Document:

Exhibit 10.6

                              SEPARATION AGREEMENT

         This Separation Agreement,  dated as of July 12, 2002 (this "Separation
Agreement"),  is  made  by  and  between  GRUBB  &  ELLIS  COMPANY,  a  Delaware
corporation  having its executive offices in New York, New York (the "Company"),
and MARK R. COSTELLO (the "Executive").

     In consideration of the mutual covenants and agreements hereinafter set
forth, the Company and the Executive agree as follows:

     1. EFFECTIVE DATE. This Separation Agreement will become effective upon the
latest of the following dates (the "Effective Date"): (1) the date on which the
Separation Agreement has been executed by both the Company and the Executive; or
(2) the date on which the Executive's general release attached hereto as Exhibit
A becomes effective.

     2. TERMINATION OF EMPLOYMENT AGREEMENT. Except and to the extent provided
in Paragraph 9 of this Separation Agreement, the Employment Agreement dated as
of July 5, 2001 between the Company and the Executive, and any exhibits and
attachments thereto (the "Employment Agreement") is hereby terminated as of the
Effective Date.

     3. RESIGNATION OF EXECUTIVE. The Executive agrees that as of the date
hereof, he hereby resigns from his position as Chief Operating Officer of the
Company.

     4. SEPARATION PAYMENTS. The Company agrees to pay the Executive the
following sums, net of applicable withholdings for taxes and customary payroll
deductions (collectively, the "Separation Payments"):

               (i)  Five (5) days after the Effective Date, a lump sum in cash
                    equal to Two Hundred Fifty Thousand Dollars ($250,000)
                    representing Executive's 2002 guaranteed bonus;

               (ii) Cash payments of Fifty-Four Thousand One Hundred Sixty Six
                    and 67/00 Dollars ($54,166.67) per month, for the period
                    commencing as of the Effective Date and ending on August 10,
                    2003, payable semi-monthly, or Six Hundred Fifty Thousand
                    Dollars ($650,000) per annum, representing base salary due
                    the Executive pursuant to Section 9(a) of the Employment
                    Agreement, which shall be prorated as necessary;

              (iii) Five (5) days after the Effective Date, Forty Three
                    Thousand Nine Hundred Twenty Nine and 08/100 Dollars
                    ($43,929.08) representing the equivalent of the benefits
                    that the Executive is entitled to receive from the Company
                    for healthcare, dental, vision, life insurance, disability
                    coverages, and perquisites for the period commencing as of
                    the Effective Date and ending August 10,

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                    2003, which has in part been grossed up to cover the
                    Executive's income taxes; and

               (iv) Five (5) days after the Effective Date, $25,850.00
                    representing 82.72 hours of accrued and unused vacation pay.

     Subject to the provisions of Paragraph 6 below, the Executive agrees that
the Separation Payments described in this Separation Agreement are in exchange
for any and all rights or claims of the Executive of any nature whatsoever,
whether at law or in equity, under any and all prior oral and written
arrangements, understandings or agreements, including without limitation, the
Employment Agreement, to severance payments, bonus payments, or any other
consideration or benefits.

     6. BENEFIT PLANS. After the Effective Date, except for rights under various
employee stock option, deferred compensation and 401(k) plans in which the
Executive is a participant, the Executive will no longer be covered by or
eligible for any benefits under any Company employee benefit plans in which the
Executive currently participates. After the Effective Date, Executive will
receive by separate cover information regarding the Executive's rights to health
insurance continuation (COBRA) and any 401(k), stock option and deferred
compensation plan benefits. To the extent that the Executive has such rights,
nothing in this Agreement will impair those rights.

     7. NON-DISPARAGEMENT; NON-ASSISTANCE.

     (a) The Executive agrees that, without the prior written consent of the
Company, neither he, nor anyone acting on his behalf, will: (a) make derogatory,
disparaging, or critical statements to any person or entity about the "Released
Parties" (as that term is defined in EXHIBIT A annexed hereto); or (b) for a
three (3) year period commencing with the Effective Date, make any public
disclosures or communicate, directly or indirectly, with the press or other
media, including but not limited to through the issuance of a press release,
concerning the past or present employees or businesses of the Company or any of
its related affiliates or Executive's employment with the Company or the
termination thereof. The Company agrees that, without the prior written consent
of the Executive, it will not, for a three (3) year period commencing on the
Effective Date, make derogatory, disparaging, or critical statements about the
Executive, including but not limited to through the issuance of a press release,
press interview or in Company meetings, or concerning the Executive's employment
with the Company or the termination thereof. Except as required by law, the
Company shall not issue any press release after the Effective Date regarding the
termination of the Executive's employment without the Executive's prior written
consent, which shall not be unreasonably withheld or delayed, PROVIDED, HOWEVER,
that nothing contained herein shall prohibit the Company from making any public
disclosures with respect to the Executive in its public filings required to be
made under federal or state securities laws or pursuant to the rules or
regulations of any regulatory or administrative bodies or stock exchanges.

     (b) The Executive agrees that neither he, nor anyone acting on his behalf
will, unless compelled by legal process, assist or encourage others to assert
claims or to commence or maintain litigation against the Released Parties.

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     8. CONFIDENTIALITY. The Executive agrees that he will not, unless required
by law or otherwise permitted by express written permission from or request by
the Company, disclose to anyone any information regarding the following:

     (a) any non-public information regarding the Company, including its
practices, procedures, trade secrets, finances, client lists, or marketing of
the Company's services.

     (b) the terms of this Agreement, except that the Executive may disclose
this information to members of his immediate family and to his attorney,
accountant or other professional advisor(s) to whom he must make the disclosure
in order for them to render professional services to him. The Executive shall
instruct them, however, to maintain the confidentiality of this information just
as the Executive must, and any breach of this obligation of confidentiality by
such family member or professional advisor(s) shall be deemed to be a breach by
the Executive. If required to disclose the terms of this Agreement by law, the
Executive shall provide the Company with sufficient notice prior to any such
disclosure, including the basis for the legal requirement to disclose, to allow
the Company to seek a protective order preventing the disclosure.

     9. NON-SOLICITATION. The executive agrees that for the period ending one
(1) year after the Effective Date, the Executive shall not, without the prior
permission of the Chief Executive Officer of the Company, directly or
indirectly, on behalf of himself or any other person or entity solicit for
employment any then current executive, employee or independent contractor of the
Company, or directly or indirectly request or induce any then current executive,
employee or independent contractor of the Company to leave the employ of, or
association with, the Company, or directly or indirectly hire any individual who
was an executive, employee or independent contractor of the Company at any time
during the six (6) month period prior to the date of hiring. The Executive
further reaffirms his "no solicitation" obligations pursuant to Section 10 of
the Employment Agreement, which are hereby incorporated by reference herein as
though set forth herein in full. Notwithstanding the foregoing to the contrary,
nothing contained herein (whether by incorporation by reference or otherwise)
shall operate to (i) prohibit the Executive from hiring Mary Hummel, his
administrative assistant, at any time (ii) cause the Executive to be in breach
of the non-solicitation provisions hereof if any future employer shall hire an
employee or independent contractor of the Company so long as the Executive was
not, directly or indirectly, involved in the solicitation or hiring of such
person. For purposes hereof, the term "independent contractor" shall mean any
broker or consultant to the Company.

     10. FORFEITURE. If the Board of Directors of the Company reasonably
determines that the Executive has engaged in a "Prohibited Action" (as defined
in the next paragraph), then: (a) the Company and the Executive agree that any
issue as to whether the Executive has engaged in a Prohibited Action and the
amount of damages, if any, resulting to the Company from such Prohibited Action
shall be determined in accordance with the provisions of Paragraph 13 hereof;
and (b) no further Separation Payments will be payable to the Executive but
shall be escrowed with the Company's outside counsel, and the Executive's right
to exercise any stock options will be suspended while these issues are in
arbitration. If the arbitrator determines (or if the Company and the Executive
otherwise agree) that the Executive has engaged in a Prohibited Action and that
the Company should be awarded a specified amount to compensate it for damages
resulting from such

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Prohibited Action (the "Damage Amount"), then the Company shall offset any
unpaid amounts otherwise payable under this Separation Agreement ("Unpaid
Severance Amount") by the Damage Amount. If the Damage Amount exceeds the Unpaid
Severance Amount, then the Executive shall pay to the Company in a lump sum the
amount by which the Damage Amount exceeds the Unpaid Severance Amount within 15
days after the date on which the arbitrator renders its decision (or the date on
which the Company and the Executive otherwise agree).

     For purposes of this Separation Agreement, a "Prohibited Action" means the
Executive's breach of the provisions of this Separation Agreement, including
without limitation the Non-Disparagement and Non-Assistance provisions of
Paragraph 7, the Confidentiality provisions of Paragraph 8, and the
Non-Solicitation provisions of Paragraph 9 hereof.

     11. GENERAL RELEASE. As a condition to the receipt of any Separation
Payments under Paragraph 4, the Executive agrees to execute a general release,
in the form attached hereto as Exhibit A.

     12. WITHHOLDING. Any payments made under this Separation Agreement shall be
subject to any applicable federal, state, and local tax withholdings.

     13. ARBITRATION. Any dispute or controversy between the Company and the
Executive, including, without limitation, any and all matters relating to this
Separation Agreement, the Executive's employment with the Company and the
cessation thereof, and all matters arising under any federal, state or local
statute, rule or regulation or principle of contract law or common law,
including but not limited to Title VII of the Civil Rights Act of 1964, AS
AMENDED, 42 U.S.C.ss.ss.2000e ET SEQ., the Age Discrimination in Employment Act
of 1967, AS AMENDED, 29 U.S.C.ss.ss.621 ET SEQ., the Americans with Disabilities
Act of 1990, 42 U.S.C.ss.ss.12101 ET SEQ., the Employee Retirement Income
Security Act of 1974, AS AMENDED, 29 U.S.C.ss.ss.1001 ET SEQ., the New York
State Human Rights Law, AS AMENDED, N.Y. Exec. Law ss.ss.290 ET SEQ., the New
York City Human Rights Law, AS AMENDED, N.Y.C. Admin. Code ss.ss.8-101 ET SEQ.,
and any other equivalent state or local statutes, will be settled by arbitration
administered by the American Arbitration Association ("AAA") in New York, New
York pursuant to the AAA's National Rules for the Resolution of Employment
Disputes (or their equivalent). Notwithstanding the foregoing, at the Company's
option, in addition to and not in lieu of any other rights under this Separation
Agreement or at law, the Company shall have the right to injunctive relief in
any federal or state court to enjoin the breach of any provision of this
Separation Agreement. In the event of the Company's breach of this Separation
Agreement, the Executive shall be permitted to seek damages against the Company,
as well as the acceleration of all payments payable hereunder. Each party will
be responsible to pay its own fees and costs incurred under this Paragraph 13.

     14. LOAN FORGIVENESS; LOAN AGREEMENT PAYMENT.

     (a) Reference is hereby made to that certain Loan Agreement dated July 23,
2001 between the Company and the Executive and the Retention Bonus Program and
Promissory Note also dated July 23, 2001 (collectively, the "Loan Agreement").
The Company hereby confirms that, in accordance with and pursuant to the
Retention Bonus Program and in addition to the Separation

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Payments provided herein, the Executive shall be given a bonus as of the
Effective Date equal to the outstanding and unpaid accrued interest and
principal under the loan outstanding under the Loan Agreement. Such bonus
payment shall be applied to retire and cancel the Loan Agreement.

     (b) No sooner than ten (10) days prior to the date upon which the executive
shall file his 2002 U.S. federal income tax return (the "Payment Date"), the
Company shall pay to the Executive an amount necessary to pay the applicable
income taxes on the interest on the loan made to the Executive (pursuant to the
Loan Agreement) that have not been previously paid to him; PROVIDED, HOWEVER,
that at least sixty (60) days prior to the Payment Date, the Executive shall
have furnished the Company with his accountant's written certification of the
amount of such taxes thereon, which shall be reasonably approved by the
Company's accountants.

     15. RETURN OF PROPERTY. The Executive agrees to return to the Company, by
the Effective Date, any and all information and materials, whether in paper,
magnetic, electronic or other form, that Executive may possess relating to the
Company's practices, procedures, trade secrets, finances, client lists, or
marketing of the Company's services. In addition, the Executive shall also, by
the Effective Date, return to the Company all laptops, cellphones, pda's,
Blackberrys, credit cards, keys, building passes and all other property of the
Company.

     16. OFFICES SERVICES. The Company shall reimburse the Executive for the
cost to lease an office in an executive office suite location for a period of
sixty (60) days at any time between the Effective Date and December 31, 2002, at
a cost to the Company not to exceed $5,000 in the aggregate. Subject to the
Executive's compliance with the other terms hereof, the Company will permit the
Executive to maintain remote access to his voicemail through December 31, 2002
and, during such period, the Company will not reassign the Executive's current
office telephone number to any other employee or other person.

     17. COOPERATION. Subsequent to the Effective Date and through August 11,
2003, the Executive shall cooperate with the Company and provide such assistance
to the Company as the Company may reasonably request, from time to time,
concerning matters with which the Executive was engaged on the Company's behalf
provided that such assistance does not conflict with the Executive's then
responsibilities to another employer.

     18. SEVERABILITY. In the event that any of the provisions of this
Separation Agreement or the application of any such provisions to the Company or
the Executive with respect to obligations hereunder will be held to be unlawful
or unenforceable by any court or arbitrator, the remaining portions of this
Separation Agreement will remain in full force and effect and will not be
invalidated or impaired in any manner.

     19. GOVERNING LAW. This Separation Agreement will be governed by and
construed in accordance with the laws of the State of New York, without giving
effect to the principles of conflicts of laws.

     20. ENTIRE AGREEMENT. This Separation Agreement and EXHIBIT A annexed
hereto contains the entire agreement between the Company and the Executive with
respect to the subject

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matter hereof and supersedes all prior agreements and understandings, whether
oral or written, between the Company and the Executive with respect to the
subject matter of this Separation Agreement. This Separation Agreement may be
amended only by an agreement in writing signed by both the Company and the
Executive.

     21. COUNTERPARTS. This Separation Agreement may be executed in any number
of originals or facsimile counterparts, each of which so executed will be deemed
to be an original, and such counterparts will together constitute but one
agreement.

         IN WITNESS WHEREOF, the Company has caused this Separation Agreement to
be duly executed on its behalf by an officer duly authorized,  and the Executive
has duly executed this Separation  Agreement,  all as of the date and year first
written above.

                                           GRUBB & ELLIS COMPANY

                                         By:  /s/ Barry Barovick
                                              ------------------
                                              Name: Barry Barovick
                                              Title: Chief Executive Officer

                                              /s/ Mark R. Costello
                                              --------------------
                                                  Mark Costello

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                        GENERAL RELEASE BY MARK COSTELLO

     FOR AND IN CONSIDERATION OF the terms and conditions of the Separation
Agreement dated as of July 11, 2002 by and between MARK R. COSTELLO (the
"Executive") and GRUBB & ELLIS COMPANY (the "Company") (the "Separation
Agreement"), the Executive agrees, on behalf of himself, his heirs, executors,
administrators and assigns, to release and discharge the Company, and all of its
current and former officers, directors, employees, agents, stockholders,
subsidiaries, divisions, affiliates, parents, successors and assigns ("Released
Parties") from any and all manner of actions and causes of action, suits, debts,
dues, accounts, bonds, covenants, contracts, agreements, judgments, charges,
claims, and demands whatsoever ("Losses") which the Executive, his heirs,
executors, administrators and assigns have, or may hereafter have against the
Released Parties or any of them arising out of or by reason of any cause, matter
or thing whatsoever from the beginning of the world to the date hereof,
including without limitation any and all matters relating to his Employment
Agreement with the Company, his employment by the Company and the cessation
thereof, and all matters arising under any federal, state or local statute, rule
or regulation or principle of contract law or common law, including but not
limited to Title VII of the Civil Rights Act of 1964, AS AMENDED, 42
U.S.C.ss.ss.2000e ET SEQ., the Age Discrimination in Employment Act of 1967, as
amended, 29 U.S.C.ss.ss.621 ET SEQ., the Americans with Disabilities Act of
1990, AS AMENDED, 42 U.S.C.ss.ss.12101 ET SEQ., the Employee Retirement Income
Security Act of 1974, AS AMENDED, 29 U.S.C.ss.ss.1001 et seq., the New York
State Human Rights Law, AS AMENDED, N.Y. Exec. Law ss.ss.290 ET SEQ., the New
York City Human Rights Law, AS AMENDED, N.Y.C. Admin. Code ss.ss.8-101 ET SEQ.,
and any other equivalent state or local statute; PROVIDED, HOWEVER, that the
Executive does not release and discharge the Released Parties from any Losses
arising out of or in connection with his Separation Agreement. It is understood
that nothing in this General Release is to be construed as an admission on
behalf of the Released Parties of any wrongdoing with respect to the Executive,
any such wrongdoing being expressly denied.

     The Executive represents and warrants that he fully understands the terms
of this General Release, that he has had the benefit of advice of counsel, and
that he knowingly and voluntarily, of his own free will without any duress,
being fully informed and after due deliberation, accepts its terms and signs the
same as his own free act. The Executive understands that as a result of
executing this General Release, he will not have the right to assert that the
Company unlawfully terminated his employment or violated any of his rights in
connection with his employment.

     The Executive affirms that he has not filed, and agrees not to initiate or
cause to be initiated on his behalf, any complaint, charge, claim, or proceeding
against the Released Parties before any federal, state, or local agency, court
or other body relating to his employment and the cessation thereof, and agrees
not to voluntarily participate in such a proceeding. The Executive waives any
right he may have to benefit in any manner from any relief (whether monetary or
otherwise) arising out of any such proceeding.

     The Executive, having had the advice of counsel, knowingly waives the
remainder of the 21-day period he had from July 11, 2002, to consider whether to
execute this General Release. Upon the Executive's execution of this General
Release, he will have seven (7) days after execution to revoke it. In the event
of revocation, the Executive must present written notice of revocation to Mr.
Barry Barovick of the Company. If seven (7) days pass without such notice of
revocation, this General Release shall become binding and effective on the
eighth (8th) day (the "Release Effective Date").

     This General Release shall be governed by the laws of the State of New York
without giving effect to the principles of conflicts of law.

/s/ Mark R. Costello                                 7/31/02
---------------------                                -------
    Mark R. Costello                                 Date

                                       7<PAGE>

                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

           This EMPLOYMENT AGREEMENT (this "Agreement"), effective as of the 5th
day of July, 2002 (the "Effective Date"), by and between CellStar (Asia)
Corporation Limited (the "Employer"), CellStar Corporation, a Delaware
corporation and parent company of Employer ("Parent"), and Hong An-Hsien (the
"Employee").

                                 R E C I T A L S

           WHEREAS, Employer desires to provide for the continuing employment of
Employee for the period of time provided in this Agreement; and

           WHEREAS,  Employee desires to render services for Employer on the
terms and conditions hereinafter provided; and

           WHEREAS, Employer desires that Employee be able to continue to
participate in Parent's stock option and incentive compensation plans; and

           WHEREAS, the Board of Directors of Parent deems it advisable and in
the best interests of Parent and Employer to retain Employee's services and to
reinforce and encourage the continued attention and dedication of Employee to
his assigned duties; and

           WHEREAS, the Board of Directors of Parent deems it advisable and in
the best interests of Parent and Employer to enter into this Employment
Agreement with Employee;

                                A G R E E M E N T

           NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the parties hereby agree as follows:

                                   ARTICLE I

                                   Employment

           1.1  Employment. Effective on the Effective Date the Employer shall
employ the Employee and the Employee shall accept employment by the Employer for
the period and upon the terms and conditions contained in this Agreement.

           1.2  Term. The term of this Agreement shall commence on the Effective
Date and shall end on the fifth anniversary of the date on which The Board of
Directors of the Parent notified the Employee that the Board of Directors has
determined to discontinue the automatic daily extension of this Agreement, (the
period of time between the commencement and the end of this Agreement is
referred to herein as the "Term").

           1.3  Position and Duties.

           (a)  Position. During the Term, the Employee shall serve as Chairman
     of Employer, with authority, duties and responsibilities consistent with
     such position, and shall perform such other services for Employer, Parent
     and their affiliated entities consistent with such

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     position as may be reasonably assigned to him from time to time by senior
     management and/or the boards of directors of Employer and/or Parent. During
     the Term, Employee shall, if so elected or appointed, also accept election
     or appointment, and serve, as an officer and/or director of Employer or any
     of its affiliated entities and perform the duties appropriate thereto,
     without additional compensation other than as set forth herein. Employee's
     actions hereunder shall at all times be subject to the direction of the
     senior management and the boards of directors of Employer and Parent.

           (b)  Commitment. During the Term, the Employee shall devote
     substantially all of his time, energy, skill and best efforts to the
     performance of his duties hereunder in a manner that will faithfully and
     diligently further the business and interests of Employer, Parent and their
     affiliated entities. Subject to the foregoing, the Employee may serve in
     any capacity with any civic, educational or charitable organization;
     provided that such activities and services do not interfere or conflict
     with the performance of his duties hereunder. Employee shall comply with
     reasonable policies, standards and regulations established from time to
     time by senior management and/or the boards of directors of Employer and
     Parent.

           1.4  Compensation.

           (a)  Base Salary. Subject to Section 1.4(c) below, beginning on the
     Effective Date, Employer shall pay the Employee as compensation an
     aggregate salary ("Base Salary") of U.S. $900,000 per year during the Term,
     or such greater amount as shall be approved in accordance with the policies
     of Employer and/or Parent, as applicable. The Base Salary for each year
     shall be paid by Employer in accordance with the regular payroll practices
     of Employer.

           (b)  Annual Incentive Payment. Each year during the Term, the
     Employee shall be eligible to participate in an annual incentive plan
     approved by the Parent's Board of Directors.

           (c)  Withholding. With respect to any compensation received by
     Employee with respect to Employee's services for Employer or any of its
     affiliates, Employer will deduct such withholding and other payroll taxes
     as are required to be withheld by Employer under applicable law.

           (d)  Stock Options. Parent will recommend to the Board of Directors
     of Parent that Employee be granted a stock option (the "Option") entitling
     him to purchase 200,000 shares of Parent's common stock at the reported
     market closing sales price thereof on the date of grant. The Option shall
     become exercisable by the Employee at the rate of 25% of the shares covered
     thereby per year, beginning on the first anniversary of the Effective Date
     in accordance with the terms of the Parent's 1993 Amended and Restated Long
     Term Incentive Plan. The Option shall contain such additional terms as are
     set forth in Parent's 1993 Amended and Restated Long Term Incentive Plan
     and as are established by the Board of Directors of Parent. Employee shall
     be entitled to annual consideration for future grants in amounts (if any)
     and on terms and conditions to be determined by the Board of Directors of
     Parent.

           (e)  Payment and Reimbursement of Expenses. During the Term, Employer
     shall pay or reimburse the Employee for all reasonable travel and other
     expenses incurred by the Employee in performing his obligations under this
     Agreement in accordance with the policies

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     and procedures of Employer or Parent, provided that the Employee properly
     accounts therefor in accordance with the regular policies of Employer or
     Parent, as applicable.

           (f)  Fringe Benefits and Perquisites. During the Term, the Employee
     shall be entitled to participate in or receive benefits under any stock
     purchase, profit-sharing, pension, retirement, life, medical, dental,
     disability or other plan or arrangement made available by Employer or
     Parent to employees, subject to and on a basis consistent with the terms,
     conditions and overall administration of such plans and arrangements. In
     addition, Employee will have use of a company car, if any. Nothing paid to
     the Employee under any plan or arrangement made available to the Employee
     shall be deemed to be in lieu of compensation hereunder.

           (g)  Vacations. During the Term and in accordance with the regular
     policies of Employer, the Employee shall be entitled to no less than 20
     days of vacation in any calendar year (prorated in any calendar year in
     which Employee is employed hereunder for less than the entire year in
     accordance with the number of days in such calendar year during which the
     Employee is so employed).

           (h)  Signing Bonus. As an inducement and in further consideration of
     the Employee entering into this Agreement and continuing to serve as set
     forth herein, the Employer agrees to pay the Employee a signing bonus in an
     amount equal to $1,500,000, such amount being payable upon the Effective
     Date. In the event Employee should terminate his employment Without Good
     Reason or for a Change of Control (as hereinafter defined) during the first
     five (5) years of the Term, Employee shall immediately repay a prorated
     amount of such bonus to the Employer, such prorated amount being based on
     the ratio of the number of days' service from the Effective Date until the
     termination date and the number of days remaining in such five (5) year
     period. For purposes of this subsection (h) in the event Employee
     terminates his employment Without Good Reason or for a Change of Control
     following the expiration of such five (5) year period, no refund of the
     signing bonus shall be required.

           (i)  Success Bonus. Further as an inducement for Employee to enter
     into this Agreement and accept the responsibilities and duties necessarily
     related to completing such IPO, Employer agrees to pay a success bonus in
     the amount of $1.5 million to Employee in the event the Employer (or an
     affiliated company organized for such purpose) successfully completes an
     initial public offering of its stock on the Hong Kong Stock Market (the
     "IPO") and Employee accepts the position of Chairman and/or CEO of such
     public entity. Such success bonus shall be paid by the Employer or such
     public entity following the successful completion of the IPO. It is
     specifically understood that Employer shall be under no obligation to
     proceed with any proposed IPO which the Board of Directors of Employer
     believes in good faith not to be in the best interests of the Parent and/or
     its stockholders.

     1.5   Termination.

           (a)  Disability. Employer may terminate this Agreement for
     Disability. "Disability" shall exist if, because of ill health, physical or
     mental disability, or any other reason beyond his control, and
     notwithstanding reasonable accommodations made by Employer, the Employee
     shall have been unable, unwilling or shall have failed to perform his
     duties under this Agreement, as determined in good faith by Parent's Board
     of Directors or a committee thereof, for a period of 180 consecutive days,
     or if, in any 12-month period, the Employee shall have been unable or
     unwilling or shall have failed to perform his duties for a period of 270 or
     more business days, irrespective of whether or not such days are
     consecutive.

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           (b)  Cause. Employer may terminate the Employee's employment for
     Cause. Termination for "Cause" shall mean termination because of the
     Employee's (i) gross incompetence, (ii) willful misconduct that causes or
     is likely to cause economic harm to Employer, Parent or their affiliated
     entities or that brings or is likely to bring substantial discredit to the
     reputation of Employer, Parent or any of their affiliated entities, as
     determined by the Board of Directors of Parent in good faith, (iii) failure
     to follow directions of senior management or the boards of directors of
     Employer or Parent that are consistent with his duties under this
     Agreement, (iv) conviction of, or entry of a pleading of guilty or nolo
     contendre to, any crime involving moral turpitude or entry of an order duly
     issued by any federal or state regulatory agency having jurisdiction in the
     matter permanently prohibiting Employee from participating in the conduct
     of the affairs of Employer, Parent or their affiliated entities, or (v)
     material breach of any provision of this Agreement that is not remedied
     within 30 days after receipt of written notice from Employer or Parent
     specifying such breach.

           (c)  Without Cause. During the Term, Employer may terminate the
     Employee's employment Without Cause, subject to the provisions of
     subsection 1.6(c) (Termination Without Cause or for Company Breach).
     Termination "Without Cause" shall mean termination of the Employee's
     employment by Employer other than termination for Cause or for Disability.

           (d)  Company Breach. The Employee may terminate his employment
     hereunder for Company Breach. For purposes of this Agreement a "Company
     Breach" shall be deemed to occur in the event of a material breach of this
     Agreement by Employer or Parent, including without limitation any material
     reduction in the authority, duties and responsibilities that the Employee
     has on the Effective Date of this Agreement; provided, however, that the
     foregoing items shall not constitute Company Breach unless the Employee
     notifies Employer thereof in writing, specifying in reasonable detail the
     basis therefor and stating that it is grounds for Company Breach, and
     unless Employer fails to cure such Company Breach within 60 days after such
     notice is sent or given under this Agreement.

           (e)  Change in Control. The Employee may terminate his employment
     hereunder within 12 months of a Change in Control (defined below):

             (i)"Change in Control" shall mean any of the following:

                    (1) any consolidation or merger of Parent in which Parent is
                    not the continuing or surviving corporation or pursuant to
                    which shares of Parent's common stock would be converted
                    into cash, securities or other property, other than a merger
                    of Parent in which the holders of Parent common stock
                    immediately prior to the merger have the same proportionate
                    ownership of common stock of the surviving corporation
                    immediately after the merger;

                    (2) any sale, lease, exchange or other transfer (in one
                    transaction or a series of related transactions) of all or
                    substantially all of the assets of Parent;

                    (3) any approval by the stockholders of Parent of any plan
                    or proposal for the liquidation or dissolution of Parent;

                                       4

<PAGE>

                    (4) the cessation of control (by virtue of their not
                    constituting a majority of directors) of Parent's Board of
                    Directors by the individuals (the "Continuing Directors")
                    who (x) at the date of this Agreement were directors or (y)
                    become directors after the date of this Agreement and whose
                    election or nomination for election by Parent's
                    stockholders, was approved by a vote of at least two-thirds
                    of the directors then in office who were directors at the
                    date of this Agreement or whose election or nomination for
                    election was previously so approved); or

                    (5) subject to applicable law, in a Chapter 11 bankruptcy
                    proceeding, the appointment of a trustee or the conversion
                    of a case involving Parent to a case under Chapter 7.

            (ii) It is specifically understood and agreed however that any event
            which would otherwise constitute a Change of Control hereunder which
            arises out of or in connection with the IPO shall not constitute a
            Change of Control for any purpose hereunder.

          (f)    Without Good Reason. During the Term, the Employee may
     terminate his employment Without Good Reason upon 30 days prior written
     notice to Employer of such termination, which notice may be waived by
     Employer in Employer's discretion. Termination "Without Good Reason" shall
     mean termination of the Employee's employment by the Employee other than
     termination for Company Breach.

          (g)    Explanation of Termination of Employment. Any party terminating
     this Agreement shall give prompt written notice ("Notice of Termination")
     to the other party hereto advising such other party of the termination of
     this Agreement stating in reasonable detail the basis for such termination.
     The Notice of Termination shall indicate whether termination is being made
     for Cause, Without Cause or for Disability (if Employer has terminated the
     Agreement) or for Company Breach, upon a Change in Control or Without Good
     Reason (if the Employee has terminated the Agreement).

          (h)    Date of Termination. "Date of Termination" shall mean the last
     day of Employee's employment, as determined in accordance with this Section
     1.5.

           1.6   Compensation Upon Termination.

           (a)   During Disability. During any period that the Employee fails to
     perform his duties hereunder because of ill health, physical or mental
     disability, or any other reason beyond his control, he shall continue to
     receive his full salary and benefits pursuant to Section 1.4 (Compensation)
     through the Date of Termination.

           (b)   Termination for Cause or Without Good Reason. If Employer shall
     terminate the Employee's employment for Cause or if the Employee shall
     terminate his employment Without Good Reason, then Employer's obligation to
     pay salary and benefits pursuant to Section 1.4 (Compensation) shall
     terminate, except that Employer shall pay the Employee his accrued but
     unpaid salary and benefits pursuant to Section 1.4 (Compensation) through
     the Date of Termination.

                                       5

<PAGE>

           (c) Termination Without Cause or for Company Breach. If Employer
     shall terminate the Employee's employment Without Cause or if the Employee
     shall terminate his employment for Company Breach, then Employer shall pay
     to the Employee, as severance pay in a lump sum on the 15th day following
     the Date of Termination, the following amounts:

              (i) his accrued but unpaid Base Salary through the Date of
              Termination at the rate in effect as of the Date of Termination;
              and (ii) in lieu of any further Base Salary and Annual Incentive
              Payments for periods subsequent to the Date of Termination, an
              amount equal to the product of (A) the sum of Employee's Base
              Salary at the rate in effect as of the Date of Termination plus
              the amount of the Annual Incentive Payment paid to the Employee
              for the preceding year (or such shorter period for which any
              Annual Incentive Payment has been paid) divided by 365 and (B)
              multiplied by the number of days from the Date of Termination to
              the last day of the Original Term.

              In addition, the Employee will be entitled to a prorated portion
              of any annual incentive payment earned for the fiscal year in
              which his employment is terminated, if earned in accordance with
              the terms of its grant.

           Employee hereby acknowledges and agrees that the payments by the
     Employer under this Section 1.6(c) shall be the sole and exclusive remedy
     of the Employee for termination of Employee's employment Without Cause or
     by reason of a Company Breach, and Employee hereby waives any and all other
     remedies under law or in equity.

           If the Employee terminates his employment for Company Breach based
     upon a material reduction by Employer of the Employee's Base Salary, then
     for purposes of this subsection 1.6(c) (Termination Without Cause or for
     Company Breach), the Employee's Base Salary as of the Date of Termination
     shall be deemed to be the Employee's Base Salary immediately prior to the
     reduction that the Employee claims as grounds for Company Breach.

           (d) Termination Upon a Change in Control. If the Employee terminates
     his employment after a Change in Control pursuant to subsection 1.5(e)
     (Change in Control), then Employer shall pay to the Employee as severance
     pay and as liquidated damages (because actual damages are difficult to
     ascertain), in a lump sum, in cash, within 15 days after termination, an
     amount equal to $100 less than three (3) times the Employee's "annualized
     includable compensation for the base period" (as defined in Section 280G of
     the Internal Revenue Code of 1986); provided, however, that if such lump
     sum severance payment, either alone or together with other payments or
     benefits, either cash or non-cash, that the Employee has the right to
     receive from Employer, including, but not limited to, accelerated vesting
     or payment of any deferred compensation, options, stock appreciation rights
     or any benefits payable to the Employee under any plan for the benefit of
     employees, would constitute an "excess parachute payment" (as defined in
     Section 280G of the Internal Revenue Code of 1986), then such lump sum
     severance payment or other benefit shall be reduced to the largest amount
     that will not result in receipt by the Employee of a parachute payment. The
     determination of the amount of the payment described in this subsection
     shall be made by Parent's independent auditors.

           (e) Termination for Disability. If Employer shall terminate the
     Employee's employment for Disability, Employer's obligation to pay salary
     and benefits pursuant to Section 1.4 (Compensation) shall terminate, except
     that Employer shall pay the Employee (i)

                                       6

<PAGE>

     accrued but unpaid salary and benefits pursuant to Section 1.4
     (Compensation) through the Date of Termination, and (ii) the benefits set
     forth in Section 1.6(f) (Employee Benefits) through the Original Term. The
     Employer also shall make any additional payments necessary to provide the
     disability benefits set forth in Section 1.4(f) (Disability Insurance)
     above.

           (f) Employee Benefits. Employer shall maintain in full force and
     effect (to the extent consistent with past practice), for the continued
     benefit of Employee and, if applicable, his wife and children, the employee
     benefits set forth in subsections 1.4(e) (Life Insurance), 1.4(f)
     (Disability Insurance), 1.4(h) (Fringe Benefits and Perquisites) and 1.4(j)
     (Medical Expenses) through the Date of Termination (subject to the
     provisions of Section 1.6(e)); provided that his continued participation
     or, if applicable, the participation of his wife and children, is possible
     under the general terms and conditions of such plans and programs.

           1.7 Death of Employee. If Employee dies prior to the expiration of
this Agreement, Employee's employment and other obligations under this Agreement
shall automatically terminate and all compensation to which Employee is or would
have been entitled hereunder (including without limitation under subsections
1.4(a) (Base Salary) and 1.4(b) (Annual Incentive Payment)) shall terminate as
of the end of the month in which Employee's death occurs; provided, however,
that (i) Employer shall pay to Employee's estate, as soon as practicable, a
prorated Annual Incentive Payment, if earned in accordance with Parent's annual
incentive plan; and (ii) for the balance of the month in which Employee's death
occurs, Employee's wife and children shall be entitled to receive their benefits
under Employer's group hospitalization, medical and dental plans (if any), to
the extent permitted under the terms of such plans.

                                    ARTICLE 2

                       Non-Competition and Confidentiality

     2.1   Non-Competition.

           (a) Description of Proscribed Actions. During the Term and for a
     period of 18 months thereafter, in consideration for the obligations of
     Employer and Parent hereunder, including without limitation their
     disclosure (pursuant to subsection 2.2(b) (Obligation of The Company)
     below) of Confidential Information, the Employee shall not:

              (i)  directly or indirectly, engage or invest in, own, manage,
              operate, control or participate in the ownership, management,
              operation or control of, be employed by, associated or in any
              manner connected with, or render services or advice to, any
              Competing Business (defined below); provided, however, that the
              Employee may invest in the securities of any enterprise (but
              without otherwise participating in the activities of such
              enterprise) if (x) such securities are listed on any national or
              regional securities exchange or have been registered under Section
              12(g) of the Exchange Act and (y) the Employee does not
              beneficially own (as defined Rule 13d-3 promulgated under the
              Exchange Act) in excess of 5% of the outstanding capital stock of
              such enterprise;

              (ii) directly or indirectly, either as principal, agent,
              independent contractor, consultant, director, officer, employee,
              employer, advisor (whether paid or unpaid), stockholder, partner
              or in any other individual or representative capacity whatsoever,

                                       7

<PAGE>

              either for his own benefit or for the benefit of any other person
              or entity, solicit, divert or take away any suppliers, customers
              or clients of the Company or any of its Affiliates; or

              (iii) directly or indirectly, either as principal, agent,
              independent contractor, consultant, director, officer, employee,
              employer, advisor (whether paid or unpaid), stockholder, partner
              or in any other individual or representative capacity whatsoever,
              either for his own benefit or for the benefit of any other person
              or entity, either (i) hire, attempt to hire, contact or solicit
              with respect to hiring, any employee of Employer or Parent or any
              Affiliate thereof, (ii) induce or otherwise counsel, advise or
              encourage any employee of Employer, Parent or any Affiliate
              thereof to leave the employment of Employer, Parent or any
              Affiliate thereof, or (iii) induce any representative or agent of
              Employer, Parent or any Affiliate thereof to terminate or modify
              its relationship with Employer, Parent or such Affiliate.

           (b) Judicial Modification. The Employee agrees that if a court of
     competent jurisdiction determines that the length of time or any other
     restriction, or portion thereof, set forth in this Section 2.1
     (Non-Competition) is overly restrictive and unenforceable, the court may
     reduce or modify such restrictions to those which it deems reasonable and
     enforceable under the circumstances, and as so reduced or modified, the
     parties hereto agree that the restrictions of this Section 2.1
     (Non-Competition) shall remain in full force and effect. The Employee
     further agrees that if a court of competent jurisdiction determines that
     any provision of this Section 2.1 (Non-Competition) is invalid or against
     public policy, the remaining provisions of this Section 2.1
     (Non-Competition) and the remainder of this Agreement shall not be affected
     thereby, and shall remain in full force and effect.

           (c) Nature of Restrictions. The Employee acknowledges that the
     business of Employer and Parent and their Affiliates is international in
     scope and that the Restrictions imposed by this Agreement are legitimate,
     reasonable and necessary to protect Employer's, Parent's and their
     Affiliates' investment in their businesses and the goodwill thereof. The
     Employee acknowledges that the scope and duration of the restrictions
     contained herein are reasonable in light of the time that the Employee has
     been or will be engaged in the business of Employer, Parent and/or their
     Affiliates, and the Employee's relationship with the suppliers, customers
     and clients of Employer, Parent and their Affiliates. The Employee further
     acknowledges that the restrictions contained herein are not burdensome to
     the Employee in light of the consideration paid therefor and the other
     opportunities that remain open to the Employee. Moreover, the Employee
     acknowledges that he has other means available to him for the pursuit of
     his livelihood.

           (d) Competing Business. "Competing Business" shall mean any
     individual, business, firm, company, partnership, joint venture,
     organization, or other entity engaged in the wholesale distribution or
     retail sales of wireless communication equipment in any domestic or
     international market area in which Employer, Parent or any of their
     Affiliates does business at any time during the Employee's employment with
     Employer or any of its Affiliates.

           2.2 Confidentiality. For the purposes of this Section 2.2
  (Confidentiality), the term "the Company" shall be construed also to include
  Employer, Parent and any and all Affiliates of Employer and Parent.

                                       8

<PAGE>

           (a) Confidential Information. "Confidential Information" shall mean
     information that is used in the Company's business and

              (i)   is proprietary to, about or created by the Company;

              (ii)  gives the Company some competitive advantage, the
              opportunity of obtaining such advantage or the disclosure of which
              could be detrimental to the interests of the Company;

              (iii) is not typically disclosed to non-employees by the Company,
              or otherwise is treated as confidential by the Company; or (iv) is
              designated as Confidential Information by the Company or from all
              the relevant circumstances should reasonably be assumed by the
              Employee to be confidential to the Company.

     Confidential Information shall not include information publicly known
     (other than as a result of a disclosure by the Employee ). The phrase
     "publicly known" shall mean readily accessible to the public in a written
     publication and shall not include information that is only available by a
     substantial searching of the published literature or information the
     substance of which must be pieced together from a number of different
     publications and sources, or by focused searches of literature guided by
     Confidential Information.

           (b) Obligation of The Company. During the Term, the Company shall
     provide access to, or furnish to, the Employee Confidential Information of
     the Company necessary to enable the Employee properly to perform his
     obligations under this Agreement.

           (c) Non-Disclosure. The Employee acknowledges, understands and agrees
     that all Confidential Information, whether developed by the Company or
     others or whether developed by the Employee while carrying out the terms
     and provisions of this Agreement (or previously while serving as an officer
     of the Company), shall be the exclusive and confidential property of the
     Company and (i) shall not be disclosed to any person other than employees
     of the Company and professionals engaged on behalf of the Company, and
     other than disclosure in the scope of the Company's business in accordance
     with the Company's policies for disclosing information, (ii) shall be
     safeguarded and kept from unintentional disclosure and (iii) shall not be
     used for the Employee's personal benefit. Subject to the terms of the
     preceding sentence, the Employee shall not use, copy or transfer
     Confidential Information other than as is necessary in carrying out his
     duties under this Agreement.

           2.3 Injunctive Relief. Because of the Employee's experience and
  reputation in the industries in which Employer, Parent and their Affiliates
  operate, and because of the unique nature of the Confidential Information, the
  Employee acknowledges, understands and agrees that Employer and Parent will
  suffer immediate and irreparable harm if the Employee fails to comply with any
  of his obligations under Article 2 (Non-Competition and Confidentiality) of
  this Agreement, and that monetary damages will be inadequate to compensate
  Employer and Parent for such breach. Accordingly, the Employee agrees that
  Employer and Parent shall, in addition to any other remedies available to them
  at law or in equity, be entitled to injunctive relief to enforce the terms of
  Article 2 (Non-Competition and Confidentiality), without the necessity of
  proving inadequacy of legal remedies or irreparable harm.

                                       9

<PAGE>

                                    ARTICLE 3

                   Representations and Warranties by Employee

     Employee hereby represents and warrants, the same being part of the essence
of this Agreement, that, as of the Effective Date, he is not a party to any
agreement, contract or understanding, and that no facts or circumstances exist,
that would in any way restrict or prohibit him from undertaking or performing
any of his obligations under this Agreement. The foregoing representation and
warranty shall remain in effect throughout the Term.

                                    ARTICLE 4

                                 Indemnification

     Parent agrees to indemnify, and advance expenses to, the Employee to the
extent provided in the Certificate of Incorporation and Bylaws of Parent as of
the date of this Agreement. To the extent that a change in the Delaware General
Corporation Law (whether by statute or judicial decision) permits greater
indemnification by agreement than would be afforded currently under Parent's
Certificate of Incorporation and Bylaws and this Agreement, it is the intent of
the parties hereto that the Employee shall enjoy by this Agreement the greater
benefits so afforded by such change.

                                    ARTICLE 5

                                  Miscellaneous

     5.1 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

     5.2 Indulgences, Etc. Neither the failure nor any delay on the part of
either party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power, or privilege with respect to any occurrence
be construed as a waiver of such right, remedy, power or privilege with respect
to any other occurrence.

     5.3 Employee's Sole Remedy. The Employee's sole remedy shall be against
Employer or Parent for any claim, liability or obligation of any nature
whatsoever arising out of or relating to this Agreement or an alleged breach of
this Agreement or for any other claim arising out of the Employee's employment
by Employer, his service to Employer or its Affiliates or the termination of the
Employee's employment hereunder (collectively, "Employee Claims"). The Employee
shall have no claim or right of any nature whatsoever against any of Employer's
or its Affiliates' directors, former directors, officers, former officers,
employees, former employees, stockholders, former stockholders, agents, former
agents or the independent counsel in their individual capacities arising out of
or relating to any Employee Claim. The Employee hereby releases and covenants
not to sue any person other than Employer or Parent over any Employee Claim. The
persons described in this Section 5.3 (other than Employer, Parent and the
Employee) shall be third-party beneficiaries of this Agreement for purposes of
enforcing the terms of this Section 5.3 (Employee's Sole Remedy) against the
Employee.

                                       10

<PAGE>

     5.4 Notices. All notices, requests, demands and other communications
required or permitted under this Agreement and the transactions contemplated
herein shall be in writing and shall be deemed to have been duly given, made and
received when sent by telecopy (with a copy sent by mail) or when personally
delivered or one business day after it is sent by overnight service, addressed
as set forth below:

If to the Employee:

           Hong An-Hsien

If to Employer or Parent:

           CellStar Corporation
           1730 Briercroft Court
           Carrollton, Texas 75006
           Attn: General Counsel

Any party may alter the address to which communications or copies are to be sent
by giving notice of such change of address in conformity with the provisions of
this subsection for the giving of notice, which shall be effective only upon
receipt.

   5.5 Provisions Separable. The provisions of this Agreement are independent of
and separable from each other, and no provision shall be affected or rendered
invalid or unenforceable by virtue of the fact that for any reason any other or
others of them may be invalid or unenforceable in whole or in part.

   5.6 Entire Agreement. This Agreement contains the entire understanding
between the parties hereto with respect to the subject matter hereof, and
supersedes all prior and contemporaneous agreements and understandings,
inducements or conditions, express or implied, oral or written, except as herein
contained, which shall be deemed terminated effective immediately. The express
terms hereof control and supersede any course of performance and/or usage of the
trade inconsistent with any of the terms hereof. This Agreement may not be
modified or amended other than by an agreement in writing.

   5.7 Headings; Index. The headings of paragraphs herein are included solely
for convenience of reference and shall not control the meaning or interpretation
of any of the provisions of this Agreement.

   5.8 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas, without giving effect to
principles of conflict of laws.

   5.9 Dispute Resolution. Subject to Employer's and Parent's right to seek
injunctive relief in court as provided in Section 2.3 (Injunctive Relief) of
this Agreement, any dispute, controversy or claim arising out of or in relation
to or connection to this Agreement, including without limitation any dispute as
to the construction, validity, interpretation, enforceability or breach of

                                       11

<PAGE>

this Agreement, shall be exclusively and finally settled by arbitration, and any
party may submit such dispute, controversy or claim, including a claim for
indemnification under this Section 5.10 (Dispute Resolution), to arbitration.

           (a) Arbitrators. The arbitration shall be heard and determined by one
   arbitrator, who shall be impartial and who shall be selected by mutual
   agreement of the parties; provided, however, that if the dispute involves
   more than $2,000,000, then the arbitration shall be heard and determined by
   three (3) arbitrators. If three (3) arbitrators are necessary as provided
   above, then (i) each side shall appoint an arbitrator of its choice within
   thirty (30) days of the submission of a notice of arbitration and (ii) the
   party-appointed arbitrators shall in turn appoint a presiding arbitrator of
   the tribunal within thirty (30) days following the appointment of the last
   party-appointed arbitrator. If (x) the parties cannot agree on the sole
   arbitrator, (y) one party refuses to appoint its party-appointed arbitrator
   within said thirty (30) day period or (z) the party-appointed arbitrators
   cannot reach agreement on a presiding arbitrator of the tribunal, then the
   appointing authority for the implementation of such procedure shall be the
   Senior United States District Judge for the Northern District of Texas, who
   shall appoint an independent arbitrator who does not have any financial
   interest in the dispute, controversy or claim. If the Senior United States
   District Judge for the Northern District of Texas refuses or fails to act as
   the appointing authority within ninety (90) days after being requested to do
   so, then the appointing authority shall be the Chief Executive Officer of the
   American Arbitration Association, who shall appoint an independent arbitrator
   who does not have any financial interest in the dispute, controversy or
   claim. All decisions and awards by the arbitration tribunal shall be made by
   majority vote.

           (b) Proceedings. Unless otherwise expressly agreed in writing by the
    parties to the arbitration proceedings:

               (i)   The arbitration proceedings shall be held in Dallas, Texas,
           at a site chosen by mutual agreement of the parties, or if the
           parties cannot reach agreement on a location within thirty (30) days
           of the appointment of the last arbitrator, then at a site chosen by
           the arbitrators;

               (ii)  The arbitrators shall be and remain at all times wholly
           independent and impartial;

               (iii) The arbitration proceedings shall be conducted in
           accordance with the Commercial Arbitration Rules of the American
           Arbitration Association, as amended from time to time;

               (iv)  Any procedural issues not determined under the arbitral
           rules selected pursuant to item (iii) above shall be determined by
           the law of the place of arbitration, other than those laws which
           would refer the matter to another jurisdiction;

               (v)   The costs of the arbitration proceedings (including
           attorneys' fees and costs) shall be borne in the manner determined by
           the arbitrators;

               (vi)  The decision of the arbitrators shall be reduced to
           writing; final and binding without the right of appeal; the sole and
           exclusive remedy regarding any claims, counterclaims, issues or
           accounting presented to the arbitrators; made and promptly paid in
           United States dollars free of any deduction or offset; and any costs
           or

                                       12

<PAGE>

          fees incident to enforcing the award shall, to the maximum extent
          permitted by law, be charged against the party resisting such
          enforcement;

                    (vii)  The award shall include interest from the date of any
          breach or violation of this Agreement, as determined by the arbitral
          award, and from the date of the award until paid in full, at 6% per
          annum; and

                    (viii) Judgment upon the award may be entered in any court
          having jurisdiction over the person or the assets of the party owing
          the judgment or application may be made to such court for a judicial
          acceptance of the award and an order of enforcement, as the case may
          be.

   5.10   Survival. The covenants and agreements of the parties set forth in
Article 2 (Non-Competition and Confidentiality), and Article 5 (Miscellaneous)
are of a continuing nature and shall survive the expiration, termination or
cancellation of this Agreement, regardless of the reason therefor.

   5.11   Subrogation. In the event of payment under this Agreement, Employer
and Parent shall be subrogated to the extent of such payment to all of the
rights of recovery of the Employee, who shall execute all papers required and
shall do everything that may be necessary to secure such rights, including the
execution of such documents necessary to enable Employer or Parent effectively
to bring suit to enforce such rights.

   5.12   No Duplication of Payments. Employer and Parent shall not be liable
under this Agreement to make any payment in connection with any claim made
against the Employee to the extent the Employee has otherwise actually received
payment (under any insurance policy, Bylaw or otherwise) of the amounts
otherwise indemnifiable hereunder.

   5.13   Binding Effect, Etc. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their respective
successors, assigns, including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
or assets of Employer, Parent, spouses, heirs, and personal and legal
representatives. Employer and Parent shall require and cause any successor
(whether direct or indirect by purchase, merger, consolidation or otherwise) to
all, substantially all, or a substantial part, of their business or assets, by
written agreement in form and substance satisfactory to the Employee, expressly
to assume and agree to perform this Agreement in the same manner and to the same
extent that Employer or Parent would be required to perform if no such
succession had taken place.

   5.14   Contribution. If the indemnity contained in this Agreement is
unavailable or insufficient to hold the Employee harmless in a Claim for an
Indemnifiable Event, then separate from and in addition to the indemnity
provided elsewhere herein, Parent shall contribute to Expenses, judgments,
penalties, fines and amounts paid in settlement actually and reasonably incurred
by or on behalf of the Employee in connection with such Claim in such proportion
as appropriately reflects the relative benefits received by, and fault of,
Parent on the one hand and the Employee on the other in the acts, transactions
or matters to which the Claim relates and other equitable considerations.

   5.15   Parent Guaranty. Parent guarantees the payment and performance of all
obligations of Employer under this Agreement and agrees it will pay or perform
those obligations if for any reason Employer fails to do so. This guarantee is
absolute, continuing, irrevocable and not

                                       13

<PAGE>

conditional or contingent. Any notice given hereunder to either Employer or
Parent will be deemed to be notice to Parent for purposes of this guaranty.

   5.16   Prior Employment Agreement.  This Agreement supersedes, for all
purposes, that certain Employment Agreement, effective as of January 22, 1998,
by and between Employer and Employee.

                                 * * * * * * * *

                 [Remainder of page intentionally left blank.]

                                       14

<PAGE>

     IN WITNESS WHEREOF, Employer and Parent have caused this Agreement to be
executed by their officer/general partner thereunto duly authorized, and
Employee has signed this Agreement, as of the date(s) indicated below.

                                    CELLSTAR (ASIA) CORPORATION LIMITED

                                    By:      /s/ Terry S. Parker
                                       -------------------------------
                                             Terry S. Parker
                                             Director

                                    Date:

                                    CELLSTAR CORPORATION

                                    By:      /s/ Terry S. Parker
                                       -------------------------------
                                             Terry S. Parker
                                             Chief Executive Officer

                                    Date:

                                    /s/ Hong An-Hsien
                                    ----------------------------------
                                    Hong An-Hsien

                                    Date:

                                       15

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