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                                                                    Exhibit 10.1

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.

                         MANUFACTURING LICENSE AGREEMENT

THIS AGREEMENT DATED THIS           DAY OF           1999 IS MADE

BETWEEN:

HIMACHAL FUTURISTIC COMMUNICATIONS LTD, a company incorporated under the
Companies Act, 1956, having its principal office at No. 8, Commercial Complex
Masjid Moth, Greater Kailash II, New Delhi 110048, India (hereinafter referred
to as "HFCL"), which expression shall unless repugnant to the context or meaning
hereof, mean and include its successors and permitted assigns of the one Part;

AND

UTSTARCOM, INC. a company established under laws of Delaware in the United
States of America, having its principal office at 1275 Harbor Bay Parkway, Suite
100, Alameda, California 94502, USA (hereinafter referred to as "UTStarcom"),
which expression shall unless repugnant to the context or meaning hereof, mean
and include its successors and permitted assigns of the other Part.

HFCL and UTStarcom are hereinafter collectively referred to as the "Parties",
and individually as a "Party".

WHEREAS:

A.   UTStarcom designs, develops, manufactures, markets and sells digital loop
     carriers, including the Product, (hereinafter defined);

B.   HFCL is in the business of manufacturing and supplying telecommunications
     equipment and wishes to manufacture and distribute the Product;

C.   HFCL wishes to offer the Product as part of its bid in response to a tender
     which the Department of Telecommunications (the "DOT") has issued for
     Tender No. [*] dated 9th July 1999 for the supply of [*] (the "Tender").

D.   HFCL wishes to obtain from UTStarcom a license to manufacture and sell the
     Product in India to DOT pursuant to the award by DOT to HFCL of the Tender;

E.   UTStarcom is willing to license to HFCL the right to manufacture the
     Product in India for sale in India to DOT pursuant to the award by DOT to
     HFCL of the Tender;

F.   HFCL has explained to UTStarcom the need to manufacture the Product [*]
     in order to be competitive; 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.

                         HFCL and UTStarcom Confidential

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G.   The Parties intend that with respect to manufacturing the Product [*] HFCL
     will require to obtain components and material from local sources and other
     direct sources wherever possible.

For valuable consideration, including the mutual promises contained in this
Agreement, the Parties agree to the following terms and conditions:

1.   DEFINITIONS

Unless the context otherwise requires, the following expressions shall have the
following respective meanings, and terms defined in the text of this Agreement
shall have the meanings respectively indicated:

1.1. "AGREEMENT" shall mean this Agreement between HFCL and UTStarcom including
any and all appendices attached to this Agreement.

1.2. "EFFECTIVE DATE" mean the later of:

     (A) the date of this Agreement, and

     (B) the date on which all consents, licenses, permits and approvals of any
relevant governmental or non-governmental agency or body necessary or
recommended by counsel to consummate the transactions contemplated in this
Agreement have been obtained, released or issued, as the case may be.

1.3. "IMPROVEMENTS" means:

     (a) all information, of a nature similar to the Technical Information, that
UTStarcom acquires or puts into use during the term of this Agreement for
purposes of manufacturing the Product ("UTStarcom Improvements"); and

     (b) all information of a nature similar to the Technical Information that
HFCL devises or develops in connection with or for purposes of manufacturing the
Product including improvements in terms of Section 6.8 below ("HFCL
Improvements").

1.4. "PRODUCT" means the [*] as more fully described in Exhibit A.

1.5. "TECHNICAL INFORMATION" means such designs, drawings, specifications and
other information that UTStarcom uses for the purposes of manufacturing the
Product, including written documentation and unwritten know-how used by
UTStarcom in the assembly, manufacture, testing, sale, use and maintenance of
the Product, as more fully described in Exhibit B.

1.6. "TERRITORY" shall mean [*].

2.   TECHNICAL INFORMATION

2.1. UTStarcom shall, on a time scale mutually agreed by the Parties and
commensurate with the reasonable requirements of HFCL in that behalf, within [*]
of signing this agreement, begin to supply to HFCL such Technical Information as
is reasonable in the opinion of UTStarcom necessary to enable HFCL to assemble
the Product at HFCL's plant(s)

[*] * 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.

                         HFCL and UTStarcom Confidential

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in the Territory. Both HFCL and UTStarcom will work together to complete the
transfer of Technical Information in a timely manner.

2.2. UTStarcom shall not be obliged to make any alterations to any document,
extract or copy which it supplies hereunder as part of the Technical Information
or in relation to any UTStarcom Improvement.

2.3. HFCL shall use the Technical Information, know-how and UTStarcom
Improvements only for the manufacture of the Product and only pursuant to award
of the Tender to HFCL by DOT, at the manufacturing plant of HFCL in the
Territory and shall not use any Technical Information, know-how or UTStarcom
Improvements in any manner or for any other purpose not expressly authorized by
this Agreement. HFCL shall not part with or dispose of, whether by sale,
transfer, gift or other disposition, any Technical Information, know-how or
UTStarcom Improvements except as expressly and previously permitted by UTStarcom
in writing.

2.4. In the event that [*] deficiency, inaccuracy, error or other defect
shall [*] become apparent in any Technical Information so supplied by
UTStarcom, UTStarcom shall, upon receiving a written request from HFCL,
promptly use all reasonable endeavors to make and supply the appropriate
corrections.

2.5. If, within [*].

     (a) of executing this Agreement; the DOT has not awarded HFCL the contract
to supply products pursuant to the Tender; and

     (b) from the date of being awarded the contract to supply products pursuant
to the Tender, HFCL does not commence the manufacturing of the Product;

then UTStarcom shall have the right to deem this Agreement terminated, effective
upon UTStarcom giving written notice to HFCL. Upon receiving such notice, HFCL
shall, in addition to its obligations and liabilities under Sections 12.3, 12.4
and 12.6 of this Agreement and its obligation to pay the technology license fee
in accordance with the terms of this Agreement, cease using and shall have no
right to use any of the Technical Information, know-how and UTStarcom
Improvements.

2.6. Notwithstanding Section 2.5(b), UTStarcom may in its absolute discretion
allow HFCL a reasonable extension to commence manufacturing the Product of up to
[*] term if the failure to start manufacturing the Product arises from a force
majeure or is substantially caused by UTStarcom's failure to provide the
Technical Information in a timely manner, unless such failure on the part of
UTStarcom is attributable to an act or omission of HFCL or is directly caused by
any reason substantially attributable to the DOT.

2.7. The Parties acknowledge that except as specifically licensed to HFCL under
this Agreement, UTStarcom owns or has licenses to, to the exclusion of HFCL, all
rights, title and interest in the Technical Information, UTStarcom Improvements
and the Product, as they exist now and as they may exist in the future, and in
all related know-how and all software that may be provided by UTStarcom as part
of or in connection with the Technical Information, know how or UTStarcom
Improvements for the manufacture of the Product. HFCL warrants that its use of
any of the Technical Information, know-how or UTStarcom Improvements for
manufacture of the Product shall not directly or indirectly create in or for
HFCL any right, title or interest in such Technical Information, know-how or
UTStarcom Improvements, except as expressly specified in this Agreement.

[*] * 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.

                         HFCL and UTStarcom Confidential

<PAGE>

3. IMPROVEMENTS.

3.1. For [*] after the Effective Date, subject to grant of appropriate export
licenses in the United Stated of America, UTStarcom shall supply HFCL with
Technical Information relating to UTStarcom Improvements that are actually
incorporated by UTStarcom into the Product. Upon request and at the expense of
HFCL, UTStarcom shall furnish engineering personnel to provide the know-how to
allow HFCL to obtain the benefits of the UTStarcom Improvements, upon terms and
conditions to be mutually agreed to in writing. All information contained in
UTStarcom Improvements, including the related know-how, when provided pursuant
to such mutual agreement, shall become a part of the Technical Information.

3.2. Section 3.1 does not apply to [*] products or to [*] options, or [*]
redesigns, modifications, enhancements or refinements to or for the Product.

4.   TECHNICAL ASSISTANCE; QUALITY CONTROL; VISITS

4.1. UTStarcom shall, at HFCL's request and prepayment of all applicable charges
and expenses [*] and subject to the availability of UTStarcom personnel, take
all reasonable steps to arrange for UTStarcom engineers and technicians, as
appropriate, to work at the plant in India where HFCL will manufacture the
Product, to establish and bring into operation the manufacturing processes of
the Product and to train HFCL personnel, as may be required by HFCL in
connection with the execution of the Tender. UTStarcom shall determine in its
sole discretion the number, identity and level of expertise of the personnel
required to provide technical assistance to HFCL, and HFCL shall obtain all
necessary prior approvals, including all immigration permits and authorizations,
from the Government of India for UTStarcom engineers and technicians to visit
the plant and shall pay UTStarcom in accordance with UTStarcom's standard
charges then in effect for such services.

4.2. For the purpose of familiarizing HFCL's staff with the methods used by
UTStarcom in relation to the manufacture of the Product, HFCL shall be entitled
during the first one year of this Agreement, on request, but in each case at a
time reasonably convenient to UTStarcom, and subject to payment of UTStarcom's
standard charges then in effect for such services, to send suitably qualified
employees of HFCL, not exceeding two in number, to UTStarcom's facilities for
visits not exceeding in the aggregate 30 man days per annum. HFCL shall be
responsible for all such employees [*] in connection therewith. HFCL shall
indemnify UTStarcom from all damages, losses, claims and expenses of any nature
whatsoever arising from any deliberate act or omission of HFCL's personnel while
with UTStarcom for the purpose of such training. Additionally, HFCL shall cause
all such personnel to execute and abide by any and all confidentiality
agreements and other requirements that UTStarcom may reasonably request.

4.3. All information communicated by UTStarcom to HFCL pursuant to Sections 4.1
and 4.2 shall constitute Technical Information of UTStarcom and HFCL shall keep
all such information confidential as is required by Article 5, whether or not
elsewhere described and whether or not summarized in writing and given by
UTStarcom to HFCL.

[*] * 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.

                         HFCL and UTStarcom Confidential

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4.4. HFCL shall procure all necessary approvals, licenses, no objection
certificates, sanctions, permits, permissions, waivers, certificates, consents,
and other such items from the concerned governmental authorities as are required
under law or reasonably recommended by UTStarcom's counsel, including as may be
required under the Environmental Protection Act, Factories Act and other such
laws, to enable HFCL to manufacture the Product in accordance with this
Agreement. In manufacturing the Product, HFCL shall observe all applicable laws
in the Territory with respect to manufacturing, labeling and installation of the
Product.

4.5. UTStarcom shall have the right, at its own cost and on reasonable prior
notice to HFCL, to inspect HFCL's premises and the premises of any of HFCL's
permitted sub-contractors from time to time engaged in assembling or testing of
the Product or any parts or components of the Product, for purposes of reviewing
the quality of the HFCL's manufacturing process and of the end product. If at
any time UTStarcom determines that HFCL's process or the end product does not
conform to UTStarcom's requirements, it shall so inform HFCL. Upon receiving
notice of such non-conformance, HFCL shall take all steps required to cause its
processes and the end products to conform to UTStarcom's requirements and
provide a written undertaking to UTStarcom of such compliance.

4.6. HFCL undertakes to conform to UTStarcom's quality standards. In order to
ensure HFCL's compliance with UTStarcom's quality standards, qualitative
specifications, descriptions and directions specified by UTStarcom from time to
time, in relation to the manufacture of the Product. HFCL undertakes to
manufacture the Product in accordance with the Technical Information provided,
the applicable laws of the Territory and as per standards and procedures that
are equivalent to that maintained by UTStarcom in its own manufacture of the
Product. HFCL shall make no change or alteration in the Product manufactured
without the prior written consent of UTStarcom. UTStarcom reserves the right to
access into and inspect the premises of HFCL and of any subcontractors in order
to ascertain that the quality of the Product meets UTStarcom's quality
standards. Upon request of UTStarcom or UTStarcom's designated agents, HFCL
shall furnish UTStarcom with information and copies of documents necessary for
UTStarcom to give UTStarcom assurance that the Product is manufactured using the
Technical Information and know-how in accordance with this Agreement and in
compliance with applicable laws.

4.7. HFCL shall implement such information or regulations as UTStarcom consider
necessary to ensure conformity to UTStarcom's quality standards and to impose
corrective actions as deemed necessary.

5.   CONFIDENTIALITY

5.1. UTStarcom discloses the Technical Information, know-how and UTStarcom
Improvements (in this Article collectively referred to as "Confidential
Information") to HFCL pursuant to this Agreement solely on a confidential basis,
conditioned upon HFCL not disclosing any portion of the Confidential Information
to any third party, except to the extent such Confidential Information is needed
by customers of HFCL for use, maintenance or repair of the Product. Disclosure
of any Confidential Information to any officer, director, consultant or employee
of HFCL for the manufacture of the Product will be on "as needed basis" subject
to the execution of a non-disclosure agreement with every such person. HFCL
shall Use the Confidential Information only for the assembly, manufacture,
testing, repair, marketing, sale and

                         HFCL and UTStarcom Confidential

<PAGE>

use of the Product strictly in accordance with the terms of this Agreement and
for no other purpose.

5.2. HFCL undertakes that it will keep the Confidential Information communicated
to it by UTStarcom confidential.

5.3.

The obligations of HFCL with respect to the Confidential Information shall not
apply to any information which,

         (a) is already in HFCL's possession at the date of first communication
by UTStarcom and HFCL can reasonably demonstrate that it was in its rightful
possession at the date of first communication by UTStarcom;

         (b) is now or, in the future becomes public knowledge otherwise than by
reason of any breach of this Agreement by HFCL; or

         (c) is received by HFCL from any other person in good faith, and who
has no restriction with respect to disclosing such Confidential Information.

5.4. All documents and extracts comprising or containing Technical Information
and Improvements, including the copyright therein (under the common law of the
United States or otherwise), shall be and remain the property of UTStarcom, and
HFCL shall not in any way reproduce such material.

5.5. The provision of confidentiality shall remain into force for a period of
[*] after expiration or termination of this Agreement.

5.6. HFCL understands that disclosure of the Confidential Information may
irreparably harm UTStarcom. In the event of breach or threatened breach of
obligations pertaining to Confidential Information, UTStarcom shall be entitled
to seek injunctive relief and any other remedy available at law or equity.

6.   LICENSES

In consideration of the performance of the Parties respective obligations herein

6.1. UTStarcom hereby grants to HFCL a [*] license to use the Technical
Information to assemble, manufacture, and test the Product in the Territory to
DOT only sufficient to fulfill the requirements of the Tender.

6.2. UTStarcom hereby grants to HFCL the [*] license to use, sell, lease,
install, maintain and repair the Product in the Territory to DOT only sufficient
to fulfill the requirements of the Tender.

6.3. UTStarcom hereby grants to HFCL the license to assemble, manufacture, test,
use, sell, lease, install, maintain and repair, in accordance with Sections 6.1
and 6.2, the Product under the Patents owned or controlled by UTStarcom and
under which the UTStarcom has the right to grant such a license.

6.4. UTStarcom hereby grants to HFCL the license to print, copy and distribute
User Documentation in paper, electronic or CDROM media in the Territory to DOT
only sufficient to fulfill the requirements of the Tender.

[*] * 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.

                         HFCL and UTStarcom Confidential

<PAGE>

6.5. To the extent any of the licenses described in Sections 6.1, 6.2 or 6.3
include software of any nature, the right granted with respect to such software
shall be a non-exclusive license solely with respect to the object code of such
software to sublicense such software only to DOT and only sufficient to fulfill
the requirements of the Tender for use with the Product in the Territory. In
granting this license to HFCL, UTStarcom does not in any way grant any ownership
interest in software referred to in Section 6.4 and does not grant any interest
to utilize, discover or in any way obtain the source code or any human
perceivable version of any such software. UTStarcom reserves all rights not
expressly granted under this Agreement by UTStarcom to HFCL.

6.6. The license and rights granted as above in Sections 6.1, 6.2 and 6.3 shall
at all times be subject to the terms and conditions of this Agreement, shall be
limited to the sole extent required for the purpose for which they are granted
and shall remain in effect only as long as HFCL fully complies with the terms
and conditions of this Agreement.

6.7. Nothing in this Agreement or related to the relationship described in this
Agreement shall in any way restrict UTStarcom from manufacturing, marketing,
distributing or selling or granting to any one else the right to manufacture,
maintain or sell, the Product in India or in any other country, whether or not
the product of any such other person shall come to be manufactured, sold or used
in India.

6.8. HFCL shall not, and shall require and ensure that DOT does not, reverse
compile, reverse engineer, reverse assemble or otherwise attempt in any way to
obtain or create any source code or other humanly perceivable version of the
software. HFCL shall require its customers to enter into such sublicenses with
its customers which shall include, among other things, provisions to safeguard
and keep secret UTStarcom's know-how, Technical Information and all software and
which shall contain such of the terms and conditions as may be agreed from time
to time by UTStarcom and HFCL. In addition, HFCL shall supply or include
UTStarcom's intellectual property notices in all copies made of all of UTStarcom
supplied software. HFCL shall at all times remain fully responsible and jointly
and severally liable under this Agreement with respect to every breach of any
term of any sublicense granted to any HFCL customer and shall hold UTStarcom
harmless and indemnified for every such breach or violation.

6.9. HFCL shall inform UTStarcom immediately upon the creation of any perceived
or actual modification, improvement or other change to the Product or to the
Technical Information conceived, developed, modeled or in any way worked on by
HFCL or any agent, representative, contractor or employee of HFCL (an "HFCL
Improvement").

6.10. HFCL hereby assigns, transfers and coveys to UTStarcom all rights, title
and interest in every HFCL Improvement, and UTStarcom hereby grants to HFCL, and
HFCL accepts, a license, identical in terms to the license that UTStarcom grants
to HFCL pursuant to this Agreement with respect to the Technical Information, to
all HFCL Improvements. HFCL shall take all such further acts and execute and
deliver to UTStarcom all such instruments as may be required, or reasonably
recommended by counsel, to perfect, register or enforce UTStarcom's ownership of
the rights conveyed under this Section 6.9 or to carry out the intent and
purpose of this Agreement.

6.11. Except as specifically permitted by this Agreement or in writing signed by
UTStarcom, HFCL shall not, and shall not have the right to, utilize
sub-contractors for the purposes of assembling or testing the Product.

                         HFCL and UTStarcom Confidential

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6.12. This Agreement does not grant any right to HFCL, and HFCL shall have no
right, interest or title to use the trademark "UTStarcom" or any other
trademark, trade name, design or logo of UTStarcom, except that HFCL may use the
printed and unstylized name, "UTStarcom, Inc." for the limited use required by
Section 6.12. Furthermore, HFCL shall not use any trademark, trade name, design
or logo that may be confusingly similar to any of the trademarks, trade names,
designs or logos of UTStarcom, nor shall HFCL take any action that would in any
way be detrimental to UTStarcom's rights and ownership in such trademarks, trade
names, designs and logos.

6.13. HFCL shall include written notices in all advertising literature, sales
brochures and the like, as well as on the Product, to the affect that the
Product "is manufactured under license from UTStarcom, Inc.".

7.   CONSIDERATION.

7.1. HFCL shall purchase from UTStarcom all application specific integrated
circuits, (ASIC) or field programmable gate arrays (FPGAs) that HFCL
incorporates into a Product, in accordance with the pricing in Exhibit "A" and
terms of Exhibit "C."

7.2. HFCL shall obtain from UTStarcom a [*] license to utilize the network
management system software (the "NMS") for every Product manufactured by HFCL,
in accordance with the pricing in Exhibit "A" and terms of Exhibit "D". It is
expressly agreed that HFCL will not, [*].

7.3. HFCL shall be responsible for applying for and obtaining all approvals
required for remitting to UTStarcom all payments to be made under this
Agreement, including Reserve Bank of India approval, if required. HFCL shall use
all reasonable diligence and expediency to obtain all required approvals for
remitting to UTStarcom all payments to be made under this Agreement. If HFCL is
unable to obtain any required approval including Reserve Bank of India for
remitting payments to UTStarcom in terms of this Agreement or if such approval
is not forthcoming within [*] of HFCL being awarded the Tender by DOT, then this
Agreement shall terminate in terms of Section 12.2(f) and the provisions of
Sections 12.3, 12.4 and 12.7 shall apply.

7.4. Within [*] of the end of each [*] during the term of this Agreement and
thereafter for as long as permitted by the Reserve Bank of India or any other
regulatory authority of India, HFCL shall deliver to UTStarcom a statement of
accounting for all Product sales.

7.5. HFCL shall make all payments under this Agreement [*] to UTStarcom for any
reimbursement, contribution or indemnity. Notwithstanding its obligations
pursuant to the prior sentence, if any income or other similar tax is levied by
the Government of India upon:

         (A) any fee or other amount to be paid by HFCL to UTStarcom; or

         (B) UTStarcom with respect to any such fee or other amount, or

if any tax is required by the Government of India to be paid by UTStarcom or
withheld by anyone paying to UTStarcom, whether as the result of any payment
under this Agreement or any characterization by the Government of India of any
payment due under this Agreement,

[*] * 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.

                         HFCL and UTStarcom Confidential

<PAGE>

then, [*].

7.6. HFCL shall indemnify and hold UTStarcom harmless from any liability with
respect to any tax, including all taxes levied on this Agreement, duties, levies
or other fees of any kind whatsoever, which become payable as a consequence of
this Agreement, inside the Territory.

7.7. UTStarcom shall be responsible for taxes on its net income arising in the
United States as a result of its providing the Technical Information and
assistance in connection with this Agreement.

7.8. The Parties acknowledge that all payments set forth in this Agreement are
not based entirely upon the trade secret nature of the Technical Information or
the anticipation of patent protection, but also reflect the value of [*].

7.9. All payments from HFCL to UTStarcom shall be in [*].

7.10. HFCL shall keep and maintain all appropriate records including records of
every Product manufactured in such form and manner that all payments payable
under this Agreement to UTStarcom may be readily and accurately determined. Such
records shall include, without limitation, all information necessary for HFCL's
auditors to prepare the reports provided for in this section. At all times
during and for [*] after the termination of this Agreement, UTStarcom shall have
the right, [*] to retain independent auditors to review HFCL's records with
respect to every Product manufactured to verify the accuracy of the statements
provided and amounts paid pursuant to this Article 7. If the auditors find an
overpayment or an underpayment, the difference shall be accounted for in the
subsequent statement of accounting and payment. If the auditors determine that
HFCL has not maintained sufficiently appropriate records to conduct a
determinative audit, HFCL shall, in addition to payment of the underpaid amount,
become immediately obligated to pay UTStarcom [*] of the amount, which the
auditors, in their best judgment, determine is the likely amount that HFCL owes
to UTStarcom for all of the periods in question. If the auditor's review
verifies an underpayment in excess of [*] of the amount payable for any [*]
period under review, or if the auditors determine that HFCL has not maintained
sufficiently appropriate records, HFCL shall pay [*].

8.   COLLATERAL SUPPLIES.

To the extent necessary to support HFCL in its manufacturing activity, UTStarcom
undertakes, subject to UTStarcom's availability and the parties' agreement on
terms, reasonably to supply HFCL with assembly, and testing tools, equipment and
parts, as the parties determine separately in writing. Except as may be
expressly provided in such other written agreement [*].

9.   NOVATION; ASSIGNMENT.

[*] * 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.

                         HFCL and UTStarcom Confidential

<PAGE>

This Agreement is personal to HFCL and HFCL shall not have any right to dispose
in any way, by lease, transfer, novation or assignment, partially or totally,
any license granted to it under this Agreement, to any third person, in form of
a sub-license or any other form, unless previously authorized in writing by
UTStarcom. Any attempted assignment or delegation in violation of this Article 9
shall be void.

10. PATENTS MARKING.

10.1. UTStarcom shall not be liable to indemnify HFCL against any loss sustained
by it as the result of any claim made, or any action brought by, any third party
for infringement of any letters, patent, registered design, or like instrument
of privilege by reason of the manufacture, assembly, use or sale by HFCL of the
Product using the Technical Information, the Improvements or any other
information supplied or to be supplied to HFCL pursuant to this Agreement. If
any such claim is brought against HFCL, UTStarcom shall take all reasonable
steps to provide HFCL with copies of UTStarcom's documentation to assist HFCL in
defending itself under such claim. UTStarcom confirms that all intellectual
property rights for proprietary software developed by UTStarcom is held by
UTStarcom, except to the extent licensed such as pursuant to this Agreement.

10.2. UTStarcom shall not be bound to take legal proceedings against any third
party in respect of any infringement of letters, patent, registered design or
like instrument of privilege which may now or at any future time be owned by it.

10.3. HFCL shall indemnify and hold UTStarcom, its shareholders, directors,
officers, employees, agents and affiliated companies harmless from and against
all losses, costs, expenses and damages, including reasonable attorneys' fees,
resulting from or in connection with any breach by HFCL of this Agreement or any
claim by third persons resulting from or in connection with HFCL's assembly,
manufacture, marketing, sale or use of any Product, to the extent such third
party claim does not arise from any design, act or omission directly
attributable to UTStarcom, subject to UTStarcom having notified HFCL promptly in
writing of any such claim, tendered to HFCL the defense or settlement of any
such claim at HFCL's expense, and cooperated with HFCL, at HFCL's expense, in
defending or settling such claim.

10.4. HFCL shall defend, indemnify and hold UTStarcom harmless from and against
all claims, causes of action, lawsuits, loss, expenses, obligations, damages,
and liability, including costs of defense and reasonable attorney's fees,
whether in contract or tort, including negligence and strict liability, as a
result of property damage, personal injuries or death of any persons arising out
of, or proximately caused by, in whole or in part, any action or inaction by
HFCL or any defect, including any design defect, attributable, to or involving
the manufacture, use, lease or sale of any Product.

10.5. HFCL shall reproduce in all copies that it makes or causes to be made of
any aspect of the Product all patent, copyright and proprietary notices included
by UTStarcom on any publication, software and firmware provided in connection
with this Agreement so as to continue to maintain UTStarcom's rights therein. If
instructed in writing by UTStarcom, HFCL shall modify such notices in order to
comply with all applicable laws.

11. GOVERNING LAW AND ARBITRATION.

                         HFCL and UTStarcom Confidential

<PAGE>

11.1. This Agreement shall be governed by and interpreted and construed in
accordance with the laws of India. Each Party consents to the non-exclusive
personal jurisdiction of the courts of India. The Parties specifically exclude
the application of the United Nations Convention on the International Sale of
Goods.

11.2. The Parties shall seek to resolve all disputes arising out of or in
connection with this Agreement, including the construction, validity,
performance or breach of this Agreement, without resorting to litigation or
arbitration. Prior to either Party utilizing the remedies detailed in Section
11.4, it shall first notify the other Party that the notifying Party wishes to
resolve a dispute, controversy or claim that it has with the other Party arising
out of or connected to this Agreement (a "Dispute"). As soon as practical and no
later than one week after the other Party receives a notice of Dispute, each
Party shall appoint a dispute representative ("Dispute Representative") who
shall contact the other Party toward seeking a resolution to the Dispute.

11.3. All discussions, correspondence and negotiations between the Parties
pursuant to their seeking a resolution in accordance with Section 11.1 shall be
exempt from discovery and production, and shall not be admissible in any
litigation or arbitration with respect to the Dispute, without the written
consent of both Parties. Documents identified in or provided with such
communication, which are not prepared for purposes of the Dispute resolution in
accordance with Section 11.2 shall not be so exempted and may, if otherwise
admissible, be admitted in evidence in any such arbitration or litigation.

11.4. If the negotiations taken place pursuant to Section 11.2 do not resolve
the Dispute within 60 days of the other Party's receipt of the notice of
Dispute, either Party may submit the Dispute to binding arbitration to be held
in London, England pursuant to the Rules of Conciliation and Arbitration of the
International Chamber of Commerce (the "ICC") in accordance with the laws of
England, modified as follows:

         (a) All proceedings, filings and submissions shall be made solely in
English, the matter shall be heard before a single arbitrator who must be
selected by the mutual consent of both Parties, failing which by the ICC within
60 days of submission of the respondent's answer to the demand for arbitration,
and the arbitrator shall be an attorney experienced in international commercial
transactions and trained in the common law system.

         (b) Each Party shall be entitled to pre-hearing depositions of not more
than three percipient witnesses.

         (c) Each Party shall identify all witnesses, including experts, and
produce copies of all documents to be used at the hearing at least 90 days prior
to the hearing.

         (d) All experts identified under Section 11.4 (c) shall be subject to
deposition by the opposing party at any time prior to the discovery cut-off in
Section 11.4 (e).

         (e) All discovery must be completed at least 30 days prior to the
hearing.

         (f) The hearing on the matter shall occur within 180 days after
selection of the arbitrator.

         (g) The arbitrator's decision shall be in accordance with the law of
England, except that punitive or exemplary damages shall not be awarded.

         (h) The arbitrator shall be deemed instructed by this Agreement and the
Parties to issue a written decision within 60 days after completion of the
hearing.

                         HFCL and UTStarcom Confidential

<PAGE>

         (I) The arbitrator may award costs and expenses, including reasonable
legal fees, to the prevailing Party.

         (J) Notwithstanding the foregoing procedures in this Section 11.4, the
Parties may modify these procedures by written agreement.

11.5. Notwithstanding the provisions set forth above in this Article 11,
UTStarcom may initiate litigation for the purpose of seeking an injunction or
other relief, or other equitable relief in order to seek enforcement of any
equitable remedy referred to in Section 5.6.

11.6. The Parties shall continue to perform the Agreement during the arbitration
proceedings, and neither Party shall withhold any payment due or otherwise
payable under this Agreement unless any such payment is, or forms a part of, the
subject matter of the arbitration proceeding.

11.7. The Parties shall consent to such extension of time as may be necessary
for the arbitrators to make their award.

12. TERM AND TERMINATION.

12.1. Subject to the following provisions of this Article, this Agreement and
the rights and licenses hereby granted or agreed to, shall continue in force
for [*].

12.2. Without affecting UTStarcom's rights pursuant to Section 2.5, in the event
that HFCL shall at any time during the term of this Agreement:

         (A) be in breach of any of its obligations under this Agreement,
including the obligations to purchase the Chips and the NMS in terms of Section
7.1 and 7.2, where such breach is irremediable or, if capable of remedy, is not
remedied within [*] of notice from UTStarcom requiring its remedy;

         (B) be or become bankrupt or insolvent, unable to pay its debts as they
fall due;

         (C) admit in writing that it is unable to pay its debts, make any
composition with its creditors, have a receiver or manager appointed for the
whole or any part of its undertaking or assets or, otherwise than as a solvent
company for the purpose of and followed by an amalgamation or reconstruction
where-under its successor shall be bound by its obligations hereunder, commence
to be wound up or undergo any analogous act or proceeding under the laws of the
state in which it is registered;

         (D) be acquired or otherwise come under the direct or indirect control
of a person or persons other than those controlling it as of the Effective Date,

         (E) fail to receive required approvals for remitting payments to
UTStarcom in terms of this Agreement or if such approval is not forthcoming
within [*] of HFCL being awarded the Tender by DOT or failure to make any
payment to UTStarcom as and when due pursuant to this Agreement including
payments under Article 7, provided that UTStarcom will give [*] notice to HFCL
of any payment due to UTStarcom, which has not been paid.

         (F) terminate this Agreement for any reason other than the expiration
of this Agreement [*] if the term of this Agreement has not been previously
extended by mutual written agreement, subject to any required regulatory
approvals,

[*] * 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.

                         HFCL and UTStarcom Confidential

<PAGE>

then, and in any such event, UTStarcom may forthwith by notice in writing
terminate this Agreement, and thereupon all rights and licenses hereby granted
or agreed to be granted by UTStarcom pursuant to this Agreement shall
immediately terminate.

12.3. Upon termination, HFCL shall immediately cease manufacturing the Product
using the Technical Information, know-how and any Improvement and shall
immediately desist from using the Technical Information, know-how and all
Improvements for any purpose whatsoever. HFCL shall promptly, on UTStarcom's
request and at HFCL's cost, return to UTStarcom or destroy all copies of all
documents and extracts comprising or in any way containing any Technical
Information, know-how or Improvements. HFCL shall procure a declaration from its
board of directors as well as its legal counsel to be delivered to UTStarcom
confirming that all Technical Information and Improvements, including all
designs, drawings, models, samples, plans, documents, specifications and other
information supplied to it by UTStarcom and all copies of such information in
HFCL's possession have been destroyed or returned. The Parties expressly agree
that UTStarcom shall not be liable or responsible to HFCL or to any third party
including the DOT for any claim, damages or cost in any way arising in
connection with any termination of this Agreement.

12.4. Upon termination of this Agreement, all rights and obligations granted
under or imposed by this Agreement shall immediately cease and terminate except
for the rights, duties and obligations which by their nature one would
reasonably expect to survive, including the rights and obligations covered in
such provisions in this Agreement with respect to payments, the sublicensed use
of technology, Confidential Information, trademarks, indemnities, warranties,
remedies and limitations of liability, independent contractors, export controls,
governing law, arbitration and jurisdiction, assignment, severability,
publicity, legal expenses, notices, subject headings, waiver and this Agreement
being the entire agreement of the Parties.

12.5. UTStarcom shall not be in breach of this Agreement or liable for any
damages, losses or expenses whatsoever which occur as the direct or indirect
result of any delay or inability to export the Technical Information, any
know-how or any UTStarcom Improvement, or any item hereunder, due to the action
or inaction of any United States Government Agency.

12.6. If UTStarcom reasonably determines that HFCL has breached in any way any
obligation with respect to the disclosure and use of Confidential Information of
UTStarcom, including the Technical Information, know-how and UTStarcom
Improvements, UTStarcom shall be immediately entitled to exercise all of its
rights under this Agreement and under the law without regard to any notice or
waiting period or any other provision of this Agreement. Notwithstanding the
prior sentence, UTStarcom shall not terminate this Agreement or any of HFCL's
rights to the Technical Information under it unless UTStarcom has first made
inquiry upon HFCL with respect to such breach and allowed HFCL 10 days to
respond to such inquiry. Any failure by HFCL to respond to UTStarcom's inquiry
within 10 days shall constitute sufficient basis for UTStarcom to terminate this
Agreement.

12.7. No termination of this Agreement shall prejudice the accrued rights of
either Party, and the foregoing remedies are in addition to and shall not affect
other remedies available under the governing law of this Agreement.

13. FORCE MAJEURE.

                         HFCL and UTStarcom Confidential
<PAGE>

                                                                              14

In the event that UTStarcom shall be delayed or impeded in the performance of
any of its obligations hereunder by industrial disputes, or by any cause beyond
its reasonable control, including but not limited to war, hostilities, disorder,
embargoes or export restrictions, acts of God, fire, earthquakes, storm,
proclamations, regulation, ordinance or any other analogous events, it shall not
be liable to HFCL for any failure to carry out or to observe any of the terms,
provisions or conditions of this Agreement and be entitled to such extension of
time as may be reasonable in all the circumstances.

14. WAIVER.

Failure by either Party to enforce at any time any of the provisions of this
Agreement or any delay in exercising any right, power or remedy under this
Agreement shall not be construed as a waiver by such Party of any such
provisions nor in any way affect the validity of the Agreement or any part
thereof.

15. PUBLICITY.

15.1. Publicity or advertising relating to this Agreement may be released by
either of the Parties hereto only with the prior written approval of the other
Party.

15.2. HFCL shall state in advertisements and publicity relating to the Product
that it is manufactured under license from UTStarcom.

16.      NOTICES; SERVICE.

All notices, requests, reports and communications of any type given or
transferred by one party to the other in connection with this Agreement shall be
given in writing and shall be deemed effective when delivered to the other Party
addressed as provided below:

If to HFCL:                              If to UTStarcom:

Managing Director                        Paul Berkowitz, VP International Sales

HFCL, 8 Commercial Complex,              UTStarcom

Masjid Moth, Greater Kailash - II        33 Wood Ave
                                         Iselin, NJ 08830
New Delhi-110048 India

Fax: +91-11-6217784                      Fax: 732-767-5274

                                         Attention: Paul Berkowitz

Either Party may change the address at which it wishes to receive notices under
this article by giving notice to the other Party of the new address.

17. EFFORTS AND QUALITY.

HFCL shall maintain manufacturing standards for the Product to assure that their
quality is at least equal to the Product produced by UTStarcom. In order to
verify quality of the

                         HFCL and UTStarcom Confidential

<PAGE>

                                                                              15

Product, HFCL shall permit UTStarcom's representative to inspect and test any
assembled Product at HFCL's facilities prior to shipment.

18. WARRANTY; EXCLUSIONS.

18.1. UTStarcom warrants that:

         (a) it has the right to license the Technical Information, the know-how
and the UTStarcom Improvements to HFCL as contemplated by this Agreement; and

         (b) the Technical Information, know-how and UTStarcom Improvements
furnished to HFCL under this Agreement are substantially equivalent to what
UTStarcom uses, as of the Effective Date, to manufacture the Product.

18.2. Except as specifically provided in this Article 18, the Technical
Information, know-how and UTStarcom Improvements, including such provided
software, are provided to HFCL and licensed on an "AS IS" basis WITHOUT ANY
WARRANTY WHATSOEVER, AND THE PARTIES EXPRESSLY EXCLUDE ANY AND ALL WARRANTIES,
EXPRESS OR IMPLIED, WITH RESPECT TO THE TECHNICAL INFORMATION, KNOW-HOW AND
UTSTARCOM IMPROVEMENTS, AS WELL AS ANY PRODUCT, AND THE PARTIES EXCLUDE ALL
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE
PARTIES ALSO SPECIFICALLY EXCLUDE ALL WARRANTIES OF NON-INFRINGEMENT WITH
RESPECT TO THIRD PARTY RIGHTS.

18.3. Except as otherwise specifically provided for in this Agreement, each
Party shall be responsible for any and all liability to all third persons based
on claims arising out of such Party's own manufacture, use or sale of any
Product or any other product, whether or not in conformity with the Technical
Information, know-how or UTStarcom Improvements.

18.4. HFCL warrants that:

         (a) it shall, upon being awarded an advance purchase order with respect
to the Tender, undertake all commercially reasonable efforts to manufacture and
sell the Product, including having a commercially viable Product within the
requirements of the Tender.

         (b) it shall be fully responsible for providing all support,
maintenance and repair for all end users of every Product that it manufactures,
distributes or sells and shall take all commercially reasonable efforts to
ensure that no such end user contacts UTStarcom for any support or other issue
with respect to any Product;

         (c) it shall manufacture the Product using only high quality materials
and top class workmanship and that the end product will be free from any defect
in manufacture, misbranding, merchantable and fit for the intended use. HFCL
shall take all reasonable care and skill in manufacturing the Product;

         (d) it has the necessary expertise and staffing capabilities to
manufacture the Product and to perform its obligations under this Agreement and
that the Product manufactured will conform in all respect with the
specifications provided by UTStarcom; and

         (e) it shall give proper consideration and weight to the interests of
UTStarcom in all dealings and abide by all roles, regulations, standards
methods, procedures and instructions provided to it by UTStarcom.

                         HFCL and UTStarcom Confidential

<PAGE>

                                                                              16

19. GOVERNMENT APPROVALS.

19.1. This Agreement is subject to the United States export laws and
regulations, and HFCL acknowledges that no technical data or other information
to be provided pursuant to this Agreement may be exported until UTStarcom has
first obtained all necessary and recommended approvals and licenses, including
from the United States Government and any other entity or person that may have
regulatory or other authority over this Agreement or any activity contemplated
pursuant to this Agreement.

19.2. HFCL shall be responsible for obtaining all approvals of the Government of
India and the DOT that may be needed or recommended for entering into this
Agreement and performing all of the obligations provided for under this
Agreement. Specifically HFCL shall be responsible for obtaining all type
approvals and all other authorizations, licenses and permits connected in any
way to interconnecting or otherwise utilizing the Product in India and with any
existing or future telecommunications system. HFCL shall obtain all such
authorizations, licenses and permits on behalf of and for the benefit of
UTStarcom and shall in no way utilize any such authorization, license or permit
or its rights connected to any of them to block or in any way restrict UTStarcom
from enjoying, directly or indirectly, the rights and privileges obtained
pursuant to any such authorization, license or permit.

20. RELATIONSHIP OF THE PARTIES.

HFCL and UTStarcom are independent contractors. Neither Party nor its employees,
consultants, contractors or agents are agents, employees or joint venturers of
the other Party, nor do they have any authority to bind the other Party by
contract or otherwise to any obligation. Neither Party shall expressly,
implicitly, by appearance or otherwise make any representation contrary to the
relationship described in this Article 20. The Parties do not intend for this
Agreement or any relationship between them to create any aspect of a franchise
in any way or manner.

21. LIMITATION OF LIABILITY.

21.1. EXCEPT FOR LIABILITY ARISING IN CONNECTION WITH A BREACH OF THE
OBLIGATIONS PROVIDED IN ARTICLE 5 OF THIS AGREEMENT, NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, IN NO CASE SHALL EITHER PARTY, ITS AFFILIATES OR
THEIR EMPLOYEES AND AGENTS, BE LIABLE TO THE OTHER PARTY FOR INDIRECT,
EXEMPLARY, PUNITIVE, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, OR LOSS OF
PROFITS OR CAPITAL REVENUE IN CONNECTION WITH THIS AGREEMENT EVEN IF IT HAS BEEN
ADVISED AS TO THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS APPLY TO ALL
CAUSES OF ACTION AND CLAIMS, INCLUDING WITHOUT LIMITATION, BREACH OF CONTRACT,
NEGLIGENCE, STRICT LIABILITY, MISREPRESENTATION AND OTHER TORTS. BOTH PARTIES
UNDERSTAND AND AGREE THAT THE REMEDIES, EXCLUSIONS AND LIMITATIONS IN THIS
AGREEMENT ALLOCATE RISKS BETWEEN THE PARTIES AS ALLOWED BY LAW. THE TERMS AND
CONDITIONS IN THIS AGREEMENT REFLECT, AND ARE SET IN RELIANCE UPON, THIS
ALLOCATION OF RISKS AND

                         HFCL and UTStarcom Confidential

<PAGE>

                                                                              17

THE EXCLUSION OF CONSEQUENTIAL DAMAGES AND LIMITATIONS OF LIABILITY SET FORTH IN
THIS PARAGRAPH.

21.2. IN NO EVENT SHALL UTSTARCOM'S LIABILITY TO HFCL OR ANY OTHER PARTY ARISING
UNDER THIS AGREEMENT OR IN CONNECTION WITH ANY PRODUCT EXCEED THE SUM OF ALL
AMOUNTS RECEIVED BY UTSTARCOM FROM HFCL AS OF THE DATE OF THE IMPOSITION OF SUCH
LIABILITY OR [*] WHICHEVER IS LESS.

22. SEVERABILITY.

In the event that any one or more provisions of this Agreement shall be declared
to be illegal or unenforceable under any law, rule, or regulations of any
government having jurisdiction over the Parties hereto, such illegibility or
unenforceability shall not affect the validity and enforceability of the other
provisions of this Agreement, and the parties shall agree upon a modification to
this Agreement with respect to such illegal or unenforceable provisions to
eliminate such invalidity or unenforceability.

23. NO RIGHTS IN THIRD PARTIES.

This Agreement is made for the benefit of HFCL and UTStarcom and not for the
benefit of any third Party individual or entity.

24. HEADINGS AND REFERENCES.

The subject headings of the articles of this Agreement are included for the
purpose of convenience only and shall not affect the construction or
interpretation of any of its provisions.

25. ENTIRE AGREEMENT.

No modification or addition to this Agreement or its enclosures shall be binding
on the two Parties unless specifically agreed upon, in writing, by the Parties
themselves. This Agreement contains the entire agreement between the Parties and
supersedes all agreements, expressions of interest, communications and other
representations, understandings, and agreements, oral or written, between the
Parties with respect to the subject matter of this Agreement. For purposes of
interpretation and performance hereof, the English language version of this
Agreement shall be controlling and binding on the Parties.

26. CONSTRUCTION.

This Agreement has been negotiated by the Parties and their respective counsel
and shall be interpreted fairly in accordance with its terms and without any
strict construction in favor of or against either Party.

27. LOAN OF EQUIPMENT FOR TYPE APPROVAL

[*] * 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.

                         HFCL and UTStarcom Confidential

<PAGE>

                                                                              19

UTStarcom is willing to provide, on a loan basis, certain equipment (the "Test
Equipment"), the exact specifications of which will be agreed to separately by
the Parties, that UTStarcom recommends that HFCL utilize in obtaining type
approval for purposes of HFCL being able to sell similar equipment to be
manufactured pursuant to this Agreement. UTStarcom shall pay for shipping the
Test Equipment to HFCL, and HFCL shall be fully and solely responsible for
importing and securing all licenses for using the Test Equipment in India,
including paying all duties or obtaining all applicable exemptions from the
payment of any duty. HFCL shall take all steps reasonably requested by UTStarcom
in order to secure UTStarcom's interest in the Test Equipment and to ensure that
at all times UTStarcom is deemed the owner of the Test Equipment. Upon
completion of the type approval testing, termination of this Agreement or 15
days after UTStarcom's request, whichever is earliest, HFCL shall cause the Test
Equipment to be returned to UTStarcom and shall pay all costs in connection with
returning the Test Equipment to UTStarcom, unless the Parties otherwise arrange
a mutually agreeable price by which HFCL purchases the Test Equipment from
UTStarcom. For all purposes, the Parties exclude all warranties of any nature
with respect to the Test Equipment, and it will be provided "AS IS" and without
any warranty. All of the disclaimers of warranty applicable to Technical
Information shall apply also to the Test Equipment. HFCL shall make no claim for
indemnification of any nature against UTStarcom with respect to the Test
Equipment for any reason whatsoever. All software included in the Test Equipment
shall be treated as if it were software otherwise provided under this Agreement,
with all of the same limitations, restrictions and other requirements imposed
upon HFCL as with all such other software.

AS WITNESS the hands of the duly authorized representatives of the Parties
hereto, effective as of the day and year first written above.

SIGNED FOR AND ON BEHALF OF             SIGNED FOR AND ON BEHALF OF

HIMACHAL FUTURISTIC                     UTSTARCOM, INC.
COMMUNICATIONS LTD.

By:                                     By:
   ------------------------------          -----------------------------------
Name: Dr. R M Kastia                    Name: Paul Berkowitz
Title: Managing Director                Title: VP International Sales

                         HFCL and UTStarcom Confidential

<PAGE>

                                                                              20

             EXHIBIT "A" PRODUCT ELEMENTS, FPGAS, ASICS, AND PRICING

[*]

                         HFCL and UTStarcom Confidential

[*] * 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>

                                                                              21

        EXHIBIT "A" PRODUCT ELEMENTS, FPGAS, ASICS, AND PRICING (PAGE 2)

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------------------------
 ITEM   MODULE DESCRIPTION     ASIC         UTS             BASE               QUANTITY     UNIT PRICE     EXTENDED PRICE    NOTES
                                            CODE            PART                 CODE       PER MODULE         ($US)         ($US)
-----------------------------------------------------------------------------------------------------------------------------------
<S>   <C>                   <C>         <C>            <C>                   <C>           <C>           <C>               <C>
 4     E & M Module 4         UT9630      54450153A0    AT89C51-12JC PLCC44      [*]           [*]              [*]
       ports
                              -----------------------------------------------------------------------------------------------------
                              UT8632      54450154A0    ACTL 1020B PLCC84        [*]           [*]              [*]
                                                                                             Total              [*]
                              -----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
 5     E1 Interface, 8        UT8624      54450110A0    ACTEL 1010B PLCC68       [*]           [*]              [*]
       ports
                              -----------------------------------------------------------------------------------------------------
                              UT8621      54450098A0    ACTEL 1020B PLCC84       [*]           [*]              [*]
                              -----------------------------------------------------------------------------------------------------
                              UT8622      54450099A0    A4MX04-FLP84             [*]           [*]              [*]
                              -----------------------------------------------------------------------------------------------------
                              UT9623      54450100A0    AT89C51-12JC PLCC44      [*]           [*]              [*]
                              -----------------------------------------------------------------------------------------------------
                                                                                             Total              [*]
-----------------------------------------------------------------------------------------------------------------------------------
 6     BRA-DCD Interface,     UT9620      54450084A0    AT89C51-12JC PLCC44      [*]           [*]              [*]
       2 ports BRI, 4
       ports DCD
                              -----------------------------------------------------------------------------------------------------
                              UT8611      54450045A0    ACTEL 1010B PLCC68       [*]           [*]              [*]
                              -----------------------------------------------------------------------------------------------------
                              UT8612      54450046A0    ACTEL 1020B PLCC84       [*]           [*]              [*]
                              -----------------------------------------------------------------------------------------------------
                                                                                             Total              [*]
-----------------------------------------------------------------------------------------------------------------------------------
 7     STM-1module,           UT7628      54450158A0    29F10-120JC              [*]           [*]              [*]
       add-drop
       multiplexer,
       2 ports
                              -----------------------------------------------------------------------------------------------------
                              UT8147      54450160A0    EPM7032LC44              [*]           [*]              [*]
                              -----------------------------------------------------------------------------------------------------
                              UT9632      54450159A1    TN87C251SB16             [*]           [*]              [*]
                              -----------------------------------------------------------------------------------------------------
                                                                                             Total
-----------------------------------------------------------------------------------------------------------------------------------
 8     Engineering                                                                                              [*]             [*]
       Orderwire Module
       for STM-1
                              -----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
 9     Power supply module                                                                                      [*]
       (upper)
                              -----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         HFCL and UTStarcom Confidential

[*] * 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>

                                                                              22

        EXHIBIT "A" PRODUCT ELEMENTS, FPGAS, ASICS, AND PRICING (PAGE 3)

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------------------------
 ITEM   MODULE DESCRIPTION     ASIC         UTS             BASE               QUANTITY     UNIT PRICE     EXTENDED PRICE    NOTES
                                            CODE            PART                 CODE       PER MODULE         ($US)         ($US)
-----------------------------------------------------------------------------------------------------------------------------------
<S>   <C>                   <C>         <C>            <C>                   <C>           <C>           <C>               <C>
 10    Power supply module                                                                                      [*]
       (lower)

-----------------------------------------------------------------------------------------------------------------------------------
 11    Power and Ringing                                                                                        [*]
       module (upper)
-----------------------------------------------------------------------------------------------------------------------------------
 12    Power and Ringing                                                                                        [*]
       module (lower)
-----------------------------------------------------------------------------------------------------------------------------------
 13    Master bus adapter     UT8623      54450108A0    EPM7064LC84              [*]           [*]              [*]
       module
                    ---------------------------------------------------------------------------------------------------------------
                              UT9624      54450109A0    AT89C51-12JC PLCC44      [*]           [*]              [*]
                    ---------------------------------------------------------------------------------------------------------------
                                                                                             Total
-----------------------------------------------------------------------------------------------------------------------------------
 14    Extension bus          UT8602      54450027A0    ACTEL 1020B PLCC84       [*]           [*]              [*]
       adapter Module
                    ---------------------------------------------------------------------------------------------------------------
                              UT8623      54450108A0    EPM7064LC84              [*]           [*]              [*]

                    ---------------------------------------------------------------------------------------------------------------
                              UT9624      54450109A0    AT89C5112JC PLCC44       [*]           [*]              [*]
                    ---------------------------------------------------------------------------------------------------------------
                                                                                             Total              [*]
                    ---------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
 15    Remote test module     UT8630      54450128A0    ACTEL 1020B PLCC84       [*]           [*]              [*]
                    ---------------------------------------------------------------------------------------------------------------
                              UT9627      54450137A0    AT89C51-12JC PLCC44      [*]           [*]              [*]
                    ---------------------------------------------------------------------------------------------------------------
                                                                                             Total              [*]
                    ---------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
 16    Maintenance control    UT8628      544501170     EPM7064lc84              [*]           [*]              [*]
       unit
                    ---------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                         HFCL and UTStarcom Confidential

[*] * 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>

22

        EXHIBIT "A" PRODUCT ELEMENTS, FPGAS, ASICS, AND PRICING (PAGE 4)

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------------------------
 ITEM   MODULE DESCRIPTION     ASIC         UTS             BASE CODE      QUANTITY     UNIT PRICE     EXTENDED PRICE    NOTES
                               CODE        PART                            PER MODULE     ($US)             ($US)
-----------------------------------------------------------------------------------------------------------------------------------
<S>   <C>                   <C>         <C>            <C>                   <C>           <C>           <C>               <C>
-----------------------------------------------------------------------------------------------------------------------------------
 17    Blank faceplate                                                                                         [*]
       for universal slot
-----------------------------------------------------------------------------------------------------------------------------------
 18    Blank faceplate for                                                                                     [*]
       lower power slot
-----------------------------------------------------------------------------------------------------------------------------------
 19    Subrack:                                                                                                [*]
       backplane+shelf
-----------------------------------------------------------------------------------------------------------------------------------
 20    NMS Software                                                              [*]           [*]             [*]            [*]
       (Object on CDROM
       Licensed)
-----------------------------------------------------------------------------------------------------------------------------------
 21    SCM Software and                                                                                        [*]
       Module Firmware
       (Object on CDRO
       Licensed)
-----------------------------------------------------------------------------------------------------------------------------------
 22    User Documentation                                                                                      [*]
       MSWord Files
       Licensed)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Notes

[*]

[*] * 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.

                         HFCL and UTStarcom Confidential

<PAGE>

                                                                              23

                        EXHIBIT "B" TECHNICAL INFORMATION

[*]

[*] * 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.

                         HFCL and UTStarcom Confidential

<PAGE>

                                                                              24

                  EXHIBIT "C" TERMS OF PAYMENT ASICS AND FPGAS

[*]

                    EXHIBIT "D" TERMS OF PAYMENT NMS SOFTWARE

[*]

[*] * 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.

                         HFCL and UTStarcom Confidential<PAGE>

                                                                    Exhibit 10.2

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.

UTStarcom                                                                    JRC

                                 Sales Agreement

                                     between

                                 JAPAN RADIO CO.

                                       and

                                    UTSTARCOM

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>                                                                      <C>
1.       Definitions .........................................................5
2.       General .............................................................5
3.       Marketing arrangement ...............................................6
4.       Forecasts ...........................................................6
5.       Deliveries ..........................................................7
6.       TERMS OF PAYMENT ....................................................8
7.       INSPECTION AND ACCEPTANCE ...........................................9
8.       SAFETY STANDARDS AND REGULATIONS ....................................9
9.       PRODUCT SPECIFICATIONS .............................................10
10.      Support ............................................................11
11.      SPARE PARTS ........................................................11
12.      WARRANTY ...........................................................12
13.      TRADEMARKS .........................................................14
14.      PATENTS ETC ........................................................14
15.      DURATION OF THE AGREEMENT ..........................................15
16.      TERMINATION OF THE AGREEMENT .......................................15
17.      COMPENSATION FOR DAMAGES ...........................................17
18.      DISCLOSURE OF INFORMATION ..........................................17
19.      PUBLICITY ..........................................................18
20.      ASSIGNMENT .........................................................18
21.      NOTICES.............................................................19
22.      EXCEPTIONS .........................................................19
23.      ENTIRE AGREEMENT ...................................................20
24.      ARBITRATION ........................................................20
25.      GOVERNING LAW AND TRADE TERMS ......................................20
26.      MISCELLANEOUS ......................................................21
Exhibit A Product Specifications ............................................23
Exhibit B Delivery order rescheduling and cancellation ......................29
Exhibit C PRICE LIST and NRE ................................................31
Exhibit D Support ...........................................................33
Exhibit E Manufacturing Support .............................................35
Exhibit F Schedule ..........................................................37
Exhibit G Inspection standard and procedures ................................39
</TABLE>

<PAGE>

                                    AGREEMENT

         This Agreement is made and entered into as of this 16th day of MARCH,
2000, by and between Japan Radio Company, Ltd., a corporation organized under
the laws of Japan, with its principal place of business at Akasaka Twin Tower,
17-22, Akasaka 2 chome, Minato-ku, Tokyo 107-8432, Japan ("JRC" or "THE
COMPANY") and UTStarcom (Hangzhou) Co., Ltd., a China registered corporation
having its principal place of business at 3 Yile Industry Park, No. 129, Wenyi
Road, Hangzhou 310012, Peoples Republic of China ("UTStarcom" or "THE BUYER").

         The BUYER desires to purchase from the COMPANY, and the COMPANY is
willing to sell to the BUYER, certain products manufactured by the COMPANY under
the UTStarcom brand and described in Exhibit A attached hereto (the "PRODUCT"),
for resale in certain territories, on the terms and conditions contained in this
Agreement.

         In consideration of the foregoing and of the mutual agreements and
covenants contained below, the parties agree as follows:

1.       DEFINITIONS

         For purposes of this Agreement, the following terms have the following
respective meanings:

          1.1  "DOCUMENTATION" means the explanatory material commonly
               distributed by the COMPANY with the PRODUCT and any
               modifications, translations or updates thereto.

          1.2  "PRODUCTS" means the [*] corresponding SO writer and accompanying
               software, and products described in Exhibit A and any
               enhancements, updates or all future generations of product
               offerings thereto.

          1.3  "TERRITORY" means [*].

2.       GENERAL

          2.1  The parties hereto agree to implement the initial phase of this
               Agreement as specified in Exhibit F attached hereto and made an
               integral part hereof in respect to the date of delivery and
               quantity of prototypes, preproduction samples, first production
               units and exchange of documentation, and other matters relating
               to the performance of the initial phase of this Agreement.

          2.2  The BUYER shall at its own expense direct its vigorous activities
               for the sale of the PRODUCTS under the BUYER's name and
               trademarks. The BUYER will send to the COMPANY as much market
               information as possible useful for 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.

<PAGE>

               development and manufacture of the PRODUCTS. The COMPANY will
               make every effort within its power to meet the BUYER's
               requirements in respect of quantities and delivery dates of the
               PRODUCTS to be purchased by the BUYER hereunder. Both parties
               shall cooperate with each other in good faith to establish a
               mutually close and prosperous relationship. If problems should be
               encountered with respect to any aspect of marketing or technical
               matters concerning the PRODUCTS for any reason whatsoever or if
               the parties should encounter any problems not covered by this
               Agreement, the COMPANY and the BUYER shall discuss them in a
               cooperative and sincere spirit and attempt to arrive at a mutual
               understanding in the spirit of building a close collaborative
               relationship.

3.       MARKETING ARRANGEMENT

          3.1  The BUYER shall have the right to sell and distribute the
               PRODUCTS only within the TERRITORY. Should the BUYER in the
               future desire to market the PRODUCTS outside the TERRITORY, the
               BUYER shall so notify the COMPANY for mutual discussion about
               such outside marketing. The BUYER shall be responsible for all
               losses, damages, expenses or other liabilities incurred or
               sustained by the COMPANY arising out of resale or reexport of the
               PRODUCTS made directly or indirectly by the BUYER or its
               distributors in or to any place outside the TERRITORY in breach
               of this Agreement or any applicable laws or regulations.

          3.2  The BUYER agrees not to sell, or knowingly allow the resale of
               the PRODUCT to military organizations.

          3.3  It is expressly understood and agreed that the COMPANY may freely
               sell any PRODUCTS, whether identical with or similar to the
               PRODUCTS, under any trademarks other than those of the BUYER to
               any third party or parties in any country in the world.

4.       FORECASTS

          4.1  The BUYER agrees to purchase and the COMPANY agrees to sell the
               PRODUCTS in the quantities and at the prices set forth in Exhibit
               C attached hereto and made an integral part hereof.

          4.2  The COMPANY will promptly effect shipment of the PRODUCTS after
               the manufacture thereof shall have been completed in each month
               of production as agreed. Delivery terms shall be on the basis of
               FOB Japan (or country of manufacture).

          4.3  The BUYER's good faith forecast for its expected purchases of
               PRODUCTS for the twelve month period beginning from April 1, 2000
               is [*] Beginning [*] after the first delivery order, the BUYER
               shall then deliver 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.

<PAGE>

               the COMPANY a revised forecast at least once per [*] on a rolling
               [*] basis.

          4.4  Forecasts provided under the paragraph (4.3) above are for
               planning purposes only and do not constitute an order commitment
               or obligation on the part of the BUYER or the COMPANY. To the
               extent reasonably possible, however, the BUYER agrees to place
               orders consistent with such forecasts. The volume ordered by the
               BUYER in any given month may be increased or decreased from the
               volume included in the forecast and there shall be no fee
               associated with such variance. If the BUYER submits any forecast
               or places any order in which the quantity of PRODUCTS forecasted
               or ordered for any month deviates by more than [*] from the
               forecasted quantity of PRODUCTS for such [*] contained in the
               most recent prior forecast submitted to the COMPANY, then the
               parties shall negotiate in good faith to determine a mutually
               agreeable delivery schedule, taking into account BUYER's delivery
               requirements and the required lead time for any modifications to
               the COMPANY's procurement, manufacturing and testing processes.

          4.5  In addition to the formal procedures set forth above, the parties
               agree that they will promptly inform each other of any material
               change in their expectations or capabilities relating to the
               manufacturing, ordering or delivery of PRODUCTS hereunder, such
               as altered requirements and difficulties in productions.

5.       DELIVERIES.

          5.1  Delivery terms are FOB Japan or country of manufacture in
               accordance with INCOTERMS 2000. Title and the risk of loss of the
               PRODUCTS shall pass to the BUYER when delivered by the COMPANY at
               FOB point.

          5.2  Lead time for delivery of the first lot of the PRODUCTS is as
               specified in Exhibit F. Lead time for deliveries of the second
               lot onwards of the PRODUCTS shall not exceed [*] from the
               acknowledgement by the COMPANY of the delivery orders of the
               BUYER.

          5.3  The BUYER shall before the [*] provide the COMPANY with delivery
               orders showing the number of the PRODUCT which shall be delivered
               in accordance with the delivery lead time as specified in article
               5.2, including the PSIDs, country code and operator ID to be
               programmed in said PRODUCTS to be delivered, the color or option
               configuration of the PRODUCTS and also including whether the
               PRODUCT shall be shipped [*] form. The COMPANY shall acknowledge
               or reject the delivery orders placed by the BUYER within [*]
               after the receipt thereof.

          5.4  The BUYER shall have the right to change or terminate delivery
               orders within the limits defined in Exhibit B.

[*] * 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>

          5.5  When the COMPANY has acknowledged the delivery orders, the
               COMPANY will send to the BUYER an individual sales contract to
               the PRODUCTS (hereinafter called the "Sales Contract"). The BUYER
               shall immediately upon receipt of the Sales Contract sign and
               return the duplicate copy of it but failure of the BUYER to do so
               shall not affect the validity of such Sales Contract. It is
               specifically agreed, however, that if any export license or
               permission is required for the export of the PRODUCTS the Sales
               Contract shall come into effect and the delivery of the PRODUCTS
               shall be made only when such export license or permission (if
               conditional upon conditions reasonably satisfactory to the
               COMPANY) shall have been obtained by the COMPANY. The BUYER
               agrees that if due to delays in obtaining such license or
               permission the shipping date of PRODUCTS as set forth in the
               Sales Contract is delayed, such delay shall not constitute a
               breach by the COMPANY of the Sales Contract; provided however
               that the COMPANY shall promptly notify the BUYER of such delay
               and will ship the PRODUCTS as soon as practicable after obtaining
               such license or permission.

          5.6  Any terms or conditions printed on the face or the reverse side
               of the delivery order sheet and/or the Sales Contract shall not
               be part of this Agreement unless both parties expressly agree in
               writing otherwise.

6.       TERMS OF PAYMENT

          6.1  The BUYER [*] establish with a reputable bank satisfactory to the
               COMPANY an irrevocable and, if so requested by the COMPANY,
               confirmed letter of credit (not restricted, unless otherwise
               agreed upon) in the full amount of the purchase price as stated
               in the COMPANY's pro forma invoice, in Japanese currency, under
               the Sales Contract in favor of the COMPANY available against the
               COMPANY's sight draft to de drawn on the said establishing bank,
               to reach the COMPANY at least [*] before the last day of the
               month of production as set forth in the Sales Contract. The
               letter of credit shall be payable to COMPANY [*] after the
               Shipment Date and must allow TT reimbursement. A confirming bank
               shall be a leading and first class international bank acceptable
               to the COMPANY 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, the BUYER shall cause a written confirmation
               thereof to be air-mailed to the COMPANY via the advising bank.

          6.2  The COMPANY reserves the right to demand compensation from the
               BUYER for all losses and damages incurred by the COMPANY if such
               losses or damages have been caused by the failure of the BUYER to
               establish the letter of credit by the time specified hereinabove.

[*] * 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>

7.       INSPECTION AND ACCEPTANCE

          7.1  The BUYER shall have the right to conduct [*] an incoming
               inspection of the PRODUCTS at the destination specified in the
               bill of lading in accordance with the inspection standards and
               procedures set forth in Exhibit G attached hereto and made an
               integral part hereof. The BUYER shall notify the COMPANY of a
               result of inspection judgment (acceptance or rejection) in
               accordance with the said inspection standards and procedures by
               facsimile or email within [*] after the date of arrival of the
               PRODUCTS at the said destination. Should the BUYER fail to so
               notify the COMPANY within said [*] period, the BUYER's right of
               rejection of the PRODUCTS shall then lapse and the said PRODUCTS
               shall be deemed to have been accepted by the BUYER.

          7.2  If any PRODUCTS are rejected by the BUYER in the said incoming
               inspection and such fact is clearly confirmed by the COMPANY,
               then the procedure mentioned below shall follow:

               The COMPANY will [*]
               i)   rework the rejected PRODUCTS, or
               ii)  replace same with the acceptable PRODUCTS, or
               iii) request the BUYER to rework the PRODUCTS. In this case, the
                    COMPANY will furnish to the BUYER repair or replacement
                    parts necessary for the rework of the rejected PRODUCTS
                    performed by the BUYER. In case the BUYER conducts a 100%
                    inspection of the lot in which the rejected PRODUCTS are
                    included, the COMPANY agrees to pay the BUYER the labor
                    charge at the rate separately agreed upon between the
                    parties hereto. There are no other or additional expenses or
                    liabilities the COMPANY is to assume in connection
                    therewith.

8.       SAFETY STANDARDS AND REGULATIONS

          8.1  Upon the BUYER's request, the COMPANY shall, [*] take all
               necessary steps so that the PRODUCTS shall pass the safety
               standard or regulations in the TERRITORY or part of the TERRITORY
               and effective as of the date of this Agreement, in which the
               BUYER agrees to render to the COMPANY every possible assistance.
               Otherwise, the BUYER shall, [*] take all necessary steps so that
               the PRODUCTS shall pass the safety standards or regulations in
               the TERRITORY or part of the TERRITORY and effective as of the
               date of this Agreement, in which the COMPANY agrees to render to
               the BUYER every possible assistance. The standards or regulations
               set forth in this paragraph shall be hereinafter collectively
               called the "STANDARDS".

          8.2  In the event that after the date of this Agreement any of the
               STANDARDS should be changed or modified or any other safety
               standards applicable to 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.

<PAGE>

               PRODUCTS under any laws, regulations or official directive having
               the force of law in the TERRITORY or any other standards or
               requirements applicable to the PRODUCTS which have not the force
               of law but the observance of which is in accordance with the
               reasonable practice of the industry in the TERRITORY shall be
               established (such other safety standards, standards and
               requirements being hereinafter collectively called the "OTHER
               STANDARDS"), the BUYER shall be responsible to furnish to the
               COMPANY such information well in advance and the BUYER agrees to
               bear [*] incurred in connection with or arising out of
               modifications of the specifications of the PRODUCTS or reworking
               the PRODUCTS as well as [*] arising out of or relating to
               clearance of or passing such modified STANDARDS or OTHER
               STANDARDS or listing the PRODUCTS by a competent organization or
               authority under such modified STANDARDS or OTHER STANDARDS.

          8.3  If the COMPANY suffers damages due to the delay in the COMPANY's
               shipment of the PRODUCTS caused by the PRODUCTS failure to pass
               the STANDARDS, modified STANDARDS or OTHER STANDARDS for a cause
               attributable to the BUYER, the BUYER shall indemnify the COMPANY
               from such damages; however, the parties specifically agree that
               such damages shall not exceed [*].

          8.4  No PRODUCTS shall be shipped unless and until the PRODUCTS have
               cleared or passed the STANDARDS, modified STANDARDS or OTHER
               STANDARDS or have been listed by a competent organization or
               authority thereunder; provided, however, that the COMPANY shall
               be entitled to ship, if the BUYER so directs or gives consent,
               any portion of the PRODUCTS, without incurring any liability on
               the part of the COMPANY, before such clearance or listing is
               final.

9.       PRODUCT SPECIFICATIONS

          9.1  All PRODUCTS supplied to the BUYER by the COMPANY shall be
               manufactured in conformance to the specifications described in
               Exhibit A. If either party requests the other for a change of the
               specification or standards or for special specifications of the
               PRODUCTS, such matters shall be determined upon mutual
               discussions of the parties. If any such change or special
               specifications result, in the reasonable judgment of the COMPANY,
               in an increase in the cost of the PRODUCTS or in the length of
               time required for the manufacture or shipment to the BUYER, then
               a price increase of the PRODUCTS due to said cost increase shall
               be accordingly charged to the BUYER and an extension of the time
               for shipment agreed. Similarly, if any such change or special
               specifications result, in the reasonable judgment of the BUYER
               after consultation with the COMPANY, in a decrease in the cost of
               the PRODUCTS or in the length of time required for the
               manufacture or shipment to the BUYER, then a price decrease of
               the PRODUCTS due to said cost decrease shall be accordingly
               applied to the BUYER and a reduction of the time for shipment
               agreed.

[*] * 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>

          9.2  No changes shall be made by the COMPANY in the form, fit, or
               function of the PRODUCT to be purchased hereunder without BUYER's
               prior written approval. The BUYER will in good faith attempt to
               respond to the COMPANY's proposed change within [*] of notice of
               such proposed change. No changes shall be deemed approved by
               BUYER unless and until the COMPANY receives written notice of
               BUYER's acceptance thereof. If no response is given by BUYER
               within [*] of notice of the change then the change will be deemed
               accepted.

10.      SUPPORT

          10.1 TECHNICAL SUPPORT. The COMPANY agrees to provide reasonable
               technical support as defined in Exhibit D. The COMPANY represents
               that it presently has adequately trained technical personnel to
               provide the support set forth in Exhibit D.

          10.2 DEVELOPMENT SUPPORT. The COMPANY shall provide the BUYER with
               technical specifications, hardware interface documentation and
               other technical assistance concerning the PRODUCTS as reasonably
               required by the BUYER.

          10.3 PRODUCT PACKAGING. The COMPANY will ship tangible items of
               PRODUCT to the BUYER in bulk packaging consistent with industry
               standards and sufficient to avoid damage to the Product during
               shipment. The COMPANY will supply labeling information of bulk
               packaging to the BUYER.

          10.4 MANUFACTURING SUPPORT DOCUMENTATION, The COMPANY will provide to
               the BUYER manufacturing support documentation as described in
               Exhibit E.

11.      SPARE PARTS

          11.1 In lieu of spare parts, the COMPANY shall include at no
               additional cost to the BUYER an extra [*] of units for each
               delivery order, rounded down to the next lowest unit quantity.

          11.2 The BUYER's subsidiary shall be entitled to place an order with
               the COMPANY for spare parts in conformity with the provisions of
               this Agreement. The BUYER's subsidiary, as used in this Agreement
               shall mean the company or entity 50% or more of the shares or
               equity of which is owned or controlled by the BUYER.

          11.3 The COMPANY shall be prepared to supply to the BUYER the
               following parts for the PRODUCTS for the following period from
               the time of the last production or of discontinuance of
               production, of each model of the PRODUCTS:
               i)   [*] for appearance or cosmetic parts
               ii)  [*] for mechanical 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.

<PAGE>

               iii) [*] for electrical parts

               In this connection, the BUYER shall place the last order with the
               COMPANY for any spare parts required by the BUYER for the future
               at least [*] before the expiration of each period stated above.
               If such requirements have been shipped out, the COMPANY may
               thereafter cease to supply any spare parts for the relevant
               PRODUCTS. However, if the supply of repair parts becomes
               infeasible for the COMPANY for some inevitable reason during
               aforementioned period, the period may be altered subject to prior
               notice of at least [*] to the effect by the COMPANY to the BUYER.

12.      WARRANTY

          12.1 The COMPANY warrants that title to the PRODUCTS when conveyed to
               the BUYER on an FOB basis is good, that the transfer is lawful
               and that the PRODUCTS are delivered free from any security
               interest or encumbrance except as otherwise agreed upon between
               the parties in writing.

          12.2 The COMPANY further warrants that the PRODUCTS do not have any
               software or hardware components that incorrectly process date
               and/or time data or calculations after 31 December 1999.

          12.3 The warranty of the PRODUCTS to be given under this Agreement
               shall be the following:

                           If, within a period of [*] after shipment by the
               COMPANY of the PRODUCTS, any of the PRODUCTS or component parts
               thereof exhibit defects of the same kind and nature at the same
               place in the PRODUCTS and at an unusual frequency of not less
               than [*] of the total quantity of the PRODUCTS sold by the BUYER
               in the TERRITORY and such defects are the result of faulty
               workmanship on the part of the COMPANY or defects in materials
               arising from any cause for which the COMPANY is responsible, then
               the COMPANY agrees to give compensation, and render assistance,
               to the BUYER to such extent as is specified below,

               i)   Free supply (freight prepaid) by the COMPANY of replacement
                    component parts for the component parts found to be
                    defective [*] of the COMPANY's verification of such defect,
                    to be done in [*] upon written notice to the COMPANY by the
                    BUYER of such defect, and

               ii)  Rendition of technical assistance or advice to the BUYER in
                    repairing such defective PRODUCTS or component parts thereof
                    as may be decided by the COMPANY from time to time within
                    [*] of the COMPANY's verification of such defect to be done
                    in [*] upon written notice to the COMPANY by the BUYER of
                    such defect.

[*] * 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>

12.4 The foregoing warranty shall apply to PRODUCTS repaired or replaced under
     paragraph 12.3 for the longer of (i) [*] from the date of repair or
     replacement, or (ii) [*] applicable to the PRODUCT being repaired or
     replaced.

12.5 Provided, however, that the foregoing BUYER's remedy shall only be
     available subject always to the following conditions being met, and in the
     event of failure of the BUYER to so meet, the BUYER's right to claim remedy
     as provided in subparagraphs i) and ii) of paragraph 12.3 above shall
     lapse:

     i)   any particulars as to the PRODUCTS or the component parts thereof
          alleged or found to be defective shall be furnished to the COMPANY in
          writing within [*] of discovery by the BUYER of such defect.

     ii)  the contents of defects stated in i) above shall be subject to the
          COMPANY's verification

     iii) no PRODUCTS or component parts alleged or found to be defective shall
          be disposed of by the BUYER until it receives the COMPANY's
          directions, and

     iv)  such defective PRODUCTS or component parts shall forthwith be returned
          to the COMPANY by the BUYER, freight payable at destination, if the
          COMPANY so requests.

Except as provided in this article, THERE IS NO WARRANTY THAT THE PRODUCTS SOLD
HEREUNDER SHALL BE MERCHANTABLE OR FIT FOR ANY PARTICULAR PURPOSE. NOR IS THERE
ANY OTHER WARRANTY, EXPRESS OR IMPLIED, CONCERNING THE PRODUCTS. NEITHER PARTY'S
RESPONSIBILITY FOR LOSSES OR LIABILITIES ARISING OUT OF OR RELATED TO THIS
AGREEMENT OR THE PRODUCTS SOLD AND SOFTWARE LICENSED HEREUNDER SHALL EXCEED 1.0
TIMES THE AGGREGATE PURCHASE PRICE PAID BY THE BUYER FOR THE PRODUCTS. IN NO
EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL
OR PUNITIVE DAMAGES, LOST PROFITS, REVENUES OR COSTS OF CAPITAL, ARISING OUT OF
OR RELATING IN ANY WAY TO THIS AGREEMENT, REGARDLESS OF WHETHER THE OTHER PARTY
HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES. NOTWITHSTANDING ANYTHING TO
THE CONTRARY CONTAINED HEREIN OR ELSEWHERE, INCLUDING THE CAP ON LIABILITY SET
FORTH ABOVE, EACH PARTY WILL BE RESPONSIBLE FOR ALL DAMAGES INCURRED BY THE
OTHER PARTY AS A RESULT OF ANY DAMAGE OR INJURY CAUSED BY OR RESULTING FROM THE
FRAUD, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE OTHER PARTY.

[*] * 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>

13.      TRADEMARKS

     13.1 The products shall in accordance with instructions of the BUYER bear
          the trade name of "UTStarcom" owned by the BUYER which shall be a
          registered trademark in Japan or other countries where the products
          are offered for sale. The BUYER agrees that any disputes or troubles
          filed by any third party with respect to the said trademark or other
          trademarks directed by the BUYER for use onto the PRODUCTS shall be
          settled at the BUYER's sole responsibility and expense. Where it is
          required by any laws or regulations in the TERRITORY to manifest the
          name of the manufacturers of PRODUCTS, the COMPANY may place the name
          or symbol of the COMPANY or any contraction, abbreviation or
          simulation thereof or other necessary marks onto the PRODUCTS in such
          a manner as determined after consultation with the BUYER.

14.      PATENTS ETC.

     14.1 The COMPANY warrants that the importation, sale or distribution, or
          use of the PRODUCTS will not infringe on any patent rights, utility
          model rights, design rights, copyrights or any other intellectual
          property rights of whatever kind (hereinafter referred to as the
          "Intellectual Property Rights") of any third party. The COMPANY shall
          be responsible and liable to the BUYER in respect to any such claim of
          infringement and the COMPANY agrees to defend, indemnify and hold
          harmless the BUYER, its successors, assigns, officers, employees and
          agents from (X) any and all such claims, provided the COMPANY is given
          authority and such reasonable assistance and information from the
          BUYER as the COMPANY requests in writing for the defense of such
          claims and from (Y) reasonable costs and expenses incurred by the
          BUYER in defense of such claims, if the COMPANY does not undertake the
          defense thereof.

     14.2 Notwithstanding the foregoing, the COMPANY will not be liable for any
          damages or costs resulting from any claim or suit that arises from:
          (A) the COMPANY's compliance with the detailed designs dictated by the
          BUYER; (B) use of any Software in combination with products not
          supplied by the COMPANY, to the extent the infringement is caused by
          such combination; or (C) a manufacturing or other process carried out
          by or through the BUYER and using any Software, to the extent the
          infringement is caused by such manufacturing or other process, (such
          claims being collectively referred to herein as "OTHER CLAIMS"). The
          BUYER agrees to defend, indemnify and hold harmless the COMPANY, its
          successors, assigns, officers, employees and agents from (X) any and
          all such OTHER CLAIMS, provided the BUYER is given authority and such
          reasonable assistance and information from the COMPANY as the BUYER
          requests in writing for the defense of such OTHER CLAIMS and from (Y)
          reasonable costs and expenses incurred by the COMPANY in defense of
          such OTHER CLAIMS, if the BUYER does not undertake the defense
          thereof.

<PAGE>

     14.3 The BUYER shall promptly notify the COMPANY of any and all
          infringements, imitations or illegal use of the COMPANY's Intellectual
          Property Rights, and of any statements or actions made or done by any
          third party disputing or impairing the COMPANY's interest in and title
          to any of the above rights. Whenever in the opinion of the COMPANY,
          any action is necessary or advisable to insure the protection or
          prevention against such infringements, imitations or illegal use of
          any of the COMPANY's Intellectual Property Rights, the COMPANY may
          take such action in the courts, administrative agencies or otherwise,
          but shall not be obligated to take any such action and shall have no
          liability to the BUYER for failure to do so. The BUYER shall only upon
          the request of the COMPANY and subject to the COMPANY's agreement to
          reimburse the BUYER for any expense to be incurred by the BUYER, take
          whatever action is deemed necessary by the COMPANY to insure such
          protection or prevention.

15.      DURATION OF THE AGREEMENT

     15.1 This agreement shall be deemed to come into force on the effective
          date and unless earlier terminated in accordance with the provisions
          of this Agreement shall continue in force and effect for [*]. This
          Agreement shall be automatically renewed for [*] and thereafter from
          year to year unless either of the parties hereto gives the other party
          at least [*] prior written notice to terminate this Agreement before
          the expiration of the initial or any renewed 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
          renewed expiry date hereof.

16.      TERMINATION OF THE AGREEMENT

     16.1 In the event of the occurrence of any of the following events to
          either party, the other party may forthwith terminate, wholly or
          partly, this Agreement and/or Sales Contract and/or any other contract
          concluded under or in connection with this Agreement by forthwith
          sending a written notice to the first party by registered airmail:

          i)   if either party hereto continues in default of any material
               obligation imposed on it herein and/or therein for more than [*]
               after written notice has been dispatched 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 for bankruptcy, corporate arrangement or
               commencement of corporate reorganization, or if either

[*] * 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>

               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
               transfer to another company of all or important parts of its
               assets or 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 such contract is canceled or its payment
               obligation under such contract is accelerated;

          iii) if, in the reasonable judgment of the COMPANY, there exists or is
               any ground to suspect the existence of obstacles to effectively
               continue this Agreement in any aspect of technological
               development, manufacture, sales or marketing of the PRODUCTS
               including but not limited to failure by the BUYER to achieve any
               agreed upon minimum requirement or targeted volume or the case
               where such failure is expected in the reasonable judgment of the
               COMPANY; 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 of the other party, commission by the
               other party of a fraud on or betrayal of confidence in or
               criminal act against the first party or disclosure or divulgence
               by the other party of the first party's confidential information.

     16.2 In the event of termination or cancellation of this Agreement for any
          reason whatsoever:

          i)   The COMPANY may at its sole discretion cancel any Sales Contract
               for the PRODUCTS which have not been shipped at the date of such
               termination or cancellation. If any Sales Contract is canceled
               for any reason whatsoever, the COMPANY may sell or otherwise
               dispose, of the PRODUCTS covered under the Sales Contract so
               canceled elsewhere in any manner by removing, at the COMPANY's
               costs and expenses, all of the BUYER's signs, marks and labels
               from the PRODUCTS. If the COMPANY is unable to sell or otherwise
               dispose of the PRODUCTS, the BUYER shall pay that portion of the
               purchase price within the limits defined in Exhibit B.2, and

          ii)  Each party hereto shall promptly return to the other party any
               materials or property in its possession or custody supplied by
               and belonging to the other party in connection with this
               Agreement.

     16.3 Except as otherwise clearly provided herein, any termination of this
          Agreement shall be without prejudice to any rights which shall have
          accrued to either party hereunder prior to such termination.

<PAGE>

     16.4 The parties shall enter into a separate agreement where the COMPANY
          grants to the BUYER to use complete and current design and
          manufacturing information for the products upon the COMPANY's
          inability to deliver PRODUCTS to the BUYER due to the COMPANY's
          acquisition, break-up or bankruptcy.

17.      COMPENSATION FOR DAMAGES

     17.1 Any defaulting or breaching party hereto or a party terminated
          pursuant to the provisions of Article 16 (termination) hereof shall
          pay all reasonable compensation for losses and damages incurred by the
          other party as a result of default of its obligations or termination
          of this Agreement. In any event, neither party shall be liable for any
          incidental, consequential or punitive damages as a result of default
          on its obligation or termination of this Agreement.

     17.2 Any defaulting or breaching party hereto shall defend, indemnify and
          hold harmless the other party from and against any and all actions,
          claims, demands, suits, losses, damages, costs, expenses and judgments
          (including attorney's fees) 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 any defaulting or breaching party
          of any provisions of this Agreement or any negligence or fault on the
          part of any defaulting or breaching party, its employees or agents in
          the performance thereof.

     17.3 In the event of any delay by the BUYER in taking delivery of the
          PRODUCTS, the BUYER agrees to pay to the COMPANY, i) interest on any
          overdue payment of the purchase price of the relevant PRODUCTS at the
          rate of twelve (12) percent per annum for the period of such delay,
          ii) the additional storage charges of the relevant PRODUCTS in Japan
          or any other country where such PRODUCTS are stored for the period of
          such delay and iii) any other expenses and damages sustained by the
          COMPANY due to such delay. The foregoing provisions of this article
          shall not prejudice the right of the COMPANY to terminate this
          agreement and/or Sales Contract on account of breach by the BUYER of
          its obligation to take delivery of the relevant PRODUCTS as agreed and
          any other rights and remedies of the COMPANY contained herein or in
          the Sales Contract.

18.      DISCLOSURE OF INFORMATION

     18.1 All information, suggestions or ideas transmitted by either party to
          the other party in connection with this Agreement or the performance
          hereunder and designated by the transmitting party as secret or
          confidential shall be treated as secret or confidential by the
          receiving party and shall not be divulged or disclosed to any third
          party, person, firm or agency, governmental or private, without the
          prior written consent of the disclosing party except to the extent
          that such information

<PAGE>

          is: (a) known at the time of its receipt as documented in written
          records; (b) properly in the public domain; (c) subsequently disclosed
          to the receiving party, without any obligation to keep such
          information confidential, by a third party that may lawfully do so;
          (d) required to be disclosed by law, including but not limited to any
          requirements imposed by either United States Securities and Exchange
          Commission or any other security and exchange commission on BUYER; or
          (e) disclosed to potential financing or insurance sources, as long as
          any such third parties agree to be bound by the provisions of this
          section.

     18.2 "Confidential Information" may include: business or marketing plans,
          strategies, concepts, and data (including costs and pricing); research
          and development activities; products, product plans, technical
          specifications, technology, hardware, software, systems, and designs;
          trade secrets, formulas, copyrighted materials, packaging, and
          trademarks; manufacturing processes and methods (including line
          speeds, manning requirements and layout); existing or potential
          customers, suppliers, methods, and techniques; and other accumulated
          technical knowledge or information, which is disclosed by one party to
          the other and is identified as confidential when disclosed. It is
          specifically agreed that any technical know-how and marketing
          information (such as price and other sales conditions) shall be hereby
          regarded as secret and confidential PER SE without making such
          designation.

19.      PUBLICITY

     19.1 The COMPANY and the BUYER will jointly discuss and agree, on the
          release of any statement to the public regarding the execution and the
          subject matter of this Agreement, subject in each case to disclosure
          otherwise required by law or regulation. The parties will work
          together on a joint statement announcing their relationship and the
          execution and subject matter of this Agreement as soon as practicable
          following the execution hereof. Either party may disclose the
          execution of this Agreement to any third parties that are subject to a
          confidentiality and non-disclosure agreement with such disclosing
          party that is at least as restrictive as the provisions in Article 18.

20.      ASSIGNMENT

     20.1 Neither party shall assign, transfer or otherwise dispose of this
          Agreement in whole or in part or any right hereunder to any third
          party without the prior written consent of the other party.

<PAGE>

21.      NOTICES

     21.1 Except as otherwise provided herein all notices to be given or made
          under this Agreement shall be in writing and hand-delivered in person
          or sent by facsimile followed by mail or courier services and
          addressed to the principal office of the parties as indicated above in
          this Agreement or to such other address as either party may hereafter
          furnish to the other party in writing.

     21.2 All notices shall be deemed to have been given (a) when delivered
          personally, (b) upon confirmation of receipt if sent via telecopy or
          electronic mail, (c) 3 days after being deposited in the United States
          mail or Japanese mail, registered or certified with return receipt
          postage prepaid, or (d) 1 day after being sent by courier or overnight
          delivery service requiring proof of receipt.

22.      EXCEPTIONS

     22.1 FORCE MAJEURE The COMPANY shall not be liable for any delay in
          shipment or delivery, non-delivery, or destruction or deterioration,
          of all or any part of the PRODUCTS, or for any other default in
          performance of this Agreement or Sales Contract or any other contract
          concluded under or in connection with this Agreement, which arises
          from any lockout, strike, labor trouble or other industrial
          disturbance, inevitable accident, export cartel by governmental
          authorities or industry or trade associations of whatever nature to
          limit its export of the PRODUCTS, fire, explosion, transportation
          difficulty, or from any cause beyond the control of the COMPANY,
          including without limitation, war, blockade, embargo, 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.

     22.2 In the event of any delay or failure due to the cause or causes given
          in the preceding paragraph 22.1, the COMPANY shall send by fax, email
          or otherwise a written notice stating the reason therefor to the BUYER
          as promptly as possible. The performance of the COMPANY shall be
          deemed suspended as long as and to the extent that any such cause(s)
          continue, but with this Agreement and/or Sales Contract and/or any
          other contract concluded under or in connection with this Agreement
          then executory shall not be regarded as terminated, frustrated or
          canceled 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 3 months,
          the COMPANY may without any liability on its part terminate or cancel
          this Agreement and/or the said Sales Contract and/or any other
          contracts

<PAGE>

          concluded under or in connection with this Agreement by sending a
          written notice to the BUYER to the extent that the COMPANY's
          performance has been prevented or delayed.

     22.3 It is specifically understood and agreed that if the COMPANY cancels
          any Sales Contract pursuant to paragraph 22.2 above, the COMPANY may
          sell the PRODUCTS elsewhere and in any manner by removing, at the
          COMPANY's cost and expense, all of the BUYER's signs, marks and labels
          on the PRODUCTS destined for the BUYER. In such event, the COMPANY
          shall bear all the expenses and costs incurred by the COMPANY in
          connection with changing or remodeling the PRODUCTS as the COMPANY
          deems fit for the purpose of sale elsewhere, as well as the costs for
          signs, marks, labels, packages and other printing materials having
          then already been prepared in accordance with the BUYER's directions.

23.      ENTIRE AGREEMENT

     23.1 This Agreement constitutes the entire and only agreement between the
          parties hereto and supersedes all previous understandings, commitments
          and agreements, whether oral or written, relating to the subject
          matter hereof, and no modification, amendment 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.

24.      ARBITRATION

     24.1 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 60 days from the
          first date of consultation, the dispute shall be settled by consulting
          of 3 arbitrators, Arbitration shall be held in San Francisco,
          California under the International Arbitration Rules of the American
          Arbitration Association if initiated by the COMPANY, and shall be held
          in Tokyo, Japan under the Commercial Arbitration Rules of the Japan
          Commercial Arbitration Association if initiated by the BUYER. The
          award rendered by the arbitration shall be final and binding upon the
          parties and may be entered by any court having jurisdiction.

25.      GOVERNING LAW AND TRADE TERMS

     25.1 It is mutually agreed that, except as otherwise required by mandatory
          provisions of applicable laws of the TERRITORY, the terms of this
          Agreement and the performance hereunder shall in all respects be
          governed and interpreted by and

<PAGE>

          under the laws of the State of California, USA, excluding its
          provisions regarding conflict of laws.

     25.2 If applicable, the trade terms used in this Agreement shall have the
          meaning given to such terms in the Incoterms 2000.

26.      MISCELLANEOUS

     26.1 AMENDMENTS: This Agreement may only be amended or modified by an
          instrument in writing executed by both parties.

     26.2 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.

     26.3 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 invalidated or unenforceable provisions which comprise an
          integral part of or are otherwise clearly inseparable from such other
          provisions.

     26.4 APPLICABLE LANGUAGE: This Agreement has been executed by the parties
          hereto in the English language and no translated version of this
          Agreement into any other language shall be controlling and binding
          upon any of the parties hereto.

     26.5 TITLES: The Article titles in this Agreement have been inserted for
          convenience only and shall in no way be used in the interpretation
          hereof.

     26.6 EXPENSES: Unless otherwise expressly agreed herein or otherwise in
          writing by the parties hereto, each party shall bear all expenses and
          disbursements 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 from the other party
          for said expenses, disbursements 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.

     26.7 PARTIES INDEPENDENT: In making and performing this Agreement, the
          parties are acting and shall act as independent contractors, and
          nothing contained in this Agreement shall be construed or implied to
          create any agency, partnership or employer and employee relationship
          between the COMPANY and the BUYER.

     26.8 CAPACITY TO ENTER INTO AGREEMENT: Both parties represent and warrant
          that, irrespective of any other contractual commitment of any kind to
          any

<PAGE>

          other third party, the parties hereto possess the capacity and right
          to enter into this Agreement, and to substantially perform the
          material obligations contained within the terms of this Agreement. If
          any other contractual commitments to any other third party cause
          either of the parties to fail to substantially perform their material
          obligations pursuant to this Agreement (as determined in the
          reasonable judgment of the aggrieved party), the aggrieved party shall
          be indemnified for and held harmless against any third-party claims,
          actions or lawsuits pursuant to Section 17.1 and 17.2 of this
          Agreement, in addition to any other remedies provided for in 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,

Japan Radio Company, Ltd.                        UTStarcom (Hangzhou) Co., Ltd.

Authorized Signature                             Authorized Signature

By: /s/ KIYOMI SHINTANI                          By: /s/ illegible
   ----------------------------------               ---------------------------
Name printed: KIYOMI SHINTANI                    Name printed: illegible
             ------------------------                         -----------------
Title: DIVISION EXECUTIVE
       COMMUNICATIONS EQUIPMENT DIV.             Title: CHAIRMAN
       ------------------------------                  ------------------------
Date: MARCH 16, 2000                             Date:               8 FEB 2000
      ----------------------------------              --------------------------

<PAGE>

                        EXHIBIT A PRODUCT SPECIFICATIONS

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WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

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         EXHIBIT B DELIVERY ORDER RESCHEDULING AND CANCELLATION

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WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

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                          EXHIBIT C PRICE LIST AND NRE

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WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

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                                EXHIBIT D SUPPORT

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WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

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                         EXHIBIT E MANUFACTURING SUPPORT

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WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

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                               EXHIBIT F SCHEDULE

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WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

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                  EXHIBIT G INSPECTION STANDARD AND PROCEDURES

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WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

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