Document:

Prepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document

[***] 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.

 
 

Exhibit 10.62    
  

 
 

[Translation]    
  

 
  CONTRACT    
  

	CONTRACT NO.: UTAHZ2001032311	 	 
	
The Buyer:	
 	

The Seller:
	Zhejiang Telecom CO.,	 	 
	NingBo Branch	 	UTStarcom (China) Ltd.
	 	 	11th floor

CNT Manhattan Building,

No.6 ChaoYang Men Bei Da Jie St.

Beijing, 100027
	

TEL:	
 	

TEL01065542030
	FAX:	 	FAX (010) 65542058

This
contract is made between the BUYER and the SELLER, whereby the BUYER agrees to buy and the SELLER agrees to sell the under-mentioned commodities and services according to the terms and conditions
as stipulated hereafter: 

	1
	TOTAL
CONTRACT PRICE: [***]

	2
	NAME
of COMMODITIES, or SERVICES:

[***] network equipment

(Quantity, Specifications and Unit price as specified in Appendix)

	3.1
	PLACE
OF MANUFACTURING AND MANUFACTOR:

Hangzhou    UTStarcom

	3.2
	DATE
OF DELIVERY:

Partial delivery according to the project schedule

	3.3
	PLACE
OF SHIPPING:

Hangzhou 

	4
	PLACE
OF DESTINATION

Designed by NingBo telecom Co., Ltd.

	5
	PACKING

    5.1  The
goods shall be packed in new strong case(s) suitable for long distance transportation and well protected against dampness, moisture, shock, and rust. The
Sellers shall be liable for any damage to the goods on account of improper packing. 

    5.2  Detailed
Packing List shall be placed in each case which shall indicate the name of goods, total of cases, installation and maintenance manual. Related technical
documents shall be shipped with the goods. 

	6
	SHIPPING
MARK 

    On
the surface of each package, the package number, measurements, the lifting positions, such cautions as "DO NOT STACK UP SIDE DOWN", "HANDLE WITH CARE", "KEEP AWAY FROM MOISTURE"
and the shipping mark. 

 

	7
	DELIVERY

    7.1  After
the arrival of the goods at the place of destination, the packages shall be opened by the Buyers in the presence of the Seller, shall be checked and signed
jointly by the representatives of the Buyer and Seller as the acceptance of the goods. The transport documents shall be the certificates of acceptance. 

    7.2  The
Seller shall bear all expenses and risks involved in the handling of the goods until the moment the goods has been delivered. The title to the goods and the
risks of the goods are transferred to the buyer upon delivery. 

    7.3  In
case of missing parts or damage due to the Seller's faulty packing, the Buyer shall make a detailed record on the site, or apply for reinspection by the China
Commodity Inspection Bureau, or the representatives of the Buyer and Seller make and sign a protocol, Such protocol may be utilized as proper evidence for replacement of missed or damaged parts. If
the Buyer opens the package without presence of the Seller, or fails to make the application in written to for replacement of missed or damaged parts within [***] after the
arrival of the goods at the destination, the Buyer shall be deemed to accept the goods. 

	8
	INSURANCE

    The
insurance shall be effected by the Seller for [***] of the Contract Amount. 

	9
	PAYMENT
TERMS: 

    All
payments by the Buyer to the Seller shall be paid by telegraphic transfer to the RiTanLu Office, ChaoYang Branch, Beijing, I&C Bank of China, account number is
[***]. 

    9.1  The
payment conditions for equipment are as follows: 

    9.1.1  Down
Payment: 

    [***]
down payment of the total contract price for goods being [***] shall be paid by the Buyer to the Seller within
[***] from the date of signing of this contract. If the down payment is delayed, the date of shipment will be delayed accordingly. 

    9.1.2  [***]
of the total contract price for goods being [***] shall be paid by the Buyer within
[***] from the date of arrival of goods and completion. 

    9.1.3  [***]
of the total contract price for goods being [***] shall be paid within [***] after
the completion of installation, debugging and running. 

    9.1.4  [***]
of the total contract price for goods being [***] shall be paid by the Buyer within
[***] from the date of running. 

    9.2  In
the event that a payment required by 10.1 isn't made by the Buyer within the time period specified, the Buyer shall pay to the Seller, in addition to the amount
owed, a late payment fee of [***] of the amount owed per [***] or part thereof for each [***] the payment is delayed. The total
amount of penalty shall not exceed [***] of the total delayed payment. 

	10
	INSTALLATION

    10.1  The
Buyer takes responsibility of [***]. 

    10.2  The
Seller takes responsibility of [***] during the period of installation. 

	11
	WARRANTY 

    11.1  The
Seller warrants items supplied hereunder to be free from defects in workmanship and material. The Seller's warranty for Equipment and Material will commence
upon delivery of 

2

 

the goods and will continue for a period of [***]. During the Warranty period the Seller will, [***] either repair or replace items not conforming to
the above warranty. If the Buyer determines that any items should be returned, the Seller shall bear [***] for items returned to the Seller in the PRC and return of the
repaired or replaced items to the installation site. 

    11.2  The
Seller warrants to provide debug for the software. 

    11.3  The
foregoing warranty does not extend to any items which has: 

    11.3.1  Been
damaged by misusing, accident; 

    11.3.2  Been
wired, repaired or altered by anyone other than the Seller or its representative; 

    11.3.3  Been
improperly installed, stored, handled or maintained by anyone other than the Seller or its representative; 

    11.3.4  Been
removed from its original site of installation, or to expendable components such as fuses, light bulbs, motor brushes and the like. 

	12
	CLAIMS

    Within
[***] after the goods delivered, the Buyer shall have right to make a claim to the Seller if the quality, specifications or quantities of the goods is
not in conformity with what has been stipulated in the contract. 

	13
	FORCE
MAJEURE: 

    The
Seller shall not be liable for any loss, damage, delay or failure of performance resulting directly or indirectly from any cause which is beyond its reasonable control including,
but not limited to the laws, regulations, acts or failure to act of any governmental authority. 

	14
	LATE
DELIVERY AND PENALTY: 

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

	15
	ARBITRATION

    Both
parties shall strictly execute the contract in accordance with the relevant laws and regulations of P.R.C. All disputes in connection with the execution of the contract hereof
shall be settled through mutual understanding and friendly negotiation. In case no settlement can be reached through negotiations, either party can apply to the appropriate organization for
arbitration or mediation. The arbitration fee shall be borne by the losing party. 

	16
	LIMITATION
OF LIABILITY 

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

    a  The
[***] value of the injury or loss to the Buyer. 

    b  The
[***] payments made to the Seller. 

    16.2  The
Seller shall not be liable for any consequential or incidental loss or damage resulting from this Contract. 

3

 

	17
	VALIDITY,
TERMINATION OF THE CONTRACT AND MISCELLANEOUS. 

    17.1  This
Contract will come into force after being sealed by both parties and signed by the representatives of both parties. 

    17.2  This
Contract will be terminated after both parties have fulfilled their respective duties and obligations. 

    17.3  Seller
hereby licenses the software contained within the products for use by the Buyer. The Buyer or its representatives shall not decompile, disassemble or
reverse the software without the prior written permission of the Seller. 

    17.4  This
Contract may be amended only by an instrument in writing signed and sealed by the duly authorized representative of each party. 

    17.5  During
implementation of this Contract, all notices between the parties shall be by certified mail, telex or facsimile. 

    17.6  Technical
proposal, equipment pricelist shall be part of this contract. 

	18
	REMARKS 

    This
Contract is made in five original copies, one copy to be held by the Seller, four copies to the Buyer. 

The
Buyer: Zhejiang telecom Co. NingBo Branch

Representative: 

Date:
March 23, 2001 

The
Seller: UTStarcom (China) Co., Ltd.

Representative: 

Date:
March 23, 2001 

4

 
 
 

Translation Verification    
  

    The foregoing represents a fair and accurate English translation of the original Chinese document. 

Dated:
May 11, 2001 

	 	 	By:	 	/s/ SHAO-NING J. CHOU   

	 	 	Name:	 	Shao-Ning J. Chou
	 	 	Title:	 	Executive Vice President and Chief Operating Officer, China Operations

5

  

Technical
Proposal for PASTM Xiao Ling Tong wireless network

Ningbo Telecommunication

Branch Co.

PASTM Xiao Ling Tong Wireless

Connection Network  

Technical Proposal  

UTStarcom (China) Co. Ltd.  

 
  
 

    Contents    
  

	CHAPTER 1  OVERVIEW	 	3
	 	 	1.1	 	Purpose	 	3
	 	 	1.2	 	Background	 	3
	 	 	1.3	 	Features and advantages of PASTM	 	3
	 	 	1.4	 	Definition	 	6
	CHAPTER 2  NETWORKING PRINCIPLE	 	7
	 	 	2.1	 	Coverage priority	 	7
	 	 	2.2	 	Averaged calling volume in busy hours	 	7
	 	 	2.3	 	Assumption of calling loss	 	7
	 	 	2.4	 	Coverage method	 	8
	 	 	2.5	 	Frequency planning	 	8
	CHAPTER 3  NETWORKING SOLUTION FOR PASTM SYSTEM OF NINGBO TELECOMMUNICATION BRANCH CO.	 	9
	 	 	3.1	 	City Introduction	 	9
	 	 	3.2	 	Division of coverage	 	9
	 	 	3.3	 	Introduction of division	 	9
	 	 	3.4	 	Network structure as shown in the following graph:	 	12
	 	 	3.5	 	Analyses of network capacity	 	12
	 	 	3.6	 	Statistics of transmission links	 	13
	 	 	3.7	 	Determination of ATC and [***] port number	 	15
	 	 	3.8	 	System redundancy	 	15
	 	 	3.9	 	Roaming analysis	 	15
	 	 	3.10	 	Network management system	 	16
	 	 	 	 	3.10.1  Constitution of network management	 	16
	 	 	 	 	3.10.2  Design of network management network	 	17

2

 

Chapter 1  Overview  

    With the increasing demands on communication service and opening of China's telecommunication market, personal wireless communication that caters for popular
requirements is gradually becoming the trend for the development of telecommunication. 

    In
order to help telecommunication enterprises to increase their competitiveness and solve the problems associated with telephone, UTStarcom Co. developed its PASTM
(Personal Access phone System) Xiao Ling Tong wireless telephone system to making use of the potential of current telephone resource. 

1.1 Purpose  

    This technical Proposal is made for Ningbo Telecommunication Branch Co. to facilitate the selection of wireless telephone project. 

1.2 Background  

    User:  Ningbo Telecommunication Branch Co. 

    Supplier:  UTStarcom (China) Co. Ltd. 

    Upon
accomplishment of this project, it will greatly increase the competitiveness of Ningbo Telecommunication Branch Co. in the telecommunication business and effectively use the
existing telephone resource. 

1.3 Features and advantages of PASTM  

    PASTM wireless telephone system is an extension and supplement to the local telephone network by using high quality digital technology to connect
wireless telephone XiaoLingTong system to the local telephone network, it makes conventional wire-type local telephone to be mobile within its coverage range and can freely dial any local,
domestic and international telephone numbers without any restriction. In addition, it adopts one-side billing method that is equivalent to the conventional telephone billing standard. This
makes the Wireless Telephone XiaoLingTong to be a cheap and convenient personal wireless telephone. 

	(1)
	PASTM system is an extension and supplement to local telephone network;

 
	(2)
	 PASTM is the new business shining point of local telephone and secondarily develop the resource of the local telephone system;

 
	(3)
	 Dynamic frequency allocation with no need for frequency planning and short period of network construction [***];

 
	(4)
	 Low cost and quick return of investment;

 
	(5)
	 Support high density telephone business and is flexible for various coverage requirements;

 
	(6)
	 Support high-speed data business[***];  
	(7)
	 "Green mobile phone" with low power [***], small
but with high quality and long waiting hours;

 
	(8)
	 Provide multiple value-added businesses: e.g. short messages, calling telephone number display, positioning of 110 warning.

 
	(9)
	 Mixed networking of high and low power Radio Ports  

By
combining high and low power Radio Ports, coverage can be solved by high power Radio Ports, while calling volume by low power Radio Ports. 

3

 
	(10)
	Support large calling volume  

Using
low power Radio Ports and group control technology can satisfactorily solve the problem of large calling volume. 

	(11)
	Short construction period and easy to construct  

As
low power Radio Ports use twisted pairs to supply power, it greatly increases the easiness of construction and thus shortens construction period. 

	(12)
	Radio Ports use remote power supply  

Radio
Ports using remote power supply facilitate to lower the overall cost of system and construction complexity. 

	(13)
	With V5 connection, it facilitates upgrading to the next generation of network

 
	(14)
	 WACOS technology  

With
the increasing demands for the new business of the current telecommunication network, more and more manufacturers and business operators are seeking new network architecture to construct
multimedia business network with low cost and complexity. 

PAS
network-based WACOS system provides users with voice business and at the same time support multi-business IP connection, which is an ideal solution for the next generation network and facilitates
to upgrade the current wireless local telephone system to the next generation telecommunication network. 

	(18)
	Adjustability of Radio Ports  

Facilitate
to construct dedicated network, virtual network and increase calling volume. 

	(19)
	Can provide multiple value-added businesses

 
	(20)
	 Versatility of mobile phones  

Can
choose various mobile phones of different manufacturers. 

	(21)
	High telecommunication channel and law cost ratio  

Low
construction cost per telecommunication channel. 

    PASTM
utilize the existing telephone resource and make it possible to communicate within the whole urban area and thus opens new business opportunity for
telecommunication departments. PASTM has now been widely used in Southeast Asia and multiple provinces of China. In July 1996, PASTMparticipated in the connection
network test organized by Telecommunication General Bureau; in March 1999, it passed the appraisal of connection network experts from Telecommunication Management Bureau of Ministry of
Information Industry; PASTM uses a frequency range of 1900-1920MHz that is in conformance with the wireless connection frequency range by TDMA/TDD method approved by the
National Wireless Committee. 

    PASTM
system has gained good results in some areas, for example, in Yuhang and Zhaoqing cities, [***] of users holds the wireless telephones as
their second telephone, and the calling volume of each user increased [***]. With the development of the market, the income of wireless telephone business will increased
rapidly. Within [***], the new users with wireless telephones increased [***] of the original wire-type telephone number.
PASTM system has been installed in more than ten provinces in China with a capacity of more than [***] lines. The system has been welcomed for its stability. 

4

 

1.4 Definition  

    Explanations to some abbreviated English phases: 

	 	 	PAS	 	Personal access phone system
	 	 	PS	 	Personal system handset
	 	 	RP	 	Radio Port
	 	 	RPC	 	Radio Port controller
	 	 	RT	 	Local terminal
	 	 	ATC	 	Air channel controller
	 	 	LE	 	local exchanger
	 	 	CDR	 	Detailed calling record

Chapter 2  Networking principle  

2.1 Coverage priority  

	Priority
	 	Type

	Most important	 	Government organization; stores; main streets; living houses; professional market;
	Important	 	Entertainments; streets; schools
	Normal	 	Plants; hotels; open spaces

2.2 Averaged calling volume in busy hours  

    The design requirement on averaged calling volume in busy hours is different for different range of a city, e.g. there will be more calling volume in the urban
area and less calling volume in the sparsely lived suburb areas. 

    The
solution takes the following indexes: 

Dense
area [***] 

Sub-dense
area [***] 

Normal
area [***] 

5

 

2.3 Assumption of calling loss  

    The solution assumes 

loss
of air calling [***] 

loss
of wireless system [***] 

2.4 Coverage method  

    The solution uses mixed big and small stations with a consideration of range division. 

2.5 Frequency planning  

The
system uses frequency range approved by Ningbo Wireless Committee for the PAS wireless connection network of Ningbo Telecommunication Branch Co. 

Frequency
range approved by the Wireless Committee 

Frequency requirement of PASTM system:  

Control
carrier frequency(C-ch):[***] 

Control
carrier frequency(C-ch)  [***] 

Voice
carrier frequency(T-ch):[***] (excluding control carrier frequency) 

6

 

Chapter 3  Networking solution for PASTM system of Ningbo Telecommunication Branch Co.  

3.1 City Introduction  

    Ningbo city is one of the 14 opening-up port cities, it has a long history and under its jurisdiction are Qingxian, Xiangshan and Linghai counties,
and Yuyao, Cixi and Hongfa three county-level cities. The city proper consists of Haishu, Jiangdong, Jiangbei, Zhenhai and Zhaolun boroughs with a population of 5.3 million and an area of 9000
km2. 

3.2 Division of coverage  

    The PAS Xiao Ling Tong solution covers the majority of Ningbo city, The coverage area shall be as follows: [***]. 

3.3 Introduction of division  

    Each zone has different geographical environment and social environment, for example, some zones are busy commercial areas, some are residential areas, some
are sparsely populated development zones and suburb areas, and some are densely populated old urban areas. In order to properly use the frequency resources and station equipments, we must first a
clear planning as to the whole network and designate different expected calling volume and service priorities for different areas. 

    Division
definition: In the range has the same wireless environment and calling density is homogeneous and calling directions are generally the same. 

    According
to the status of Ningbo city, the coverage of urban area can be divided into three level's calling model: 

A:
[***]

B: [***]

C: [***] 

Zone A: [***]  

Calling density  

    In this zone are some busy commercial areas such as bazaars, governmental organizations and commercial streets etc., and places such as commerce, schools,
finance, hospitals, organization, and bus and railway stations. It features large population flow and high population density. Therefore, the geographical environment is relatively complex and calling
volume is large. 

    Zone
A is mainly distributed in [***]. 

    As
to zone A, we should consider both calling volume and coverage. Therefore, in this zone we use relatively more small power stations and at the same time adopt relatively higher
group control ratio. 

    In
this zone we use [***]. In total we will use [***]. 

7

 

Zone B: [***]  

Calling density:  

    Relative to [***] calling volume is relatively small. In this zone are numerous residential areas, some department stores and
supermarkets etc. It features good indoor coverage and relatively low calling volume, however, there may exist some local big calling volume demand. 

    The
[***] zone of Ningbo city mainly includes: [***]. 

    As
to zone B, the main concentration is on coverage and also on calling volume for some local areas. We will use both high and low power stations and at the same time partly use group
control method. 

    In
this zone we use [***]. In total we will use [***]. 

Zone C: [***]  

Calling density:  

    Relative to [***] mainly consists of areas with more open spaces. In this zone are plants, small building of 1~3 floors and even some
open spaces. The zone features [***] calling volume, and therefore coverage is the main consideration. 

    The
[***] of Ningbo city the area excluding [***] with an area of around [***]. 

    As
to the zone, we will only consider coverage and use [***]. 

    In
this zone we will use [***]. In total we will use [***]. 

Coverage statistics  

    The PAS project covers areas of types A, B and C with a total area of [***]. The system will use [***] with
specifics as shown in the following table: 

	 
	 	Coverage
	 	RPC number
	 	200mwRP number
	 	10mwRP number

	Zone A	 	[***]	 	[***]	 	[***]	 	[***]
	Zone B	 	[***]	 	[***]	 	[***]	 	[***]
	Zone C	 	[***]	 	[***]	 	[***]	 	[***]
	Total	 	[***]	 	[***]	 	[***]	 	[***]

3.4 Network architecture as shown in the following graph:  

    [***] 

Note:
[***] and network management of Ningbo city urban area, Qingxian county, Zhaobei and Zhenghai will be located in [***] of Ningbo city.
[***] will be connected by using Ethernet network. There will be a [***] interface for each RT, and the link is [***]. The
connection of each RT to each [***] is [***] and to 

8

 

commonly connected [***] is [***]; the connection of each [***] to each RT is [***]; PGTS1 connects to
[***] by [***] respectively; the connection of [***] is by [***]; the connection of
[***] of Yuyao city and Cixi city to PGTC is by [***] respectively. It is used to handle [***] roaming among
[***]. 

3.5 Analyses of network capacity  

    As to the high power station of wireless telephone system that usually installed on top of high building (above 25 meter), it features large coverage that
spans the nearby [***] stations. According to the air interface protocol of PASTM system, mobile phones can at most use the business channels of the two nearby
stations, therefore, the usable channel number within its coverage is [***]. 

    According
to statistics analysis of UTStarcom Co. on coverage of high power station system, on average [***] of stations can use the nearby two stations,
[***] of stations can use the nearby one station and only [***] of stations work individually. A system with [***] stations and
[***] channels can provide a calling volume of [***], A system with [***] stations and [***] channels
can provide a calling volume of [***] and A system with only [***] station and [***] channels can provide a calling volume of
[***]. 

    Zone A:  As to a total of [***] power stations of zone A, the supplied calling volume is
[***]. As to [***] power stations, in addition to [***] stations, there will another [***] complimentary
stations that use group controls of [***] stations. As a result, supplied calling volume is [***]. The total calling volume for Zone A is
[***]. 

    According
to rules of chapter 3, on average each user has [***], the total supported users is: 

[***] 

    Zone B:  As to a total of [***] power stations of zone B, the supplied calling volume is
[***]. As to [***] power stations, in addition to [***] stations, there will another [***] complimentary
stations that use group controls of [***] stations. As a result, supplied calling volume is [***]. The total calling volume for Zone A is
[***]. 

    According
to rules of chapter 3, on average each user uses [***], the total supported users is: 

[***]

    Zone C:  As to a total of [***] high power stations of zone C, the supplied calling volume is 

[***]. 

    The
total calling volume for Zone B is [***]. 

    According
to rules of chapter 3, on average each user uses [***], the total supported users is: 

[***]

9

 

The capacity of the whole system is shown in the following table:  

	Zones
	 	RPC number
	 	Station

number
	 	RT number
	 	ATC number
	 	Erl.
	 	User number

	Zone A	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Zone B	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Zone C	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Total	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

3.6 Statistics of transmission links  

[***]

	Branch name
 
	 	RP number
	 	RPC number
	 	E1 links between RPC-RTs

	Integrated building	 	[***]	 	[***]	 	[***]
	Jiangdong branch	 	[***]	 	[***]	 	[***]
	Zhilan	 	[***]	 	[***]	 	[***]
	Zheng Da Fang	 	[***]	 	[***]	 	[***]
	Wangchun	 	[***]	 	[***]	 	[***]
	Shuguang	 	[***]	 	[***]	 	[***]
	Minglou	 	[***]	 	[***]	 	[***]
	Zijuan	 	[***]	 	[***]	 	[***]
	Qiwen	 	[***]	 	[***]	 	[***]
	Wenjiao	 	[***]	 	[***]	 	[***]
	Total	 	[***]	 	[***]	 	[***]

Note:
The control room for actually storing RPCs should be in conformance with the project's requirements. 

3.7 Determination of ATC and [***] port number  

    Total number of [***] supported by the system/user number supported by each [***] interface. The capacity of
each [***] interface can support is [***] and the system capacity is [***]. 

    As
a result, [***] interface number = [***]. Considering the initial telephone number subscribed is not very large, the solution
provide [***] interfaces and it can be extended after demands increase (there exists sufficient redundancy in [***]). 

10

 

3.8 System redundancy  

    In total the system has [***],[***] RTs and [***] ATCs, among which each RPC can at
most connect [***] RPs, each RTs can at most connect [***] RPCs and RTs, ATCs can connect [***] E1s. Thus, the system has a
redundancy of [***] RPs and [***] RPCs;each RT has a redundancy of [***] E1s. 

3.9 Roaming analysis  

    The system roaming can be classified as [***] roaming, i.e., [***]. 

    [***]
roaming with the same zone is realized by using [***]. The connection of each [***] within
[***] to [***] is by [***], the calling volume provided by [***] is [***], the
calling volume supported by each [***] is [***], the total calling volume supported by [***] is [***].
Considering the calling-in and dailing-out effects, the roaming calling volume supported by the network is [***].At this stage, the designed calling
volume for [***] is [***], therefore, the roaming rate is [***]. 

    Inter-city
roaming is realized by using [***]. For roaming between [***], connections between
[***]are by [***], the calling volume supported by [***] is [***]. Suppose that on average the calling
volume per user is [***], then the supported roaming user numer is [***]. 

3.10 Network management system  

 3.10.1 Constitution of network management  

    The network management system consists of operation maintenance management, data management, warning management and wireless connection management. 

    The
software used in network management is the network management platform NETMAN from UTStarcom Co. (As to specific functions, please refer to the technical manual) 

	(1)
	Main features and functions of NETMAN platform:

	•
	Based
on Windows 95/Windows NT operating system

	•
	Adopt
100 BASE-T/10 BASE-T Ethernet interface and RS232 & V.24 interface.

	•
	With
user-friendly interfaces, vivid mapping images of network and equipments.

	•
	Easy
to operate and with low cost.

	•
	Support
remote dialing-in equipment monitoring.

	•
	Use
multiple series interfaces and support multiple sub-network monitoring.

	•
	Multi-task
management of communication system, and support synchronizing and asynchronizing commands. 

    Operating
functions of NETMAN system: 

	•
	Editing
and monitoring for multiple sub-network system mapping images of [***].

	•
	Remote
monitoring and multi-function management. 

11

 

	•
	Monitoring
of warning, Trap login and fault analysis.

	•
	Get/set
system configuration and running mode for each node.

	•
	Routing
control and loop setup for equipments

	(2)
	Management of NETMAN to [***]

	•
	Connect
and interrupt a [***].

	•
	Set
a communication interface and [***].

	•
	Block/open
[***].

	•
	Set
maintenance mode for [***].

	•
	Reset
[***].

	•
	Designate
[***].

	•
	Collect
and display the running status for the following equipments: 

[***]

[***]

[***]

[***]

[***]

[***] 

	•
	Collect
communication business volume data per hour for [***].

	•
	Enquire
the configuration data of control channel for [***].

	•
	Enquire
the current warning status of [***].

	•
	Enquire
the past warning data of system.

	•
	Install
and edit running data, setup group control mode, [***]. 

 3.10.2 Design of network management network  

    The network management system of Ningbo city adopts the modulized design philosophy, and the LAN is constructed by using Ethernet bridge and Ethernet switch. 

    The
software used for maintenance terminal and calling terminals are based on TCP/IP protocol, the communication connection of Netman and CDR platform to each
[***] constitutes the [***] of network management system. As [***] are concentrated in the integrated building, they are
connected with LAN by using Ethernet network connection. The network management system of Ningbo city adopts the modulized design method, initially, all [***] in
[***] are located in the 

12

 

same building, [***] can be connected to [***] with LAN. [***] uses 10 BASE-T Ethernet interface, and
[***] uses 100 BASE-T Ethernet interface, as is shown in the following graph:[***] 

 
 

NinBo Telecom Branch PAS Wireless Access Network Equipment and Price List    
  

1 Radio Port Controller(RPC)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

2 GPS Systme(GPS)[***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	
	 	Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

3 Radio Port(RP)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

4 Wireless Access Equipment RT  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

5 Air Traffic Control (ATC,S-ATC) and Software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

13

 

6 PAS Roming Gateway(PGTS/PGTC) And Software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

7 S-ATC Hareware [***] and Software  

	 
	 	 
	 	Sales Price (No Discount)

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	
	 	No Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

8 NetMan software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

9 Netman system Hardware [***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

 
 

NingBo City ZhenHai District Telecom Branch PAS Wireless Access Equipment and Price List    
  

1 Radio Port Controller(RPC)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

2 GPS System(GPS) [***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	 
	 	No Discount (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

14

 

3 PR(RP)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

4 Wireless Access Equipment RT  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

5 Netman System Equipment [***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

 
 

Ci Xi city Telecom Branch PAS Wireless Access Network Equipment and Price List    
  

1 Radio Port Control(RPC)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

2 GPS System(GPS)[***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	No discount (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

3 Radio Port (RP)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

15

 

4 Wireless Access Equipment RT  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	(31% Discount Price) (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

5 Air Roaming Module (ATC,S-ATC) and Software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

6 PASRoaming Gateway (PGTS/PGTC) and Software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

7 NetMan SystemSoftware  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

8 NetMan SystemHardware [***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	
	 	No Discount (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

 
 

YuYao City Telecom Branch PAS Wireless Access Equipment and Price List    
  

1 Radio Port Control(RPC)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

16

 

2 GPSSystem (GPS)[***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	No Discount (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

3 Radio Port (RP)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

4 Wireless Access Equipment RT  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

5 Air Roaming Module (ATC,S-ATC) and Software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

6 PASRoaming Gateway (PGTS/PGTC) and Software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

7 NetMan System Software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

8 NetMan System Hardware [***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	
	 	No Discount (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

17

 
 
 

NingBo City BeiLun District Telecom Branch PAS Wireless Access Equipment and Price List    
  

1 Radio Port Control(RPC)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

2 GPS System(GPS)[***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	No Discount (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

3 Radio Port (RP)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

4 Wireless Access Equipment RT  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

NetMan System Hardware [***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

 
 

Jin County Telecom Branch PAS Wireless Access Equipment and Price List    
  

1 Radio Port Control(RPC)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

18

 

2 GPS System (GPS)[***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	No Discount (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

3 Radio Port (RP)  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

4 Wireless Access Equipment RT  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

5 Air Roaming Module (ATC,S-ATC) and Software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

6 PASRoaming Gateway (PGTS/PGTC) and Software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	Discount Price
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

7 NetMan System Software  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	
	 	Discount Price (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

19

 

8 NetMan System Hardware [***]  

	Description
	 	Deployment Description
	 	Product Number
	 	Unit Price(USD)
	 	Quantity
	 	Total (USD)
	 	
	 	No Discount (USD)

	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

	District
	 	Price after [***] Discount(USD)
	 	User

	[***]	 	[***]	 	[***]

 
 

PRICE SUERVEY PER SYSTEM 16-Mar-01    

	SYSTEM
 
	 	 
	 	Total Price (USD)
	 	Total price (RMB) at the rate of: [***]

	 	 	Sub-Total for Equipment
	 	[***]	 	[***]
	2. SERVICE	 	[***]	 	[***]	 	[***]
	 	 	 	 	[***]	 	[***]
	 	 	 	 	USD	 	RMB
	TOTAL PRICE (FOB Hangzhou)	 	 	 	[***]	 	[***]

20

QuickLinks

Exhibit 10.62

[Translation]

CONTRACT

Translation Verification

Contents

NinBo Telecom Branch PAS Wireless Access Network Equipment and Price List

NingBo City ZhenHai District Telecom Branch PAS Wireless Access Equipment and Price List

Ci Xi city Telecom Branch PAS Wireless Access Network Equipment and Price List

YuYao City Telecom Branch PAS Wireless Access Equipment and Price List

NingBo City BeiLun District Telecom Branch PAS Wireless Access Equipment and Price List

Jin County Telecom Branch PAS Wireless Access Equipment and Price List

PRICE SUERVEY PER SYSTEM 16-Mar-01Prepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document

[***] 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.

 
 

Exhibit 10.63    
  

 
 

MANUFACTURING LICENSE AGREEMENT    
  

    THIS AGREEMENT DATED THIS 6TH DAY OF MARCH 2001 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, 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 (as hereinafter defined); 

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

    C.
For this purpose, HFCL wishes to obtain from UTStarcom a license to manufacture and sell the Product in India; 

    D.
UTStarcom is willing to license to HFCL the right to manufacture the Product in India for sale in India; 

    E.
HFCL has explained to UTStarcom the need to manufacture the Product on a [***] basis in order to be competitive; and 

    F.
The Parties intend that with respect to manufacturing the Product on a [***] basis, HFCL will require to obtain components and material from
[***] sources and other [***] 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" means: 

    (a) the
date of this Agreement, or 

    (b) the
date on which all consents, licenses, permits and approvals of any relevant governmental or non-governmental agency or body necessary to consummate
the transactions contemplated in this Agreement including Secretariat for Industrial Assistance/Reserve Bank of India approval in terms of Article 7, have been obtained, released or issued, as
the case may be, whichever is later. 

    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 Sections 6.9 and 6.10 below ("HFCL Improvements"). 

    1.4 "Product" means the [***] as more fully described in Exhibit A and certain upgrades
from time to time in the same product hierarchy. 

    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 supply to HFCL such
Technical Information [***] necessary to enable HFCL to assemble the Product at HFCL's plant(s) in the Territory. 

    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 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 any deficiency, inaccuracy, error or other defect shall at any time 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 [***] of executing this Agreement, HFCL does not commence manufacturing the Product; then UTStarcom shall have the right to deem
this Agreement terminated, effective upon UTStarcom's 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, 

2

 

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, 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 acts of a third
party reasonably within the control of HFCL. 

    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, know-how, 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. 

    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 including software upgrades that are actually incorporated by UTStarcom into the Product. Upon request [***]
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 related to
royalty payments for Improvements 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 new products. The manufacturing information on certain upgrades—[***] shall be supplied
[***] by UTStarcom. UTStarcom expects these designs to be mature by the [***]. 

    4.  TECHNICAL ASSISTANCE; QUALITY CONTROL; VISITS

    4.1 UTStarcom
shall, at HFCL's request and prepayment of [***] applicable charges and expenses, including but not limited to
[***] and such other [***] 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. 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 term of this Agreement, on request, but in each case at a time reasonably convenient to UTStarcom, to send 

3

 

suitably qualified employees of HFCL, not exceeding [***] in number, to UTStarcom's facilities for visits not exceeding in the aggregate [***] per
[***]. UTStarcom will also host visits by employees of HFCL's customers on terms and conditions subject to mutual agreement. HFCL shall be responsible for
[***] such employees' [***] expenses in connection therewith. HFCL shall [***] 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. 

    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, [***] 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 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 obtain 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 procedures or regulations as UTStarcom may 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 

4

 

Agreement solely on a confidential basis, conditioned upon HFCL not disclosing any portion of any 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" and all such Confidential Information shall be subject to the confidentiality requirements of section 5 of this agreement. HFCL shall use the
Confidential Information only for the assembly, manufacture, testing, repair, marketing, sale and 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, 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 five years after expiration or termination of this Agreement. 

    5.6 HFCL
understands that disclosure of 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 [***] license to use the Technical Information to assemble, manufacture, and test the Product in the
Territory. 

    6.2 UTStarcom
hereby grants to HFCL [***] license to use, sell, lease, install, maintain and repair the Product in the Territory. 

    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 UTStarcom has the right to grant such a license. 

    6.4 UTStarcom
hereby grants to HFCL the license to print, copy and distribute Product related user documentation in paper, electronic or CDROM media in the Territory in
conjunction with the sale of Product. 

5

 

    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
[***] license solely with respect to the object code of such software: 

    (a) to
[***] such software only to customers of HFCL for use with the Product in the Territory; and 

    (b) to
use such software for HFCL's own purposes in operating the Product to the extent provided in this Agreement. 

    6.6 In
granting these licenses to HFCL, UTStarcom does not in any way grant any ownership interest in any of the 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. 

    6.7 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. 

    6.8 HFCL
shall not, and shall require and ensure that all of its customers and users do 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 Improvements, 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. 

    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 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 6.10 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. 

    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 6.13. 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 

6

 

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." 

    6.14 UTStarcom
shall decide, in consultation with HFCL, what logo(s) are to be displayed on Product. HFCL shall comply with such a requirement. 

    6.15 HFCL
expects that following will be minimum sale of lines of the product year wise: 

Year
2001  [***]

Year 2002  [***]

Year 2003  [***]

Year 2004  [***]

Year 2005  [***] 

    UTStarcom
reserves the right to review HFCL's sales performance [***] and make this agreement [***] if failure to
achieve the sales targets is primarily due to lack of proper effort on HFCL's part. 

    7.  CONSIDERATION.

    7.1 HFCL
shall pay UTStarcom a technology license fee in upto [***] instalments, not exceeding [***], to be calculated
in terms of para 7.2. The first [***] payment will be due immediately on completion of following activities: 

    [***]

    The
first payment shall be due on the last day of first [***] and subsequent payments shall be done in the same manner. The calendar year is to be divided into
the following [***]. Subsequent installments will be due on the last day of each of the [***] following the due date of the first payment. The payment
shall be made within [***] from the invoice date. 

    7.2 The
amount of each installment payable would be calculated based upon the quantity of Product manufactured and shipped by HFCL in the [***]
immediately preceding the date of the payment. The rate at which the technology license fee adjustment is calculated varies with the different types of Product components manufactured and is detailed
in Exhibit A. 

    7.3 This
Agreement will automatically terminate upon the occurrence of the earlier of the two events: 

    (a) The
cumulative amount of the license fee payment under this Agreement equaling or exceeding [***] 

    (b) The
completion of [***] installments of [***] payments of license fee. 

    This
agreement may be renewed immediately upon termination with mutual agreement of HFCL and UTStarcom. 

    7.4 Additionally,
HFCL shall 

    (a) pay
UTStarcom a [***] software license fee of [***], payable within [***] of signing of this
agreement and 

    (b) purchase
from UTStarcom or a UTStarcom authorized agent, 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

 

    (c) not attempt to manufacture, purchase, or acquire in any other way the components referred to in 7.4(b) from any source other than UTStarcom without the prior
written approval of UTStarcom. 

    7.5 HFCL
shall be responsible for applying for and obtaining all approvals required for remitting payments to UTStarcom required under this Agreement, including
Secretariat for Industrial Assistance/Reserve Bank of India approval. HFCL shall use all reasonable diligence and expediency to obtain all required approvals for remitting payments to UTStarcom
required under this Agreement. If HFCL is unable to obtain any required approval for remitting payments to UTStarcom required under this Agreement within [***] of signing this
Agreement, then this Agreement shall terminate in accordance with Section 12.2(f), and the provisions of Sections 12.3, 12.4 and 12.7 shall apply. 

    7.6 HFCL
shall make all payments under this Agreement [***], without recourse to UTStarcom for any reimbursement, contribution or indemnity.
Notwithstanding its obligations pursuant to the prior sentence HFCL shall deduct [***] on the amount to be remitted to UTStarcom on account of: 

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

    (b) UTStarcom
with respect to any such fee or 

    (c) if
such tax is required by the Government of India to be paid by UTStarcom or withheld by anyone paying to UTStarcom. 

    7.7 Whether
as a result of any payment under this Agreement or any characterization by the Government of India or any payment due under this Agreement, HFCL shall
ensure that the tax is withheld and paid on behalf of UTStarcom and all other parties liable for such tax and shall also
provide to UTStarcom, immediately after each such tax payment, an official tax receipt or other evidence of payment issued by the tax authority with respect to such tax. 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 other than the withholding tax as proposed in para 7.6. 

    7.8 [***]
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. 

    7.9 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 certain information that is not generally known to the public being available to HFCL for its use to manufacture, test, market and sell
the Product. 

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

    7.11 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. Beginning with the signing of this Agreement and for up to [***] after either 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. 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
auditor's review verifies an underpayment in excess of [***] of the royalties payable for any [***] period under review, or if the auditors determine
that 

8

 

HFCL has not maintained sufficiently appropriate records, HFCL shall pay all costs associated with the auditor's review. 

    7.12 The
Application Specific Integrated Circuit (ASIC) chips listed in Exhibit A may only be procured by HFCL as per procedures approved by UTStarcom. Initially
the following procedures are approved: 

    (a) HFCL
may purchase the listed ASICS from UTStarcom. UTStarcom agrees to charge not more than a [***] surcharge on the cost of procurement and
programming of these items. 

    (b) HFCL
may purchase the listed ASICS directly from third party vendors and send them to UTStarcom's facility in China for programming. HFCL agrees to pay a
[***] programming fee per ASIC chip thus programmed. 

    In
addition, UTStarcom will explore the feasibility of establishing a programming facility in India, either at a third party's premises or in HFCL's premises. Under
such a scenario, UTStarcom will invoice HFCL the actual cost of such programming incurred by UTStarcom. UTStarcom reserves the right to modify the list of controlled ASICS in Exhibit A at any
time by informing HFCL of the change in writing. UTStarcom will make a good faith effort to reduce the size of the list to the minimum in order to contain administrative and overhead costs. 

    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, UTStarcom shall
have no obligation of any nature to supply any part or component to HFCL. 

    9.  NOVATION; ASSIGNMENT.

    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, [***] harmless from and against all losses, costs, expenses and damages, including reasonable
attorneys' fees, resulting from or in connection 

9

 

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 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.

    11.1 This
Agreement shall be governed by and interpreted and construed in accordance with the laws of India. Each Party consents to the -exclusive personal jurisdiction
of the courts of India. The Parties specifically [***] 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 [***] 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 [***] 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 [***] of submission of the respondent's answer to the 

10

 

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 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. 

    (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
[***] or until the termination of the Agreement according to the provisions of article 7.3, whichever is earlier. 

    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 ASICS pursuant to Article 7, 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 

11

 

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 as required under this Agreement or failure to make any payment to UTStarcom as and when due
pursuant to this Agreement including payments under Article 7; or 

    (f)  terminate
this Agreement for any reason other than the expiration of [***] after the Effective Date if the term of this Agreement has not
been previously extended by mutual written agreement, subject to any required regulatory approvals, 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 return to UTStarcom at
HFCL's cost 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, know-how 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 claiming under or through HFCL for any claims, damages, or costs in any way whatsoever, 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 [***] to
respond to such inquiry. Any failure by HFCL to respond to 

12

 

UTStarcom's inquiry within [***] 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. 

    12.8 The
terms of this agreement will apply to all manufacture and sale of the Product, to any customer whatsoever by HFCL, except the sale undertaken to DOT under the
terms of the [***]. The sale of the Product to DOT by HFCL as required by the [***] will continue to be governed by the terms of the agreement signed by
UTStarcom and HFCL on 6th Day of April 2000. 

    13. FORCE MAJEURE.

    In
the event that either party 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 other 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 a 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

HFCL, 8 Commercial Complex,

Masjid Moth, Greater Kailash — II

New Delhi-110048 India	
 	

Director, India Operations,

33 Wood Avenue, South

Iselin, NJ 08852
	

Fax +91-11-6217784

Attention:                        	
 	

Fax: +1 732 767 5274

Attention: Ruchir Godura

    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. 

13

 

    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
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 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; 

    (b) 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; 

    (c) 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 

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

    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 

14

 

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 every other regulatory body 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 THE EXCLUSION OF CONSEQUENTIAL DAMAGES AND LIMITATIONS OF LIABILITY SET FORTH IN THIS PARAGRAPH. 

    21.2 IN
NO EVENT SHALL UT STARCOM'S LIABILITY TO HFCL OR ANY OTHER PARTY ARISING UNDER THIS AGREEMENT OR IN CONNECTION WITH ANY PRODUCT EXCEED THE
[***] 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. 

15

 

    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. 

16

    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 COMMUNICATION Ltd.	
 	

UTStarcom, Inc.
	

By:	
 	

 	
 	

By:	
 	

 
	 	 	
	 	 	 	

	Name:	 	 	 	Name:	 	 
	 	 	
	 	 	 	

	Title:	 	 	 	Title:	 	 
	 	 	
	 	 	 	

 
 

Exhibit "A" Product Elements, controlled ASICS, (Page 1)    
  

    This Exhibit A lists the defining plug-in modules for the Product. The Product may also consist of associated mechanical, cabling and power
subsystems and components that are reasonably required to support the operation of the items in the below list. 

	Item
	 	Module Description
	 	Technology License Fee($US)

	1	 	[***]	 	[***]
	2.1	 	[***]	 	[***]
	2.2	 	[***]	 	[***]
	3	 	[***]	 	[***]

 
 

Exhibit "A" Product Elements, controlled ASICS, (Page 2)    
  

	Item
	 	Module Description
	 	Technology License Fee($US)

	4	 	[***]	 	[***]
	5	 	[***]	 	[***]
	6	 	[***]	 	[***]
	7	 	[***]	 	[***]
	8	 	[***]	 	[***]
	9	 	[***]	 	[***]

 
 

Exhibit "A" Product Elements, Controlled, ASICS (Page 3)    
  

	Item
	 	Module Description
	 	Technology License Fee($US)

	10	 	[***]	 	[***]
	11	 	[***]	 	[***]
	12	 	[***]	 	[***]
	13	 	[***]	 	[***]
	14	 	[***]	 	[***]
	15	 	[***]	 	[***]
	16	 	[***]	 	[***]

 
 

Exhibit "A" Product Elements, controlled ASICS (Page 4)    
  

	Item
	 	Module Description
	 	Technology License Fee($US)

	17	 	[***]	 	[***]
	18	 	[***]	 	[***]
	19	 	[***]	 	[***]
	20	 	[***]	 	[***]
	21	 	[***]	 	[***]
	22	 	[***]	 	[***]
	23	 	[***]	 	[***]
	24	 	[***]	 	[***]
	25	 	[***]	 	[***]

Notes:

	1)
	The
Technical Information for the [***] will be provided by HFCL

	2)
	The
license fee for [***], when used in one to one correspondence with a [***] is [***]

	3)
	The
license fee for a [***] when used to deliver [***] as a subscriber service is [***]. License fee for
[***] line card will be determined later by UTStarcom 

 
 

Exhibit "A" Product Elements, controlled ASICS, (Page 5)    
  

    The following is the list of controlled ASICS: 

	S/N
	 	ASIC code
	 	UTS Part (top)
	 	UTS P/N
	 	Base Code

	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]

 
 

EXHIBIT "B" Technical Information    
  

    For
each part of the Product to be manufactured by HFCL, UTStarcom will supply the following information: 

	1)
	Parts
List for each Printed Circuit Board including Procurement specifications, vendor details and order code of vendors

	2)
	Gerber
files for each Printed Circuit Board

	3)
	Firmware
details and files in object code (excluding FPGA [ASIC] object code).

	4)
	Circuit
Diagram

	5)
	Assembly
Diagram

	6)
	Mechanical
Drawings including manufacturing drawings for each Printed Circuit Board

	7)
	For
each Sub-system and for the total system the following Technical Literature in English

	•
	System
Description

	•
	Installation
and Operation Manual

	•
	Testing
Manual which contains test plans and procedure

	•
	Maintenance
and Repair Manual which also contains Trouble shooting procedures

	8)
	List
of any special jigs for manufacturing and testing

	9)
	List
of Test instruments required for testing 

    The
above information shall be provided for the Product Elements as in Exhibit "A" 

 
 

EXHIBIT "C" Terms of Payment ASICS and FPGAs    
  

    HFCL shall make payments to UTStarcom for ASICs and FPGAs against an [***] to be established by HFCL in favour of UTStarcom with a bank
authorized by the Reserve Bank of India to deal in foreign exchange and acceptable to UTStarcom in its sole discretion. HFCL shall open a [***]for each ASIC and/or FPGA at the
time it orders them from UTStarcom. UTStarcom may also indicate in writing to HFCL, alternative means of payment and HFCL may choose to use such means. 

QuickLinks

Exhibit 10.63

MANUFACTURING LICENSE AGREEMENT

AND

Exhibit "A" Product Elements, controlled ASICS, (Page 1)

Exhibit "A" Product Elements, controlled ASICS, (Page 2)

Exhibit "A" Product Elements, Controlled, ASICS (Page 3)

Exhibit "A" Product Elements, controlled ASICS (Page 4)

Exhibit "A" Product Elements, controlled ASICS, (Page 5)

EXHIBIT "B" Technical Information

EXHIBIT "C" Terms of Payment ASICS and FPGAs

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}]]