.   Shipping Marks:

               The Seller is required to mark clearly on the surface of each
          package the package number, measurements and such cautions as "This
          Side Up", "Handle with Care" and "Keep Away from Moisture" in unfading
          ink and put on shipping marks.

     7.   Transportation:

<PAGE>

          7.1  [*] shall bear all the expenses and risks involved in the
               handling of the goods until the moment when the goods have
               officially been handed over to the relevant transportation unit
               designated by the Buyer.

          7.2  The transportation and insurance costs from Hangzhou or Huizhou
               Railway Stations (or from the Sellers' warehouse, if shipped by
               highway) to the place of destination designated by the Buyer
               shall be borne by [*].

     8.   Acceptance of Goods:

          8.1  Upon arrival of the goods, the Buyer shall check the goods
               immediately in the presence of the Seller's representative and
               sign on the shipping list as a certificate of acceptance of the
               goods. If shipped by air, railway or postal service, the
               carrier's shipping list shall serve as a certificate of
               acceptance of the goods.

          8.2  In case of missing parts or damages due to the Seller's improper
               packing, the Buyer shall make a detail record, or commission the
               China Commodity Inspection Bureau for a reexamination and
               issuance of a certificate, or require the representatives of the
               Buyer and the Seller to sign a memorandum to serve as a
               certificate for the replacement of missed or damaged parts. If
               the Buyer opens the cases by itself or fails to make a written
               claim on missing or damaged parts within [*] upon arrival of the
               goods, the Buyer shall be deemed to have accepted the goods.

     9.   Terms of Payment:

               General Provisions:

               If the payment by the Buyer to the Seller is made in [*], the
          exchange rate shall be based on the average price of a given foreign
          currency published by the People's Bank of China on the same day when
          the Seller receives such payment.

               The payment shall be made by T/T to Beijing Industry and Commerce
          Bank of China, Chao Yang Branch, Ri Tan Lu Office, for the account
          number [*].

          9.1  Terms of Payment for the Equipment as Follows:

               9.1.1 Amount Paid on Arrival of the Goods

                     [*] of the total contract price, or [*] shall be paid by
                     the Buyer within [*] upon arrival of the goods.

                                      -2-
<PAGE>

               9.1.2 [*] of the total contract price, or [*] shall be paid by
                     the Buyer within [*] upon connection and a test run of the
                     equipment.

               9.1.3 [*] of the total contract price, or [*] shall be paid by
                     the Buyer within [*] upon certification of quality of final
                     test (The final test is set for [*] upon connection of the
                     equipment).

          9.2  In the event that a payment required by Section 9.1 is not made
               by the Buyer within the stipulated time, the Buyer shall pay to
               the Seller, in addition to the amount owned, a late payment
               penalty equal to [*] of the amount owned per week. Any fractional
               part of a week is to be considered as a full week. The total
               amount of late payment penalty shall not, however, exceed [*] of
               the total amount owned.

     10.  Warranty:

          10.1 The Seller warrants the equipment supplied hereunder to be free
               from defects in workmanship and materials. The Seller's warranty
               for equipment and materials will commence upon delivery of the
               goods and will continue for a period of [*]. During the warranty
               period, the Seller will, [*], either repair or replace those
               equipment and materials not in conformity with the aforementioned
               warranty. If the Buyer determines that certain parts be returned
               to the Seller, the [*] shall bear the transportation cost for the
               return of such parts inside China and for the return of the
               repaired or replaced parts to the Buyer's site.

          10.2 The Seller warrants to eliminating errors from the software it
               provides.

          10.3 The foregoing warranty does not extend to any equipment or part
               that has been:

               10.3.1 Damaged due to improper use or accidents;

               10.3.2 Wired, repaired or altered by anyone other than the Seller
                      or its representatives;

               10.3.3 Damaged due to improper installation, storage, handling or
                      maintenance by anyone other than the Seller or its
                      representatives; and

               10.3.3 Removed from its original site of installation, or due to
                      expendable components such as fuses, light bulbs, motor
                      brushes and the like.

               10.2.5 All equipment supplied under this Contract is brand-new.

     11.  Force Majeure

                                      -3-
<PAGE>

               The Seller shall not be liable for any loss, damage, delay of the
          goods or failure of their performance resulting directly or indirectly
          from any cause which is beyond its reasonable control, which includes
          but is not limited to the laws, regulations, acts of any government
          authorities.

     12.  Late Delivery and Penalty:

               In case of delayed shipment, except for force majeure, the Seller
          shall pay to the Buyer for every week of delay a penalty amounting to
          [*] of the total value of the goods whose shipment has been delayed.
          Any fractional part of a week is to be considered as a full week. The
          total amount of penalty shall not, however, exceed [*] of the total
          value of the goods involved in late shipment and is to be deducted
          from the amount due at the time of payment.

     13.  Arbitration

               The parties shall strictly execute this Contract in accordance
          with the relevant laws and regulations of the PRC. All disputes
          arising out of the execution of the Contract shall be settled through
          mutual understanding and friendly negotiations. In case no settlement
          can be reached through negotiations, either party can apply to the
          appropriate organization for arbitration or medication. The
          arbitration fees shall be borne by the losing party.

     14.  Limitation of Liability

               In the event of any breach of this Contract by the Seller, or of
          any losses or injuries to the Buyer arising out of this Contract for
          which the Seller is liable, the Seller's total cumulative liability
          for such breaches, losses and injuries shall be the lesser of:

          a.   The actual value of the damages or losses caused to the Buyer.

          b.   The Seller shall not be liable for any consequential or
               incidental losses or damages resulting from this Contract.

     15.  Validity and Termination of the Contract and Miscellaneous Matters:

          15.1 This Contract will come into force upon affixation of the seals
               by the parties and execution by the representatives of the
               parties.

          15.2 This Contract will be terminated upon fulfillment of the
               respective duties and obligations by the parties.

          15.3 This Contract can only be amended by an instrument in writing
               signed and sealed by the duly authorized representatives of the
               parties.

                                      -4-
<PAGE>

          15.4 During the course of performance of this Contract, all notices
               between the parties shall be delivered by telex, facsimile or
               certified mail.

          15.5 This Contract is made in both Chinese and English, and the
               versions in two languages shall be equally authentic. In case of
               discrepancy between the two versions, the Chinese version will
               prevail.

     16.  Remarks:

               The Contract is made in two originals, of which each party holds
          one.

         The Buyer:

         Zhejiang Telecommunication Corporation,
         Shaoxing Branch

         Representative: (Signature)
         Date:   November 18, 2000

         The Seller:

         UTStarcom (China) Ltd.

         Representative: (Signature)
         Date:   November 18, 2000

                                      -5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}]]