Document:

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                                                                    Exhibit 10.3

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.

                        TECHNICAL COLLABORATION AGREEMENT

                                     BETWEEN

                                SHARP CORPORATION

                                       AND

                                 UTSTARCOM INC.

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                                      INDEX

ARTICLE

1.   Definitions

2.   Grant of Right

3.   Disclosure of KNOW-HOW and other Technical Information;
     Technical Assistance & Services

4.   Training of HUTS's Engineers at the FACTORY

5.   Despatch of SHARP's Technical Instructor

6.   Secrecy

7.   Machines, Equipment & Testers

8.   Supply Parts

9.   Improvements

10.  Royalty

11.  Records and Auditing

12.  Validity and Infringement

13.  Approval of Government

14.  Duration of Agreement

15.  Termination

16.  Assignment

17.  Notices

18.  Entire Agreement

19.  Force Majeure

20.  Arbitration

21. Governing Law

22.  Miscellaneous

EXHIBIT A, B & C

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                        TECHNICAL COLLABORATION AGREEMENT

THIS AGREEMENT made and entered into this 31st day of March, 2000, by and
between:

SHARP CORPORATION, a Japanese corporation, having its principal place of
business at 22-22, Nagaike-cho, Abeno-ku, Osaka 545-8522, Japan (hereinafter
referred to as "SHARP")

                                       and

UTSTARCOM INC., a Delaware corporation, having its principal place of business
at 1275 Harbor Bay Parkway, Suite 100, Alameda, CA 94502, U.S.A. (hereinafter
referred to as "UTSTARCOM")

                                   WITNESSETH

WHEREAS, SHARP is now and has for a long time been engaged in the manufacture
and sale of SHARP's brand electric and electronic products and is the owner of
certain technical know-how and intellectual property rights relating to the
PRODUCTS (as hereinafter defined) and manufacture thereof; and

WHEREAS, UTSTARCOM is desirous of obtaining a right (i) to have EASTCOM (as
hereinafter defined), by the good office of HUTS (as hereinafter defined),
assemble and manufacture the PRODUCTS in the TERRITORY (as hereinafter defined)
under said technical know-how and intellectual property rights, and (ii) to have
HUTS sell or distribute the PRODUCTS in the TERRITORY so assembled and
manufactured by EASTCOM; and

WHEREAS, SHARP is willing to grant to UTSTARCOM a right (i) to have EASTCOM, by
the good office of HUTS, assemble and manufacture the PRODUCTS in the TERRITORY
under said technical know-how and intellectual property rights and render to
HUTS technical assistance, which are necessary for the assembly and manufacture
of the PRODUCTS in the TERRITORY for distribution by HUTS of the PRODUCTS in the
TERRITORY, and (ii) to have HUTS sell or distribute the PRODUCTS in the
TERRITORY so assembled and manufactured by EASTCOM.

NOW, THEREFORE, the parties hereto hereby agree as follows:

                                  -continued-

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ARTICLE 1.  DEFINITIONS

Whenever used in this Agreement, unless otherwise clearly required by the
context, the following terms shall have the meanings set forth in this Article
and no other.

(a)  The term "TERRITORY" means [*]

(b)  The term "PRODUCTS" means only such models of the products, which are:

     i)   specified in the EXHIBIT-A attached hereto and made a part hereof; and

     ii)  carrying the trademark "UTStarcom" or other marks owned by UTSTARCOM
          or other marks designated by UTSTARCOM upon prior written consent of
          SHARP. SHARP will not refuse the use of such designated marks without
          a reasonable reason.

     It is expressly agreed that products which do not satisfy both of the above
     two conditions shall in no way be included in the meaning of the term
     PRODUCTS.

(c)  The term "SUPPLY PARTS" means any or all materials and component parts for
     the PRODUCTS supplied in any form from SHARP, its subsidiary, related or
     affiliated company or designated factory.

(d)  The term "KNOW-HOW" means any or all secret processes, secret formulae and
     confidential technical data, confidential manufacturing procedures and
     methods, which SHARP has as of the date of this Agreement and/or may during
     the term of this Agreement have as a result of SHARP's scientific research
     or practical experience through its assembly and manufacture of the
     equivalent model to the PRODUCTS.

(e)  The term "INTELLECTUAL PROPERTY RIGHTS" means any or all rights in the
     TERRITORY under patents, utility models, designs, and copyrights, which
     SHARP owns as of the date of this Agreement in connection with the
     PRODUCTS. For the avoidance of doubt, INTELLECTUAL PROPERTY RIGHTS does not
     include any rights of trademark.

(f)  The term "HUTS" means UTSTARCOM (HANGZHOU) TELECOM CO., LTD, a corporation
     of People's Republic of China, and a subsidiary of UTSTARCOM, having its
     principal place of business at 3 Yile Industrial Park, Bldg. 2/3 19 WenYi
     Road, Hangzhou, 310012, People's Republic of China and doing business of
     manufacturing, sales or distribution, and after-sales service of the
     communication related products.

(g)  The term "EASTCOM" means EASTERN COMMUNICATIONS CO., LTD, a corporation of
     People's Republic of China, and having its principal place of business at
     No.398. Wen San Road, Hangzhou, Zhe Jiang, People's Republic of China and
     doing business of assembly and manufacture of the mobile communication
     products.

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

                                  -continued-

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ARTICLE 2. GRANT OF RIGHT

(a)  SHARP hereby agrees to grant to UTSTARCOM [*] right (i) to have EASTCOM, by
     the good office of HUTS, assemble and manufacture the PRODUCTS for sale
     or distribution thereof in the TERRITORY under the KNOW-HOW and
     INTELLECTUAL PROPERTY RIGHTS, and (ii) to have HUTS sell or distribute the
     PRODUCTS in the TERRITORY so assembled and manufactured by EASTCOM.
     UTSTARCOM agrees that it shall have [*] right (i) to manufacture or
     (distribute the PRODUCTS and ii) to sublicense to any third party the
     right granted hereby except with the prior written consent of SHARP, and
     it shall cause HUTS and EASTCOM to abide by the terms and conditions as
     set forth hereunder. In case UTSTARCOM desires to appoint another party to
     assemble and manufacture the PRODUCTS, both parties shall discuss and
     agree the terms and conditions for such appointments.

(b)  The KNOW-HOW and INTELLECTUAL PROPERTY RIGHTS granted to UTSTARCOM
     hereunder shall be used by EASTCOM for the sole purpose of the assembly and
     manufacture, and by HUTS for the sole purpose of the sale of the PRODUCTS
     in the TERRITORY in accordance with the terms and conditions hereof and if
     UTSTARCOM, HUTS or EASTCOM uses the KNOW-HOW and/or INTELLECTUAL PROPERTY
     RIGHTS for any other purposes, SHARP shall have the right, without
     prejudice to SHARP's rights and remedies under this Agreement or applicable
     laws, to demand the royalties as specified in the EXHIBIT-B attached hereto
     and made a part hereof.

     It is specifically understood between the parties hereto that the use
     thereof by UTSTARCOM, HUTS or EASTCOM for any other purposes shall be
     deemed to be a material breach of this Agreement.

(c)  In the event that UTSTARCOM desires to have EASTCOM assemble or manufacture
     the PRODUCTS for export from the TERRITORY, it shall submit to SHARP such
     information relating to the export as SHARP may reasonably require
     including but not limited to the final destination, buyer, quantity, price
     and specifications of the PRODUCTS. Both parties shall thereupon mutually
     discuss the terms and conditions regarding such export.

(d)  No technical assistance relating to the assembly and manufacture of any
     component parts of the PRODUCTS is rendered by SHARP hereunder.

(e)  SHARP hereby only warrants to UTSTARCOM that the KNOW-HOW and other
     technical information disclosed and furnished to HUTS by SHARP hereunder
     shall be sufficient to permit competent persons utilizing the appropriate
     parts, materials, equipment and skills to assemble and manufacture the
     PRODUCTS intended hereunder; SHARP shall not be responsible for the
     PRODUCTS thus assembled and manufactured hereunder, nor shall SHARP be
     liable for damages arising out of or resulting from anything made available
     hereunder or the use thereof or SHARP's approval, consent, certification or
     confirmation given to UTSTARCOM (and/or HUTS through UTSTARCOM, as the case
     may be)

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

                                  -continued-

<PAGE>

     hereunder nor shall SHARP be liable to UTSTARCOM, HUTS and/or EASTCOM for a
     loss of profit or any consequential damages under any circumstances.

(f)  If SHARP determines to discontinue the assembly, manufacture or
     distribution of any equivalent models of the PRODUCTS in Japan or elsewhere
     for any reason whatsoever, or if UTSTARCOM fails to (i) have EASTCOM
     assemble and manufacture or (ii) have HUTS sell or distribute any models of
     the PRODUCTS in the TERRITORY for three months or more, SHARP may, in its
     sole discretion and by giving [*] prior written notice to UTSTARCOM,
     exclude such models of the PRODUCTS from among the PRODUCTS.

Article 3. DISCLOSURE OF KNOW-HOW AND OTHER TECHNICAL INFORMATION: TECHNICAL
           ASSISTANCE & SERVICES

Upon the written request of UTSTARCOM or HUTS and to the extent then available
at SHARP and SHARP thinks fit, SHARP shall disclose and furnish to HUTS the
KNOW-HOW and other technical information as specified in sub-paragraph i)
through iii) below and HUTS shall, at its own costs and responsibility, disclose
and furnish to EASTCOM said KNOW-HOW and other technical information so
disclosed and furnished by SHARP. SHARP shall also render to HUTS, technical
assistance and services as specified in sub-paragraph iv) below.

     i)   For the setting-up of EASTCOM's plant:
               a- Layout drawings for each process in the plant;
               b- Advice on the process layout of EASTCOM's plant (if
                  necessary) and advice on procurement of the machines,
                  equipment, testers and tools required for the assembly and
                  manufacture of the PRODUCTS;
               c- Layout drawings for the installation of the machines and
                  equipment;
               d- Advice on total required electricity, gas and/or water in the
                  plant;
               e- Plans of required number of personnel;

     ii)  For each model of the PRODUCTS to be newly introduced by UTSTARCOM
          from SHARP from time to time:
               a- Specifications of the PRODUCTS;
               b- List for the SUPPLY PARTS (including kit price list), and
                  component parts list for studying the local procurement
                  (including the information of name of parts supplier, parts
                  name, and parts specifications if available)
               c- Material on required standard production time by each
                  production process and working instruction manual;
               d- Schematic diagrams;
               e- Draft of instruction manual (written in Japanese);
               f- Advice on method and/or standard of quality control (key
                  point and standard)
               g- Process flow chart;
               h- Proposal or idea of inspection procedure of the PRODUCTS
               i- Advice on procurement and/or use of exclusive testers and
                  tools
               j- Advice on the after-sales service for the PRODUCTS (if
                  necessary)
               k- Assistance for field test of the PRODUCTS (if necessary)

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

                                  -continued-

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               l- LCD artwork (the cost shall be separately borne by UTSTARCOM.)
               m- Floppy disk including the software (data, program, etc.) to be
               written into EEPROM for the PRODUCTS

     iii) For the continuous assembly and manufacture of each model of the
          PRODUCTS:

               a- Advice on production engineering
               b- Advice on improvement of production method;
               c- Advice and/or guidance on quality control; and

     iv)  Despatch of SHARP's technical instructor to HUTS and/or EASTCOM,
          and/or training of HUTS's engineers at SHARP's factory or its
          designated factory (hereinafter collectively called the "FACTORY")
          pursuant to Articles 4 and 5 hereof to facilitate the disclosure and
          provision of the KNOW-HOW and other technical information.

ARTICLE 4 TRAINING OF HUTS'S ENGINEERS AT THE FACTORY

(a)  Upon UTSTARCOM's prior written request and to the extent then available at
     SHARP and as SHARP thinks fit, SHARP agrees to give a reasonable number of
     HUTS's engineers (hereinafter called the "TRAINEE") such technical training
     as SHARP thinks appropriate at the FACTORY for a reasonable period of time
     in relation to the assembly and manufacture of the PRODUCTS.

(b)  [*] expenses [*] to be incurred in this connection shall, unless otherwise
     specifically agreed upon between the parties hereto in writing, be for the
     account of UTSTARCOM. It is expressly agreed that SHARP shall be under no
     liability to the TRAINEE, UTSTARCOM and/or HUTS for any injuries and
     damages to the TRAINEE's health in mind and body and property which he may
     suffer regardless of whether he is in the premises of SHARP or not.

(c)  UTSTARCOM shall give SHARP at least [*] prior notice before the TRAINEE
     leaves the TERRITORY for the FACTORY, stating: the name, number, position,
     brief curriculum vitae, leader of the TRAINEE in case of plural TRAINEE
     being sent; subject of training; time of TRAINEE's arrival; and the period
     of stay desired of each TRAINEE.

(d)  Training hours, holidays and other conditions and regulations of work for
     the TRAINEE to be trained by SHARP at the FACTORY shall be based on such
     FACTORY's working conditions and regulations. No TRAINEE shall be
     considered for any purpose to be an employee of SHARP or FACTORY.

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

                                  -continued-

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ARTICLE 5. DESPATCH OF SHARP'S TECHNICAL INSTRUCTOR

(a)  Upon UTSTARCOM's prior written request or SHARP's written recommendation
     made from time to time during the term of this Agreement and where both
     parties concurrently deem it appropriate and necessary, SHARP agrees to
     despatch to HUTS and/or EASTCOM (by the good office of HUTS) designated by
     UTSTARCOM and SHARP agrees, for a reasonable period of time a reasonable
     number of engineer(s) and/or specialist(s) (hereinafter called the
     "INSTRUCTOR") to more effectively and efficiently disclose and furnish the
     KNOW-HOW and other technical information and to give technical guidance and
     instructions to HUTS in relation to the assembly and manufacture of the
     PRODUCTS hereunder. The time and period of despatch of the INSTRUCTOR shall
     be decided by mutual consultation of the parties hereto.

(b)  All necessary costs and expenses incurred in connection with the despatch
     of the INSTRUCTOR [*] shall be borne and paid by UTSTARCOM.

(c)  UTSTARCOM shall cause HUTS to take necessary steps to obtain (or help to
     obtain as the case may be) from the authorities concerned the entrance visa
     into the TERRITORY of the INSTRUCTOR and UTSTARCOM shall cause HUTS to use
     its best efforts to help the INSTRUCTOR in carrying out all customs
     clearance procedures for entry into and departure from the TERRITORY of the
     INSTRUCTOR and to give all necessary facilities and assistances to the
     INSTRUCTOR in the TERRITORY.

(d)  All the detailed terms and conditions in connection with all the preceding
     paragraphs of this Article and other necessary matters (including a
     guarantee of status by UTSTARCOM of the INSTRUCTOR) in relation to the
     despatch of the INSTRUCTOR shall be in accordance with a separate agreement
     to be executed between the parties hereto.

(e)  UTSTARCOM shall obtain from EASTCOM the permission for SHARP or its
     representatives to inspect the processes and equipment employed by EASTCOM
     in the assembly or manufacture of the PRODUCTS, if SHARP deems it necessary
     from time to time.

ARTICLE 6. SECRECY

UTSTARCOM shall, and shall cause HUTS and EASTCOM to, keep strictly confidential
all the KNOW-HOW and all other information furnished or made available by SHARP,
whether in written, oral or any other form or forms, under this Agreement (or
any previous agreement, if any, similar thereto), both during the term hereof
and thereafter. UTSTARCOM agrees that it shall not without the prior written
consent of SHARP cause HUTS and EASTCOM to disclose them in any manner to anyone
other than their own employees who will be using them in the assembly,
manufacture and distribution of the PRODUCTS.

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

                                  -continued-

<PAGE>

Notwithstanding the foregoing provisions, SHARP agrees that UTSTARCOM may
disclose the contents of this Agreement as may be required by law, including but
not limited to the disclosure of this Agreement as may be required by the United
States Securities and Exchange Commission.

ARTICLE 7. MACHINES, EQUIPMENT & TESTERS

SHARP will upon the request of UTSTARCOM made from time to time, furnish to
UTSTARCOM (or HUTS, if UTSTARCOM requests so) a list of machines, equipment,
testers and tools (hereinafter collectively or individually, as the case may be,
called the "MACHINES" in this Article) appropriate to the assembly and
manufacture by EASTCOM of the PRODUCTS in the TERRITORY and will be ready to
supply with the MACHINES for the use of EASTCOM under the terms and conditions
agreeable to both parties.

In case UTSTARCOM (or HUTS, as the case may be) wishes to purchase any of the
MACHINES specified by SHARP from sources other than SHARP, UTSTARCOM shall
submit to SHARP in advance full information, and obtain SHARP's confirmation,
with respect to such purchase so that SHARP may make sure that such MACHINES
shall be appropriate to the assembly and manufacture of the PRODUCTS; provided,
however, that such SHARP's confirmation shall in no way be regarded as SHARP's
assumption of any responsibility for the MACHINES. Should troubles with respect
to such MACHINES arise, SHARP will give technical advice to HUTS to the extent
possible.

ARTICLE 8. SUPPLY PARTS

UTSTARCOM wishes to continuously purchase from SHARP all the materials and/or
component parts necessary for the assembly, manufacture and servicing of the
PRODUCTS according to the Parts Supply Agreement separately concluded between
the parties hereto. However, SHARP acknowledges that UTSTARCOM reserves the
right to purchase such materials and/or component parts from other sources,
including but not limited to local sources within the TERRITORY.

ARTICLE 9. IMPROVEMENTS

All the technical information on ordinary improvements in or in connection with
the PRODUCTS made by either party shall be furnished to the other party
(including HUTS [*] during the term of this Agreement.

The foregoing provisions of this Article shall not to any, [*] which shall be
subject to separate good faith negotiation and agreement between the parties to
this Agreement.

Both parties (including HUTS) will make a best effort including every possible
advice or support by SHARP in maintaining the competitiveness of the PRODUCTS on
the market in the TERRITORY. Notwithstanding the items 1 and 2 specified in the
EXHIBIT-C, if HUTS makes certain modifications to the then existing model(s) of
the PRODUCTS

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

                                  -continued-

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                                       8

based on SHARP's advice and support, then the parties to this Agreement will
negotiate in good faith as to a separate agreement relating to such
modifications, which may include the establishment of additional royalties that
may be directly derived from such modifications.

ARTICLE 10. ROYALTY

In consideration of the INTELLECTUAL PROPERTY RIGHTS, the KNOW-HOW and other
technical information granted to UTSTARCOM hereunder, UTSTARCOM shall pay to
SHARP the following royalties in the amount and in the manner specified below.

(a)  UTSTARCOM shall pay to SHARP an Initial Payment in such an amount as
     specified in the EXHIBIT-B within [*] after the effective date set forth in
     Article 14 of this Agreement.

(b)  UTSTARCOM shall pay to SHARP a Model Fee in such amounts as specified in
     the EXHIBIT-B within [*] following the disclosure of the substantial part
     of the KNOW-HOW and/or other technical information relating to the models
     specified in the EXHIBIT-B and any new or modified model of the PRODUCTS.
     Said disclosure shall be made subject to the written confirmation of
     UTSTARCOM to pay the relevant Model Fee. Classification of the new model
     or the modified model shall be determined by designation of SHARP on the
     basis set forth in the EXHIBIT-C attached hereto and made a part hereof.

(c)  Running Royalty
     i)   UTSTARCOM shall pay to SHARP a Running Royalty at such
          rates as are specified in the EXHIBIT-B against the Net Selling
          Price (as defined below) of all the PRODUCTS Sold (as defined below)
          by HUTS during the term of this Agreement. For the purpose of this
          Article, "Net Selling Price" means the gross selling price of the
          PRODUCTS sold by HUTS to the sales subsidiaries in the TERRITORY of
          UTSTARCOM less only accepted returns from the customers of said
          sales subsidiaries hereinabove. The PRODUCTS shall be considered
          "Sold" hereunder when billed (or invoiced) out to said sales
          subsidiaries, or if not billed out, then when delivered or when paid
          for if paid for before delivery.

     ii)  Running Royalty shall be computed for [*] period terminating on the
          [*] UTSTARCOM shall send its statement of royalty due for the
          immediately preceding [*] period, together with full evidence which
          SHARP may require, to reach SHARP not later than the [*] and
          UTSTARCOM shall make payment to SHARP not later than [*] after
          receipt by UTSTARCOM of SHARP's telefax acceptance of UTSTARCOM's
          royalty statement mentioned above or within [*] after the expiration
          of the immediately preceding [*] whichever is the earlier, provided
          always that payments made to SHARP before SHARP accepts such royalty
          statement shall be on account only.

(d)  All the payments due under this Article shall be made in Japanese currency

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

                                  -continued-

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                                       9

     strictly in accordance with this Article, converted from Chinese RMB at
     the official T.T.S. (Telegraphic Transfer Selling) closed rate of
     exchange prevailing in New York Foreign Exchange market on the expiry
     date of the immediately preceding [*] period for the calculation of the
     royalties hereunder.

(e)  All payments made to SHARP hereunder shall be by means of official
     telegraphic transfer remittance or mail transfer remittance.

(f)  [*] and all payment specified herein shall represent the net amount to be
     received by SHARP. However, if UTSTARCOM shall be required under the laws
     of the U.S.A. to deduct any income taxes which may be levied against SHARP
     from any payments made to SHARP hereunder, then UTSTARCOM shall be entitled
     to deduct, subject to prior notification to SHARP and confirmation by SHARP
     thereof, such income taxes from the payments to be made, provided that
     UTSTARCOM promptly furnishes to SHARP tax receipts or other satisfactory
     evidence in a form acceptable to the Japanese Government and its local
     government tax administration certifying the fact that such taxes have been
     duly paid.

(g)  In the event of delay by UTSTARCOM in the making of any payment due under
     this Article, all payments overdue to SHARP shall be subject to interest,
     which shall accrue on a daily basis, at the rate of [*] per annum until
     such payments are made.

(h)  In the event new model of the PHS Terminal is agreed in writing by both
     parties to be additionally included in the PRODUCTS, each such new model
     shall be subject to the separate Model Fee and Running Royalty in such an
     amount and at such rates as may be agreed upon by the parties hereto which
     shall be payable, unless otherwise agreed upon, in the same manner and upon
     the same conditions as set forth in this Article.

ARTICLE 11. RECORDS AND AUDITING

During the term of this Agreement and thereafter for [*] UTSTARCOM shall
cause HUTS to keep true and accurate records, files and books of account
showing all information necessary for the preparation of the royalty
statements stated in paragraph (c) ii) of Article 10 hereof and UTSTARCOM
shall, upon SHARP's request, submit at its own cost and expense to SHARP an
auditor's certificate or report of royalty statement issued by an independent
certified public accountant acceptable to and/or as appointed by SHARP, and
shall cause HUTS to disclose these books to SHARP, its representative or its
agents during its ordinary working hours and shall cause HUTS to make all
explanations thereof requested by SHARP, its representative or its agents for
the sole purpose of checking the accuracy of the royalty statements.

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

                                  -continued-

<PAGE>
                                       10

ARTICLE 12. VALIDITY AND INFRINGEMENT

(a)  SHARP represents and warrants to UTSTARCOM and HUTS that the KNOW-HOW and
     INTELLECTUAL PROPERTY RIGHTS are the original work of SHARP in each and all
     aspects.

(b)  UTSTARCOM shall have no right to apply for registration of any intellectual
     property rights in the TERRITORY or any other country with regard to the
     KNOW-HOW and other technical information made available or furnished by
     SHARP hereunder, or to apply itself as the registered licensee or user of
     any of the INTELLECTUAL PROPERTY RIGHTS.
     UTSTARCOM shall cause HUTS and EASTCOM to abide by same obligation above
     of UTSTARCOM.

(c)  UTSTARCOM shall cause HUTS and EASTCOM to promptly notify UTSTARCOM and
     accordingly UTSTARCOM shall promptly notify SHARP in addition to its own
     awareness, of any and all infringements, imitations or illegal use of the
     INTELLECTUAL PROPERTY RIGHTS and of any statements or action made or done
     by any person, firm or corporation disputing or impairing SHARP's interest
     in and title to any of the INTELLECTUAL PROPERTY RIGHTS.

(d)  Whenever in the opinion of SHARP, any action is necessary or advisable to
     insure the protection or prevention against such infringements, imitations
     or illegal use of any INTELLECTUAL PROPERTY RIGHTS, (i) SHARP may take any
     action in the courts, administrative agencies or otherwise, and (ii) upon
     the request of SHARP and subject to and within the scope of SHARP's
     agreement to reimburse UTSTARCOM for any expenses to be incurred by
     UTSTARCOM, UTSTARCOM shall or shall cause HUTS to take whatever action is
     deemed necessary by SHARP to insure such protection or prevention.
     SHARP shall not be obligated to take any action against such infringements,
     imitations or illegal use and shall have no liability to UTSTARCOM, HUTS
     and EASTCOM for failure to do so. UTSTARCOM shall or shall cause HUTS to
     take no action with respect to any infringement, imitation or illegal use
     of any INTELLECTUAL PROPERTY RIGHTS unless requested by SHARP to do so.
     In any circumstances all the proceeds or recovery of any damages awarded
     in such action shall accrue to SHARP.

(e)  In the event, however, that UTSTARCOM (or HUTS or EASTCOM, as the case may
     be) is threatened or involved in any infringement or other like litigation
     in the TERRITORY, by reason of its exercise of rights acquired under this
     Agreement, SHARP will render to UTSTARCOM (or HUTS or EASTCOM, as the case
     may be) such assistance as SHARP, in its sole discretion, deems appropriate
     in defending such litigation or threatened litigation at the expense of
     UTSTARCOM. SHARP shall, in view of that the amounts of Royalties mentioned
     in Article 10 is a consideration only for the INTELLECTUAL PROPERTY RIGHTS,
     the KNOW-HOW and other technical information necessary for the assembly
     and manufacture of the PRODUCTS, not be held responsible by UTSTARCOM (or
     HUTS or EASTCOM, as the case may be) (i) for infringement of any patent,
     utility

                                  -continued-

<PAGE>
                                       11

     model right, design, copyright or other intellectual property rights of
     third parties, or damages or cost involved in any proceeding based on such
     infringements, (ii) for the validity of any INTELLECTUAL PROPERTY RIGHTS
     granted hereunder, or the inability of HUTS (or EASTCOM, as the case may
     be) to use such INTELLECTUAL PROPERTY RIGHTS or KNOW-HOW because of any
     patent, utility model right, design, copyright or other intellectual
     property rights of third parties or (iii) for any additional royalties or
     obligations incurred by UTSTARCOM (or HUTS or EASTCOM, as the case may be)
     because of any patent, utility model right, design, copyright or other
     intellectual property rights of third parties.

(f)  In the event that SHARP becomes or is made, whether by judicial
     declaration, settlement, agreement of the relevant parties or in any other
     manner, responsible for or liable to pay damages, costs, royalties or any
     other compensation or consideration or to perform any other obligation,
     whether in respect of past, present or future acts or circumstances (the
     "Obligation"), to a third party with respect to or arising out of an
     infringement or alleged infringement of any patent, utility model right,
     design, copyright or any other intellectual property right of the third
     party in the TERRITORY resulting from the assembly and manufacture by
     EASTCOM or sale or distribution by HUTS of the PRODUCTS hereunder,
     UTSTARCOM shall or shall cause HUTS and EASTCOM to indemnify and hold
     harmless SHARP in full, or in part as may be determined by SHARP in its
     sole discretion, with respect to the Obligation to be paid to or performed
     for the benefit of the third party. SHARP may, in its sole discretion,
     determine the manner in which such indemnification by UTSTARCOM (or HUTS or
     EASTCOM, as the case may be) shall be made. In exercising its discretion
     pursuant to this paragraph, SHARP shall give due consideration to the
     contribution of each party (including HUTS and EASTCOM, as the case may
     be), the particular circumstances of the Obligation and the profit and
     other benefits received by each party (including HUTS and EASTCOM, as the
     case may be) hereto in respect of the subject matter of this Agreement.

ARTICLE 13. APPROVAL OF GOVERNMENT

Each party shall obtain the official approval of its government on this
Agreement, if such approval is necessary to perform this Agreement. Each party
shall inform the other party of the date of approval of the government together
with a copy of such approval (accompanied by English translation if not provided
in English) immediately after it is obtained.

ARTICLE 14. DURATION OF AGREEMENT

This Agreement shall be deemed to have been come into force on the 1st day of
December, 1999 retroactively, and unless earlier terminated in accordance with
the provisions hereof, shall continue in force and effect for [*] until and
including the [*]. It is understood by the parties hereto that this Agreement
shall be, either automatically or with amendment or modification (if any) and
subject to any necessary government approval, renewed thereafter on a [*]
basis, unless either of the parties hereto gives the other party at least [*]
prior written notice to terminate this Agreement before the expiration of the

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

                                  -continued-

<PAGE>

initial term or any extended term of this Agreement. If such prior written
notice is made by either party, then this Agreement shall terminate on the
initial or as the case may be, duly extended expiration date of this Agreement.

ARTICLE 15. TERMINATION

(a)  In the event of the occurrence of any of the following events to either
     party (including HUTS and EASTCOM, as the case may be, for the purpose of
     this Article), the other party may forthwith terminate this Agreement
     and/or any other agreement concluded under or in connection with this
     Agreement by sending a written notice to the first party by registered air
     mall:

     i)   If either party hereto continues in default of any material obligation
          imposed on it herein and/or therein for more than two(2) months after
          written notice has been despatched by registered airmail by the other
          party requesting the party in default to remedy such default;

     ii)  If either party hereto is subjected to compulsory execution, public
          auction, coercive collection for its arrearage of taxes or public
          imposts, or suspension of business by public authorities, or
          appointment of any receiver or trustee of itself or any substantial
          portion of its property, or if an application or petition is submitted
          against either party for bankruptcy, corporate arrangement or
          commencement of corporate reorganization, or if either party hereto
          files voluntarily against it an application or petition for
          bankruptcy, corporate arrangement or commencement of corporate
          reorganization or composition, or if either party hereto adopts a
          resolution for discontinuance of its business or for a substantial
          decrease of its capital or for dissolution or merger into another
          company, or makes general assignment for the benefit of creditors, or
          if either party hereto becomes unable to pay debts, or if either party
          hereto is declared default of any material contract between it and any
          third party and such contract is cancelled or its payment obligation
          under such contract is accelerated;

     iii) If, due to any substantial change in ownership, management or
          effective control of either party or in the objects of the company
          stated in the Memorandum of Association or Articles of Incorporation
          or a similar document of either party, (1) there exist, or in the
          reasonable opinion of the other party there is any ground to suspect
          the existence of, any obstacles to the effective continuance of this
          Agreement, or (2) there occurs a situation which in the reasonable
          opinion of the other party would be detrimental to its interests; or

     iv)  If there is any other material cause justifying either party to
          terminate this Agreement, such as material and irreparable injury to
          goodwill or reputation by the other party, commission by other party
          of a fraud on or betrayal of confidence in or criminal act against the
          first party, disclosure or divulgence by the other party of the first
          party's confidential information.

                                  -continued-

<PAGE>

(b)  In the event of termination of this Agreement for any reason whatsoever:

     i)   UTSTARCOM shall promptly cause HUTS and EASTCOM to return to SHARP all
          specified documents and tangible property supplied by or belonging to
          SHARP in connection with this Agreement and shall cause HUTS and
          EASTCOM to keep confidential all information received from SHARP
          hereunder.

     ii)  UTSTARCOM shall cause HUTS and EASTCOM to promptly discontinue the use
          of the KNOW-HOW and other confidential information and the
          INTELLECTUAL PROPERTY RIGHTS and shall cause HUTS to promptly
          discontinue the sale of the PRODUCTS assembled and manufactured by
          EASTCOM.

     iii) All sums including those accrued pursuant to Articles 4, 5 and 10
          hereof shall become immediately due and payable. Notwithstanding the
          provisions of paragraph (c) of Article 10 hereof, all PRODUCTS the
          assembly and manufacture of which have been completed at the date of
          the termination of this Agreement shall be deemed Sold, and UTSTARCOM
          shall pay the Running Royalty thereof calculated by applying the
          average Net Selling Price of the relevant models of the PRODUCTS (or
          similar models thereof) during the current royalty period in which the
          termination of this Agreement occurs.

(c)  Notwithstanding the provisions specified in paragraph (b) ii) of this
     Article, unless this Agreement is terminated by a cause or causes which
     SHARP deems attributable to UTSTARCOM (or HUTS or EASTCOM, as the case
     may be), UTSTARCOM may cause HUTS and EASTCOM to dispose of the PRODUCTS
     and the SUPPLY PARTS in the TERRITORY which HUTS and/or EASTCOM have on
     hand at the time of termination of this Agreement within such a reasonable
     period of time as may be agreed upon by the parties provided that such
     sales are made without impairing SHARP's reputation.

(d)  In the event that either party (including HUTS and EASTCOM, as the case
     may be) defaults in the due performance of its obligations hereunder or
     under any agreement made pursuant hereto or in respect hereto, or in the
     event that this Agreement is terminated pursuant to paragraph (a) of this
     Article, then the other party or the party despatching a notice of
     termination pursuant to paragraph (a) of this Article (collectively the
     "Affected Party") may demand compensation from the first party for the
     losses and damages incurred or suffered by the Affected Party as a result
     of any such default or termination.

(e)  Except as otherwise provided elsewhere in this Agreement any termination of
     this Agreement shall be without prejudice to any right and remedy which
     shall have accrued to either party under or in connection with this
     Agreement prior to such termination.

                                  -continued-

<PAGE>

ARTICLE 16. ASSIGNMENT

Neither party (including HUTS as the case may be) shall assign, transfer or
otherwise dispose of this Agreement in whole or in part or any right or
obligation hereunder to any individual, firm or corporation without the prior
written consent of the other party.

ARTICLE 17. NOTICES

(a)  Except as otherwise provided herein all notices to be given or made under
     this Agreement shall be in writing and sent by registered airmail and
     addressed to the principal office of the parties indicated hereinabove or
     to such other address as either party may hereafter furnish to the other
     party in writing.

(b)  All notices shall be deemed to have been given or made on the day of
     despatch.

ARTICLE 18. ENTIRE AGREEMENT

This Agreement constitutes the entire and only agreement between the parties
hereto as to the subject matter contained herein and supersedes all previous
understandings, commitments and agreements whether oral or written relating to
the subject matter hereof, and no modification, amendment or supplement of this
Agreement shall be binding upon the parties hereto except by mutual express
written consent of subsequent date signed by an authorized representative or
officer of each of the parties hereto.

ARTICLE 19. FORCE MAJEURE

Except with respect to any and all payments which are to be made to SHARP
pursuant to Articles 4, 5 and 10 hereof, neither party (including HUTS and
EASTCOM, as the case may be) shall be liable for failure to perform any part of
this Agreement when such failure is due to fire, flood, strikes, labor troubles
or other industrial disturbances, inevitable accidents, war (declared or
undeclared), embargoes, blockades, legal restrictions, governmental regulations,
riots, insurrections, or any cause beyond the control of the parties but this
Agreement shall not be regarded as terminated or frustrated as a result of such
failure of performance and the parties shall continue once more with its
performance when the causes of such non-performance have ceased or have been
eliminated.

ARTICLE 20. ARBITRATION

Any dispute arising from the execution of, or in connection with, this Agreement
shall be settled through friendly consultation between the parties. If the
dispute cannot be settled within sixty (60) days from the first date of
consultation, the dispute shall be settled by arbitration consisting of three
(3) arbitrators. Arbitration shall be held in San Francisco, California under
the International Arbitration Rules of the American Arbitration

                                  -continued-

<PAGE>

Association if initiated by SHARP, and shall be held in Osaka, Japan under the
Commercial Arbitration Rules of the Japan Commercial Arbitration Association if
initiated by UTSTARCOM. The award rendered by the arbitration shall be final and
binding upon the parties and may be entered by any court having jurisdiction.

ARTICLE 21. GOVERNING LAW

It is mutually agreed that the terms of this Agreement and the performance
hereunder shall in all respects be governed, construed and interpreted in
accordance with the laws of Japan, excluding its provisions regarding conflict
of laws.

ARTICLE 22 MISCELLANEOUS

(a)  SEPARABILITY: The parties hereto agree that, in the event of one or more of
     the provisions hereof being subsequently declared invalid or unenforceable
     by court or administrative decisions, such invalidity or unenforceability
     shall not in any way affect the validity or enforceability of any other
     provisions hereof except those which the invalidated or unenforceable
     provisions comprise an integral part of or are otherwise clearly
     inseparable from such other provisions.

(b)  WAIVER: A waiver by a party hereto of any particular provision hereof shall
     not be deemed to constitute a waiver in the future of the same or any other
     provision of this Agreement.

(c)  EXPENSES: Unless otherwise expressly agreed herein or otherwise in writing
     by the parties hereto, each party shall bear all losses, damages, expenses,
     disbursements and liabilities incurred or made by itself or any other
     investment made by itself in connection with or in pursuance of this
     Agreement, and neither party shall be entitled to compensation or remedy of
     any kind whatsoever from the other party for the said losses, damages,
     expenses, disbursements, liabilities or investment whether on termination
     of this Agreement for any reason whatsoever or otherwise unless otherwise
     expressly agreed upon in writing by the other party.

(d)  INDEMNITY: UTSTARCOM shall defend, indemnify and hold harmless SHARP from
     and against any and all actions, claims, demands, suits, losses, damages,
     costs, expenses and judgements (including attorney's fee thereof) by
     whomever made, brought or prosecuted and in any manner based upon, arising
     out of, related to, occasioned by or attributable to any breach by
     UTSTARCOM (including HUTS and EASTCOM, as the case may be) of any
     provisions of this Agreement or any act or omission by UTSTARCOM (including
     HUTS and EASTCOM, as the case may be), its employees or agents in the
     performance thereof.

(e)  RESTRICTED OBLIGATION: SHARP assumes, by implication or otherwise, no
     obligation, liability or responsibility other than those expressly set
     forth in this Agreement

                                  -continued-

<PAGE>

(f)  OTHER CONDITION: If, after the effective date set forth in Article 14
     hereof, any Japanese government approval is further required for SHARP to
     perform its obligations under Articles 3, 4, 5, 7, and 8, the performance
     of such obligations shall be subject to such government approval.

(g)  TITLE: The titles of Articles in this Agreement have been inserted for
     convenience only and shall in no way be used in the interpretation hereof.

(h)  GUARANTEE OF HUTS AND EASTCOM: UTSTARCOM hereby unconditionally guarantees
     to SHARP the due and punctual performance by HUTS and/or EASTCOM of all the
     material terms and conditions of this Agreement to be performed by HUTS
     and/or EASTCOM hereunder, and indemnifies and holds SHARP harmless from and
     against any damages, costs, expenses and other liabilities incurred by
     SHARP by reason of failure of HUTS and/or EASTCOM to fully perform and
     comply with the material terms and conditions of this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed
by their respective representatives or officers duly authorized thereunto as of
the date first noted above.

SHARP CORPORATION                          UTSTARCOM INC

By:                                        By:  /s/ HONG LIANG LU
   ---------------------------------------     ---------------------------------
Name:  Sueyuki Hirooka                     Name:  Hong Liang Lu
Title: Corporate Senior Executive Director Title: President
       & Group General Manager,                   & Chief Executive Officer
       International Business Group

                                           Above agreed and accepted:

                                           UTSTARCOM (HANGZHOU) TELECOM CO., LTD
                                           By:  /s/ JOHNNY CHOU
                                              ----------------------------------
                                           Name:  Johnny Chou
                                           Title: Executive Vice President
                                                  & Chief Operating Officer
                                                  China Operations

<PAGE>

EXHIBIT-A                 DEFINITION OF THE PRODUCTS      Date: 31st March, 2000

[*]

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

<PAGE>

EXHIBIT-B                   ROYALTY SCHEDULE              Date: 31st March, 2000

[*]

[*] * CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.<PAGE>

                                                                    Exhibit 10.4

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.

                             PARTS SUPPLY AGREEMENT

                                     BETWEEN

                                SHARP CORPORATION

                                       AND

                                 UTSTARCOM INC.

<PAGE>

                                      INDEX

Article

1.   DEFINITIONS
2.   PURCHASE AND SUPPLY OF THE SUPPLY PARTS
3.   ORDER PROCEDURES
4.   PURCHASE PRICE
5.   TERMS OF PAYMENT
6.   INSPECTION
7.   SHIPMENT
8.   REMEDY FOR INCOMPLETE SUPPLY OF THE SUPPLY PARTS
9.   STOCK OF SPARE PARTS
10.  DURATION OF AGREEMENT
11.  TERMINATION
12.  COMPENSATION FOR DAMAGES
13.  ASSIGNMENT
14.  NOTICES
15.  ENTIRE AGREEMENT
16.  EXCEPTIONS
17.  ARBITRATION
18.  GOVERNING LAW AND TRADE TERMS
19.  MISCELLANEOUS

<PAGE>

                             PARTS SUPPLY AGREEMENT

THIS AGREEMENT made and entered into this ______ day of ______________, 2000, by
and between

SHARP CORPORATION, a Japanese corporation, having its principal place of
business at 22-22, Nagaike-cho, Abeno-ku, Osaka, 545-8522 Japan (hereinafter
referred to as "SHARP")

                                      and

UTSTARCOM INC., a Delaware corporation, having its principal place of business
at 1275 Harbor Bay Parkway, Suite 100, Alameda, CA 94502, U.S.A. (hereinafter
referred to as "UTSTARCOM")

                                   WITNESSETH:

WHEREAS, SHARP has been engaged in the manufacture and sale of PHS terminal in
Japan; and

WHEREAS, UTSTARCOM is planning to cause EASTCOM (as defined below) to assemble
and manufacture the PRODUCTS (as defined below) and to cause HUTS (as defined
below) to distribute the PRODUCTS in the TERRITORY (as defined below). UTSTARCOM
wishes to purchase from SHARP and SHARP is willing to sell to UTSTARCOM
component parts of the PRODUCTS necessary to assemble, manufacture and repair
the PRODUCTS in the TERRITORY shall be purchased from SHARP; and

WHEREAS, UTSTARCOM and SHARP have entered into a technical collaboration
agreement dated           , 2000 (hereinafter referred to as "TCA") with
respect to some license of SHARP's intellectual property rights and technical
know-how required to manufacture and distribute the PRODUCTS in the TERRITORY;

NOW, THEREFORE, the parties hereto hereby agree as follows:

Article 1. DEFINITIONS

Whenever used in this Agreement, unless otherwise clearly required by the
context, the following terms shall have the meaning set forth in the Article and
no other.

                                       1
<PAGE>

(a)  The term "TERRITORY" means [*]

(b)  The term "PRODUCTS" means only such models of the products, which are:

     i)   specified in the EXHIBIT-A attached to TCA; and

     ii)  carrying the trademark "UTStarcom" or other marks owned by
          UTSTARCOM or other marks designated by UTSTARCOM upon prior
          written consent of SHARP.

(c)  The term "SUPPLY PARTS" means any or all materials and component parts for
     the PRODUCTS supplied in any form from SHARP, its subsidiary, related or
     affiliated company or designated factory.

(d)  The term "HUTS" means UTSTARCOM (HANGZHOU) TELECOM CO., LTD, a corporation
     of People's Republic of China, a subsidiary of UTSTARCOM, having its
     principal place of business at 3 Yile Industrial Park, Bldg. 2/3 19 WenYi
     Road, Hangzhou, 310012, People's Republic of China, doing business of
     manufacturing, sales or distribution, and after-sales service of the
     communication related products.

(e)  The term "EASTCOM" means EASTERN COMMUNICATIONS CO., LTD, a corporation of
     People's Republic of China, having its principal place of business at
     No.398. Wen San Road, Hangzhou, Zhe Jiang, People's Republic of China,
     doing business of assembly and manufacture of the mobile communication
     products.

Article 2. PURCHASE AND SUPPLY OF THE SUPPLY PARTS

(a)  UTSTARCOM agrees to purchase from SHARP and SHARP agrees to sell to
     UTSTARCOM the SUPPLY PARTS subject to and upon the terms and conditions
     contained herein.

(b)  UTSTARCOM shall not, without the prior written consent of SHARP, cause
     EASTCOM and/or HUTS to use the SUPPLY PARTS for any purposes other than for
     the manufacture and assembly of the PRODUCTS in the TERRITORY or sell or
     otherwise dispose of the SUPPLY PARTS, either directly or indirectly, to
     any third party in the TERRITORY or elsewhere in the world.

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

                                       2
<PAGE>

Article 3. ORDER PROCEDURES

(a)  UTSTARCOM shall place with SHARP monthly purchase orders in writing for the
     SUPPLY PARTS at least [*] before the [*] of the production month of the
     SUPPLY PARTS thereby ordered or at least [*] before the [*] of the month in
     which the SUPPLY PARTS are to be shipped from the relevant port(s) of
     shipment, whichever is applicable. By the [*] of each month, non-binding
     rolling forecasts for the SUPPLY PARTS order for the period of next [*]
     shall be given to Sharp by UTSTARCOM for Sharp's smooth arrangements of the
     SUPPLY PARTS. In case the relevant SUPPLY PARTS are to be manufactured
     outside Japan, however, the number of months provided above shall be
     increased by [*].

(b)  The quantity of each model of the SUPPLY PARTS to be ordered by each of
     such purchase orders shall be integral multiple of [*].

(c)  Such purchase orders shall be deemed only to be offers by UTSTARCOM to
     purchase the SUPPLY PARTS on and subject to the terms and conditions of
     this Agreement and such other terms and conditions as may be set forth in
     any SHARP price-list, estimate or other similar documents in effect at the
     date when UTSTARCOM's order is accepted.

(d)  SHARP may accept or reject the purchase orders submitted by UTSTARCOM. The
     acceptance by SHARP of such purchase orders shall be made only by execution
     and delivery by SHARP of the SALES CONTRACT (which form is designated by
     SHARP and is subject to revision made from time to time by SHARP at its
     sole discretion), thereupon such SALES CONTRACT shall be deemed to be the
     final and conclusive contract between the parties for the purchase and sale
     of the SUPPLY PARTS therein described. Immediately upon receipt by
     UTSTARCOM of the said SALES CONTRACT, UTSTARCOM shall sign and return to
     SHARP the duplicate copy of such SALES CONTRACT but failure of UTSTARCOM to
     do so shall not affect the validity of such SALES CONTRACT as provided
     hereinabove. It is specifically agreed, however, that if any export license
     or permission is required for the exportation of the SUPPLY PARTS the SALES
     CONTRACT shall come into effect only when such export license or permission
     shall have been obtained. UTSTARCOM agrees that due to delay in obtaining
     such license or permission the shipping date of the SUPPLY PARTS as set
     forth in the SALES CONTRACT may be delayed and that such delay shall not
     constitute a breach by SHARP of the SALES CONTRACT; provided, however, that
     SHARP will ship the SUPPLY PARTS as soon as practicable after the shipping
     date set forth in the SALES CONTRACT. In the event of any conflict or
     inconsistency between the terms and conditions

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

                                       3
<PAGE>

     of this Agreement and those of any SALES CONTRACT, the terms and conditions
     of this Agreement shall prevail with respect only to such conflicting or
     inconsistent provisions, except for such terms and conditions as may be
     typewritten on the face of such SALES CONTRACT.

Article 4. PURCHASE PRICE

All SUPPLY PARTS shall be sold to UTSTARCOM at the prices established or
confirmed by SHARP and in effect at the time when UTSTARCOM's purchase order is
accepted by SHARP. All prices for the sale of the SUPPLY PARTS under any SALES
CONTRACT shall be specified in Japanese yen.

Article 5. TERMS OF PAYMENT

(a)  At least [*] before the shipping date specified in the relevant SALES
     CONTRACT, UTSTARCOM shall establish, [*], with a leading and first class
     bank (such bank shall be changed at the request of SHARP to be made from
     time to time), an irrevocable and, if so requested by SHARP, confirmed
     letter of credit (not restricted, unless otherwise agreed upon) in full
     amount specified in the SALES CONTRACT in Japanese yen (unless otherwise
     agreed upon) in favour of SHARP available at [*] after the date of the bill
     of lading or air waybill for the shipment of Supply Parts to be drawn on
     the establishing bank (unless otherwise agreed upon). A confirming bank
     shall be a leading and first class international bank acceptable to SHARP
     and, unless otherwise agreed upon, be a bank other than the establishing
     bank of the letter of credit. Such letter of credit shall provide for
     partial shipments and shall remain valid for not less than [*] after the
     last day specified for shipment. In the event that the letter of credit is
     to be advised by facsimile, UTSTARCOM shall cause a written confirmation
     thereof to be air-mailed to SHARP via the advising bank. The said letter of
     credit shall also include stipulations to the following effect:

     In reimbursement to the negotiating bank by the establishing bank, priority
     shall be given to the "debit authorization method" by which the letter of
     credit shall have stipulated as a Reimbursement Instruction the following:

     "we authorize you to debit our account with you at maturity." If the
     foregoing method is not available for some inevitable reason(s), the
     "remittance method" will be acceptable, in which case settlement shall be
     made by Telegraphic Transfer.

     Transfer charge of letter of credit, payment commission, acceptance
     commission, confirming

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

                                       4
<PAGE>

     charge, reimbursement charge, advising charge and amendment charge, if any,
     shall be for the account of UTSTARCOM.

(b)  If UTSTARCOM fails to provide such letter of credit as prescribed in
     paragraph (a) above, SHARP may at its option postpone the time for shipment
     of the SUPPLY PARTS then unshipped or cancel any SALES CONTRACT and resell
     the involved SUPPLY PARTS without incurring any liability to UTSTARCOM on
     the part of SHARP. UTSTARCOM shall be responsible for any loss or damage to
     SHARP caused by such postponement or cancellation or failure to establish
     such letter of credit as provided above.

Article 6. INSPECTION

The SUPPLY PARTS shall be inspected before the shipment thereof by SHARP at its
relevant factory whether in Japan or elsewhere. The inspection executed pursuant
to the provisions of this Article shall be deemed to be final and conclusive in
respect of the quantity, quality, performance and other conditions of the SUPPLY
PARTS and SHARP shall be under no liability or obligation (including incidental
loss, products liability or other consequential loss) whatsoever except for
those specifically provided in Article 8 hereof, for any defect in quality or
performance or shortage in quantity of the SUPPLY PARTS which have passed such
inspection. UTSTARCOM shall not be entitled to reject such inspected SUPPLY
PARTS nor to claim any refund of the purchase price nor to suspend the due and
punctual performance of its obligations hereunder or under the relevant SALES
CONTRACT.

Article 7. SHIPMENT

(a)  Unless otherwise agreed, shipment shall be effected [*] at any Japanese or
     foreign port(s) in one shipment or in installments by any carrier of any
     flag subject to the carrier's space being available. The quantity of each
     shipping lot of the SUPPLY PARTS shall be from time to time determined by
     SHARP.

(b)  The date of Bill of Lading or of similar document(s) shall be deemed to be
     conclusive evidence of the date of such shipment.

Article 8. REMEDY FOR INCOMPLETE SUPPLY OF THE SUPPLY PARTS

(a)  In the event that after inspection executed pursuant to Article 6 hereof
     any defect in quality

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

                                       5
<PAGE>

     or performance of any SUPPLY PARTS which fails to be repaired or recovered
     by UTSTARCOM, HUTS and/or EASTCOM (hereinafter called the "DEFECTIVE
     PARTS") or shortage in quantity is found in respect to any shipping lot of
     the SUPPLY PARTS, and;

     (i)  UTSTARCOM shall have notified SHARP in writing to the foregoing effect
          in reasonable detail within [*] after the date of the arrival of the
          relevant SUPPLY PARTS at the destination specified in the relative
          Bill of Lading, accompanied by documentary evidence satisfactory to
          SHARP showing that such defect or shortage in quantity is the result
          of faulty workmanship or mistake on the part of SHARP, or that such
          defect or shortage in quantity arises from any cause for which SHARP
          is responsible; and

     (ii) UTSTARCOM shall have submitted to SHARP a survey report issued by
          first-class sworn authorized surveyor(s) satisfactory to SHARP as well
          as the report on form established by SHARP for the purpose of
          verification by SHARP or SHARP's representative at EASTCOM's factory,
          within [*] after the request of SHARP so to submit; and

    (iii) the DEFECTIVE PARTS shall have been held by HUTS being retained
          intact for SHARP's inspection for a period of [*] after the
          notification made by UTSTARCOM pursuant to condition (i) above or
          until UTSTARCOM shall have received instructions from SHARP permitting
          UTSTARCOM and/or HUTS to dispose of such DEFECTIVE PARTS, whichever is
          the earlier; and

    (/ /) UTSTARCOM shall have returned the DEFECTIVE PARTS to SHARP, subject
          to the instruction of SHARP set forth in condition (iii) above; and

    (/ /) the sum of the quantity of any individual DEFECTIVE PARTS and/or that
          of the shortage in any individual component, contained in the shipping
          lot of the SUPPLY PARTS which shall have satisfied the foregoing
          conditions (i) through (iv) shall exceed [*] of the total quantity of
          any such individual component contained in each such shipping lot of
          the SUPPLY PARTS;

Then, SHARP shall, as soon as possible after satisfaction of the foregoing
conditions (i) through (v), provide UTSTARCOM free of charge with the
replacement parts or supplementary parts of the relevant SUPPLY PARTS in such
quantity which shall be the balance of the sum set forth in condition (v) above
minus [*] of the total quantity of such individual component contained in such
shipping lot of the SUPPLY PARTS. SHARP shall bear the ocean transportation
charges required for its provision of aforementioned parts.

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

                                       6
<PAGE>

(b)  In the event that UTSTARCOM and/or HUTS fail to satisfy any of the
     conditions (i) through (v) above in accordance therewith, UTSTARCOM shall
     be deemed to have waived all its claims in respect to any defect or
     shortage in quantity of such shipping lot of the SUPPLY PARTS.

(c)  SHARP agrees to pay the transportation charges reasonably incurred by
     UTSTARCOM in respect of sending back the DEFECTIVE PARTS to SHARP pursuant
     to paragraph (a) of this Article. Such payment shall be made by SHARP
     without delay after the conditions (i) through (v) set forth in paragraph
     (a) above shall have been satisfied.

Article 9. STOCK OF SPARE PARTS

(a)  In order to satisfy the orders from UTSTARCOM for repair and replacement
     parts or their interchangeable parts, as the case may be, which shall be
     necessary for HUTS's after-sales service of the PRODUCTS. SHARP shall be
     prepared to supply UTSTARCOM with such parts for each model of the PRODUCTS
     for the period commencing with the date of the latest shipment of the
     relevant SUPPLY PARTS hereunder and ending on such date after the said
     shipment as SHARP deems it reasonable. SHARP may and, if requested by
     UTSTARCOM in writing, shall from time to time designate at its sole
     discretion the length of such period and notify UTSTARCOM of such period.
     UTSTARCOM shall, at least [*] before the termination of such designated
     period, place with SHARP the last order for purchasing such parts for the
     PRODUCTS as may be required for the after-sales service of the relevant
     PRODUCTS during the rest of the life of such relevant PRODUCTS. In the
     event that UTSTARCOM fails to place orders for purchasing such parts with
     SHARP by the time-limit stated above, SHARP's obligations to supply such
     parts under this Article shall cease without any compensation or remedy
     whatsoever to UTSTARCOM.

(b)  In case SHARP determines the discontinuance of any equivalent model to the
     PRODUCTS which results in SHARP's inability to supply the SUPPLY PARTS for
     that model, SHARP shall, at least [*] before the date from which the supply
     of such SUPPLY PARTS becomes unavailable notify UTSTARCOM of such date and
     model of the PRODUCTS. UTSTARCOM shall, within [*] of such notification,
     place with SHARP the last order for purchasing such parts for the PRODUCTS
     as may be required for the after-sales service of the relevant PRODUCTS
     during the rest of the life of the relevant PRODUCTS. Notwithstanding
     anything to the contrary contained herein or in paragraph(b) of this
     Article, in the event that UTSTARCOM fails to place with SHARP orders for
     purchasing any parts of the model of the PRODUCTS in respect of which the
     manufacture is to be discontinued as aforesaid by the time-limit stated
     above, SHARP's obligations to supply such parts shall

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

                                       7
<PAGE>

     cease without any compensation or remedy whatsoever to UTSTARCOM.

(c)  Purchase and supply of the parts set forth in paragraphs(b) and (c) of this
     Article shall, unless otherwise agreed upon by the parties hereto, be made
     in compliance with the relevant terms and conditions of this Agreement,
     provided, however, that SHARP may not reject such orders to the extent that
     the assortment and quantity of such parts are then available to be supplied
     by SHARP.

(d)  If SHARP deems it necessary or advisable to provide technical information
     to UTSTARCOM for assembly and manufacture of the PRODUCTS by using the
     SUPPLY PARTS or for after-sales service, sales promotion or the like of the
     PRODUCTS, SHARP will do so after consultation with UTSTARCOM subject always
     to any necessary license requirements or permission of relevant government
     authorities.

Article 10. DURATION OF AGREEMENT

This Agreement shall be deemed to have been come into force on the 1st day of
December, 1999 retroactively, and unless earlier terminated in accordance with
the provision hereof or otherwise shall continue in force and effect until and
including the [*]. It is understood by the parties hereto that this Agreement
shall be, either automatically or with amendment or modification (if any),
renewed hereafter on a [*] basis, unless either of the parties hereto gives to
the other party at least [*] prior written notice to terminate this Agreement
before the expiration of the initial term or any extended term of this
Agreement. If such prior written notice is made by either party, then this
Agreement shall terminate on the initial or, as the case may be, duly extended
expiration date of this Agreement.

Article 11. TERMINATION

(a)  In the event of the occurrence of any of the following events to either
     SHARP or UTSTARCOM (including HUTS and/or EASTCOM, as the case may be, for
     the purpose of this Article), the other party may forthwith terminate this
     Agreement by sending a written notice to the first party by registered
     airmail:

     (i)  If either party continues in default of any material obligation
          imposed on it herein, in any SALES CONTRACT or any other agreement
          concluded hereunder or thereunder or in connection herewith or
          therewith for more than two (2) months after written notice has been
          despatched by registered airmail by the other party requesting the
          party in default to

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

                                       8
<PAGE>

          remedy such default;

     (ii) If either party hereto is subjected to compulsory execution, public
          auction, coercive collection for its arrearage of taxes or public
          imposts, or suspension of business by public authorities, or
          appointment of any receiver or trustee of itself or any substantial
          portion of its property, or if an application or petition is submitted
          for bankruptcy, corporate arrangement or commencement of corporate
          reorganization, or if either party hereto files voluntarily against it
          an application or petition for bankruptcy, corporate arrangement or
          commencement of corporate reorganization or composition, or if either
          party hereto adopts a resolution for discontinuance of its business or
          for a substantial decrease of its capital or for dissolution or merger
          into another company, or makes general assignment for the benefit of
          creditors or if either party hereto becomes unable to pay debts, or if
          either party is declared in default of any material contract between
          it and any third party and any such contract is cancelled or its
          payment obligation under such contract is accelerated (All the
          foregoing shall include the likeliness of each occurrence in the
          reasonable opinion of the other party);

    (iii) If, due to any substantial change in ownership, management or
          effective control of either party or in the objects of the company
          stated in the Memorandum of Association or Articles of Incorporation
          or a similar document of either party, (1) there exist, or in the
          reasonable opinion of the other party there is any ground to suspect
          the existence of, any obstacles to the effective continuance of this
          Agreement or any SALES CONTRACT, or (2) there occurs a situation which
          on the reasonable opinion of the other party would be detrimental to
          its interests; or

    (/ /) If the TCA is terminated or expired for any reason; or

     (v)  If there is any other cause justifying either party to terminate this
          Agreement, such as material and irreparable injury to goodwill or
          reputation of the other party, commission by other party of a fraud on
          or betrayal of confidence in or criminal act against the first party,
          disclosure or divulgence by the other party of the first party's
          confidential information.

(b)  Except as otherwise specifically provided elsewhere in this Agreement any
     termination of this Agreement shall be without prejudice to any right and
     remedy which shall have accrued to either party under or in connection with
     this Agreement or the SALES CONTRACT prior to such termination.

(c)  Notwithstanding the provisions specified in this Article, unless this
     Agreement is terminated by a cause or causes which SHARP deems attributable
     to UTSTARCOM, UTSTARCOM

                                       9
<PAGE>

     may dispose of the SUPPLY PARTS in the TERRITORY which UTSTARCOM have on
     hand at the time of termination of this Agreement within such a reasonable
     period of time as may be agreed upon by the parties provided that such
     disposal is made without impairing SHARP's reputation in the TERRITORY.

Article 12. COMPENSATION FOR DAMAGES

(a)  In the event that either party defaults in the due performance of its
     obligations hereunder, under any SALES CONTRACT or under any other
     agreement made pursuant to or in connection with this Agreement or any
     SALES CONTRACT, or in the event that this Agreement or SALES CONTRACT is
     terminated or cancelled pursuant to paragraph (a) of Article 12 hereof, or
     any other provisions contained herein or therein, then the other party or
     the party dispatching a notice of termination or cancellation pursuant to
     relevant provisions contained herein or therein (collectively the "Affected
     Party") may demand compensation from the first party for the losses,
     damages, incurred or sustained by the Affected Party as a result of any
     such default, termination or cancellation.

     The foregoing provisions of this Article shall not prejudice the right of
     the Affected Party to extend the time for performance of any of its
     obligations hereunder or under any SALES CONTRACT to the extent of the
     duration of such default of the other party or to cancel any SALES CONTRACT
     in respect of which the performance of any terms is then in default.

(b)  UTSTARCOM shall defend, indemnify and hold harmless SHARP from and against
     any and all actions, claims, demands, suits, losses, damages, costs,
     expenses and judgements (including attorney's fee thereof) by whomever
     made, brought or prosecuted and in any manner based upon, arising out of,
     related to, occasioned by or attributable to any breach by UTSTARCOM and/or
     HUTS of any provisions of this Agreement or any act or omission by
     UTSTARCOM, its employees or agents in the performance thereof.

(c)  SHARP shall defend, indemnify and hold harmless UTSTARCOM from and against
     any and all actions, claims, demands, suits, losses, damages, costs,
     expenses and judgements (including attorney's fee thereof) by whomever
     made, brought or prosecuted and in any manner based upon, arising out of,
     related to, occasioned by or attributable to any breach by SHARP of any
     provisions of this Agreement or any act or omission by SHARP, its employees
     or agents in the performance thereof.

(d)  Without prejudicing the right of SHARP to terminate or cancel this
     Agreement and/or any SALES CONTRACT and any other rights and remedies of
     SHARP contained herein or in

                                       10
<PAGE>

     any SALES CONTRACT, if the SUPPLY PARTS are not shipped on the shipping
     date specified in the relevant SALES CONTRACT due to any cause whatsoever
     due to UTSTARCOM, including, without limitation, delay in or repudiation of
     taking delivery of such SUPPLY PARTS or delay in performance of the
     obligations of UTSTARCOM hereunder or under such SALES CONTRACT, UTSTARCOM
     shall pay SHARP an overdue interest at the rate of [*] per annum of (i) the
     full amount of the price of the relevant SUPPLY PARTS specified in such
     SALES CONTRACT, accruing from and including such shipping date to and
     including the actual shipping date or the date on which such SALES CONTRACT
     is cancelled by SHARP hereunder, whichever date is applicable and (ii) the
     losses, damages and expenses incurred or suffered by SHARP due to said
     cancellation of the SALES CONTRACT, accruing from and including such
     cancellation date to and including the date of actual payment by the
     UTSTARCOM of said losses, damages and expenses.

(e)  In any event, the parties hereto each disclaim any and all liability for
     special, incidental, or consequential damages (including loss of profit)
     relating to the terms and conditions of this Agreement.

Article 13. ASSIGNMENT

Neither party shall assign, transfer or otherwise dispose of this Agreement in
whole or in part or any right or obligation hereunder to any individual, firm or
corporation without the prior consent of the other party in writing.

Article 14. NOTICES

(a)  Except as otherwise provided herein all notices to be given or made under
     this Agreement shall be in writing and sent by registered air-mail and
     addressed to the principal office of the parties as indicated hereinabove
     or to such other address as either party may hereafter furnish to the other
     party in writing.

(b)  All notices shall be deemed to have been given or made on the day of
     despatch.

Article 15. ENTIRE AGREEMENT

This Agreement constitutes the entire and only agreement between the parties
hereto as to the subject matter contained herein and supersedes all previous
understandings, commitments and

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

                                       11
<PAGE>

agreements whether oral or written relating to the subject matter hereof, and no
modification, amendment or supplement of this Agreement shall be binding upon
the parties hereto except by mutual express written consent of subsequent date
signed by authorized representative or officer of each of the parties hereto.

Article 16. EXCEPTIONS

(a)  SHARP shall not be liable for any delay in shipment or delivery,
     non-delivery or destruction or deterioration, of all or any part of the
     SUPPLY PARTS or for any other default in performance under this Agreement
     or any SALES CONTRACT, which arises from any lockout, strike, labor trouble
     or other industrial disturbance, inevitable accident, export cartel by
     governmental authorities or industry or trade association of whatever
     nature to limit its export of the SUPPLY PARTS, fire, explosion,
     transportation difficulty, materials or labor shortage, SHARP's
     subcontractor's or supplier's suspension or inability of or delay in
     production or shipment of the SUPPLY PARTS, or from any cause beyond the
     control of SHARP, including without limitation, war, blockade, embargo,
     mobilizations, governmental, administrative or public direction or guidance
     or order of any country including any reasonably anticipated direction or
     guidance or order thereof, legal restriction imposed in any country
     including any reasonably anticipated restriction thereof, riot, civil
     commotion, warlike condition, prolonged failure or shortage of electric
     power, gas, or oil, epidemic, earthquake, flood, typhoon, or other Act of
     God.

(b)  In the event of any delay or failure due to cause or causes given in the
     preceding paragraph (a), SHARP shall send by facsimile, e-mail or otherwise
     a written notice stating the reason therefor to UTSTARCOM as promptly as
     possible. The performance of SHARP shall be deemed suspended as long as,
     and to the extent that, any such cause(s) continue, but this Agreement
     and/or any SALES CONTRACT then executory shall not be regarded as
     terminated, frustrated or cancelled simply as a result of such delay or
     failure and the parties hereto shall continue once more with its
     performance when the cause or causes of such delay or failure have ceased
     or have been eliminated, provided, however, that if such delay or failure
     extends or is reasonably anticipated to extend for a period of more than
     three(3) months, SHARP may without any liability on its part terminate or
     cancel this Agreement and/or the said SALES CONTRACT by sending a written
     notice to UTSTARCOM to the extent that SHARP's performance has been
     prevented or delayed.

Article 17. ARBITRATION

Any dispute arising from the execution of, or in connection with, this Agreement
shall be settled

                                       12
<PAGE>

through friendly consultation between the parties. If the dispute cannot be
settled within sixty (60) days from the first date of consultation, the dispute
shall be settled by arbitration consisting of three (3) arbitrators. Arbitration
shall be held in San Francisco, California under the International Arbitration
Rules of the American Arbitration Association if initiated by SHARP, and shall
be held in Osaka, Japan under the Commercial Arbitration Rules of the Japan
Commercial Arbitration Association if initiated by UTSTARCOM. The award rendered
by the arbitration shall be final and binding upon the parties and may be
entered by any court having jurisdiction.

Article 18. GOVERNING LAW & TRADE TERMS

(a)  It is mutually agreed that the terms of this Agreement and the performance
     hereunder shall in all respects be governed, construed and interpreted in
     accordance with the laws of Japan, excluding its provisions regarding
     conflict of laws.

(b)  If and to the extent applicable the trade terms used in this Agreement
     shall have the meaning given to such terms in the International Commercial
     Terms (Incoterms 1990).

Article 19. MISCELLANEOUS

(a)  SEPARABILITY: The parties hereto agree that, in the event of one or more of
     the provisions hereof being subsequently declared invalid or unenforceable
     by court or administrative decision, such invalidity or unenforceability of
     any of the provisions shall not in any way affect the validity or
     enforceability of any other provisions hereof except those which the
     invalidated or unenforceable provisions comprise an integral part of or are
     otherwise clearly inseparable from such other provisions.

(b)  WAIVER: A waiver by a party hereto of any particular provision hereof shall
     not be deemed to constitute a waiver in the future of the same or any other
     provision of this Agreement.

(c)  EXPENSES: Unless otherwise expressly agreed herein, in the SALES CONTRACT
     or otherwise in writing by the parties hereto, each party shall bear all
     losses, damages, liabilities, expenses and disbursements incurred or made
     by itself or any other investment made by itself in connection with or in
     pursuance of this Agreement or any SALES CONTRACT, and neither party shall
     be entitled to compensation or remedy of any kind whatsoever from the other
     party for the said losses, damages, liabilities, expenses, disbursements or
     investment whether on termination of this Agreement or any SALES CONTRACT
     for any reason whatsoever or otherwise unless otherwise expressly agreed
     upon in writing by the other party.

                                       13
<PAGE>

(d)  TITLE: The Article titles in this Agreement have been inserted for
     convenience only and shall in no way be used in the interpretation hereof.

(e)  GUARANTEE OF HUTS AND EASTCOM: UTSTARCOM hereby unconditionally guarantees
     to SHARP the due and punctual performance by HUTS and/or EASTCOM of all the
     material terms and conditions of this Agreement to be performed by HUTS
     and/or EASTCOM hereunder, and indemnifies and holds SHARP harmless from and
     against any damages, costs, expenses and other liabilities incurred by
     SHARP by reason of failure of HUTS and/or EASTCOM to fully perform and
     comply with the material terms and conditions of this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed
by their respective representatives or officers duly authorized thereunto as of
the date first above written.

SHARP CORPORATION                                UTSTARCOM INC..

BY:                                              BY:
   -----------------------------------------        ---------------------------
Name:   Sueyuki Hirooka                            Name:   Hong Liang Lu
Title:  Corporate Senior Executive Director        Title:  President & Chief
        & Group General Manager of                         Executive Officer
        International Business Group

                                       14

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