Document:

<PAGE>
                                                               Exhibit 10.12
                             CUSTOMER ORDER FORM
<TABLE>
<S>                                                      <C>
---------------------------------------------------------------------------------------------------
Customer: PartsBase.com                                   Contact: Yves Duplan
---------------------------------------------------------------------------------------------------
Address: 7171 North Federal HWY, Boca Raton, FL 33437     Phone: 561-443-3302
---------------------------------------------------------------------------------------------------
Support Manager Contact:                                  Fax: 561-443-7092
---------------------------------------------------------------------------------------------------
Operating Brand: PartsBase.com                            E-Mail: yduplan@partsbase.com
---------------------------------------------------------------------------------------------------
Vertical Market Aerospace/Defense
---------------------------------------------------------------------------------------------------
The Software for the Services will be hosted on Customer's server.

---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
CONFIGURATION SERVICES AND ANNUAL SUBSCRIPTION FEES:  $138,000
---------------------------------------------------------------------------------------------------
TD-ReverseAuction                       $40,000 per server if purchased on before 11-17-99 with
                                        TD-Auction and TD-Exchange

                                        (Includes 25,000 traders per year to be utilized by all
                                        applications listed, $25,000 for an additional 25,000 trades)

---------------------------------------------------------------------------------------------------
TD-Exchange                             $50,000 per server if purchased on before 11-17-99 with TD-
                                        Reverse Auction and TD-Auction

---------------------------------------------------------------------------------------------------
TD-Auction                              $40,000 per server if purchased on before 11-17-99 with TD-
                                        Exchange and TD-ReverseAuction

Development System(API)                Included if purchased with above configuration.

---------------------------------------------------------------------------------------------------
Additional Servers options:

TD-Analyst                              $10,000 per server

Presentation Server                     $15,000 per server

Development System (API)                $7,500 per server

[ILLEGIBLE] Standby Server              30% of base application configuration

Staging/Testing Server                  $7,500 per server
---------------------------------------------------------------------------------------------------
_X_ 5zK Telephone Hotline Support
(7am - 3pm PST) OR                      12% of list price of total annual subscription fees per year
                                        per two named contracts OR

   5x12 Telephone Hotline Support
   (6am - 6pm PST)                      18% of list price of total annual subscription fees per year
                                        per two named contracts

---------------------------------------------------------------------------------------------------
Market Design Consulting Services       $250 per hour

---------------------------------------------------------------------------------------------------
Term: one year                          Year 2 license fees will increase by no more than 15%
                                        provided that Customer commits to renew the Annual
                                        subscription for Year 2 by June 30, 2000
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
</TABLE>
                                 USER AGREEMENT

This agreement ("Agreement") is entered into on this 17th day of _____, 1999,
(the "Effective Date") between TradingDynamics, Inc. with its principal place
of business at 313 West Evelyn Mountain View, CA 94041 ("TradingDynamics"),
and the Customer listed above ("Customer"). THIS AGREEMENT INCLUDES AND
INCORPORATES THE ABOVE CUSTOMER ORDER FORM AS WELL AS THE ACCOMPANYING TERMS
AND CONDITIONS AND CONTAINS, AMONG OTHER THINGS, WARRANTY DISCLAIMERS, LIABILITY
LIMITATIONS AND USE LIMITATIONS. There shall be no force or effect to any
different terms of any related purchase order or similar form even if signed
by the parties after the date hereof. Each party's acceptance of this
Agreement was and is expressly conditional upon the other's acceptance of the
terms contained in the Agreement to the exclusion of all other terms.

TradingDynamics, Inc.                    Customer:

By: /s/ [ILLEGIBLE]                      By: /s/ Robert A. Hammond
   -------------------------------------    -----------------------------------

Name & Title: [ILLEGIBLE] VP of Sales    Name & Title: Robert A. Hammond, CEO &
             ---------------------------               PRESIDENT
                                                      -------------------------

<PAGE>

                             TERMS AND CONDITIONS
                             --------------------

1. SERVICES.  Under the terms and conditions of this Agreement,
TradingDynamics shall provide, and Customer hereby accepts, the trading
[ILLEGIBLE] infrastructure services described in the Customer Order Form
under [ILLEGIBLE] Services" (the "Services"), which Customer may offer only
to authorized users of Customer's electronic commerce service ("Commerce
Service", but only in the Vertical Market and solely under the Operating
Brand identified on the Customer Order Form or a replacement Operating Brand
with written notice to TradingDynamics, never to exceed one Operating Brand
at one time. The Services include Updates (as defined in Section 4.3 below)
made generally available during the term of the Agreement.

2.  RESTRICTIONS AND RESPONSIBILITIES

2.1 Any software provided to Customer by TradingDynamics under this Agreement
(the "Software") is licensed to Customer on a non-exclusive,
non-transferable, royalty-free basis, with the right to use such Software
limited solely to use as part of the Commerce Services during the term and
subject to the terms and conditions of this Agreement. Customer may provide
access or distribute only that part of the Software designated on the Order
Form as "Distributed Software" to users of the Commerce Services ("Users");
all other elements of the Software may be used and accessed only by Customer
employees. Customer covenants, represents and warrants that the Operating
Brand shall be the exclusive brand through which Customer offers or markets
the Commerce Services. TradingDynamics will provide another copy of the
Software at minimal or no charge if Customer loses or damages its copy of the
Software.

2.2 Notwithstanding anything else in this Agreement, TradingDynamics and its
licensors retain all title to, and, except as expressly and unambiguously
licensed herein, all rights to the Software. Customer will have no right to
receive or license any source code with respect to the Software. Customer
shall not, directly or indirectly; (i) reverse engineer, demcompile,
disassemble or otherwise attempt to discover the source code, or underlying
structure, ideas or algorithms of the Software; (ii) divide the Software into
components or parts; (iii) modify, translate, or create derivative works
based on any Software or any portion thereof; (iv) copy (including but not
limited to back-up copying), rent, lease, distribute, pledge, assign, or
otherwise transfer or encumber rights to the [ILLEGIBLE]; (v) except as part
of the Customer Services as expressly and unambiguously authorized above, use
any Software for timesharing or service bureau purposes or otherwise for the
benefit of a third party; or (vi) delete, alter, add to or fail to reproduce
the name of TradingDynamics or any notices appearing in or on any Software or
in connection with the Services or which may be required by TradingDynamics
at any time. Notwithstanding anything else herein, Customer may not use any
name, mark or designation used by TradingDynamics except (A) for use in
advertising or marketing the Commerce Services in accordance with written
approval of TradingDynamics and (B) reproduction of trademarks as part of
making Commerce Services available to Users; provided that any such
reproductions are subject to reasonable quality control inspections and
approval of TradingDynamics. Customer will not contest anywhere in the world
the use by or authorization by TradingDynamics of any trademark, name or
other designation relevant to the subject matter of this Agreement
("Trademark List") set forth in Attachment D hereto (which Trademark List may
be changed by TradingDynamics from time to time) or application or
registration therefor, whether during or after the term of this Agreement.

2.3  Customer shall comply with all applicable laws and regulations of the
United States and foreign authorities (including, but not limited to export
laws relating to encryption or other security measures that Customer elects
to implement in connection with the Services). Customer shall not directly or
indirectly export or re-export the Software in violation of any such laws or
regulations. Customer shall indemnify and hold harmless TradingDynamics
against any liability, damages and expenses (including without limitation
costs and attorneys' fees) arising from or related to an actual or alleged
violation of the foregoing or from Customer's acts or omissions, including
but not limited to use of Software by Customer or Customer's Users.

2.4  Customer shall reproduce and clearly and prominently display within the
website through which the Commerce Services are provided, TradingDynamics'
"powered by TradingDynamics" icon in the manner mutually agreed upon by both
parties.

2.5  Customer shall make Services available to Users only pursuant to an
enforceable written agreement (which may be in the form of a click-wrap
agreement) for TradingDynamics' benefit that is at least as protective of
TradingDynamics and its rights as TradingDynamics' then current Terms of Use
(a copy of the current terms are set forth in Attachment A). TradingDynamics
reserves the right to modify such Terms of Use upon thirty (30) days prior
written notice to Customer.

2.6 If Customer communicates to TradingDynamics any suggested modifications,
design changes or improvements of the Services or Software, TradingDynamics
shall have and is hereby assigned any and all right, title, and interest in
and to any such suggested modifications, design changes, or improvements of
the Services, without the payment of any additional consideration therefor.
Customer shall not disseminate performance information or analysis
(including, without limitation, benchmarks) from any source relating to the
Software or Services.

2.7  TradingDynamics shall have the right from time to time upon fifteen (15)
days prior written notice to inspect Customer's equipment and operations to
confirm Customer's compliance with the terms and restrictions set forth in
this Agreement, and Customer shall promptly provide all assistance and access
reasonably requested by TradingDynamics in connection therewith.

3.  PAYMENT OF FEES

3.1  Customer will pay in full the fees set forth in the Customer Order Form
(under Subscription Fees) in accordance with the schedule set forth therein,
for use of the Services during the Term. Customer will pay within thirty (30)
days of receipt of TradingDynamics' invoice, any fees as set forth in the
Customer Order Form for use of the Services. For any renewal term,
TradingDynamics shall invoice Customer no earlier than thirty (30) days
before the beginning of such renewal term. All payments shall be made in U.S.
dollars in the United States. If any termination occurs prior to the end of a
term then in effect, Customer shall not receive any refund of the amounts
owed or paid.

3.2  In addition, Customer will pay all charges, including without limitation
transportation charges, and shall be responsible for all taxes (except
TradingDynamics' U.S. income taxes) in connection with the subject matter of
this Agreement, duties and other governmental assessments. Unpaid fees are
subject to a finance charge of 1.5% per month on any outstanding balance, or
the maximum permitted by law, whichever is lower, plus all expenses of
collection.

4. EDUCATION AND SUPPORT

4.1  TradingDynamics agrees to provide the education services set forth in
Attachment B for Customer personnel upon payment of the applicable education
fees set forth in such Attachment.

4.2  Upon payment of the applicable support fees set forth in the Customer
Order Form (under Subscription Fees), TradingDynamics will use diligent
efforts to provide telephone support during the term of the agreement for the
Services directly to the support managers of Customer designated in the
Customer Order Form (each a "Support Manager Contact") during
TradingDynamics' normal business hours (Pacific Standard Time) concerning the
installation and use of the then-current release of Software and the
immediately Previous Sequential Release. "Previous Sequential Release" means
at any time the release of Software that has been replaced by the
then-current release of the same Software. Notwithstanding anything else, a
Previous Sequential Release will be supported by TradingDynamics only for a
period of six (6) months after release of the then-current release.
TradingDynamics shall provide such support during the time period designated
upon the Customer Order Form. TradingDynamics' sole obligation with respect
to errors in the Services or Software (i.e., failure of the Services or
Software to comply with TradingDynamics' published specifications) will be to
use diligent efforts to correct at its expense, any such reproducible and
fully documented error about which it receives written notice ("Error").
TradingDynamics shall exercise diligent efforts to correct any Error reported
by Customer in the current unmodified release of Software in accordance with
the priority level reasonably assigned to such Error by TradingDynamics as
set forth below: (1) Priority A Error: TradingDynamics shall promptly
[ILLEGIBLE] the following procedures: (a) assign TradingDynamics engineers to
correct the Error; (b) notify TradingDynamics management that such Error has
been reported and of steps being taken to correct such Error; (c) provide
Customer with periodic reports on the status of the corrections; and (d)
initiate work to provide Customer

                                      2

<PAGE>

     a Workaround or Fix; (2) Priority B Error: (a) assign TradingDynamics
engineers to correct the Error; and (b) initiate work to provide Customer
with a Workaround or Fix; (3) Priority C Error: TradingDynamics may include
the Fix for the Error in a later major release of the Software. "Priority A
Error" means an Error that renders the Software inoperative or causes
Software to fail catastrophically.  "Priority B Error" means an Error that
substantially degrades the performance of Software or materially restricts
Customer's use of the Software. "Priority C Error" means an Error that causes
only a minor impact on the performance of Software or Customer's use of
Software. "Fix" means the repair or replacement of object or executable code
versions of Software to remedy an Error, "Workaround" means a change in the
procedures followed or data supplied by Customer to avoid an Error without
substantially impairing Customer's use of Software. Each "Fix" or
"Workaround" shall be included in the term Update. Customer shall pay
TradingDynamics at its then current time and materials rates (at the
Effective Date, $250.00 per man hour) for any additional support, similar
service or professional services provided to Customer by TradingDynamics
within thirty (30) days of receipt of "TradingDynamics" invoice therefor.
Customer shall be responsible, and Customer shall be solely responsible for
instructing and supporting the use of the Services by Users.

4.3  "TradingDynamics" support obligations described in Section 4.2 are
contingent upon proper use of the Software consistent with documentation
provided by TradingDynamics and shall not apply if the Software is (i)
modified by any party other than TradingDynamics and to the extent that such
modification caused the error or (ii) used on or with a version of a platform
or configuration other than the configuration identified in the Customer
Order Form. TradingDynamics shall have no obligation to support; (i) altered,
damaged or modified Software or any portion of the Software incorporated with
or into other software (except software authorized by TradingDynamics as set
forth in documentation), (ii) Software that is not the then-current release
or immediately Previous Sequential Release as designated by TradingDynamics;
(iii) Software problems or other problems caused by Customer's negligence,
abuse or misapplication, or by other factors beyond the control of
TradingDynamics.  "Update" shall mean any update, enhancement, patch, bug
fix, new release or new version of Software which is made generally available
by TradingDynamics, [ILLEGIBLE] is marketed under the same product number and
nomenclature as the [ILLEGIBLE] are, and for which TradingDynamics does not
charge a separate fee.  Each Update shall be included within the term
"Software".

4.4  TradingDynamics shall deposit into escrow with a reputable third party
escrow agent (e.g. DSI, Brambics, Fort Knox) the Software and each Update, and
TradingDynamics shall for the term of this Agreement include Customer as a
third party beneficiary entitled to receive such deposits in the event of
release. Customer shall reimburse TradingDynamics for the cost of including
Customer as a beneficiary of such escrow.

5.   TERM AND TERMINATION

5.1  Subject to earlier termination as provided below, this Agreement shall
commence on the Effective Date and continue for the Term specified in the
Customer Order Form. Either party may terminate this Agreement upon thirty
(30) days notice (or ten (10) days in the case of nonpayment) if the other
party materially breaches the Agreement and fails to cure such breach within
such notice period. If Customer terminates the support services under Section
4.2 of the Agreement in the manner expressly authorized under this Agreement,
Customer shall receive a refund of the unused portion of the applicable
Telephone Hotline Support Fees (as set forth on the Order Form) paid by
Customer.

5.2  Upon termination of this Agreement by either party or naturally at the
end of the term (i) all rights of Customer (including but not limited to use
of Services and Software) and restrictions on TradingDynamics hereunder shall
terminate, and (ii) Customer will immediately return to TradingDynamics all
Software, catalogues and literature in its possession, custody or control in
whichever form held (including all copies or embodiments thereof) and will
cease using any trade marks, service marks and other designations of
TradingDynamics.  Sections 2,3, 5.3, 5.4, 6 - 10 of this Agreement shall
survive termination. Upon any termination, TradingDynamics may, but is not
obligated to, delete archived data.

5.3  Termination is not the sole remedy under this Agreement and, whether or
not termination is affected, all other remedies will remain available.
Neither [ILLEGIBLE] shall incur any liability or compensation obligation
whatsoever for any damage (including, without limitation, damage to or loss
of goodwill or investment), loss or expenses of any kind suffered or incurred
by the other (or for any compensation to the other) arising from or incident
to any termination of this Agreement by such party that complies with the
terms of the Agreement whether or not such party is aware of any such damage,
loss or expenses.

6.   WARRANTY AND DISCLAIMER

EXCEPT FOR THE WARRANTIES UNAMBIGUOUSLY AND EXPRESSLY SET FORTH IN SECTION 6
OF THIS AGREEMENT, THE SERVICES AND SOFTWARE ARE PROVIDED "AS IS" AND
TRADINGDYNAMICS AND ITS SUPPLIERS DISCLAIM ALL WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT, WITHOUT LIMITING
THE FOREGOING, NEITHER TRADINGDYNAMICS NOR ITS SUPPLIER WARRANTS THAT THE
SERVICES OR SOFTWARE WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES
TRADINGDYNAMICS OR ITS SUPPLIERS MAKE ANY WARRANTY AS TO THE RESULTS THAT
MAY BE OBTAINED FROM USE OF THE SERVICES OR SOFTWARE.

     (a)    TradingDynamics warrants to Customer that for a period of 30 days
after delivery of the Software to Customer, the Service and Software will
operate substantially in accordance with any written specifications provided
for the Service and Software by TradingDynamics.

     (b)    TRADINGDYNAMICS YEAR 2000 READINESS DISCLOSURE AND WARRANTY.
TradingDynamics warrants to Customer that the Software is Year 2000
Compliant. "Year 2000 Compliant" shall mean that the occurrence of the year
2000 will not, by itself cause the Software to materially fail to comply with
the installation documentation provided by TradingDynamics; provided that (a)
all date data received for use by the Software is accurate and is delivered
to the Software in formats specified in the documentation, (b) all date data
generated by the Software is generated in formats defined by the documentation,
and (c) the Software shall not be obligated to provide date data for interface
functions such as screens, reports or data transmission files in any format
other than that specified in the documentation. For the avoidance of doubt,
TradingDynamics in no event makes any representation or warranty as to the
ability of Software in circumstances where data received for use by the
Software is in formats other than those defined by the documentation. The
foregoing warranty does not apply to anything, including hardware, software,
technology, database management systems and operating systems, provided by
any party other than TradingDynamics.

     (c)    TradingDynamics' warranties in this Section 6 shall not extend to
problems in the Software that result from: (i) Customer's failure to
implement all Updates issued by TradingDynamics during the warranty period;
(ii) modifications made by Customer to its operating environment that
adversely affects the Software; (iii) any alterations or additions to the
Software not performed by TradingDynamics; (iv) failures in operation of the
Software that are not reproducible in standalone form; (v) Software that is
otherwise operated in violation of this Agreement or other than in accordance
with the applicable documentation therefor; or (vi) failures which are caused
by Customer or Customer's software or other software, hardware or products
not licensed hereunder.

    (d)    FOR ANY SOFTWARE THAT DOES NOT OPERATE AS WARRANTED IN SECTIONS
6(a) or 6(b), TRADINGDYNAMICS WILL, AT ITS DISCRETION, EITHER REPAIR THE
SOFTWARE, REPLACE THE SOFTWARE OR TERMINATE THE LICENSE AND REFUND THE
RELEVANT LICENSE FEES PAID LESS A REASONABLE SUM FOR USE. THIS IS CUSTOMER'S
EXCLUSIVE REMEDY, AND TRADINGDYNAMICS' SOLE LIABILITY ARISING IN CONNECTION
WITH THE LIMITED WARRANTIES IN SECTIONS 6(a) AND 6(b).

7.   LIMITATION OF LIABILITY

           NOTWITHSTANDING ANYTHING TO THE CONTRARY, EXCEPT WITH RESPECT TO
SECTIONS 2, 9, OR 10 OR PAYMENTS OWED TO TRADINGDYNAMICS BY CUSTOMER OR
BODILY INJURY OF A PERSON, EACH PARTY ("FIRST PARTY") AND THEIR RESPECTIVE
SUPPLIERS (INCLUDING BUT NOT LIMITED TO ALL EQUIPMENT AND PROPERTY
SUPPLIERS), OFFICERS, AGENTS, AFFILIATES,

                                       3
<PAGE>

REPRESENTATIVES, CONTRACTORS AND EMPLOYEES SHALL NOT BE RESPONSIBLE OR
LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND
CONDITIONS RELATED THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY
OR OTHER THEORY: (A) FOR ERROR OR INTERRUPTION OF USE OR FOR LOSS OR
INACCURACY OR CORRUPTION OF DATA OR COST OF PROCUREMENT OF SUBSTITUTE GOODS,
SERVICES OR TECHNOLOGY OR LOSS OF BUSINESS; (B) FOR ANY INDIRECT, EXEMPLARY,
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; (C) FOR ANY MATTER BEYOND THE
FIRST PARTY'S REASONABLE CONTROL, EVEN IF TRADINGDYNAMICS HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH LOSS OR DAMAGE; OR (D) FOR ANY AMOUNTS THAT, TOGETHER
WITH AMOUNTS ASSOCIATED WITH ALL OTHER CLAIMS, EXCEED THE FEES PAID OR OWED
BY CUSTOMER TO TRADINGDYNAMICS FOR THE SERVICES UNDER THIS AGREEMENT IN THE
12 MONTHS PRIOR TO THE ACT THAT GAVE RISE TO THE LIABILITY. EXCEPT FOR BODILY
INJURY OF A PERSON, WITHOUT LIMITING THE FOREGOING, TRADINGDYNAMICS'
LIABILITY FOR DAMAGES FROM ANY CAUSE OF ACTION WHATSOEVER RELATING TO
TRADINGDYNAMICS' AGREEMENT TO PROVIDE SUPPORT SERVICES SHALL BE LIMITED TO
THE AMOUNT PAID BY CUSTOMER FOR THE SUPPORT SERVICES FOR THE APPLICABLE YEAR.

8.   MISCELLANEOUS

          The parties agree that they shall issue a mutually agreed upon
press release with respect to this Agreement. Notwithstanding any provision
hereof, for all purposes of this Agreement each party shall be and act as an
independent contractor and not as partner, joint venturer, or agent of the
other and shall not bind nor attempt to bind the other to any contract. If
any provision of this Agreement is found to be unenforceable or invalid, that
provision will be limited or eliminated to the minimum extent necessary so
that this Agreement will otherwise remain in full force and effect and
enforceable. Neither this Agreement nor any rights, licenses or obligations
hereunder, may be assigned or transferred [ILLEGIBLE] Customer (by operation
of law or otherwise) without the prior written approval of TradingDynamics;
provided, however, Customer may assign this Agreement to any acquiror of all
or of substantially all of Customer's assets or business or equity
securities. TradingDynamics may transfer and assign any of its rights and
obligations under this Agreement without consent of Customer.  This Agreement
is the complete and exclusive statement of the mutual understanding of the
parties and supersedes and cancels all previous written and oral agreements,
communications and other understandings relating to the subject matter of
this Agreement, and that all waivers and modifications must be in a writing
signed by both parties. No waiver of any breach of any provision of this
Agreement shall constitute a waiver of any prior, concurrent or subsequent
breach of the same or any other provisions hereof. All notices under this
Agreement will be in writing shall be directed to the CEO and will be deemed
to have been duly given when received in person, by confirmed telecopy or
confirmed e-mail.  A party may change its address or designee for notices
upon written notice to the other party. This Agreement shall be governed by
and construed under the laws of the State of California and the United States
without regard to conflicts of laws provisions thereof and without regard to
the United Nations Convention on Contracts for the International Sale of
Goods. Headings and captions are for convenience only and are not to be used
in the interpretation of this Agreement.

9.   INFRINGEMENT

          TradingDynamics shall hold Customer harmless from damages awarded
to a third party on account of infringement by the Software of any United
States patent or copyright or trade secret, provided TradingDynamics is
promptly notified of any and all threats, claims and proceedings related
thereto and Customer furnishes to TradingDynamics, on TradingDynamics'
request, information available to Customer for such defense and sole control
over the defense and all negotiations for a settlement or compromise;
TradingDynamics will not be responsible for any settlement it does not
approve in writing. Customer shall not admit any such claim without prior
consent of TradingDynamics. In the event that the use of the Software is
enjoined on account of a suit referred to above, TradingDynamics, at its
option, shall use reasonable efforts to procure for Customer the right to
continue using the Software, or to replace or modify the Software so that it
is outside the scope of the injunction but substantially equivalent in
functionality and performance. If TradingDynamics determines that neither of
those actions is reasonably feasible, TradingDynamics shall refund to
Customer the unamortized portion of the license fee actually paid by Customer
for such Software (as amortized on a straight-line basis over one year from
the Effective Date or the beginning of the then-current term, as applicable).
The foregoing obligations of TradingDynamics do not apply with respect to
Software or portions or components thereof (i) that are not supplied by
TradingDynamics, (ii) that are made in whole or in part in accordance with
Customer specifications or as a result of Customer configurations or
implementation, (iii) that are modified by any person or entity other than by
TradingDynamics, (iv) that are combined with other products, processes or
materials where the alleged infringement relates to such combination, (v) to
the extent Customer continues allegedly infringing activity after being
provided with notified modifications that would have avoided the alleged
infringement, or (vi) where Customer's use of the Software is incident to an
infringement not resulting primarily from the Software or is not strictly in
accordance with the Agreement; Customer will indemnify TradingDynamics and
its officers, directors, shareholders, agents and employees from all damages,
settlements, attorneys' fees and expenses related to a claim of infringement
or misapropriation or defamation or violation of rights of publicity or
privacy excluded from TradingDynamics' indemnity obligation by this sentence.
The foregoing states the sole obligation and exclusive liability of
TradingDynamics, and Customer's sole remedy for any claims of intellectual
property infringement.

10.  CONFIDENTIALITY

          "Confidential Information" means the Software and all communications
concerning Customer's or TradingDynamics' business and marketing strategies,
including but not limited to, employee and customer lists, project plans,
design documents, product strategies and pricing data, research, advertising
plans, leads and sources of supply, web-based development activities, website
design and coding, web interfaces with the Software, anything (including but
not limited to testing scripts) provided by TradingDynamics, and other
information of the parties which by its nature can be reasonably expected to
be proprietary and confidential, whether it is presented in oral,
printed, written, graphic, or photographic or other tangible form (including
information received, stored or transmitted electronically) even though
specific designation as Confidential Information has not been made. Each
party shall not use or disclose the Confidential Information of the other
party, except as expressly and unambiguously provided in the Agreement. This
Section 10 shall survive any termination of the Agreement. TradingDynamics
shall have no obligation to insure or be responsible for any loss or damage to
property of any kind provided by Customer. Notwithstanding anything else to
the contrary, except as required by law or in connection with a financing,
neither partly disclose to any third party any of the terms or conditions of
this Agreement.

                                       4

<PAGE>

                                ATTACHMENT A

                              USER TERMS OF USE

-    User represents, covenants, and warrants that it will use the Services
     and Software (as defined in the Agreement) only in compliance with all
     applicable laws. With respect to TradingDynamics hosted Services,
     although TradingDynamics has no obligation to monitor the content
     provided by you or your use of the Services, TradingDynamics may do so
     and may remove any such content or prohibit any use of the Services it
     believes may be (or alleged to be) in violation of the foregoing.

-    ALL SERVICES AND SOFTWARE ARE PROVIDED "AS IS" AND TRADINGDYNAMICS AND
     ITS SUPPLIERS DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
     BUT NOT LIMITED TO, IMPLIED WARRANTIES OR MERCHANTABILITY AND FITNESS
     FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.

-    NOTWITHSTANDING ANYTHING TO THE CONTRARY, EXCEPT FOR BODILY INJURY OF A
     PERSON, NEITHER TRADINGDYNAMICS NOR ITS SUPPLIERS NOR AGENTS SHALL BE
     LIABLE UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY
     FOR ANY INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES
     WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT.<PAGE>
                                                                 EXHIBIT 10.4

                                 UTSTARCOM, INC.

                                 1997 STOCK PLAN

                        (AS AMENDED ON DECEMBER 13, 1999)

     1. PURPOSES OF THE PLAN. The purposes of this Stock Plan are to attract and
retain the best available personnel for positions of substantial responsibility,
to provide additional incentive to Employees, Directors and Consultants and to
promote the success of the Company's business. Options granted under the Plan
may be Incentive Stock Options or Nonstatutory Stock Options, as determined by
the Administrator at the time of grant. Stock Purchase Rights may also be
granted under the Plan.

     2. DEFINITIONS. As used herein, the following definitions shall apply:

          (a) "ADMINISTRATOR" means the Board or any of its Committees as shall
be administering the Plan in accordance with Section 4 hereof.

          (b) "APPLICABLE LAWS" means the requirements relating to the
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any other country or jurisdiction where Options or Stock Purchase Rights are
granted under the Plan.

          (c) "BOARD" means the Board of Directors of the Company.

          (d) "CODE" means the Internal Revenue Code of 1986, as amended.

          (e) "COMMITTEE" means a committee of Directors appointed by the Board
in accordance with Section 4 hereof.

          (f) "COMMON STOCK" means the Common Stock of the Company.

          (g) "COMPANY" means UTStarcom, Inc., a Delaware corporation.

          (h) "CONSULTANT" means any person who is engaged by the Company or any
Parent or Subsidiary to render consulting or advisory services to such entity.

          (i) "DIRECTOR" means a member of the Board of Directors of the
Company.

          (j) "DISABILITY" means total and permanent disability as defined in
Section 22(e)(3) of the Code.

          (k) "EMPLOYEE" means any person, including Officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company. A Service
Provider shall not cease to be

<PAGE>

an Employee in the case of (i) any leave of absence approved by the Company
or (ii) transfers between locations of the Company or between the Company,
its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock
Options, no such leave may exceed ninety days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If
reemployment upon expiration of a leave of absence approved by the Company is
not so guaranteed, on the 181st day of such leave any Incentive Stock Option
held by the Optionee shall cease to be treated as an Incentive Stock Option
and shall be treated for tax purposes as a Nonstatutory Stock Option. Neither
service as a Director nor payment of a director's fee by the Company shall be
sufficient to constitute "employment" by the Company.

          (l) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

          (m) "FAIR MARKET VALUE" means, as of any date, the value of Common
Stock determined as follows:

               (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day prior to the time of determination, as reported in
THE WALL STREET JOURNAL or such other source as the Administrator deems
reliable;

               (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean between the high bid and low asked prices for the Common Stock
on the last market trading day prior to the day of determination; or

               (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator.

          (n) "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code.

          (o) "NONSTATUTORY STOCK OPTION" means an Option not intended to
qualify as an Incentive Stock Option.

          (p) "OFFICER" means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

          (q) "OPTION" means a stock option granted pursuant to the Plan.

          (r) "OPTION AGREEMENT" means a written or electronic agreement between
the Company and an Optionee evidencing the terms and conditions of an individual
Option grant. The Option Agreement is subject to the terms and conditions of the
Plan.

                                     -2-

<PAGE>

          (s) "OPTION EXCHANGE PROGRAM" means a program whereby outstanding
Options are exchanged for Options with a lower exercise price.

          (t) "OPTIONED STOCK" means the Common Stock subject to an Option or a
Stock Purchase Right.

          (u) "OPTIONEE" means the holder of an outstanding Option or Stock
Purchase Right granted under the Plan.

          (v) "PARENT" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

          (w) "PLAN" means this 1997 Stock Plan.

          (x) "RESTRICTED STOCK" means shares of Common Stock acquired pursuant
to a grant of a Stock Purchase Right under Section 11 below.

          (y) "SECTION 16(b) " means Section 16(b) of the Securities Exchange
Act of 1934, as amended.

          (z) "SERVICE PROVIDER" means an Employee, Director or Consultant.

          (aa) "SHARE" means a share of the Common Stock, as adjusted in
accordance with Section 12 below.

          (bb) "STOCK PURCHASE RIGHT" means a right to purchase Common Stock
pursuant to Section 11 below.

          (cc) "SUBSIDIARY" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

     3. STOCK SUBJECT TO THE PLAN. Subject to the provisions of Section 12 of
the Plan, the maximum aggregate number of Shares which may be subject to
option and sold under the Plan is 5,262,287 Shares, plus an annual increase
to be added on the first day of the Company's fiscal year beginning in 2001
equal to the lesser of 4% of the outstanding Shares on such date, 3,000,000
shares or a lesser amount determined by the Board. The Shares may be
authorized but unissued, or reacquired Common Stock.

          If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated). However, Shares that have actually been issued under the Plan, upon
exercise of either an Option or Stock Purchase Right, shall not be returned to
the Plan and shall not become available for future distribution under the Plan,
except that if Shares of Restricted Stock are repurchased by the Company at
their original purchase price, such Shares shall become available for future
grant under the Plan.

                                    -3-

<PAGE>

     4. ADMINISTRATION OF THE PLAN.

          (a) PROCEDURE.

               (i) MULTIPLE ADMINISTRATIVE BODIES. The Plan may be administered
by different Committees with respect to different groups of Service Providers.

               (ii) SECTION 162(m). To the extent that the Administrator
determines it to be desirable to qualify Options granted hereunder as
"performance-based compensation" within the meaning of Section 162(m) of the
Code, the Plan shall be administered by a Committee of two or more "outside
directors" within the meaning of Section 162(m) of the Code.

               (iii) RULE 16b-3. To the extent desirable to qualify transactions
hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder
shall be structured to satisfy the requirements for exemption under Rule 16b-3.

               (iv) OTHER ADMINISTRATION. Other than as provided above, the Plan
shall be administered by (A) the Board or (B) a Committee, which committee shall
be constituted to satisfy Applicable Laws.

          (b) POWERS OF THE ADMINISTRATOR. Subject to the provisions of the Plan
and, in the case of a Committee, the specific duties delegated by the Board to
such Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority in its discretion:

               (i) to determine the Fair Market Value;

               (ii) to select the Service Providers to whom Options and Stock
Purchase Rights may from time to time be granted hereunder;

               (iii) to determine the number of Shares to be covered by each
such award granted hereunder;

               (iv) to approve forms of agreement for use under the Plan;

               (v) to determine the terms and conditions, of any Option or Stock
Purchase Right granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Options or Stock Purchase
Rights may be exercised (which may be based on performance criteria), any
vesting acceleration or waiver of forfeiture restrictions, and any restriction
or limitation regarding any Option or Stock Purchase Right or the Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

               (vi) to determine whether and under what circumstances an Option
may be settled in cash under subsection 9(e) instead of Common Stock;

                                    -4-

<PAGE>

               (vii) to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option has declined since the date the Option was granted;

               (viii) to initiate an Option Exchange Program;

               (ix) to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

               (x) to allow Optionees to satisfy withholding tax obligations by
electing to have the Company withhold from the Shares to be issued upon exercise
of an Option or Stock Purchase Right that number of Shares having a Fair Market
Value equal to the amount required to be withheld. The Fair Market Value of the
Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined. All elections by Optionees to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable;

               (xi) to modify or amend each Option or Stock Purchase Right
(subject to Section 15(c) of the Plan), including the discretionary authority to
extend the post-termination exercisability period of Options longer than is
otherwise provided for in the Plan; and

               (xii) to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan.

          (c) EFFECT OF ADMINISTRATOR'S DECISION. All decisions, determinations
and interpretations of the Administrator shall be final and binding on all
Optionees.

     5. ELIGIBILITY.

          (a) Nonstatutory Stock Options and Stock Purchase Rights may be
granted to Service Providers. Incentive Stock Options may be granted only to
Employees.

          (b) Each Option shall be designated in the Option Agreement as either
an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 5(b), Incentive Stock Options shall be taken into account in the order
in which they were granted. The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

          (c) The following limitations shall apply to grants of Options:

                                    -5-

<PAGE>

               (i) No Service Provider shall be granted, in any fiscal year of
the Company, Options to purchase more than 700,000 Shares.

               (ii) In connection with his or her initial service, a Service
Provider may be granted Options to purchase up to an additional 700,000 Shares
which shall not count against the limit set forth in subsection (i) above.

               (iii) The foregoing limitations shall be adjusted proportionately
in connection with any change in the Company's capitalization as described in
Section 13.

               (iv) If an Option is canceled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 13), the canceled Option will be counted against the limits
set forth in subsections (i) and (ii) above. For this purpose, if the exercise
price of an Option is reduced, the transaction will be treated as a cancellation
of the Option and the grant of a new Option.

          (d) Neither the Plan nor any Option or Stock Purchase Right shall
confer upon any Optionee any right with respect to continuing the Optionee's
relationship as a Service Provider with the Company, nor shall it interfere in
any way with his or her right or the Company's right to terminate such
relationship at any time, with or without cause.

     6. TERM OF PLAN. The Plan shall become effective upon its adoption by the
Board. It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 14 of the Plan.

     7. TERM OF OPTION. The term of each Option shall be stated in the Option
Agreement; provided, however, that the term of an Incentive Stock Option shall
be no more than ten (10) years from the date of grant thereof; provided,
further, that in the case of an Incentive Stock Option granted to an Optionee
who, at the time the Option is granted, owns stock representing more than ten
percent (10%) of the voting power of all classes of stock of the Company or any
Parent or Subsidiary, the term of the Option shall be five (5) years from the
date of grant or such shorter term as may be provided in the Option Agreement.

     8. OPTION EXERCISE PRICE AND CONSIDERATION.

          (a) The per share exercise price for the Shares to be issued upon
exercise of an Option shall be such price as is determined by the Administrator,
but shall be subject to the following:

               (i) In the case of an Incentive Stock Option

                    (A) granted to an Employee who, at the time of grant of such
Option, owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the exercise
price shall be no less than 110% of the Fair Market Value per Share on the date
of grant.

                                    -6-

<PAGE>

                    (B) granted to any other Employee, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the date
of grant.

               (ii) In the case of a Nonstatutory Stock Option, the per Share
exercise price shall be determined by the Administrator. In the case of a
Nonstatutory Stock Option intended to qualify as "performance-based
compensation" within the meaning of Section 162(m) of the Code, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

               (iii) Notwithstanding the foregoing, Options may be granted with
a per Share exercise price other than as required above pursuant to a merger or
other corporate transaction.

          (b) The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by
the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant). Such consideration may consist of (1) cash,
(2) check, (3) promissory note, (4) other Shares which (x) in the case of Shares
acquired upon exercise of an Option, have been owned by the Optionee for more
than six months on the date of surrender, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which such Option shall be exercised, (5) consideration received by the Company
under a cashless exercise program implemented by the Company in connection with
the Plan, or (6) any combination of the foregoing methods of payment. In making
its determination as to the type of consideration to accept, the Administrator
shall consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

     9. EXERCISE OF OPTION.

          (a) PROCEDURE FOR EXERCISE; RIGHTS AS A STOCKHOLDER. Any Option
granted hereunder shall be exercisable according to the terms hereof at such
times and under such conditions as determined by the Administrator and set forth
in the Option Agreement. Unless the Administrator provides otherwise, vesting of
Options granted hereunder shall be tolled during any unpaid leave of absence. An
Option may not be exercised for a fraction of a Share.

               An Option shall be deemed exercised when the Company receives:
(i) written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Shares, notwithstanding the exercise of the Option. The
Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 12 of the Plan.

                                    -7-

<PAGE>

               Exercise of an Option in any manner shall result in a decrease in
the number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is
exercised.

          (b) TERMINATION OF RELATIONSHIP AS A SERVICE PROVIDER. If an Optionee
ceases to be a Service Provider, such Optionee may exercise his or her Option
within such period of time as is specified in the Option Agreement to the extent
that the Option is vested on the date of termination (but in no event later than
the expiration of the term of the Option as set forth in the Option Agreement).
In the absence of a specified time in the Option Agreement, the Option shall
remain exercisable for three (3) months following the Optionee's termination.
If, on the date of termination, the Optionee is not vested as to his or her
entire Option, the Shares covered by the unvested portion of the Option shall
revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option within the time specified by the Administrator, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

          (c) DISABILITY OF OPTIONEE. If an Optionee ceases to be a Service
Provider as a result of the Optionee's Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option Agreement
to the extent the Option is vested on the date of termination (but in no event
later than the expiration of the term of such Option as set forth in the Option
Agreement). In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following the Optionee's
termination. If, on the date of termination, the Optionee is not vested as to
his or her entire Option, the Shares covered by the unvested portion of the
Option shall revert to the Plan. If, after termination, the Optionee does not
exercise his or her Option within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

          (d) DEATH OF OPTIONEE. If an Optionee dies while a Service Provider,
the Option may be exercised within such period of time as is specified in the
Option Agreement to the extent that the Option is vested on the date of death
(but in no event later than the expiration of the term of such Option as set
forth in the Option Agreement) by the Optionee's estate or by a person who
acquires the right to exercise the Option by bequest or inheritance. In the
absence of a specified time in the Option Agreement, the Option shall remain
exercisable for twelve (12) months following the Optionee's termination. If, at
the time of death, the Optionee is not vested as to the entire Option, the
Shares covered by the unvested portion of the Option shall immediately revert to
the Plan. If the Option is not so exercised within the time specified herein,
the Option shall terminate, and the Shares covered by such Option shall revert
to the Plan.

          (e) BUYOUT PROVISIONS. The Administrator may at any time offer to buy
out for a payment in cash or Shares, an Option previously granted, based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

     10. NON-TRANSFERABILITY OF OPTIONS AND STOCK PURCHASE RIGHTS. Unless
otherwise determined by the Administrator, Options and Stock Purchase Rights may
not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of

                                    -8-

<PAGE>

descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.

     11. STOCK PURCHASE RIGHTS.

          (a) RIGHTS TO PURCHASE. Stock Purchase Rights may be issued either
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside of the Plan. After the Administrator determines
that it will offer Stock Purchase Rights under the Plan, it shall advise the
offeree in writing or electronically of the terms, conditions and restrictions
related to the offer, including the number of Shares that such person shall be
entitled to purchase, the price to be paid, and the time within which such
person must accept such offer. The offer shall be accepted by execution of a
Restricted Stock purchase agreement in the form determined by the Administrator.

          (b) REPURCHASE OPTION. Unless the Administrator determines otherwise,
the Restricted Stock purchase agreement shall grant the Company a repurchase
option exercisable upon the voluntary or involuntary termination of the
purchaser's service with the Company for any reason (including death or
disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock purchase agreement shall be the original price paid by the
purchaser and may be paid by cancellation of any indebtedness of the purchaser
to the Company. The repurchase option shall lapse at such rate as the
Administrator may determine.

          (c) OTHER PROVISIONS. The Restricted Stock purchase agreement shall
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

          (d) RIGHTS AS A STOCKHOLDER. Once the Stock Purchase Right is
exercised, the purchaser shall have rights equivalent to those of a stockholder
and shall be a stockholder when his or her purchase is entered upon the records
of the duly authorized transfer agent of the Company. No adjustment shall be
made for a dividend or other right for which the record date is prior to the
date the Stock Purchase Right is exercised, except as provided in Section 12 of
the Plan.

     12. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, MERGER OR ASSET SALE.

          (a) CHANGES IN CAPITALIZATION. Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company. The conversion of any convertible securities of
the Company shall not be deemed to have

                                    -9-

<PAGE>

been "effected without receipt of consideration." Such adjustment shall be
made by the Board, whose determination in that respect shall be final,
binding and conclusive. Except as expressly provided herein, no issuance by
the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of
Common Stock subject to an Option or Stock Purchase Right.

          (b) DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option until fifteen (15) days prior to
such transaction as to all of the Optioned Stock covered thereby, including
Shares as to which the Option would not otherwise be exercisable. In addition,
the Administrator may provide that any Company repurchase option applicable to
any Shares purchased upon exercise of an Option or Stock Purchase Right shall
lapse as to all such Shares, provided the proposed dissolution or liquidation
takes place at the time and in the manner contemplated. To the extent it has not
been previously exercised, an Option or Stock Purchase Right will terminate
immediately prior to the consummation of such proposed action.

          (c) MERGER OR ASSET SALE. In the event of a merger of the Company with
or into another corporation, or the sale of substantially all of the assets of
the Company, each outstanding Option and Stock Purchase Right shall be assumed
or an equivalent option or right substituted by the successor corporation or a
Parent or Subsidiary of the successor corporation. In the event that the
successor corporation refuses to assume or substitute for the Option or Stock
Purchase Right, the Optionee shall fully vest in and have the right to exercise
the Option or Stock Purchase Right as to all of the Optioned Stock, including
Shares as to which it would not otherwise be vested or exercisable. If an Option
or Stock Purchase Right becomes fully vested and exercisable in lieu of
assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the Optionee in writing or electronically that the
Option or Stock Purchase Right shall be fully exercisable for a period of
fifteen (15) days from the date of such notice, and the Option or Stock Purchase
Right shall terminate upon the expiration of such period. For the purposes of
this paragraph, the Option or Stock Purchase Right shall be considered assumed
if, following the merger or sale of assets, the option or right confers the
right to purchase or receive, for each Share of Optioned Stock subject to the
Option or Stock Purchase Right immediately prior to the merger or sale of
assets, the consideration (whether stock, cash, or other securities or property)
received in the merger or sale of assets by holders of Common Stock for each
Share held on the effective date of the transaction (and if holders were offered
a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or sale of assets is not solely common
stock of the successor corporation or its Parent, the Administrator may, with
the consent of the successor corporation, provide for the consideration to be
received upon the exercise of the Option or Stock Purchase Right, for each Share
of Optioned Stock subject to the Option or Stock Purchase Right, to be solely
common stock of the successor corporation or its Parent equal in fair market
value to the per share consideration received by holders of Common Stock in the
merger or sale of assets.

                                   -10-

<PAGE>

     13. TIME OF GRANTING OPTIONS AND STOCK PURCHASE RIGHTS. The date of grant
of an Option or Stock Purchase Right shall, for all purposes, be the date on
which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Administrator. Notice
of the determination shall be given to each Employee or Consultant to whom an
Option or Stock Purchase Right is so granted within a reasonable time after the
date of such grant.

     14. AMENDMENT AND TERMINATION OF THE PLAN.

          (a) AMENDMENT AND TERMINATION. The Board may at any time amend, alter,
suspend or terminate the Plan.

          (b) STOCKHOLDER APPROVAL. The Board shall obtain stockholder approval
of any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws.

          (c) EFFECT OF AMENDMENT OR TERMINATION. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to Options granted under the
Plan prior to the date of such termination.

     15. CONDITIONS UPON ISSUANCE OF SHARES.

          (a) LEGAL COMPLIANCE. Shares shall not be issued pursuant to the
exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

          (b) INVESTMENT REPRESENTATIONS. As a condition to the exercise of an
Option, the Administrator may require the person exercising such Option to
represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

     16. INABILITY TO OBTAIN AUTHORITY. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

     17. RESERVATION OF SHARES. The Company, during the term of this Plan, shall
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

                                         -11-

<PAGE>

                                   UTSTARCOM, INC.

                                   1997 STOCK PLAN

                                STOCK OPTION AGREEMENT

     Unless otherwise defined herein, the terms defined in the Plan shall have
the same defined meanings in this Option Agreement.

I.   NOTICE OF STOCK OPTION GRANT

     [Optionee's Name and Address]

     The undersigned Optionee has been granted an Option to purchase Common
Stock of the Company, subject to the terms and conditions of the Plan and this
Option Agreement, as follows:

     Grant Number
                                        -------------------------

     Date of Grant
                                        -------------------------

     Vesting Commencement Date
                                        -------------------------

     Exercise Price per Share           $
                                         ------------------------

     Total Number of Shares Granted
                                        -------------------------

     Total Exercise Price               $
                                         ------------------------

     Type of Option:                          Incentive Stock Option
                                        ---

                                              Nonstatutory Stock Option
                                        ---

     Term/Expiration Date:
                                        -------------------------

     VESTING SCHEDULE:

     This Option shall be exercisable, in whole or in part, according to the
following vesting schedule:

     25% of the Shares subject to the Option shall vest twelve months after the
Vesting Commencement Date, and 1/48 of the Shares subject to the Option shall
vest each month thereafter, subject to Optionee's continuing to be a Service
Provider on such dates.

<PAGE>

     TERMINATION PERIOD:

     This Option shall be exercisable for [THREE] months after Optionee ceases
to be a Service Provider.  Upon Optionee's death or disability, this Option may
be exercised for such longer period as provided in the Plan.  In no event may
Optionee exercise this Option after the Term/Expiration Date as provided above.

II.  AGREEMENT

     1.   GRANT OF OPTION.  The Plan Administrator of the Company hereby grants
to the Optionee named in the Notice of Grant (the "Optionee"), an option (the
"Option") to purchase the number of Shares set forth in the Notice of Grant, at
the exercise price per Share set forth in the Notice of Grant (the "Exercise
Price"), and subject to the terms and conditions of the Plan, which is
incorporated herein by reference.  Subject to Section 14(c) of the Plan, in the
event of a conflict between the terms and conditions of the Plan and this Option
Agreement, the terms and conditions of the Plan shall prevail.

          If designated in the Notice of Grant as an Incentive Stock Option
("ISO"), this Option is intended to qualify as an Incentive Stock Option as
defined in Section 422 of the Code.  Nevertheless, to the extent that it exceeds
the $100,000 rule of Code Section 422(d), this Option shall be treated as a
Nonstatutory Stock Option ("NSO").

     2.   EXERCISE OF OPTION.

          (a)   RIGHT TO EXERCISE.  This Option shall be exercisable during its
term in accordance with the Vesting Schedule set out in the Notice of Grant and
with the applicable provisions of the Plan and this Option Agreement.

          (b)   METHOD OF EXERCISE.  This Option shall be exercisable by
delivery of an exercise notice in the form attached as Exhibit A (the AExercise
Notice@) which shall state the election to exercise the Option, the number of
Shares with respect to which the Option is being exercised, and such other
representations and agreements as may be required by the Company. The Exercise
Notice shall be accompanied by payment of the aggregate Exercise Price as to all
Exercised Shares.  This Option shall be deemed to be exercised upon receipt by
the Company of such fully executed Exercise Notice accompanied by the aggregate
Exercise Price.

          No Shares shall be issued pursuant to the exercise of an Option unless
such issuance and such exercise complies with Applicable laws.  Assuming such
compliance, for income tax purposes the Shares shall be considered transferred
to the Optionee on the date on which the Option is exercised with respect to
such Shares.

                                         -2-
<PAGE>

     3.   METHOD OF PAYMENT.  Payment of the aggregate Exercise Price shall be
by any of the following, or a combination thereof, at the election of the
Optionee:

          (a)   cash or check;

          (b)   consideration received by the Company under a formal cashless
exercise program adopted by the Company in connection with the Plan; or

          (c)   surrender of other Shares which, (i) in the case of Shares
acquired upon exercise of an option, have been owned by the Optionee for more
than six (6) months on the date of surrender, and (ii) have a Fair Market Value
on the date of surrender equal to the aggregate Exercise Price of the Exercised
Shares.

     4.   NON-TRANSFERABILITY OF OPTION.  This Option may not be transferred in
any manner otherwise than by will or by the laws of descent or distribution and
may be exercised during the lifetime of Optionee only by Optionee.  The terms of
the Plan and this Option Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.

     5.   TERM OF OPTION.  This Option may be exercised only within the term set
out in the Notice of Grant, and may be exercised during such term only in
accordance with the Plan and the terms of this Option.

     6.   TAX CONSEQUENCES.  Some of the federal tax consequences relating to
this Option, as of the date of this Option, are set forth below.  THIS SUMMARY
IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE.  THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION
OR DISPOSING OF THE SHARES.

          (a)   EXERCISING THE OPTION.

                (i)    NONSTATUTORY STOCK OPTION.  The Optionee may incur
regular federal income tax liability upon exercise of a NSO.  The Optionee will
be treated as having received compensation income (taxable at ordinary income
tax rates) equal to the excess, if any, of the Fair Market Value of the
Exercised Shares on the date of exercise over their aggregate Exercise Price.
If the Optionee is an Employee or a former Employee, the Company will be
required to withhold from his or her compensation or collect from Optionee and
pay to the applicable taxing authorities an amount in cash equal to a percentage
of this compensation income at the time of exercise, and may refuse to honor the
exercise and refuse to deliver Shares if such withholding amounts are not
delivered at the time of exercise.

                (ii)   INCENTIVE STOCK OPTION.  If this Option qualifies as an
ISO, the Optionee will have no regular federal income tax liability upon its
exercise, although the excess, if any, of the Fair Market Value of the Exercised
Shares on the date of exercise over their aggregate Exercise Price

                                         -3-
<PAGE>

will be treated as an adjustment to alternative minimum taxable income for
federal tax purposes and may subject the Optionee to alternative minimum tax in
the year of exercise.  In the event that the Optionee ceases to be an Employee
but remains a Service Provider, any Incentive Stock Option of the Optionee that
remains unexercised shall cease to qualify as an Incentive Stock Option and will
be treated for tax purposes as a Nonstatutory Stock Option on the date three (3)
months and one (1) day following such change of status.

          (b)   DISPOSITION OF SHARES.

                (i)    NSO.  If the Optionee holds NSO Shares for at least one
year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes.

                (ii)   ISO.  If the Optionee holds ISO Shares for at least one
year after exercise and two years after the grant date, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal
income tax purposes.  If the Optionee disposes of ISO Shares within one year
after exercise or two years after the grant date, any gain realized on such
disposition will be treated as compensation income (taxable at ordinary income
rates) to the extent of the excess, if any, of the lesser of (A) the difference
between the Fair Market Value of the Shares acquired on the date of exercise and
the aggregate Exercise Price, or (B) the difference between the sale price of
such Shares and the aggregate Exercise Price.  Any additional gain will be taxed
as capital gain, short-term or long-term depending on the period that the ISO
Shares were held.

          (c)   NOTICE OF DISQUALIFYING DISPOSITION OF ISO SHARES.  If the
Optionee sells or otherwise disposes of any of the Shares acquired pursuant to
an ISO on or before the later of (i) two years after the grant date, or (ii) one
year after the exercise date, the Optionee shall immediately notify the Company
in writing of such disposition.  The Optionee agrees that he or she may be
subject to income tax withholding by the Company on the compensation income
recognized from such early disposition of ISO Shares by payment in cash or out
of the current earnings paid to the Optionee.

     7.   ENTIRE AGREEMENT; GOVERNING LAW.  The Plan is incorporated herein by
reference.  The Plan and this Option Agreement constitute the entire agreement
of the parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the
Optionee's interest except by means of a writing signed by the Company and
Optionee.  This agreement is governed by the internal substantive laws but not
the choice of law rules of California.

     8.   NO GUARANTEE OF CONTINUED SERVICE.  OPTIONEE ACKNOWLEDGES AND AGREES
THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED
ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (NOT THROUGH
THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES
HEREUNDER).  OPTIONEE FURTHER

                                         -4-
<PAGE>

ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED
HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS
OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING
PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH
OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE OPTIONEE'S RELATIONSHIP AS
A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

     Optionee acknowledges receipt of a copy of the Plan and represents that he
or she is familiar with the terms and provisions thereof, and hereby accepts
this Option subject to all of the terms and provisions thereof.  Optionee has
reviewed the Plan and this Option in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option and fully
understands all provisions of the Option.  Optionee hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions arising under the Plan or this Option.
Optionee further agrees to notify the Company upon any change in the residence
address indicated below.

OPTIONEE:                               UTSTARCOM, INC.

-----------------------------------     ----------------------------------------
Signature                               By

-----------------------------------     ----------------------------------------
Print Name                              Title

-----------------------------------
-----------------------------------
Residence Address

                                         -5-
<PAGE>

                                      EXHIBIT A

                                   1997 STOCK PLAN

                                   EXERCISE NOTICE

UTStarcom, Inc.
1275 Harbor Bay Parkway
Suite 100
Alameda, CA  94502

Attention:  [Title]

     1.   EXERCISE OF OPTION.  Effective as of today, ___________, 19__, the
undersigned ("Optionee") hereby elects to exercise Optionee's option to purchase
_________ shares of the Common Stock (the "Shares") of UTStarcom, Inc. (the
"Company") under and pursuant to the 1997 Stock Plan (the "Plan") and the Stock
Option Agreement dated ________, 19       (the "Option Agreement").

     2.   DELIVERY OF PAYMENT.  Purchaser herewith delivers to the Company the
full purchase price of the Shares, as set forth in the Option Agreement.

     3.   REPRESENTATIONS OF OPTIONEE.  Optionee acknowledges that Optionee has
received, read and understood the Plan and the Option Agreement and agrees to
abide by and be bound by their terms and conditions.

     4.   RIGHTS AS STOCKHOLDER.  Until the issuance of the Shares (as evidenced
by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option.  The Shares shall be issued to the
Optionee as soon as practicable after the Option is exercised.  No adjustment
shall be made for a dividend or other right for which the record date is prior
to the date of issuance except as provided in Section 12 of the Plan.

     5.   TAX CONSULTATION.  Optionee understands that Optionee may suffer
adverse tax consequences as a result of Optionee's purchase or disposition of
the Shares.  Optionee represents that Optionee has consulted with any tax
consultants Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for
any tax advice.

     6.   INTERPRETATION.  Any dispute regarding the interpretation of this
Agreement shall be submitted by Optionee or by the Company forthwith to the
Administrator which shall review such dispute at its next regular meeting.  The
resolution of such a dispute by the Administrator shall be final and binding on
all parties.

<PAGE>

     7.   GOVERNING LAW; SEVERABILITY.  This Agreement is governed by the
internal substantive laws but not the choice of law rules, of California.

     8.   ENTIRE AGREEMENT.  The Plan and Option Agreement are incorporated
herein by reference.  This Agreement, the Plan and the Option Agreement
constitute the entire agreement of the parties with respect to the subject
matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Optionee with respect to the subject matter
hereof, and may not be modified adversely to the Optionee's interest except by
means of a writing signed by the Company and Optionee.

Submitted by:                           Accepted by:

OPTIONEE:                               UTSTARCOM, INC.

-----------------------------------     ----------------------------------------
Signature                               By

-----------------------------------     ----------------------------------------
Print Name                              Its

ADDRESS:                                ADDRESS:

-----------------------------------     1275 Harbor Bay Parkway
-----------------------------------     Suite 100
                                        Alameda, CA  94502

                                        ----------------------------------------
                                        Date Received

                                         -2-

<PAGE>

                                   UTSTARCOM, INC.

                                   1997 STOCK PLAN

                             NOTICE OF STOCK OPTION GRANT

                               PRC NATIONALS IN THE PRC

     [OPTIONEE'S NAME]

     You have been granted an option (the "Option") to purchase Common Stock of
the Company, subject to the terms and conditions of the Company's 1997 Stock
Plan (the "Plan") and this Notice of Grant, as follows:

     Grant Number
                                             -------------------------

     Date of Grant
                                             -------------------------

     Vesting Commencement Date
                                             -------------------------

     Exercise Price per Share                $
                                              ------------------------

     Total Number of Shares Granted
                                             -------------------------

     Total Exercise Price                    $
                                              ------------------------

     Term/Expiration Date:
                                             -------------------------

     VESTING SCHEDULE:

     Your Option shall be exercisable, in whole or in part, in accordance with
the Option Rules (attached hereto as EXHIBIT A) and the following vesting
schedule:

     [25% OF THE SHARES SUBJECT TO THE OPTION SHALL VEST TWELVE MONTHS AFTER THE
VESTING COMMENCEMENT DATE, AND 1/48 OF THE SHARES SUBJECT TO THE OPTION SHALL
VEST EACH MONTH THEREAFTER, SUBJECT TO YOUR CONTINUING TO BE AN EMPLOYEE,
CONSULTANT OR DIRECTOR OF THE COMPANY (A "SERVICE PROVIDER") ON SUCH DATES.]

     TERMINATION PERIOD:

     Your Option shall be exercisable for [THREE] months after you cease to be a
Service Provider.  Upon your death or disability, the Option may be exercised
for such longer period as provided in the Plan.  In no event may you exercise
this Option after the Term/Expiration Date set forth above.

<PAGE>

                                      EXHIBIT A

                                     OPTION RULES

     1.   ESCROW.  The Option, and any Shares or cash acquired pursuant thereto,
shall be held by the Company pursuant to the Escrow Provisions attached hereto
as EXHIBIT B.

     2.   EXERCISE OF OPTION.  You may exercise the Option by delivering to the
Company the Exercise Notice attached hereto as EXHIBIT C.

     3.   METHOD OF PAYMENT.  You may pay the aggregate Exercise Price by any of
the following, or a combination thereof:

          (a)   if you have funds held by you outside of the People's Republic
of China, you may pay by cash or check; or

          (b)   after an initial public offering of the Company's securities,
consideration received by the Company under a formal cashless exercise program
adopted by the Company in connection with the Plan.

     4.   NON-TRANSFERABILITY OF OPTION.  Your Option may not be transferred in
any manner otherwise than by will or by the laws of descent or distribution, and
only you may exercise the Option during your lifetime.

     5.   NO GUARANTEE OF CONTINUED SERVICE.  THE VESTING OF SHARES PURSUANT TO
THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY YOUR CONTINUED STATUS AS A SERVICE
PROVIDER AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING
GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER).  THIS NOTICE OF GRANT DOES
NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT FOR THE
VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY
WITH YOUR RIGHT OR THE COMPANY'S RIGHT TO TERMINATE YOUR RELATIONSHIP AS A
SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

<PAGE>

                                      EXHIBIT B

                                   UTSTARCOM, INC.

                                   1997 STOCK PLAN

                                  ESCROW PROVISIONS

     1.   OPTION.  As set forth in the Notice of Grant, you have been granted
the Option under the Plan.  The Option shall be held by the Company under these
Escrow Provisions in an account in your name.

     2.   LEGAL AND EQUITABLE TITLE.  Legal and equitable title to the Option
and any cash or securities acquired pursuant thereto, shall remain with you at
all times, notwithstanding that such items may be held by the Company pursuant
to these Escrow Instructions.

     3.   EXERCISE OF OPTION.  You may instruct the Company to exercise the
Option on your behalf at such time or times as permitted by the Notice of Grant
and the Plan.

     4.   PROCEEDS OF EXERCISE.  Shares acquired upon exercise of the Option
shall be retained in this Escrow.  You may elect to keep any proceeds from the
sale of such shares in your account under these Escrow Provisions or to have
them distributed to you in RMB within ____________ hours of the sale, pursuant
to such channels as the Company reasonably determines appropriate.

     5.   POWERS OF COMPANY.  The Company may take any and all actions, and is
hereby granted such powers and discretion, as may appear necessary or proper to
comply with the applicable laws of any jurisdictions and to effectuate and carry
out the terms and purposes of this Escrow, including, but not limited to, the
power to exercise the Option and hold or dispose of the proceeds of such
exercise in accordance with the terms of these Escrow Provisions.

     6.   LIMITATION OF LIABILITY.  The Company shall not be liable for any
damage caused by the exercise of its discretion as authorized by these Escrow
Provisions for any reason, except gross negligence or willful misconduct.  The
Company shall not be liable for honest mistakes of judgment or for losses or
liabilities due to such honest mistakes of judgment.

     7.   COSTS AND EXPENSES OF THIS ESCROW.  All costs and expenses of these
Escrow Provisions shall be borne by the Company.

     8.   GOVERNING LAW.  This Escrow will be administered in the State of
California, and its validity, construction and all rights hereunder, shall be
governed by the laws of the State of California; provided, however, that all
matters affecting the title, ownership and transferability of any security,
whether created or held hereunder, shall be governed by all applicable federal,
state, or foreign securities laws.

<PAGE>

                                      EXHIBIT C

                                   1997 STOCK PLAN

                                   EXERCISE NOTICE

[DATE]

UTStarcom, Inc.
1275 Harbor Bay Parkway
Suite 100
Alameda, CA  94502

Attention:  [TITLE]

     1.   EXERCISE OF OPTION.  I hereby elect to exercise the Option as to
_________ shares of the Company's Common Stock (the "Shares").

     2.   REPRESENTATIONS.  I acknowledge that I have received, read and
understood the Plan, Escrow Provisions and the Notice of Grant, and I agree to
abide by and be bound by their terms and conditions.

     3.   TAX CONSULTATION.  I understand that I may suffer adverse tax
consequences as a result of the receipt of the Option or the purchase or
disposition of the Shares.  I have consulted with any tax consultants I deem
advisable in connection with the Option, and I am not relying on the Company for
any tax advice.

     4.   ENTIRE AGREEMENT.  The Plan, Option Rules, Escrow Provisions and the
Notice of Grant are incorporated herein by reference.  This Agreement, the Plan,
the Notice of Grant and the Escrow Provisions constitute the entire agreement of
the parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements between the Company and I with
respect to the subject matter hereof, and may not be modified adversely to my
interest except by means of a writing signed by the Company and me.

Submitted by:                           Accepted by:

                                        UTSTARCOM, INC.

------------------------------          ------------------------------
Signature                               By

------------------------------          ------------------------------
Print Name                              Its

ADDRESS:                                ADDRESS:  1275 Harbor Bay Parkway
                                                  Suite 100
                                                  Alameda, CA  94502
------------------------------
------------------------------
                                        ------------------------------
                                        Date Received

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}]]