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<SEC-DOCUMENT>0000912057-02-041545.txt : 20021108
<SEC-HEADER>0000912057-02-041545.hdr.sgml : 20021108
<ACCEPTANCE-DATETIME>20021108152305
ACCESSION NUMBER:		0000912057-02-041545
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20020930
FILED AS OF DATE:		20021108

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UTSTARCOM INC
		CENTRAL INDEX KEY:			0001030471
		STANDARD INDUSTRIAL CLASSIFICATION:	COMMUNICATIONS EQUIPMENT, NEC [3669]
		IRS NUMBER:				521782500
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-29661
		FILM NUMBER:		02814154

	BUSINESS ADDRESS:	
		STREET 1:		1275 HARBOR BAY PARKWAY
		STREET 2:		STE 100
		CITY:			ALAMEDA
		STATE:			CA
		ZIP:			94502
		BUSINESS PHONE:		5108648800

	MAIL ADDRESS:	
		STREET 1:		1275 HARBOR BAY PARKWAY
		STREET 2:		STE 100
		CITY:			ALAMEDA
		STATE:			CA
		ZIP:			94502
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>a2092993z10-q.htm
<DESCRIPTION>10-Q
<TEXT>
<HTML>
<HEAD>

</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#02PAL2327_1">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>

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<HR NOSHADE>
<HR NOSHADE>
<P ALIGN="CENTER"><FONT SIZE=5><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>WASHINGTON, D.C. 20549  </B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=5><B>FORM 10-Q  </B></FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="14%" ALIGN="CENTER"><FONT SIZE=2><B>(Mark One)</B></FONT></TD>
<TD WIDTH="86%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="14%" ALIGN="CENTER"><BR><FONT SIZE=3><FONT FACE="WINGDINGS">&#253;</FONT></FONT></TD>
<TD WIDTH="86%"><BR><FONT SIZE=3><B>QUARTERLY REPORT PURSUANT TO SECTION&nbsp;13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 ALIGN="CENTER"><BR><FONT SIZE=2><B>For the quarterly period ended September&nbsp;30, 2002.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 ALIGN="CENTER"><FONT SIZE=2><B><BR>
OR</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="14%" ALIGN="CENTER"><BR><FONT SIZE=3><FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="86%"><BR><FONT SIZE=3><B>TRANSITION REPORT PURSUANT TO SECTION&nbsp;13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=2 ALIGN="CENTER" VALIGN="TOP"><BR><FONT SIZE=2><B>For the transition period from
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> to
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.</B></FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2><B>COMMISSION FILE NUMBER 000-29661  </B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=5><B>UTSTARCOM,&nbsp;INC.<BR>  </B></FONT><FONT SIZE=2>(Exact name of Registrant as specified in its charter) </FONT></P>

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<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>DELAWARE</B></FONT><FONT SIZE=2><BR>
(State of Incorporation)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>52-1782500</B></FONT><FONT SIZE=2><BR>
(I.R.S. Employer Identification No.)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2>1275 HARBOR BAY PARKWAY,<BR>
ALAMEDA, CALIFORNIA<BR>
(Address of principal executive offices)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2>94502<BR>
(zip code)</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>Registrant's
telephone number, including area code: </FONT><FONT SIZE=2><B>(510)&nbsp;864-8800  </B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the Registrant (1)&nbsp;has filed all reports required to be filed by Section&nbsp;13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12&nbsp;months (or for such shorter period that the Registrant was required to file such reports), and (2)&nbsp;has been subject to such filing requirements for the
past 90&nbsp;days.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;<FONT FACE="WINGDINGS">&#253;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT> </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of October&nbsp;28, 2002 there were 106,457,801 shares of the Registrant's Common Stock outstanding, par value $0.00125. </FONT></P>

<HR NOSHADE>
<HR NOSHADE>
<HR NOSHADE>
<!-- ZEQ.=1,SEQ=1,EFW="2092993",CP="UTSTARCOM, INC.",DN="1",CHK=728977,FOLIO='blank',FILE='DISK027:[02PAL7.02PAL2327]BA2327A.;3',USER='ILEONG',CD=';7-NOV-2002;19:15' -->
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<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="bg2327_table_of_contents"> </A>
<A NAME="toc_bg2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>TABLE OF CONTENTS    <BR>  </B></FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="11%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="78%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>PAGE</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><B>PART I.</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><B>FINANCIAL INFORMATION</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
Item 1.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Condensed Consolidated Financial Statements</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Condensed Consolidated Balance Sheets as of September&nbsp;30, 2002 (unaudited) and December&nbsp;31, 2001</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Condensed Consolidated Statements of Operations for the three and nine month periods ended September&nbsp;30, 2002 and 2001 (unaudited)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Condensed Consolidated Statements of Cash Flows for the nine month periods ended September&nbsp;30, 2002 and 2001 (unaudited)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Notes to Condensed Consolidated Financial Statements (unaudited)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
6</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
Item 2.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Management's Discussion and Analysis of Financial Condition and Results of Operations</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
19</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
Item 3.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Quantitative and Qualitative Disclosure about Market Risk</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
56</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
Item 4.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Controls and Procedures</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
57</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="11%"><BR><FONT SIZE=2><B>PART II.</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><B><BR>
OTHER INFORMATION</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
Item 2.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Changes in Securities and Use of Proceeds</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
58</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
Item 5.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Other Information</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
59</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
Item 6.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Exhibits and Reports on Form&nbsp;8-K</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
59</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Signatures</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
60</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Certifications</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
61</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="11%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="78%"><FONT SIZE=2><BR>
Exhibit Index</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2><BR>
63</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE>
<!-- ZEQ.=1,SEQ=2,EFW="2092993",CP="UTSTARCOM, INC.",DN="1",CHK=919916,FOLIO='blank',FILE='DISK027:[02PAL7.02PAL2327]BG2327A.;6',USER='KSMITHE',CD=';7-NOV-2002;20:46' -->
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<P><FONT SIZE=2><A
NAME="page_de2327_1_3"> </A> </FONT></P>

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<P><FONT SIZE=2><A
NAME="de2327_part_i_#151;financial_information"> </A>
<A NAME="toc_de2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>PART I&#151;FINANCIAL INFORMATION    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="de2327_item_1_#151;condensed_c__de201921"> </A>
<A NAME="toc_de2327_2"> </A></FONT> <FONT SIZE=2><B>ITEM 1&#151;CONDENSED CONSOLIDATED FINANCIAL STATEMENTS    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de2327_utstarcom,_inc._condensed_cons__uts04089"> </A>
<A NAME="toc_de2327_3"> </A>
<BR></FONT><FONT SIZE=2><B>UTSTARCOM,&nbsp;INC.<BR>  CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)<BR>  (In thousands, except share and per share data)    <BR>  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30,<BR>
2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>December&nbsp;31,<BR>
2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3 ALIGN="CENTER"><FONT SIZE=2><B>ASSETS</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Current assets:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Cash and cash equivalents</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>307,240</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>321,136</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Short-term investments</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>58,914</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>86,176</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Accounts receivable, net of allowances for doubtful accounts of $25,524 and $19,053 at September&nbsp;30, 2002 and December&nbsp;31, 2001, respectively</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>179,239</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>193,046</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Inventories</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>285,608</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>229,050</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Other current assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>89,087</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>67,067</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Total current assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>920,088</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>896,475</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Property, plant and equipment, net</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>72,749</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>43,942</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Long-term investments</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>23,094</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>17,818</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Goodwill and intangible assets, net</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>50,450</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>38,992</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Other long-term assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>14,239</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>8,653</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Total assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>1,080,620</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>1,005,880</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 ALIGN="CENTER"><FONT SIZE=2><B>LIABILITIES AND STOCKHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Current liabilities:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Accounts payable</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>129,555</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>83,649</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Debt-current portion</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>58,434</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Income taxes payable</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>15,693</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>10,536</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Deferred revenue</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>107,940</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>76,424</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Other</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>102,198</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>76,329</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Total current liabilities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>355,386</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>305,372</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Long-term debt</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>12,048</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Minority interest in consolidated subsidiaries</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>6,573</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Total liabilities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>355,386</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>323,993</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Commitments and contingencies (Note&nbsp;12)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Stockholders' equity:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Common stock: $0.00125 par value; authorized: 250,000,000 shares; issued and outstanding: 106,233,788 and 109,302,816 at September&nbsp;30, 2002 and December&nbsp;31, 2002, respectively</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>134</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>138</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Additional paid-in capital</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>643,507</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>638,697</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Deferred stock compensation</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(4,688</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(6,045</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Retained earnings</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>86,668</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>49,146</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Receivable from stockholders</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(342</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(381</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Other comprehensive income (loss)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(45</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>332</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Total stockholders' equity</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>725,234</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>681,887</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="58%"><FONT SIZE=2>Total liabilities and stockholders' equity</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>1,080,620</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>1,005,880</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>See
accompanying notes to condensed consolidated financial statements. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=3,EFW="2092993",CP="UTSTARCOM, INC.",DN="1",CHK=967504,FOLIO='3',FILE='DISK027:[02PAL7.02PAL2327]DE2327A.;4',USER='KSMITHE',CD=';7-NOV-2002;20:47' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_dg2327_1_4"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dg2327_utstarcom,_inc._condensed_cons__uts04195"> </A>
<A NAME="toc_dg2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>UTSTARCOM,&nbsp;INC.<BR>  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)<BR>  (In thousands, except per share data)    <BR>  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Three months ended</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Nine months ended</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30,<BR>
2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30,<BR>
2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30,<BR>
2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30,<BR>
2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Net sales:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="32%"><FONT SIZE=2>Unrelated parties</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>223,486</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>167,628</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>577,270</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>423,796</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="32%"><FONT SIZE=2>Related parties</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>42,027</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>2,856</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>103,441</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>5,916</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>265,513</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>170,484</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>680,711</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>429,712</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2><BR>
Cost of sales</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
172,696</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
106,208</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
436,340</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
274,116</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Gross profit</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>92,817</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>64,276</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>244,371</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>155,596</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Operating expenses:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="32%"><FONT SIZE=2>Selling, general and administrative</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>28,582</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>21,830</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>81,788</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>54,720</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="32%"><FONT SIZE=2>Research and development</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>22,958</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>16,381</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>63,525</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>42,079</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="32%"><FONT SIZE=2>In-process research and development</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>670</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="32%"><FONT SIZE=2>Amortization of intangible assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>631</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,965</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,764</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>5,401</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Total operating expenses</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>52,171</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>40,176</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>147,747</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>102,200</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Operating income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>40,646</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>24,100</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>96,624</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>53,396</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Interest income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,356</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>2,478</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>4,384</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>6,570</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Interest expense</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(88</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(930</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(1,223</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(2,850</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Other expenses, net</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(3,334</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(220</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(4,885</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(254</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Equity in (loss) of affiliated companies</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(145</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(918</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(944</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(1,619</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Income before income taxes and minority interest</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>38,435</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>24,510</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>93,956</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>55,243</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Income tax expense</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>7,686</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>5,849</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>18,790</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>13,533</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Minority interest in (earnings) of consolidated subsidiaries</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>136</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(1,156</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(1,291</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Net income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>30,749</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>18,797</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>74,010</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>40,419</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Basic earnings per share</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.28</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.18</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.67</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.41</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Diluted earnings per share</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.27</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.17</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.64</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.38</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Weighted average shares used in per-share calculation:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="32%"><FONT SIZE=2>&#151;Basic</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>109,776</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>104,031</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>110,459</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>99,261</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="32%"><FONT SIZE=2>&#151;Diluted</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>113,508</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>110,601</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>115,716</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>106,898</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>See
accompanying notes to condensed consolidated financial statements. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=4,EFW="2092993",CP="UTSTARCOM, INC.",DN="1",CHK=280116,FOLIO='4',FILE='DISK027:[02PAL7.02PAL2327]DG2327A.;3',USER='ILEONG',CD=';7-NOV-2002;19:15' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_di2327_1_5"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di2327_utstarcom,_inc._condensed_cons__uts03322"> </A>
<A NAME="toc_di2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>UTSTARCOM,&nbsp;INC.<BR>  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)<BR>  (In thousands)    <BR>  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Nine months ended</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30, 2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30, 2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>CASH FLOWS FROM OPERATING ACTIVITIES:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Net income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>74,010</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>40,419</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Adjustments to reconcile net income to net cash provided by (used in) operating activities:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Depreciation and amortization</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>15,275</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>12,147</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Non-qualified stock option exercise tax benefits</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>3,323</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>10,466</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Net loss on sale of assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>321</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>468</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>In-process research and development costs</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>670</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Impairment of long-term investments</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,823</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>1,576</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Stock compensation expense</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,291</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>3,220</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Allowance for doubtful accounts</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>6,471</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>6,927</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Inventory reserve</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>9,752</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>6,422</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Equity in net loss of affiliated companies</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>944</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>1,618</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Minority interest in earnings of consolidated subsidiary</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>1,156</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>585</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Changes in operating assets and liabilities:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="63%"><FONT SIZE=2>Accounts receivable</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>7,660</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(58,715</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="63%"><FONT SIZE=2>Inventories</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(65,620</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(89,938</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="63%"><FONT SIZE=2>Other current and non-current assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(27,358</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(46,670</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="63%"><FONT SIZE=2>Accounts payable</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>43,027</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>41,489</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="63%"><FONT SIZE=2>Income taxes payable</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>5,160</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(3,613</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="63%"><FONT SIZE=2>Deferred revenue</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>31,516</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>42,786</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="63%"><FONT SIZE=2>Other current liabilities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>24,955</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>24,246</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Net cash provided by (used in) operating activities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>136,376</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(6,567</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>CASH FLOWS FROM INVESTING ACTIVITIES:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Additions to property, plant and equipment, net</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(42,027</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(18,249</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Investment in affiliates</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(11,044</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(9,272</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Acquisition of businesses, net of cash acquired</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(17,705</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Purchase of short-term investments</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(74,913</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(89,168</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Sales of short-term investments</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>101,937</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>78,489</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Net cash used in investing activities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(43,752</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(38,200</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>CASH FLOWS FROM FINANCING ACTIVITIES:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Issuance of stock, net of expenses</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>36,982</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>148,725</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Proceeds from borrowing</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>39,619</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>22,645</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Payments for borrowing</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(110,101</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Repurchase of common stock</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(72,921</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Proceeds from stockholder receivables</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>39</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>183</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Net cash provided by (used in) financing activities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(106,382</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>171,553</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Effects of exchange rates on cash</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(138</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(25</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Net increase in cash and cash equivalents</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(13,896</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>126,761</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Cash and cash equivalents at beginning of period</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>321,136</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>149,112</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3><FONT SIZE=2>Cash and cash equivalents at end of period</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>307,240</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>275,873</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>See
accompanying notes to condensed consolidated financial statements. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_dk2327_1_6"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk2327_utstarcom,_inc._notes_to_conde__uts03031"> </A>
<A NAME="toc_dk2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>UTSTARCOM,&nbsp;INC.<BR>  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)    <BR>  </B></FONT></P>

<P><FONT SIZE=2><B>1.&nbsp;&nbsp;&nbsp;&nbsp;BASIS OF PRESENTATION:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying unaudited condensed consolidated financial statements include the accounts of UTStarcom,&nbsp;Inc. (the "Company") and its wholly owned
subsidiaries. All significant intercompany accounts and transactions have been eliminated in the preparation of the condensed consolidated financial statements. The minority interests in consolidated
subsidiaries and equity in affiliated companies are shown separately in the condensed consolidated financial statements. Investments in affiliated companies are accounted for using the cost or equity
method, as applicable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
accompanying financial data as of September&nbsp;30, 2002 and for the three and nine months ended September&nbsp;30, 2002 and 2001 has been prepared by the Company, without
audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The December&nbsp;31, 2001 balance sheet was derived from audited financial
statements, but does not include all disclosures required by generally accepted accounting principles. These condensed consolidated financial statements should be read in conjunction with the
Company's audited December&nbsp;31, 2001 financial statements, including the notes thereto, and the other information set forth in the Company's Annual Report on Form&nbsp;10K/A. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) considered necessary
for a fair presentation of the Company's financial condition, the results of its operations and its cash flows for the periods indicated. The results of operations for the three and nine months ended
September&nbsp;30, 2002 are not necessarily indicative of the operating results for the full year. </FONT></P>

<P><FONT SIZE=2><B>2.&nbsp;&nbsp;&nbsp;&nbsp;REVENUE RECOGNITION:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues from sales of telecommunication equipment are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee
is fixed or determinable and collectibility is reasonably assured. The majority of the Company's revenue is recognized upon the receipt of final acceptance certificates. Where multiple elements exist
in an arrangement, revenue is allocated to the different elements based upon verifiable objective evidence of the fair value of the elements. Revenues from sales of telecommunication equipment
involving significant modification or customization of the product or where services being provided are deemed to be essential to the functionality of the product are recognized using the percentage
completion method if the project cost can be reasonably estimated. If the cost cannot be reasonably estimated, the completed contract method is applied. Any payments received prior to revenue
recognition are recorded as deferred revenue. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
from sales of telecommunication equipment incorporating software not considered incidental to the product as a whole ("software contracts") are recognized when persuasive
evidence of an agreement exists, the product has been delivered, the fee is fixed or determinable and collectibility is probable. Revenues from software contracts with multiple elements are recognized
using the residual method when there is vendor specific objective evidence of the fair value of all undelivered elements in an arrangement but vendor specific objective evidence of fair value does not
exist for one or more of the delivered elements in an arrangement. Under the residual method, the fair value of the undelivered elements, as indicated by vendor specific objective evidence, is
deferred and the difference between the total arrangement fee and the amount deferred for the undelivered elements is recognized as revenue related to the delivered elements regardless of any separate
prices stated within the contract for each </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
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<A NAME="page_dk2327_1_7"> </A>
<BR>

<P><FONT SIZE=2>
element. If the fee due from the customer is not fixed or determinable due to extended payment terms, revenue is recognized as payments become due from the customer, assuming all other criteria for
revenue recognition is met. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
from engineering service contracts are recognized upon completion of the project, or using the percentage of completion method where project costs can be reasonably estimated. </FONT></P>

<P><FONT SIZE=2><B>3.&nbsp;&nbsp;&nbsp;&nbsp;EARNINGS PER SHARE:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of the Company's common
stock outstanding during the period. Diluted earnings per share is determined in the same manner as basic earnings per share except that the numbers of shares is increased by potentially dilutive
common shares outstanding during the period. Potentially dilutive common shares consist of employee stock options and warrants. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table presents the calculation of basic and diluted earnings per share (in thousands, except per share data): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="47%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Three Months Ended<BR>
September&nbsp;30</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Nine Months Ended<BR>
September&nbsp;30</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="47%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2001</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Numerator:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Net income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>30,749</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,797</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>74,010</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>40,419</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Denominator:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Shares used to compute basic EPS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>109,776</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>104,031</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>110,459</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>99,261</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Dilutive common stock equivalent shares:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Stock options</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3,705</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>6,542</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>5,229</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>7,609</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Warrants</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>28</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>28</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>28</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Shares used to compute diluted EPS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>113,508</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>110,601</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>115,716</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>106,898</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Basic earnings per share</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.28</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.18</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.67</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.41</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Diluted earnings per share</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.27</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.17</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.64</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.38</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
potential shares outstanding during the three and nine months ended September&nbsp;30, 2002 and 2001 were excluded in the diluted per share computations, since their exercise
prices were greater than the average market price of the common shares during the period and, accordingly, their effect is anti-dilutive. For the three months ended September&nbsp;30,
2002, these shares totaled 6.7&nbsp;million at a weighted average exercise price of $21.20 per share, compared to 2.0&nbsp;million with a weighted average exercise price of $23.11 per share for
the corresponding period in 2001. For the nine months ended September&nbsp;30, 2002, these shares totaled 2.2&nbsp;million at a weighted average exercise price of $24.17 per share, compared to
1.9&nbsp;million with a weighted average exercise price of $23.17 per share for the corresponding period in 2001. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=7,EFW="2092993",CP="UTSTARCOM, INC.",DN="1",CHK=641315,FOLIO='7',FILE='DISK027:[02PAL7.02PAL2327]DK2327A.;5',USER='ILEONG',CD=';7-NOV-2002;19:23' -->
<A NAME="page_dk2327_1_8"> </A>
<BR>

<P><FONT SIZE=2><B>4.&nbsp;&nbsp;&nbsp;&nbsp;COMPREHENSIVE INCOME:  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reconciliation of net income to comprehensive income for the three and nine months ended September&nbsp;30, 2002 and 2001 is as follows (in thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="51%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Three Months Ended September&nbsp;30</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Nine Months Ended September&nbsp;30</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="51%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>Net income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>30,749</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>18,797</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>74,010</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>40,419</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>Unrealized gains (losses) on investments</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>(18</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>223</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>(239</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>230</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>Change in cumulative translation adjustments</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>(138</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>(25</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>Total comprehensive income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>30,734</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>19,020</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>73,633</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>40,624</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><B>5.&nbsp;&nbsp;&nbsp;&nbsp;CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of the Company's cash equivalents and short-term investments are classified as available-for-sale. At September&nbsp;30,
2002, $162.4&nbsp;million of available-for-sale securities were included in cash equivalents and $58.9&nbsp;million of available-for-sale securities
were included in short-term investments. At December&nbsp;31, 2001, $162.2&nbsp;million of available-for-sale securities were included in cash equivalents and
$86.2&nbsp;million of available-for-sale securities were included in short-term investments. These available-for-sale securities consist
of government-backed notes, commercial paper, floating rate corporate bonds and fixed income corporate bonds. These investments are recorded at fair value. Any unrealized holding gains or losses are
reported as a component of comprehensive income. </FONT></P>

<P><FONT SIZE=2><B>6.&nbsp;&nbsp;&nbsp;&nbsp;INVENTORIES:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories as of September&nbsp;30, 2002 and December&nbsp;31, 2001 consist of the following (in thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="75%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="66%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30, 2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>December&nbsp;31, 2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>Raw materials</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>85,992</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>59,409</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>Work-in-process</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>28,485</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>33,887</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>Finished goods</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>201,228</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>156,098</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>315,705</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>249,394</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>Less allowance for obsolete inventory</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(30,097</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(20,344</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>285,608</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>229,050</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><B>7.&nbsp;&nbsp;&nbsp;&nbsp;ACQUISITIONS:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;19, 2002, the Company completed the purchase of Issanni Communications,&nbsp;Inc. ("Issanni"). The Company's investment in Issanni was
$2.0&nbsp;million prior to the acquisition. The purchase consideration for all the outstanding shares of Issanni, other than those already held by the Company prior to the acquisition, was
$2.1&nbsp;million, $0.5&nbsp;million of which is held in escrow for, among other things, any undisclosed liabilities or contingencies incurred by Issanni prior to closing. In addition,
$2.0&nbsp;million will be payable in the form of an earnout to all Issanni shareholders of record at closing, subject to the completion of certain performance milestones during 2002, 2003 and 2004.
This earnout will be recorded as additional purchase price when earned. Furthermore, the Company issued 39,876 shares of restricted common stock valued at $1.0&nbsp;million to Issanni employees who
will continue to perform services for the Company. These shares vest at the earlier of five years or upon the achievement of certain performance milestones. The Company records this amount as
compensation </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>
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<A NAME="page_dk2327_1_9"> </A>
<BR>

<P><FONT SIZE=2>
expense ratably over the vesting period and will accelerate the amortization if the milestones are met. The amount of the purchase price allocated to in-process research and development
of $0.7&nbsp;million was charged to the Company's results of operations, as no alternative future uses existed at the acquisition date. Issanni develops RAS (remote access server) and local access
technology, which the Company incorporates into one of its products. The results of operations of Issanni are included in the Company's results of operations beginning on April&nbsp;19, 2002. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following represents the allocation of the purchase price and prior investment in Issanni under the purchase method of accounting (in thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="88%"><FONT SIZE=2>Fair value of tangible net assets acquired</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>18</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="88%"><FONT SIZE=2>Fair value of identified intangible assets</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3,230</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="88%"><FONT SIZE=2>In process research and development</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>670</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="88%"><FONT SIZE=2>Excess of costs of acquiring Issanni over fair value of identified net assets acquired (goodwill)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>379</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="88%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="88%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>4,297</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="88%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
September&nbsp;1996, the Company purchased a 49% interest in Guangdong UTStarcom,&nbsp;Ltd. ("GUTS"), one of the Company's two primary manufacturing facilities. In
February&nbsp;1998, the Company acquired an additional 2% interest in GUTS, increasing its ownership interest to 51%. This investment was accounted for using the equity method prior to the Company's
acquisition of the remaining 49% ownership interest in GUTS in May&nbsp;2002, as the Company did not have voting control over significant matters. On December&nbsp;18, 2001, the Company entered
into an agreement to acquire the remaining 49% ownership interest in GUTS for a total consideration of $3.6&nbsp;million in cash. The cash consideration was paid in the first quarter of 2002 and
final government approvals were received in May&nbsp;2002. GUTS is now a wholly-owned subsidiary of the Company and its results of operations are included in the Company's consolidated financial
statements beginning June&nbsp;1, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following represents the allocation of the purchase price for the remaining 49% ownership interest in GUTS under the purchase method of accounting (in thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="88%"><FONT SIZE=2>Fair value of tangible net assets acquired</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>372</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="88%"><FONT SIZE=2>Excess of costs of acquiring GUTS over fair value of identified net assets acquired (goodwill)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3,292</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="88%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="88%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>3,664</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="88%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
July&nbsp;1997, the Company, as part of its business operations in China, acquired an 88% interest in UTStarcom (Hangzhou) Communication Co.,&nbsp;Ltd, which has since changed its
name to UTStarcom Telecom Co.,&nbsp;Ltd. ("HUTS"), one of the Company's primary manufacturing facilities. On January&nbsp;21, 2002, the Company entered into an agreement to acquire the remaining
12% ownership interest in the
joint venture company for a total consideration of $14.5&nbsp;million in cash. Cash consideration of $7.3&nbsp;million was paid in January&nbsp;2002, and the remaining consideration was paid in
the second quarter of fiscal 2002. Final government approvals were received in May&nbsp;2002. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following represents the allocation of the purchase price for the remaining 12% ownership interest in HUTS under the purchase method of accounting (in thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="86%"><FONT SIZE=2>Fair value of tangible net assets acquired</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>8,148</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="86%"><FONT SIZE=2>Excess of costs of acquiring HUTS over fair value of identified net assets acquired (goodwill)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>6,320</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="86%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="86%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>14,468</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="86%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Had
the acquisitions of Issanni and the remaining interests in HUTS and GUTS, which were recorded in the second quarter of fiscal 2002, occurred on January&nbsp;1, 2002, proforma net
income for </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

<HR NOSHADE>
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<A NAME="page_dk2327_1_10"> </A>
<BR>

<P><FONT SIZE=2>
the nine months ended September&nbsp;30, 2002 would have been $74.7&nbsp;million, or $0.68 per share basic, and $0.65 per share fully diluted. Proforma revenues would have been
$682.8&nbsp;million for the nine months ended September&nbsp;30, 2002. Proforma adjustments include the amortization of fixed asset step-ups and intangible assets as if the
transactions had occurred on January&nbsp;1, 2002. </FONT></P>

<P><FONT SIZE=2><B>8.&nbsp;&nbsp;&nbsp;&nbsp;DEBT:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following represents the outstanding borrowings at September&nbsp;30, 2002 and December&nbsp;31, 2001 (in thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="19%" ALIGN="LEFT"><FONT SIZE=1><B>Note<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="24%" ALIGN="CENTER"><FONT SIZE=1><B>Rate</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="23%" ALIGN="CENTER"><FONT SIZE=1><B>Maturity</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30, 2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>December&nbsp;31, 2001</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="19%"><FONT SIZE=2>Bank of China</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>From 4.54% to 5.56%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>From 09/02 to 10/02</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>34,338</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="19%"><FONT SIZE=2>China Merchants Bank</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>5.31%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>03/03</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>6,024</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="19%"><FONT SIZE=2>Commercial Bank of Hangzhou</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>6.21%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>06/10</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>12,048</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="19%"><FONT SIZE=2>CITIC Industrial Bank</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>6.14%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>05/02</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>6,024</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="19%"><FONT SIZE=2>China Everbright Bank</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>4.54%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>12/02</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>12,048</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="19%"><FONT SIZE=2>Total debt</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>70,482</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="19%"><FONT SIZE=2>Long-term debt</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>12,048</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="19%"><FONT SIZE=2>Short-term debt</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>58,434</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="19%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="24%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
outstanding debt was repaid in September&nbsp;2002, and there were no gains or losses on the early retirement of this debt. The Company has unutilized borrowing facilities of
$343.3&nbsp;million as of September&nbsp;30, 2002. </FONT></P>

<P><FONT SIZE=2><B>9.&nbsp;&nbsp;&nbsp;&nbsp;LONG TERM INVESTMENTS:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's investments are as follows (in thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="74%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="67%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30, 2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>December&nbsp;31, 2001</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Investment in GUTS</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>750</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Investment in Softbank China</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>7,829</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>8,314</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Investment in Issanni Communication</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,001</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Investment in Cellon International</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>5,000</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Investment in Restructuring Fund No. 1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>1,981</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Investment in Global Asia Partners L.P.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>1,000</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Investment in Fiberxon Inc.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,000</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Investment in InterWave Communications International Ltd.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>3,000</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Investment in others</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,284</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>4,753</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Total</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>23,094</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>17,818</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has invested $10.0&nbsp;million in Softbank China, an investment fund established by SOFTBANK CORP. focused on investments in Internet companies in China. This investment
permits the Company to participate in the anticipated growth of Internet-related businesses in China. SOFTBANK CORP. and its related companies are significant stockholders of the Company. The
Company's investment constitutes 10% of the funding for Softbank China, with SOFTBANK CORP. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

<HR NOSHADE>
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<A NAME="page_dk2327_1_11"> </A>
<BR>

<P><FONT SIZE=2>
contributing the remaining 90%. The Company is a passive investor and has no decision-making authority with respect to investments by the fund. The fund has a separate management team, and none of
the Company's employees are employed by the fund. Many of the fund's investments are and will be in privately held companies, many of which can still be considered in the start-up or
development stages. These investments are inherently risky as the market for the technologies or products the companies have under development are typically in the early stages and may never
materialize. During the three and nine months ended September&nbsp;30, 2002, based upon a review of the carrying value of this investment, impairment charges of $0.0&nbsp;million and
$0.5&nbsp;million, respectively, were
recognized to provide for the decline in the fair value below the carrying value of this investment. Impairment charges of $0.4&nbsp;million and $1.6&nbsp;million, respectively, were recognized in
the corresponding periods in fiscal 2001. These investment impairment charges are included in Other Expenses Net in the condensed consolidated statements of operations. The balance remaining in this
investment as of September&nbsp;30, 2002 was $7.8&nbsp;million. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has also invested directly in a number of private technology-based companies in the early stages of development. The Company continually evaluates the carrying value of these
investments for possible impairment based on the achievement of business objectives and milestones, the financial condition and prospects of these companies and other relevant factors. During the
three and nine months ended September&nbsp;30, 2002, impairment charges in respect of these private technology investments were $1.7&nbsp;million and $2.3&nbsp;million, respectively. These
investment impairment charges are included in Other Expenses Net in the condensed consolidated statements of operations. There were no impairment charges in respect of these investments in the
corresponding periods in 2001. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the first quarter of fiscal 2002, the Company invested $2.0&nbsp;million in Restructuring Fund No.&nbsp;1, a venture capital investment limited partnership established by
SOFTBANK INVESTMENT CORP., an affiliate of SOFTBANK CORP. SOFTBANK America&nbsp;Inc., an entity affiliated with SOFTBANK CORP., is a significant stockholder of the Company. The fund will focus on
leveraged buyout investments in companies in Asia undergoing restructuring or bankruptcy procedures. The total fund offering is expected to be between approximately $150.0&nbsp;million and
$226.0&nbsp;million, with each investor contributing a minimum of $0.8&nbsp;million. The Company is a passive investor and has no decision-making authority with respect to investments by the fund.
The fund has a separate management team, and none of the Company's employees are employed by the fund. The Company accounts for this investment under the equity method of accounting. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
June&nbsp;2002, the Company invested $1.0&nbsp;million in Global Asia Partners L.P., with a commitment to invest up to a maximum of $5.0&nbsp;million. The remaining amount is
due at such times and in such amounts as shall be specified in one or more future capital calls to be issued by the general partner. The fund size is anticipated to be $100&nbsp;million and was
formed to make private equity investments in private or pre-IPO technology and telecommunications companies. The fund's geographic focus is on technology investments in Asia, in particular
India and China. The Company accounts for this investment under the equity method of accounting. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the third quarter of fiscal 2002, the Company purchased approximately 5.8&nbsp;million shares of common stock of InterWave Communications&nbsp;Inc., a technology company
listed on NASDAQ, for approximately $3.0&nbsp;million. In addition the Company received warrants to purchase 2.0&nbsp;million shares of InterWave's common stock at $0.21 cents per share. The
Company will review and potentially adjust the carrying value of these marketable securities in accordance with SFAS No.&nbsp;115 "Accounting for Certain Investments in Debt and Equity Securities." </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
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<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->

<P><FONT SIZE=2><A
NAME="page_dm2327_1_12"> </A> </FONT> <FONT SIZE=2><B>10.&nbsp;&nbsp;&nbsp;&nbsp;GOODWILL AND INTANGIBLE ASSETS:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's goodwill and intangible assets are as follows (in thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="75%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="66%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30, 2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>December&nbsp;31, 2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>Goodwill</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>57,628</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>47,636</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>Purchased technology</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>7,570</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>4,340</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>65,198</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>51,976</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>Less accumulated amortization:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>Goodwill</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(12,823</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(12,823</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>Purchased technology</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(1,925</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(161</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>50,450</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>38,992</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
expense was $0.6&nbsp;million and $2.0&nbsp;million for the three months ended September&nbsp;30, 2002 and September&nbsp;30, 2001, respectively, and
$1.8&nbsp;million and $5.4&nbsp;million for the nine months ended September&nbsp;30, 2002 and September&nbsp;30, 2001, respectively. Expected amortization expense for the next five fiscal
years, beginning the year ended December&nbsp;31, 2003, is $2.5&nbsp;million, $2.4&nbsp;million, $0.4&nbsp;million, $0.0&nbsp;million and $0.0&nbsp;million, respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill
increased by $10.0&nbsp;million during the nine months ended September&nbsp;30, 2002. Goodwill totaling $6.3&nbsp;million was recorded on the acquisition of the remaining
12% ownership interest in HUTS, goodwill of $3.3&nbsp;million was recorded on the acquisition of the remaining 49% ownership in GUTS, and goodwill of $0.4&nbsp;million was recorded on the
acquisition of Issanni. Intangible assets increased by $3.2&nbsp;million during the nine months ended September&nbsp;30, 2002. This increase was due to purchased technology that was recorded on
the acquisition of Issanni. The estimated useful life of purchased technology is three years. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
July&nbsp;2001, the Financial Accounting Standards Board (the "FASB") issued SFAS No.&nbsp;142, "Goodwill and Other Intangible Assets." SFAS No.&nbsp;142 requires that goodwill
and intangible assets with indefinite useful lives no longer be amortized, but instead tested for impairment at least annually. SFAS No.&nbsp;142 also requires that intangible assets with definite
useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with SFAS No.&nbsp;144, "Accounting for the
Impairment or Disposal of Long-Lived Assets." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS
No.&nbsp;142 was adopted by the Company on January&nbsp;1, 2002. SFAS No.&nbsp;142 had the effect of eliminating amortization of goodwill commencing January&nbsp;1, 2002;
however, impairment reviews may result in future periodic write-downs. The Company completed the required transitional assessment of goodwill during the first quarter of fiscal 2002. Based on this
assessment, there was no transition goodwill impairment charge. The Company plans to perform its annual impairment review in the fourth quarter of each year. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

<HR NOSHADE>
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<A NAME="page_dm2327_1_13"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
reconciliation of net income to adjusted net income as if there had been no goodwill amortization for the three and nine months ended September&nbsp;30, 2001 is as follows (in
thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="70%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="59%" ALIGN="LEFT"><FONT SIZE=1><B>(In thousands)<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Three Months Ended September&nbsp;30, 2001</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Nine Months Ended September&nbsp;30, 2001</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Reported net income</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>18,797</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>40,419</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Add back: goodwill amortization</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>1,943</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>5,336</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Adjusted net income</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>20,740</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>45,755</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Basic earnings per share:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Reported net income</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.18</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.41</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Goodwill amortization</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.02</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.05</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Adjusted net income</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.20</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.46</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Diluted earnings per share:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Reported net income</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.17</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.38</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Goodwill amortization</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.02</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.05</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Adjusted net income</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.19</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.43</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Average number of shares outstanding:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Basic</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>104,031</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>99,261</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>Diluted</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>110,601</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>106,898</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><B>11.&nbsp;&nbsp;&nbsp;&nbsp;SEGMENT REPORTING:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company provides telecommunications equipment through an integrated suite of network access systems, optical transmission products and subscriber terminal
products. The Company primarily operates in two geographic areas, China and other regions. The chief operating decision makers evaluate performance, make operating decisions, and allocate resources
based on consolidated financial data. Gross profit, operating income and income taxes are not allocated to specific individual departments within the organization. In accordance with SFAS
No.&nbsp;131 "Disclosures about Segments of an Enterprise and Related Information", the Company is considered a single reportable segment. The Company is required to disclose certain information
about product revenues, information about geographic areas, information about major customers, and information about long-lived assets. During the three months ended September&nbsp;30,
2002, the provincial-level telecommunications service entity in the Zhejiang province of China began to consolidate telecommunications purchasing decisions for that province. As a result of this trend
in the Zhejiang province, the Company has grouped all customers in Zhejiang province together and has treated these as one customer. At September&nbsp;30, 2002, the Company had approximately 25 such
customers in Zhejiang province. For the three months ended September&nbsp;30, 2002, sales to Zhejiang province, BB Technologies Corporation and Kunming PTB accounted for 16%, 15% and 11% of net
sales, respectively. For the three months ended September&nbsp;30, 2001, sales to Zhejiang province, Fitel and Jinhua PTB accounted for 31%, 22% and 12% of net sales,
respectively. For the nine months ended September&nbsp;30, 2002, sales to Zhejiang province and BB Technologies Corporation accounted for 21% and 14% of net sales, respectively. For the nine months
ended September&nbsp;30, 2001, sales to Zhejiang province accounted for 32% of net sales. Revenue attributable to Japan was primarily due to sales to BB Technologies Corporation. Sales to BB
Technologies Corporation were $39.8&nbsp;million for the three months ended September&nbsp;30, 2002 and $96.7&nbsp;million for the nine months ended September&nbsp;30, 2002. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=13,EFW="2092993",CP="UTSTARCOM, INC.",DN="1",CHK=672752,FOLIO='13',FILE='DISK027:[02PAL7.02PAL2327]DM2327A.;8',USER='JJORGE',CD=';7-NOV-2002;19:56' -->
<A NAME="page_dm2327_1_14"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Geographical
area data and product data are as follows (in thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="21%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>Three Months Ended<BR>
September&nbsp;30, 2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>Three Months Ended<BR>
September&nbsp;30, 2001</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="21%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Telecommunications Equipment</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Subscriber Handsets</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Total</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Telecommunications Equipment</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Subscriber Handsets</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Total</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>Net sales:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2><BR>
China</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2><BR>
117,405</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
100,836</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
218,241</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2><BR>
89,883</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
43,407</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
133,290</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>Japan</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>42,029</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>42,029</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>Other</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>5,241</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>5,243</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>37,194</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>37,194</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>Total net sales</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>164,675</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>100,838</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>265,513</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>127,077</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>43,407</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>170,484</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<!-- User-specified TAGGED TABLE -->
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="21%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>Nine Months Ended<BR>
September&nbsp;30, 2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>Nine Months Ended<BR>
September&nbsp;30, 2001</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="21%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Telecommunications Equipment</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Subscriber Handsets</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Total</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Telecommunications Equipment</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Subscriber Handsets</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Total</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>Net sales:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2><BR>
China</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2><BR>
313,700</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
254,168</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
567,868</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2><BR>
262,460</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
127,526</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
389,986</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>Japan</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>102,705</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>102,705</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>Other</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>10,136</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>10,138</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>39,577</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>149</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>39,726</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>Total net sales</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>426,541</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>254,170</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>680,711</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>302,037</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>127,675</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>429,712</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue
attributable to the United States of America was insignificant during the three and nine months ended September&nbsp;30, 2002 and 2001. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-lived
assets by geography are as follows (in thousands): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="74%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="67%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>September&nbsp;30, 2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>December&nbsp;31, 2001</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>China</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>79,409</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>41,289</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>U.S.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>43,789</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>41,645</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Total long-lived assets</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>123,198</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>82,934</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
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<P><FONT SIZE=2><B>12.&nbsp;&nbsp;&nbsp;&nbsp;COMMITMENTS AND CONTINGENCIES:  </B></FONT></P>

<P><FONT SIZE=2><I>Litigation:  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company, some of its directors and officers and various underwriters for its IPO have been named as defendants in a putative shareholder action filed in
United States District Court for the Southern District of New York, captioned </FONT><FONT SIZE=2><I>In re UTStarcom,&nbsp;Inc. Sec. Litig</I></FONT><FONT SIZE=2>., Civil Action
No.&nbsp;01-CV-9604. Plaintiffs generally allege undisclosed improper underwriting practices concerning the allocation of IPO shares in exchange for excessive brokerage
commissions or agreements to purchase shares at higher prices in the aftermarket, in violation of the Securities Act of 1933 and the Securities Exchange Act of 1934. The complaint seeks unspecified
damages on behalf of a purported class of purchasers of the Company's common stock between March&nbsp;2, 2000 and December&nbsp;6, 2000. Substantially similar actions have been filed concerning
the initial public offerings for more than 300 different issuers, and the cases have been coordinated as </FONT><FONT SIZE=2><I>In re Initial Public Offering Securities
Litigation</I></FONT><FONT SIZE=2>, 21 MC 92. Defendants have filed motions to dismiss. The Company believes that it has meritorious defenses to this lawsuit and intends to defend this lawsuit
vigorously. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

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<P><FONT SIZE=2><I>Investment commitments:  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2002, the Company invested $1.0&nbsp;million in Global Asia Partners L.P. The fund size is anticipated to be $100&nbsp;million and was formed
to make private equity investments in private or pre-IPO technology and telecommunications companies in Asia. The Company has a commitment to invest up to a maximum of $5.0&nbsp;million.
The remaining amount is due at such times and in such amounts as shall be specified in one or more future capital calls to be issued by the general partner. </FONT></P>

<P><FONT SIZE=2><B>13.&nbsp;&nbsp;&nbsp;&nbsp;RELATED PARTY TRANSACTIONS:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has entered into transactions with several companies that are stockholders or are affiliated with one of the Company's stockholders as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2000 and 2001, the Company entered into engineering services agreements with Matsushita Communication Industrial Co.,&nbsp;Ltd. ("Matsushita"), a stockholder of the Company. The
Company recognized $2.3&nbsp;million and $0.0&nbsp;million in revenues in connection with these agreements during the three months ended September&nbsp;30, 2002 and September&nbsp;30, 2001,
and $5.7&nbsp;million and $0.0&nbsp;million during the nine months ended September&nbsp;30, 2002 and September&nbsp;30, 2001, respectively. In addition, the Company purchases
telecommunications equipment from Matsushita and a subsidiary of Matsushita. Purchases of equipment from Matsushita and its subsidiaries during the three and nine months ended September&nbsp;30,
2002 were $0.7&nbsp;million and $7.6&nbsp;million, respectively. Purchases of equipment from Matsushita and it's subsidiaries during the three and nine months ended September&nbsp;30, 2001 were
$6.6&nbsp;million and $84.0&nbsp;million, respectively. Matsushita owns less than 1% of our common stock at September&nbsp;30, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July&nbsp;5, 2002, the Company entered into a joint venture agreement with Matsushita Communication Industrial Co.,&nbsp;Ltd., a stockholder of the Company, and Matsushita
Electric Industrial Co.,&nbsp;Ltd., a subsidiary of such stockholder, to jointly design and develop, manufacture and sell telecommunication products. The Company has a 49% ownership interest in the
joint venture company, which has a registered share capital of $10.0&nbsp;million. The cash consideration of $4.9&nbsp;million payable by the Company was paid in October&nbsp;2002. As the
Company does not have voting control over significant matters of the joint venture company, the investment in and results of operations of the joint venture company will be accounted for using the
equity method of accounting. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2001, the Company entered into an engineering services agreement with Mitsubishi Electric Corporation ("MEI"), a stockholder of the Company. The Company recognized no revenue in
connection with this agreement during the three and nine months ended September&nbsp;30, 2002 and 2001, respectively. In addition the Company purchases telecommunications equipment from MEI.
Purchases of equipment from MEI during the three and nine months ended September&nbsp;30, 2002 were $49.6&nbsp;million and $102.8&nbsp;million, respectively. Purchases of equipment from MEI
during the three and nine months ended September&nbsp;30, 2001 were $20.4&nbsp;million and $27.1&nbsp;million, respectively. During June&nbsp;2002, the Company entered into a technical
services agreement with MEI. The Company paid $3.0&nbsp;million and
$0.0&nbsp;million in connection with this agreement during the three and nine months ended September&nbsp;30, 2002 and September&nbsp;30, 2001. Mitsubishi owns less than 1% of our common stock
at September&nbsp;30, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company recognized revenue of $39.8&nbsp;million and $96.7&nbsp;million during the three and nine months ended September&nbsp;30, 2002, respectively, and $0.0&nbsp;million
during the three and nine months ended September&nbsp;30, 2001, with respect to sales of telecommunications equipment to BB Technologies Corporation ("BBTC"), an affiliate of SOFTBANK CORP. SOFTBANK
America&nbsp;Inc., an entity affiliated with SOFTBANK CORP., is a significant stockholder of the Company. BBTC offers asynchronous digital subscriber line ("ADSL") coverage throughout
Japan, which is marketed under the name YAHOO. The Company provides ADSL technology to BBTC. The contract was competitively bid and the terms of this contract were on terms no more favorable than
those with unrelated parties. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

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<P><FONT SIZE=2>
Included in accounts receivable at September&nbsp;30, 2002 is $39.5&nbsp;million related to this agreement. There were no amounts included in deferred revenue in respect of this agreement at
September&nbsp;30, 2002. Included in accounts receivable in respect of this agreement at December&nbsp;31, 2001 was $13.5&nbsp;million. There were no amounts included in deferred revenue in
respect of this agreement at December&nbsp;31, 2001. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2000, the Company invested $8.0&nbsp;million and during 2001, the Company invested an additional $2.0&nbsp;million in Softbank China, an investment fund established by
SOFTBANK CORP. focused on investments in Internet companies in China. This investment permits the Company to participate in the anticipated growth of Internet-related businesses in China. The
Company's investment constitutes 10% of the funding for Softbank China, with SOFTBANK CORP. contributing the remaining 90%. The Company is a passive investor and has no decision-making authority with
respect to investments by the fund. The fund has a separate management team, and none of the Company's employees are employed by the fund. Many of the fund's investments are and will be in privately
held companies, many of which can still be considered in the start-up or development stages. These investments are inherently risky as the market for the technologies or products the
companies have under development are typically in the early stages and may never materialize. During the three and nine months ended September&nbsp;30, 2002, based upon a review of the carrying
value of this investment, impairment charges of $0.0&nbsp;million and $0.5&nbsp;million, respectively, were recognized to provide for the decline in the fair value below the carrying value of this
investment. Impairment charges of $0.4&nbsp;million and $1.6&nbsp;million, respectively, were recognized in the corresponding periods in fiscal 2001. The balance remaining in this investment as of
September&nbsp;30, 2002 was $7.8&nbsp;million. SOFTBANK CORP. owns 21.3% of our common stock at September&nbsp;30, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the first quarter of fiscal 2002, the Company invested $2.0&nbsp;million in Restructuring Fund No.&nbsp;1, a venture capital investment limited partnership, established by
SOFTBANK INVESTMENT CORP., an affiliate of SOFTBANK CORP. The fund focuses on leveraged buyout investments in companies in Asia undergoing restructuring or bankruptcy procedures. The total fund
offering is expected to be between approximately $150.0&nbsp;million and $226.0&nbsp;million, with each investor contributing a minimum of $0.8&nbsp;million. The Company is a passive investor
and has no decision-making authority with respect to investments by the fund. The fund has a separate management team, and none of the Company's employees are employed by the fund. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August&nbsp;29, 2002, the Company completed the repurchase of six million shares of the Company's common stock for $72.9&nbsp;million from its largest shareholder, SOFTBANK Corp.
As part of this transaction, SOFTBANK signed a voluntary "lock up" agreement stipulating that it will not sell any of the Company's common stock within the next six months. This lock up agreement will
end on March&nbsp;1, 2003, which coincides with the start of the Company's "blackout period." in which insiders are not permitted to sell shares. The blackout period begins March&nbsp;1, 2003 and
ends commencing at the close of business on the second trading day following the public release of our first quarter fiscal 2003 results in April&nbsp;2003. We have booked the proportionate share of
the cost of the common stock repurchased and the related transaction costs of $36.4&nbsp;million to additional paid in capital and common stock and the remainder of $36.5&nbsp;million to retained
earnings in accordance with Accounting Principles Board (APB) Opinion No.&nbsp;6. </FONT></P>


<P><FONT SIZE=2><B>14.&nbsp;&nbsp;&nbsp;&nbsp;COUNTRY RISKS:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately 82% and 83% of the Company's sales for the three and nine months ended September&nbsp;30, 2002, respectively, and 78% and 91% for the three and
nine months ended September&nbsp;30, 2001, respectively, were made in China. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political,
economic and legal environment in China, and by the general state of China's economy. The Company's operations in China are subject to special considerations and significant risks not typically
associated with companies in the United </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

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<P><FONT SIZE=2>
States. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company's results may be adversely affected by, among
other things, changes in the political, economic and social conditions in China, and by changes in governmental policies with respect to laws and regulations, changes in China's telecommunications
industry and regulatory rules and policies, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
China's current regulatory structure, the communications products that the Company offers in China must meet government and industry standards, and a network access license for the
equipment must be obtained. Without the license, the equipment is not allowed to be connected to public telecommunications networks or sold in China. Moreover, the Company must ensure that the quality
of the telecommunications equipment for which it has obtained a network access license is stable and reliable, and may not lower the quality or performance of other installed licensed products. The
State Council's product quality supervision department, in concert with the Ministry of Information Industry, performs spot checks to track and supervise the quality of licensed telecommunications
equipment and publishes the results of such spot checks. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
regulations implementing these requirements are not very detailed, have not been applied by a court and may be interpreted and enforced by regulatory authorities in a number of
different ways. The Company obtained the required network access licenses for its AN-2000 platform. The Company applied for, but has not yet received, a network access license for its PAS
systems and handsets. Based upon
conversations with the Ministry of Information Industry, the Company understands that its PAS systems and handsets are considered to still be in the trial period and that sales of the Company's PAS
systems and handsets may continue to be made during this trial period, but a license will ultimately be required. Network access licenses will also be required for most additional products that the
Company is selling or may sell in China, including the mSwitch platform. If the Company fails to obtain the required licenses, the Company could be prohibited from making further sales of the
unlicensed products, including the PAS systems and handsets, in China, which would substantially harm its business, financial condition and results of operations. The Company's counsel in China has
advised that China's governmental authorities may interpret or apply the regulations with respect to which licenses are required and the ability to sell a product while a product is in the trial
period in a manner that is inconsistent with the information received by such counsel in China, either of which could have a material adverse effect on the Company's business and financial condition. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately
16% and 15% of the Company's sales for the three and nine months ended September&nbsp;30, 2002, respectively, and 0% for the three and nine months ended
September&nbsp;30, 2001, respectively, were made in Japan. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal
environment in Japan, and by the general state of Japan's economy. </FONT></P>

<P><FONT SIZE=2><B>15.&nbsp;&nbsp;&nbsp;&nbsp;RECENT ACCOUNTING PRONOUNCEMENTS:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July&nbsp;2001, the FASB issued SFAS No.&nbsp;141, "Business Combinations," and SFAS No.&nbsp;142, "Goodwill and Other Intangible Assets". SFAS
No.&nbsp;141 requires that the purchase method of accounting be used for all business combinations initiated or completed after June&nbsp;30, 2001. SFAS No.&nbsp;141 also specifies the criteria
intangible assets acquired in a purchase method business combination must meet to be recognized and reported apart from goodwill. SFAS No.&nbsp;142 requires that goodwill and intangible assets with
indefinite useful lives no longer be amortized, but instead tested for impairment at least annually. SFAS No.&nbsp;142 also requires that intangible assets with definite useful lives be amortized
over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with SFAS No.&nbsp;144 "Accounting for the Impairment or Disposal of
Long-Lived Assets." </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company adopted SFAS No.&nbsp;141 in July&nbsp;2001. SFAS No.&nbsp;142 is effective for fiscal years beginning after December&nbsp;15, 2001, and was adopted by the Company on
January&nbsp;1, 2002. The Company completed the required transitional assessment of goodwill impairment during the first quarter of fiscal 2002. Based on this assessment, it was determined that
there was no impairment of goodwill and thus no transition goodwill impairment charge. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October&nbsp;3, 2001, the FASB issued SFAS No.&nbsp;144, "Accounting for the Impairment or Disposal of Long-Lived Assets" which is effective for financial statements issued for
fiscal years beginning after December&nbsp;15, 2001 and interim periods within those fiscal years. This statement supercedes SFAS
No.&nbsp;121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of," and amends APB 30 "Reporting the Results of
Operations&#151;Reporting the Effects of Disposal of a Segment of a Business." SFAS No.&nbsp;144 also requires that long-lived assets that are to be disposed of by sale be
measured at the lower of book value or fair value less cost to sell. Additionally, SFAS No.&nbsp;144 expands the scope of discontinued operations to include all components of an entity with
operations that (1)&nbsp;can be distinguished from the rest of the entity and (2)&nbsp;will be eliminated from the ongoing operations of the entity in a disposal transaction. The Company adopted
SFAS No.&nbsp;144 on January&nbsp;1, 2002, and the adoption had no impact on the Company's consolidated financial statements. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
July&nbsp;2002, the FASB issued SFAS No.&nbsp;146, "Accounting for Costs Associated with Exit or Disposal Activities," which addresses the measurement, timing of recognition and
reporting of costs associated with exit or disposal activities and restructuring activities. SFAS No.&nbsp;146 requires that a liability for costs associated with exit or restructuring activities be
recognized only when the liability is incurred as opposed to at the time a company formally approves and commits to an exit plan as set forth in EITF Issue No.&nbsp;94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity." SFAS No.&nbsp;146 is effective for exit or disposal activities that are initiated after
December&nbsp;31, 2002. The Company does not expect the adoption to have any impact on its consolidated financial statements. </FONT></P>

<P><FONT SIZE=2><B>16.&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT EVENTS:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;16, 2002, we acquired the assets and intellectual property of Shanghai Yi Yun Telecom Technology Co.&nbsp;Ltd., a provider of synchronous
digital hierarchy ("SDH") transmission equipment for an initial consideration of $0.2&nbsp;million in cash. In addition we will grant equity instruments to Shanghai Yi Yun Telecom Technology
Co.&nbsp;Ltd. employees who will continue to perform services for the Company. These equity instruments will be granted over a period of three years subject to the achievement of certain performance
milestones. The cash consideration will be paid in the fourth quarter of fiscal 2002. The acquisition will be accounted for as an asset purchase. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

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<P><FONT SIZE=2><A
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<BR></FONT><FONT SIZE=2><B>ITEM 2&#151;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS    <BR>  </B></FONT></P>

<P><FONT SIZE=2><B>FORWARD-LOOKING STATEMENTS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Report on Form&nbsp;10-Q contains forward-looking statements within the meaning of the federal securities laws. These statements are based on
information that is currently available to management. We intend such forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995,
and we are including this statement for purposes of complying with those provisions. The forward-looking statements include, without limitation, those concerning the following: our expectations as to
the nature of possible trends, the manner in which customers in Chinese provinces negotiate for the purchase of our products, our expectation regarding continued growth in our business and operations;
our expectation that our PAS network access system will continue to be allowed in China's county-level cities and counties; our expectation that there will be no penalties or fines for our
non-compliance with the licensing requirements in China for our PAS system and other products; our expectation concerning the anticipated cost and completion date of our new Hangzhou
manufacturing facility, our expectation that there will be fluctuations in our overall gross profit, gross margin, product mix, quarter to quarter results, customer base and selling prices; our plans
for expanding the direct sales organization and our selling and marketing campaigns and activities; our expectation that we may use part of the net proceeds of our initial and follow on public
offerings to acquire or invest in complementary businesses, technologies or product offerings; our expectation that there will be increases in selling, marketing, research and development, general and
administrative expenses; our expectation that we will continue to invest significantly in research and development; our expectation that we will fill the majority of our current backlog orders; our
expectation regarding our future investments, particularly in Softbank China; and our expectation that existing cash and cash equivalents will be sufficient to finance our operations for at least the
next 12&nbsp;months. Additional forward-looking statements may be identified by the words, "anticipate," "expect," "believe," "intend," "will" and similar expressions, as they relate to us or our
management. Investors are cautioned that these forward-looking statements are inherently uncertain. These statements are subject to risks and uncertainties that may cause actual results and events to
differ materially. For a detailed discussion of these risks and uncertainties, see the "Factors Affecting Future Operating Results" section of this Form&nbsp;10-Q. We do not guarantee
future results and undertake no obligation to update the forward-looking statements to reflect events or circumstances occurring after the date of this Form&nbsp;10-Q. </FONT></P>

<P><FONT SIZE=2><B>OVERVIEW  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We design, manufacture and market wireline and wireless broadband access and switching equipment that enables migration to next generation IP-based
networks. Our operations are conducted primarily by our foreign subsidiaries that manufacture, distribute and support our products, principally in China. Our systems and products allow service
providers to offer cost-efficient and expandable voice, data and Internet access services. Because our systems are based on widely adopted international communications standards, service
providers can easily integrate our systems into their existing networks and deploy our systems in new broadband, Internet Protocol and wireless network rollouts. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
incorporated in Delaware in 1991. Since our incorporation, we have focused our resources on developing products for China's communications market. We shipped our first network access
products in 1993. In 1995, we acquired StarCom Network Systems,&nbsp;Inc. and changed our name to UTStarcom,&nbsp;Inc. In 1996, we introduced our advanced, V5.1 and V5.2 compliant, multi-service
network access platform, the AN-2000. Late in 1996, we introduced our PAS wireless access system. In December&nbsp;1999, we completed the acquisition of the portion of our
Wacos,&nbsp;Inc. subsidiary owned by the minority shareholders. Wacos,&nbsp;Inc. is a research and development subsidiary that develops IP-based switching systems. In
November&nbsp;2001, we completed the acquisition of Advanced Communications </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

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<P><FONT SIZE=2>
Devices Corporation, or ACD, for $21.3&nbsp;million. ACD is a system on chip semi-conductor company focusing on LAN and IP switching technology. On April&nbsp;19, 2002, the Company
completed the purchase of Issanni Communications,&nbsp;Inc. ("Issanni"). Our investment in Issanni was $2.0&nbsp;million prior to the acquisition. The purchase consideration for all the
outstanding shares of Issanni, other than those already held by us prior to the acquisition, was $2.1&nbsp;million. In addition, $2.0&nbsp;million will be payable in the form of an earnout to all
Issanni shareholders of record at closing, subject to the completion of certain performance milestones during 2002, 2003 and 2004. On December&nbsp;18, 2001, we entered into an agreement to acquire
the remaining 49% ownership interest in GUTS, one of our two primary manufacturing facilities in China, for a total consideration of $3.6&nbsp;million in cash, in order to achieve 100% ownership in
the joint venture. On January&nbsp;21, 2002, we entered into an agreement to acquire the remaining 12% ownership interest in HUTS, our other manufacturing facility, for a total consideration of
$14.5&nbsp;million in cash. As a result of the GUTS and HUTS transactions, which closed in the second quarter of 2002, we now conduct our operations in China through wholly owned subsidiaries. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have derived most of our revenues from sales of telecommunications equipment to service providers in China. However, we continue to expand our sales to service providers in other
growing communications markets outside of China, including Japan, Vietnam, India and Latin America. Our customers often make a large initial purchase of our equipment followed by supplemental
purchases of enhancements and upgrades. As a result, our largest revenue-producing customers typically vary from period to period. The evaluation period for our products by potential customers may
span a year or more and our business generally depends on a relatively small number of large deployments. We sell our products in China through a direct sales force. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately
82% and 83% of our net sales for the three and nine months ended September&nbsp;30, 2002 and approximately 78% and 91% of our net sales for the three and nine months
ended September&nbsp;30,
2001 were made in China. Accordingly, our business, financial condition and results of operations are likely to be influenced by the political, economic and legal environment in China, and by the
general state of China's economy. Our results may be adversely affected by, among other things, changes in the political, economic, competitive and social conditions in China, including changes in
governmental policies with respect to laws and regulations, changes in telecommunications industry and regulatory rules and policies, anti-inflationary measures, currency conversion and
remittance abroad, and rates and methods of taxation. We extend credit to our customers in China without requiring collateral. We monitor our exposure for credit losses and maintain allowances for
doubtful accounts. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have historically considered local telecommunications service providers serving municipalities and counties to be our primary customers in China. Recently, however, the
provincial-level telecommunications service entity in the Zhejiang province of China has begun to consolidate telecommunications purchasing decisions for that province. As a result of this trend in
the Zhejiang province, we have grouped all customers in Zhejiang province together and have treated these as one customer for the three and nine months ended September&nbsp;30, 2002. Giving effect
to this treatment, for the three months ended September&nbsp;30, 2002, sales to Zhejiang province, BB Technologies Corporation and Kunming PTB accounted for 16%, 15% and 11% of net sales,
respectively. For the three months ended September&nbsp;30, 2001, sales to Zhejiang province, Fitel and Jinhua PTB accounted for 31%, 22% and 12% of net sales, respectively. For the nine months
ended September&nbsp;30, 2002, sales to Zhejiang province and BB Technologies Corporation accounted for 21% and 14% of net sales, respectively. For the nine months ended September&nbsp;30, 2001,
sales to Zhejiang province accounted for 32% of net sales. Without giving effect to this treatment, at September&nbsp;30, 2002, we would have had approximately twenty-five customers in
Zhejiang province. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether
this represents the beginning of a greater trend throughout China towards increased consolidation of negotiations and purchasing decisions into the control of provincial-level
telecommunications service entities is unclear. To our knowledge, no telecommunications service </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

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entities in the other Chinese provinces in which we operate have centralized this process at this time. However, the nature of negotiations in China is still evolving. If a trend toward consolidation
of purchasing decisions into the control of provincial-level telecommunications service entities in China does emerge, it could possibly take a variety of forms. For example, some provincial-level
telecommunications service entities could simply coordinate purchase decisions to be made by local telecommunications service providers, with local service providers retaining ultimate control over
purchasing decisions. In other cases, however, provincial-level entities could wield greater control over the decision of whether or not to purchase the Company's products. In any event, such a trend
could streamline the negotiation process within Chinese provinces, but it could also place downward pressure on the prices the Company can charge for its products. The Company will continue to monitor
business practices in China closely, and to the extent that any of these changes affect the manner in which our customers make their decisions about whether or not to purchase our products, we will
reevaluate what entities may best be described as our customers. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
China's current regulatory structure, the communications products that we offer in China must meet government and industry standards, and a network access license for the equipment
must be obtained. Without the license, the equipment is not allowed to be connected to public telecommunications networks or sold in China. Moreover, we must ensure that the quality of the
telecommunications equipment for which we have obtained a network access license is stable and reliable, and may not lower the quality or performance of other installed licensed products. The State
Council's product quality supervision department, in concert with the Ministry of Information Industry, performs spot checks to track and supervise the quality of licensed telecommunications equipment
and publishes the results of such spot checks. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
regulations implementing these requirements are not very detailed, have not been applied by a court and may be interpreted and enforced by regulatory authorities in a number of
different ways. We have obtained the required network access licenses for our AN-2000 platform. We have applied for, but have not yet received, a network access license for our PAS systems
and handsets. Based upon conversations with the Ministry of Information Industry, we understand that our PAS systems and handsets are considered to still be in the trial period and that sales of our
PAS systems and handsets may continue to be made by us during this trial period, but a license will ultimately be required. Network access licenses will also be required for most additional products
that we are selling or may sell in China, including our mSwitch platform. If we fail to obtain the required licenses, we could be prohibited from making further sales of the unlicensed products,
including our PAS systems and handsets, in China, which would substantially harm our business, financial condition and results of operations. Our counsel in China has advised us that China's
governmental authorities may interpret or apply the regulations with respect to which licenses are required and the ability to sell a product while a product is in the trial period in a manner that is
inconsistent with the information received by our counsel in China, either of which could have a material adverse effect on our business and financial condition and results of operations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remittances
from China, which are of a capital nature, such as the repayment of bank loans denominated in foreign currencies, require approval from appropriate governmental authorities
before Renminbi can be used to purchase foreign currency. Although the payment of cash dividends is permitted so long as our subsidiaries have sufficient reserves and adequate amounts of Renminbi to
purchase foreign currency, regulations restrict the ability of our subsidiaries to transfer funds to us through intercompany loans and advances. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally,
business activity in China and many other countries in Asia declines considerably during the first quarter of each year in observance of the Lunar New Year. As a result,
sales during the first quarter of our fiscal year have typically been lower than sales during the fourth quarter of the preceding year, and we expect this trend to continue. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
from sales of telecommunications equipment are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred as evidenced by customer
acceptance, the fee is fixed or determinable and collectibility is reasonably assured. The majority of our revenue is recognized upon receipt of final acceptance certificates. Where multiple elements
exist in an arrangement, revenue is allocated to the different elements based upon verifiable objective evidence of the fair value of the elements. Revenues from sales of telecommunications equipment
involving significant production, modification or customization of the product or where services being provided are deemed to be
essential to the functionality of the product are recognized using the percentage of completion method if the project cost can be reasonably estimated. If the cost cannot be reasonably estimated, the
completed contract method is applied. Any payments received prior to revenue recognition are recorded as deferred revenue. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
from sales of telecommunications equipment incorporating software not considered incidental to the product as a whole ("software contracts") are recognized when persuasive
evidence of an agreement exists, the product has been delivered as evidenced by customer acceptance, the fee is fixed or determinable and collectibility is probable. Revenues from software contracts
with multiple elements are recognized using the residual method when there is vendor specific objective evidence of the fair value of all undelivered elements in an arrangement but vendor specific
objective evidence of fair value does not exist for one or more of the delivered elements in an arrangement. Under the residual method, the fair value of the undelivered elements, as indicated by
vendor specific objective evidence, is deferred and the difference between the total arrangement fee and the amount deferred for the undelivered elements is recognized as revenue related to the
delivered elements regardless of any separate prices stated within the contract for each element. If the fee due from the customer is not fixed or determinable due to extended payment terms, revenue
is recognized as payments become due from the customer, assuming all other criteria for revenue recognition are met. Revenues from engineering service contracts are recognized upon completion of the
project, or using the percentage of completion method when project costs can be reasonably estimated. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost
of sales consists primarily of material costs, third party commissions, costs associated with manufacturing, assembly and testing of products, costs associated with installation and
customer training and overhead and warranty costs. Cost of sales also includes import taxes and tariffs on components and assemblies. Some components and materials used in our products are purchased
from a single supplier or a limited group of suppliers and, in some cases, are subject to our obtaining Chinese import permits and approvals. We also rely on third party manufacturers in China to
manufacture and assemble most of our handsets. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
gross profit has been affected by product mix, average selling prices and material costs. Our gross profit, as a percentage of net sales, varies among our product families. The gross
profit, as a percentage of net sales, on our handsets is low compared to our other products. We expect that our overall gross profit, as a percentage of net sales, will fluctuate from period to period
as a result of shifts in product mix, anticipated decreases in average selling prices and our ability to reduce cost of sales. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
general and administrative expenses include compensation and benefits, professional fees, sales commissions, provision for doubtful accounts receivable and travel and
entertainment costs. A large percentage of our costs are fixed and are difficult to quickly reduce in periods of reduced sales. We intend to pursue aggressive selling and marketing campaigns and to
expand our direct sales organization, and, as a result, our sales and marketing expenses will increase in future periods. We also expect that in support of our continued growth, general and
administrative expenses will continue to increase for the foreseeable future. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research
and development expenses consist primarily of salaries and related costs of employees engaged in research, design and development activities, the cost of parts for prototypes,
equipment </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

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depreciation and third party development expenses. A large percentage of our costs are fixed and are difficult to quickly reduce in periods of reduced sales. We believe that continued investment in
research and development is critical to our long-term success. Accordingly, we expect that our research and development expenses will increase in future periods. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
deferred stock compensation represents the difference between the fair value of common stock and the option exercise price for the options at the date of grant. Deferred compensation
is presented as a reduction of stockholders' equity, with amortization recorded over the vesting period of the option, which is generally four years. No net deferred compensation expense was recorded
in connection with the grant of stock options to our employees during the three and nine months ended September&nbsp;30, 2002 and 2001, respectively. We recorded stock compensation expense of
approximately $0.5&nbsp;million and $2.4&nbsp;million during the three and nine months ended September&nbsp;30, 2002, respectively and $0.9&nbsp;million and $3.2&nbsp;million, respectively,
during the corresponding periods in 2001. At September&nbsp;30, 2002, approximately $4.7&nbsp;million of deferred stock compensation remained to be amortized. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the acquisition of Issanni Communications&nbsp;Inc. in April&nbsp;2002, 39,876 shares of restricted common stock valued at $1.0&nbsp;million were issued to
Issanni employees, who will continue to perform services for us. These shares vest at the earlier of five years or upon the achievement of certain performance milestones. We will record this as
compensation expense ratably over the vesting period and will accelerate the amortization if the milestones are met. We completed the acquisition of Advanced Communications Devices Corporation
("ACD"), in November&nbsp;2001. In connection with the acquisition, we issued 208,594 shares of restricted common stock valued at $5.0&nbsp;million to ACD employees who will continue to perform
services for us. We record this amount as compensation expense over a period of five years or upon the achievement of certain performance milestones. The first milestone was met in
December&nbsp;2001, resulting in a charge of $1.3&nbsp;million to operations in 2001. The second milestone was met in March&nbsp;2002, resulting in a charge of $0.8&nbsp;million to operations
during the nine months ended September&nbsp;30, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
of intangible assets consists primarily of the amortization of intangible assets associated with acquisitions in China, our acquisition of a minority interest in
Wacos,&nbsp;Inc. and our acquisitions of Stable Gain International&nbsp;Ltd. and ACD. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated
equity in net income (loss) of affiliated companies comprised our 51% share of the earnings from Guangdong UTStarcom,&nbsp;Ltd. ("GUTS"), our Guangdong manufacturing
subsidiary, which we accounted for using the equity method prior to our acquisition of the remaining 49% ownership interest in GUTS in May&nbsp;2002. We previously accounted for this under the
equity method because we did not have voting control over significant matters. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
current regulations in China, foreign investment enterprises that have been accredited as technologically advanced enterprises are entitled to additional tax incentives. These tax
incentives vary in different locales and could include preferential national enterprise income tax treatment at 50% of the usual rates for different periods of time. All of our active subsidiaries in
China were accredited as technologically advanced enterprises. The tax holidays applicable to our wholly-owned subsidiaries UTStarcom China and UTStarcom Telecom Co.,&nbsp;Ltd. ("HUTS"), which
together accounted for approximately 90.1% of our revenues in 2001, will expire at the end of 2002. At that time, the tax rates for these two subsidiaries will increase from 7.5% to 15%, and from 10%
to 15%, respectively, which will negatively impact our financial condition and results of operations by increasing our tax rate. Additionally, the Chinese government is considering the imposition of a
"unified" corporate income tax that would phase out, over time, the preferential tax treatment to which foreign-funded enterprises, such as UTStarcom, are currently entitled. We cannot be certain
whether the government will implement such a unified tax structure, or if implemented whether it will adversely affect our financial results. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>23</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority
interest in (earnings) loss of consolidated subsidiaries represented the share of earnings in HUTS, our Zhejiang manufacturing joint venture, attributable to our joint venture
partner, prior to our acquisition of the remaining 12% ownership interest in HUTS in May&nbsp;2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December&nbsp;31, 2001, we employed a total of 2,435 full-time employees. We also from time to time employ part-time employees and hire contractors. Of
the total number of full-time employees at December&nbsp;31, 2001, 1,049 were in research and development, 282 in manufacturing, 862 in marketing, sales and support, and 242 in
administration. We had 2,049 employees located in China, 331 employees located in the United States, and 55 employees in other countries. In addition to our total full-time employees,
GUTS, our manufacturing joint venture had 110 employees at December&nbsp;31, 2001. Our employees are not represented by any collective bargaining agreement, and we have never experienced a work
stoppage. We believe that our employee relations are good. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

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NAME="page_dq2327_1_25"> </A> </FONT> <FONT SIZE=2><B>RECENT DEVELOPMENTS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;29, 2002, we completed the repurchase of six million shares of our common stock for $72.9&nbsp;million from our largest shareholder, SOFTBANK
Corp. As part of this transaction, SOFTBANK has signed a voluntary "lock up" agreement stipulating that it will not sell any of our common stock within the next six months. This lock up agreement will
end on March&nbsp;1, 2003, which coincides with the start of our "blackout period" in which insiders are not permitted to sell shares. The blackout period begins March&nbsp;1, 2003 and ends
commencing at the close of business on the second trading day following the public release of our first quarter fiscal 2003 results in April&nbsp;2003. We have booked the proportionate share of the
cost of the common stock repurchased and the related transaction costs of $36.4&nbsp;million to additional paid in capital and common stock and the remainder of $36.5&nbsp;million to retained
earnings in accordance with Accounting Principles Board (APB) Opinion No.&nbsp;6. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the third quarter of fiscal 2002, the Company purchased approximately 5.8&nbsp;million shares of common stock of InterWave Communications&nbsp;Inc., a technology company
listed on NASDAQ, for approximately $3.0&nbsp;million. In addition the Company received warrants to purchase 2.0&nbsp;million shares of InterWave's common stock at $0.21 cents per share. The
Company will review and potentially adjust the carrying value of these marketable securities in accordance with SFAS No.&nbsp;115 "Accounting for Certain Investments in Debt and Equity Securities." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October&nbsp;16, 2002, we acquired the assets and intellectual property of Shanghai Yi Yun Telecom Technology Co.&nbsp;Ltd., a provider of synchronous digital hierarchy ("SDH")
transmission equipment for an initial consideration of $0.2&nbsp;million in cash. In addition we will grant equity instruments to Shanghai Yi Yun Telecom Technology Co.&nbsp;Ltd. employees who
will continue to perform services for the Company. These equity instruments will be granted over a period of three years subject to the achievement of certain performance milestones. The cash
consideration will be paid in the fourth quarter of fiscal 2002. The acquisition will be accounted for as an asset purchase. </FONT></P>

<P><FONT SIZE=2><B>CRITICAL ACCOUNTING POLICIES  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial condition and results of operations of the Company are based on certain critical accounting policies, which include judgments, estimates, and
assumptions on the part of management. Estimates are based on historical experience, knowledge of economic and market factors and various other assumptions that management believes to be reasonable
under the circumstances. Actual results
may differ from those estimates. The following summary of critical accounting policies highlights those areas of significant judgment in the application of our accounting policies that affect our
financial condition and results of operations. </FONT></P>

<P><FONT SIZE=2><B>Revenue Recognition, Allowances for Doubtful Accounts and Product Warranty  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We recognize revenue from sales of telecommunication equipment when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is
fixed or determinable and collectibility is reasonably assured. For transactions where we have yet to obtain customer acceptance, revenue is deferred until the terms of acceptance are satisfied. A
sales reserve is established based on historical trends in sales returns. If actual future sales returns do not reflect the historical data, our revenue could be affected. Historically, the level of
sales returns and our collection history have been within our expectations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
also maintain allowances for doubtful accounts based on our assessment of the collectibility of our accounts receivable. We continually monitor collections from our customers and
maintain allowances for doubtful accounts based upon the age of outstanding invoices and any specific customer collection issues. Historically, doubtful accounts or credit losses have been within our
expectations, and our doubtful account allowances have been adequate. Our accounts receivable are concentrated in China. Therefore, a material adverse change in economic, political and social
conditions in China could </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

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have an adverse effect on the collectibility of our accounts receivable, resulting in the need for additional doubtful account allowances. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
provide a warranty on our equipment and handset sales for a period not greater than one year. We provide for the expected cost of product warranties at the time that we recognize
revenue, based on our assessment of past warranty experience. We continually monitor the level of our warranty expenses. If, however, there were a material adverse change in our product failure rates,
an additional warranty provision would be required. Historically, our warranty experience has been within our expectations. </FONT></P>

<P><FONT SIZE=2><B>Inventory Reserve  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our inventories are stated at the lower of cost or net realizable value, net of a reserve for excess, slow moving and obsolete inventory. The reserve is based on
our assumptions about future market conditions and customer demand. We continually monitor our inventory reserve. Historically, the level of inventory reserves, our inventory turnover, and
obsolescence experience have been within our expectations. Our sales are, however, concentrated in China. Therefore a material adverse change in economic, political and social conditions in China
could have an adverse effect on expected future market conditions and demand from our customers, resulting in the need for additional inventory reserves. </FONT></P>

<P><FONT SIZE=2><B>Research and Development and Software Development Costs  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our research and development costs are charged to expense as incurred in accordance with Statement of Financial Accounting Standards (SFAS) No.&nbsp;2. We
capitalize costs incurred in the development of software that will ultimately be sold when technological feasibility has been attained. Management judgment is required in assessing expected future
revenues and changes in product technologies, and the ultimate recoverability of our capitalized software development costs. Our business is concentrated in China. Therefore, a material change in
market conditions in China could significantly impact these assessments and assumptions, and require an adjustment to our capitalized software development costs. </FONT></P>

<P><FONT SIZE=2><B>Deferred Income Taxes  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We recognize deferred income taxes as the difference between the tax bases of assets and liabilities and their financial statement amounts based on enacted tax
rates. Management judgment is required in the assessment of the recoverability of our deferred tax assets based on our assessment of projected taxable income. Although we are recently profitable,
numerous factors could affect our results of operations in the future. If there were a significant decline in our future operating results, our assessment of the recoverability of our deferred tax
asset would need to be revised, and any such adjustment to our deferred tax asset would be charged to income in that period. </FONT></P>

<P><FONT SIZE=2><B>Goodwill and Intangibles  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have recorded goodwill and intangible assets in connection with our business acquisitions. Management judgment is required in the assessment of the related
useful lives, assumptions regarding our ability to successfully develop and ultimately commercialize acquired technology, and assumptions regarding the fair value and the recoverability of these
assets. Historically, there have been no circumstances that resulted in revised assumptions or impairment charges. We completed the required transitional assessment of goodwill during the first
quarter of fiscal 2002. Based on this assessment, there was no transition goodwill impairment charge. We plan to perform our annual impairment review in the fourth quarter of each year. Our business
is concentrated in China. Therefore, a material change </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>26</FONT></P>

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<P><FONT SIZE=2>
in market conditions in China could significantly impact these assessments and assumptions, and result in impairment in our recorded goodwill and intangible assets. </FONT></P>

<P><FONT SIZE=2><B>Long-Term Investments  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have invested in a fund focused on investments in Internet companies in China and a fund focused on investments in companies in Asia undergoing restructuring
or bankruptcy procedures. We have also invested directly in a number of private technology-based companies in the early stages of development and in a publicly traded technology company traded on
NASDAQ. Management judgment is required in evaluating the carrying value of the private company investments for possible impairment based on the achievement of business objectives and milestones, the
financial condition and prospects of these companies and other relevant factors. We continually monitor these investments for impairment, and charge to income any impairment amounts in the period such
a determination is made. </FONT></P>

<P><FONT SIZE=2><B>RELATED PARTY TRANSACTIONS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have entered into transactions with several companies that are stockholders or are affiliated with one of our stockholders as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2000 and 2001, we entered into engineering services agreements with Matsushita Communication Industrial Co.,&nbsp;Ltd. ("Matsushita"), a stockholder of the Company. We
recognized $2.3&nbsp;million and $0.0&nbsp;million in revenues in connection with these agreements during the three months ended September&nbsp;30, 2002 and September&nbsp;30, 2001, and
$5.7&nbsp;million and $0.0&nbsp;million during the nine months ended September&nbsp;30, 2002 and September&nbsp;30, 2001, respectively. In addition, we purchase telecommunications equipment
from Matsushita and a subsidiary of Matsushita. Purchases of equipment from Matsushita and its subsidiaries during the three and nine months ended September&nbsp;30, 2002 were $0.7&nbsp;million
and $7.6&nbsp;million, respectively. Purchases of equipment from Matsushita and it's subsidiaries during the three and nine months ended September&nbsp;30, 2001 were $6.6&nbsp;million and
$84.0&nbsp;million, respectively. Matsushita owns less than 1% of our common stock at September&nbsp;30, 2002. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July&nbsp;5, 2002, we entered into a joint venture agreement with Matsushita Communication Industrial Co.,&nbsp;Ltd., one of our stockholders, and Matsushita Electric Industrial
Co.,&nbsp;Ltd., a subsidiary of such stockholder, to jointly design, develop, manufacture and sell telecommunication products. We will have a 49% ownership interest in the joint venture company,
which will have a registered share capital of $10.0&nbsp;million. The cash consideration of $4.9&nbsp;million was paid in October&nbsp;2002. As we do not have voting control over significant
matters of the joint venture company, the investment in and results of operations of the joint venture company will be accounted for using the equity method of accounting. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2001, we entered into an engineering services agreement with Mitsubishi Electric Corporation ("MEI"), a stockholder of the Company. We recognized no revenue in connection with
this agreement during the three and nine months ended September&nbsp;30, 2002 and 2001, respectively. In addition we purchase telecommunications equipment from MEI. Purchases of equipment from MEI
during the three and nine months ended September&nbsp;30, 2002 were $49.6&nbsp;million and $102.8&nbsp;million, respectively. Purchases of equipment from MEI during the three and nine months
ended September&nbsp;30, 2001 were $20.4&nbsp;million and $27.1&nbsp;million, respectively. During June&nbsp;2002, we entered into a technical services
agreement with MEI. We paid $3.0&nbsp;million and $0.0&nbsp;million in connection with this agreement during the three and nine months ended September&nbsp;30, 2002 and September&nbsp;30,
2001. Mitsubishi owns less than 1% of our common stock at September&nbsp;30, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
recognized revenue of $39.8&nbsp;million and $96.7&nbsp;million during the three and nine months ended September&nbsp;30, 2002, respectively, and $0.0&nbsp;million during the
three and nine months ended September&nbsp;30, 2001, respectively, with respect to sales of telecommunications equipment to BB </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>27</FONT></P>

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<P><FONT SIZE=2>
Technologies Corporation ("BBTC"), an affiliate of SOFTBANK CORP. SOFTBANK America&nbsp;Inc., an entity affiliated with SOFTBANK CORP., is a significant stockholder of the Company. BBTC offers
asynchronous digital subscriber line ("ADSL") coverage throughout Japan, which is marketed under the name YAHOO. We provide ADSL technology to BBTC. The contract was competitively bid
and the terms of this contract were on terms no more favorable than those with unrelated parties. Included in accounts receivable at September&nbsp;30, 2002 is $39.5&nbsp;million related to this
agreement. There were no amounts included in deferred revenue in respect of this agreement at September&nbsp;30, 2002. Included in accounts receivable in respect of this agreement at
December&nbsp;31, 2001 was $13.5&nbsp;million. There were no amounts included in deferred revenue in respect of this agreement at December&nbsp;31, 2001. SOFTBANK CORP. owns 21.3% of our common
stock at September&nbsp;30, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2000, we invested $8.0&nbsp;million and during 2001, we invested an additional $2.0&nbsp;million in Softbank China, an investment fund established by SOFTBANK CORP. focused on
investments in Internet companies in China. This investment permits us to participate in the anticipated growth of Internet-related businesses in China. Our investment constitutes 10% of the funding
for Softbank China, with SOFTBANK CORP. contributing the remaining 90%. We are a passive investor and have no decision-making authority with respect to investments by the fund. The fund has a separate
management team, and none of the Company's employees are employed by the fund. Many of the fund's investments are and will be in privately held companies, many of which can still be considered in the
start-up or development stages. These investments are inherently risky as the market for the technologies or products the companies have under development are typically in the early stages
and may never materialize. During the three and nine months ended September&nbsp;30, 2002, based upon a review of the carrying value of this investment, impairment charges of $0.0&nbsp;million and
$0.5&nbsp;million, respectively, were recognized to provide for the decline in the fair value below the carrying value of this investment. Impairment charges of $0.4&nbsp;million and
$1.6&nbsp;million, respectively, were recognized in the corresponding periods in fiscal 2001. The balance remaining in this investment as of September&nbsp;30, 2002 was $7.8&nbsp;million. Due to
the risky nature of this investment, we may experience further losses in connection with this investment in Softbank China. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the first quarter fiscal 2002, we invested $2.0&nbsp;million in Restructuring Fund No.&nbsp;1, a venture capital investment limited partnership, established by SOFTBANK
INVESTMENT CORP., an affiliate of SOFTBANK CORP. The fund focuses on leveraged buyout investments in companies in Asia undergoing restructuring or bankruptcy procedures. The total fund offering is
expected to be between approximately $150.0&nbsp;million and $226.0&nbsp;million, with each investor contributing a minimum of $0.8&nbsp;million. We are a passive investor and have no
decision-making authority with respect to investments by the fund. The fund has a separate management team, and none of the Company's employees are employed by the fund. Due to the risky nature of
this investment, we may experience losses in connection with our investment in Restructuring Fund No.&nbsp;1. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August&nbsp;29, 2002, we completed the repurchase of six million shares of our common stock for $72.9&nbsp;million from our largest shareholder, SOFTBANK Corp. As part of this
transaction, SOFTBANK signed a voluntary "lock up" agreement stipulating that it will not sell any of our common stock within the next six months. This lock up agreement will end on March&nbsp;1,
2003, which coincides with the start of our "blackout period" in which insiders are not permitted to sell shares. The blackout period begins March&nbsp;1, 2003 and ends commencing at the close of
business on the second trading day following the public release of our first quarter fiscal 2003 results in April&nbsp;2003. </FONT></P>

<P><FONT SIZE=2><B>RESULTS OF OPERATIONS  </B></FONT></P>

<P><FONT SIZE=2><B>THREE MONTHS ENDED SEPTEMBER 30, 2002 AND SEPTEMBER 30, 2001  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NET INCOME </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>28</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the three months ended September&nbsp;30, 2002, net income increased 64% to $30.7&nbsp;million as compared to net income of $18.8&nbsp;million for the three months ended
September&nbsp;30, 2001. Net income for the three months ended September&nbsp;30, 2002 reflects the adoption of SFAS No.&nbsp;142, "Goodwill and Other Intangible Assets," on January&nbsp;1,
2002. With the adoption of SFAS No.&nbsp;142, goodwill is no longer amortized, but rather tested annually for impairment. The Company completed its transition impairment test during the first
quarter of fiscal 2002, and no impairment charge was required. Had SFAS No.&nbsp;142 been in effect during the three months ended September&nbsp;30, 2001, net income reported for that period would
have been $20.7&nbsp;million. </FONT></P>

<P><FONT SIZE=2>NET SALES </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
net sales increased 56% to $265.5&nbsp;million for the three months ended September&nbsp;30, 2002 from $170.5&nbsp;million for the corresponding period in 2001. Sales of
telecommunications equipment for the three months ended September&nbsp;30, 2002 were $164.7&nbsp;million, an increase of $37.6&nbsp;million or 30% as compared to the three months ended
September&nbsp;30, 2001. Sales of subscriber handsets for the three months ended September&nbsp;30, 2002 were $100.8&nbsp;million, an increase of $57.4&nbsp;million or 132%, as compared to the
three months ended September&nbsp;30, 2001. Sales of telecommunications equipment and sales of subscriber handsets increased due to the continued growth in spending on telecommunications
infrastructure in China, which accounted for 82% and 78% of our net sales for the three months ended
September&nbsp;30, 2002 and 2001, respectively. International sales of telecommunication equipment increased to $47.3&nbsp;million for the three months ended September&nbsp;30, 2002 as compared
to $37.2&nbsp;million for the three months ended September&nbsp;30, 2001, primarily driven by sales of equipment to BB Technologies Corporation ("BBTC") in Japan to support its ADSL rollout and
sales of equipment to Fitel in Taiwan. During the three months ended September&nbsp;30, 2002, the provincial-level telecommunications service entity in the Zhejiang province of China began to
consolidate telecommunications purchasing decisions for that province. As a result of this trend in the Zhejiang province, we have grouped all customers in Zhejiang province together and have treated
these as one customer. At September&nbsp;30, 2002, we had approximately 25 such customers in Zhejiang province. For the three months ended September&nbsp;30, 2002, sales to Zhejiang province, BBTC
and Kunming PTB accounted for 16%, 15% and 11% of our net sales, respectively. For the three months ended September&nbsp;30, 2001, sales to Zhejiang province, Fitel and Jinhua PTB accounted for 31%,
22% and 12% of our net sales, respectively. </FONT></P>

<P><FONT SIZE=2>GROSS PROFIT </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross
profit increased by 44% to $92.8&nbsp;million for the three months ended September&nbsp;30, 2002 from $64.3&nbsp;million for the corresponding period in 2001. Gross profit,
as a percentage of net sales, was 35% for the three months ended September&nbsp;30, 2002 and 38% for the three months ended September&nbsp;30, 2001. Gross profit, as a percentage of net sales,
decreased primarily due to a higher level of lower margin handset sales, which comprised 38% and 25% of our sales for the three months ended September&nbsp;30, 2002 and 2001, respectively. We
believe our lower margin handset sales will increase somewhat during future periods. In addition, we believe that there will be continued competitive market pricing pressures on our other products in
line with current trends in the industry. However, we believe that cost efficiencies arising from the continued cost reduction, manufacturing efficiencies and redesign of our products for our PAS
systems will partially offset the impact of these factors on our gross profit as a percentage of net sales. We will also continue to focus our efforts on the efficient management of our operating
expenses. </FONT></P>

<P><FONT SIZE=2>SELLING, GENERAL AND ADMINISTRATIVE </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
general and administrative expenses increased 31% to $28.6&nbsp;million for the three months ended September&nbsp;30, 2002 from $21.8&nbsp;million for the corresponding
period in 2001. The increase in </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>29</FONT></P>

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<P><FONT SIZE=2>
selling, general and administrative expenses was primarily due to increased sales and administrative personnel and related expenses, including sales commissions, associated with the growth in net
sales and the expansion of our overall level of business activities. Selling, general and administrative expenses as a percentage of net sales were 11% and 13% for the three months ended
September&nbsp;30, 2002 and 2001, respectively. We expect our selling, general and administrative expenses to increase in absolute dollar amounts in future periods as sales and marketing activities
increase and we incur additional expenses related to the anticipated growth of our business and operations. </FONT></P>


<P><FONT SIZE=2>RESEARCH AND DEVELOPMENT </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research
and development expenses increased 40% to $23.0&nbsp;million for the three months ended September&nbsp;30, 2002 from $16.4&nbsp;million for the corresponding period in
2001. The increase in research and development expenses was primarily due to the hiring of additional technical personnel, increased prototype expenses and licensing fees to support our research and
development efforts. As a percentage of net sales, research and development expenses were 9% and 10% for the three months ended September&nbsp;30, 2002 and 2001, respectively. We expect our research
and development expenses to increase in absolute dollar amounts in future periods as we expand our research and development organization to support new product development. </FONT></P>

<P><FONT SIZE=2>AMORTIZATION OF INTANGIBLE ASSETS </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
of intangible assets was $0.6&nbsp;million for the three months ended September&nbsp;30, 2002 and $2.0&nbsp;million for the three months ended September&nbsp;30,
2001. The decrease in amortization of intangible assets was primarily due to the elimination of goodwill amortization upon the adoption of SFAS No.&nbsp;142 on January&nbsp;1, 2002 of
$1.8&nbsp;million, offset by an increase in amortization of intangibles of $0.5&nbsp;million. Had SFAS No.&nbsp;142 been in effect during the quarter ended September&nbsp;30, 2001,
amortization expense would have been $0.0&nbsp;million. </FONT></P>

<P><FONT SIZE=2>INTEREST INCOME (EXPENSE), NET </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
interest income was $1.3&nbsp;million for the three months ended September&nbsp;30, 2002 and $1.5&nbsp;million for the corresponding period in 2001. The decrease was primarily
due to a reduction in cash and cash equivalents and short-term investments of $4.6&nbsp;million and a reduction in average interest rates on deposits from 3% to 1%, partially offset by a
decline of $0.8&nbsp;million in interest expense related to short term and long term debt balances which were paid off in September. At September&nbsp;30, 2002, we did not have any debt. </FONT></P>

<P><FONT SIZE=2>OTHER INCOME (EXPENSE), NET </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
net income (expense) was $(3.3) million of expense for the three months ended September&nbsp;30, 2002 and $(0.2) million for the corresponding period in 2001. The current
quarter's other expense was primarily due to investment impairment losses of $1.7&nbsp;million, foreign currency transaction losses of $2.1&nbsp;million, offset by investment income of
$0.7&nbsp;million. </FONT></P>


<P><FONT SIZE=2>EQUITY IN LOSS OF AFFILIATED COMPANIES </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated
equity in the net loss of affiliated companies was $0.1&nbsp;million for the three months ended September&nbsp;30, 2002 and $0.9&nbsp;million for the corresponding
period in 2001. The change between the two periods was primarily due to the acquisition of the remaining 49% ownership interest in GUTS in May&nbsp;2002. GUTS is now a wholly-owned subsidiary, and
its results of operations are included in our consolidated financial statements beginning June&nbsp;1, 2002. In the corresponding period in 2001, GUTS was accounted for using the equity method of
accounting. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>30</FONT></P>

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<P><FONT SIZE=2>INCOME TAX EXPENSE </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
tax expense was $7.7&nbsp;million for the three months ended September&nbsp;30, 2002 and $5.8&nbsp;million for the corresponding period in 2001. The increase in the income
tax expense was due to our increasing income. The effective tax rate was 20% and 24% for the three months ended September&nbsp;30, 2002 and 2001, respectively. The reduction in our effective tax
rate can be attributed to the alignment of our intellectual property ownership with our sales and operations resulting in a more tax efficient structure. The future rate may vary due to a variety of
factors, including but not limited to, the relevant income contribution by domestic and foreign operations, changes in statutory tax rates, the amount of tax exempt interest income generated during
the year, the ability to utilize foreign tax credits and non-deductible items relating to acquisitions, or other non-recurring charges. We will continue to monitor the
effective tax rate on a quarterly basis. </FONT></P>

<P><FONT SIZE=2>MINORITY INTEREST IN (EARNINGS) OF CONSOLIDATED SUBSIDIARIES </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority
interest in earnings of consolidated subsidiaries was $0.0&nbsp;million for the three months ended September&nbsp;30, 2002 and $0.1&nbsp;million for the corresponding
period in 2001. The decrease is due to the acquisition of the remaining 12% ownership interest in HUTS during the three months ended September&nbsp;30, 2002. HUTS is now a wholly-owned subsidiary of
the Company. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>31</FONT></P>

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<P><FONT SIZE=2><B>NINE MONTHS ENDED SEPTEMBER 30, 2002 AND SEPTEMBER 30, 2001  </B></FONT></P>


<P><FONT SIZE=2>NET INCOME </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the nine months ended September&nbsp;30, 2002, we reported net income of $74.0&nbsp;million as compared to net income of $40.4&nbsp;million for the nine months ended
September&nbsp;30, 2001. Net income for the nine months ended September&nbsp;30, 2002 reflects the adoption of SFAS No.&nbsp;142, "Goodwill and Other Intangible Assets," on January&nbsp;1,
2002. With the adoption of SFAS No.&nbsp;142, goodwill is no longer amortized, but rather tested annually for impairment. Had SFAS No.&nbsp;142 been in effect during the nine months ended
September&nbsp;30, 2001, net income reported for that period would have been $45.8&nbsp;million. </FONT></P>


<P><FONT SIZE=2>NET SALES </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
net sales increased 58% to $680.7&nbsp;million for the nine months ended September&nbsp;30, 2002 from $429.7&nbsp;million for the corresponding period in 2001. Sales of
telecommunications equipment for the nine months ended September&nbsp;30, 2002 were $426.5&nbsp;million, an increase of $124.5&nbsp;million or 41%, as compared to the nine months ended
September&nbsp;30, 2001. Sales of subscriber handsets for the nine months ended September&nbsp;30, 2002 were $254.2&nbsp;million, an increase of $126.5&nbsp;million or 99%, as compared to the
nine months ended September&nbsp;30, 2001. Sales of telecommunications equipment and sales of subscriber handsets increased due to the continued growth in spending on telecommunications
infrastructure in China, which accounted for 83% and 91% of our net sales for the nine months ended September&nbsp;30, 2002 and 2001, respectively. International sales of telecommunications
equipment increased to $112.8&nbsp;million for the three months ended September&nbsp;30, 2002 as compared to $39.6&nbsp;million for the three months ended September&nbsp;30, 2001, primarily
driven by sales of equipment to BBTC in Japan to support its ADSL rollout. During the three months ended September&nbsp;30, 2002, the provincial-level telecommunications service entity in the
Zhejiang province of China began to consolidate telecommunications purchasing decisions for that province. As a result of this trend in the Zhejiang province, we have grouped all customers in Zhejiang
province together and have treated these as one customer. At September&nbsp;30, 2002, we had approximately 25 such customers in Zhejiang province. For the nine months ended September&nbsp;30,
2002, sales to Zhejiang province accounted for 21% and sales to BBTC accounted for 14% of our net sales. For the nine months ended September&nbsp;30, 2001, sales to Zhejiang province accounted for
32% of our net sales. </FONT></P>

<P><FONT SIZE=2>GROSS PROFIT </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross
profit increased 57% to $244.4&nbsp;million for the nine months ended September&nbsp;30, 2002 from $155.6&nbsp;million for the corresponding period in 2001 due to increased
net sales. Gross profit, as a percentage of net sales, was 36% for both the nine months ended September&nbsp;30, 2002 and 2001. We believe our lower margin handset sales will increase somewhat
during future periods. In addition, we believe that there will be continued competitive market pricing pressures on our other products in line with current trends in the industry. However, we believe
that cost efficiencies arising from the continued cost reduction, manufacturing efficiencies and redesign of our products for our PAS systems will partially offset the impact of these factors on our
gross profit as a percentage of net sales. We will also continue to focus our efforts on the efficient management of our operating expenses. </FONT></P>

<P><FONT SIZE=2>SELLING, GENERAL AND ADMINISTRATIVE </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
general and administrative expenses increased 49% to $81.8&nbsp;million for the nine months ended September&nbsp;30, 2002 from $54.7&nbsp;million for the corresponding
period in 2001. The increase in selling, general and administrative expenses was primarily due to increased sales and administrative personnel and related expenses, including sales commissions,
associated with the growth in net sales and the expansion of our overall level of business activities. Selling, general and administrative expenses </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>32</FONT></P>

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<P><FONT SIZE=2>
as a percentage of net sales was 12% and 13%, for the nine months ended September&nbsp;30, 2002 and 2001, respectively. </FONT></P>

<P><FONT SIZE=2>RESEARCH AND DEVELOPMENT </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research
and development expenses increased 51% to $63.5&nbsp;million for the nine months ended September&nbsp;30, 2002 from $42.1&nbsp;million for the corresponding period in
2001. The increase in research and development expenses was primarily due to the hiring of additional technical personnel, increased prototype expenses and licensing fees to support our research and
development efforts. As a percentage of net sales, research and development expenses were 9% and 10% for the nine months ended September&nbsp;30, 2002 and 2001, respectively. </FONT></P>

<P><FONT SIZE=2>IN-PROCESS RESEARCH AND DEVELOPMENT </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In-process
research and development expense was $0.7&nbsp;million for the nine months ended September&nbsp;30, 2002. This arose from our acquisition of Issanni on
April&nbsp;19, 2002 and was based on an independent
appraisal. There was no in-process research and development expense during the corresponding period in 2001. </FONT></P>

<P><FONT SIZE=2>AMORTIZATION OF INTANGIBLE ASSETS </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
of intangible assets decreased to $1.8&nbsp;million for the nine months ended September&nbsp;30, 2002 from $5.4&nbsp;million for the corresponding period in 2001. The
decrease in amortization of intangible assets was primarily due to the elimination of amortization of goodwill upon the adoption of SFAS No.&nbsp;142 on January&nbsp;1, 2002 of
$5.0&nbsp;million, offset by an increase in amortization of intangibles of $1.4&nbsp;million. Had SFAS No.&nbsp;142 been in effect during the nine months ended September&nbsp;30, 2001,
amortization expense would have been $0.0&nbsp;million. </FONT></P>

<P><FONT SIZE=2>INTEREST INCOME (EXPENSE), NET </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
interest income was $3.2&nbsp;million for the nine months ended September&nbsp;30, 2002 and $3.7&nbsp;million for the corresponding period in 2001. The decrease was primarily
due to a reduction in cash and cash equivalents and short-term investments of $4.6&nbsp;million and a reduction in average interest rates on deposits from 3% to 1%, offset by a decline
in interest expense of $1.6&nbsp;million. In addition, short-term and long-term debt balances were paid off in September. At September&nbsp;30, 2002, we did not have any
debt. </FONT></P>

<P><FONT SIZE=2>OTHER INCOME (EXPENSE) NET </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
expense net was $(4.9) million for the nine months ended September&nbsp;30, 2002 compared to $(0.3) million for the corresponding period in 2001. Other expense for the nine
months ended September&nbsp;30, 2002 was primarily related to write-downs of long-term investments of $2.8&nbsp;million and foreign exchange losses of $2.3&nbsp;million offset by
investment income of $0.7&nbsp;million. </FONT></P>


<P><FONT SIZE=2>EQUITY IN LOSS OF AFFILIATED COMPANIES </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated
equity in net loss of affiliated companies was $0.9&nbsp;million for the nine months ended September&nbsp;30, 2002 and $1.6&nbsp;million for the corresponding period
in 2001. The change between the two periods reflects the acquisition of the remaining 49% ownership interest in our Guangdong manufacturing facility. GUTS is now a wholly-owned subsidiary, and its
results of operations are included in our consolidated financial statements beginning June&nbsp;1, 2002. In the corresponding period in 2001, GUTS was accounted for using the equity method of
accounting. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>33</FONT></P>

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<P><FONT SIZE=2>INCOME TAX EXPENSE </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
tax expense was $18.8&nbsp;million for the nine months ended September&nbsp;30, 2002 and $13.5&nbsp;million for the corresponding period in 2001. The increase in the income
tax expenses was due to our increasing income. The effective tax rate was 20% and 24% for the nine months ended September&nbsp;30, 2002 and 2001, respectively. The reduction in our effective tax
rate resulted from the alignment of our intellectual property ownership with our sales and operations resulting in a more tax efficient structure. </FONT></P>

<P><FONT SIZE=2>MINORITY INTEREST IN (EARNINGS) OF CONSOLIDATED SUBSIDIARIES </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority
interest in earnings of consolidated subsidiaries was $1.2&nbsp;million for the nine months ended September&nbsp;30, 2002 and $1.3&nbsp;million for the corresponding
period in 2001. The decrease is due to the acquisition of the remaining 12% ownership interest in HUTS during the second quarter of fiscal 2002. HUTS is now a wholly-owned subsidiary. </FONT></P>


<P><FONT SIZE=2><B>LIQUIDITY AND CAPITAL RESOURCES  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;2000, we raised $189.4&nbsp;million in net proceeds from our initial public offering in which we sold 11,500,000 shares of common stock. On
August&nbsp;3, 2001, we completed a follow on public offering and sold an aggregate of 7,400,000 shares of common stock in which we raised net proceeds of $139.9&nbsp;million. On
February&nbsp;28, 2002, we sold 1,500,000 shares of common stock upon exercise of the underwriter's over-allotment option in connection with the resale public offering of 10,000,000
shares of our common stock by SOFTBANK America&nbsp;Inc., one of our stockholders. Upon such sale, we received aggregate net proceeds of approximately $28.9&nbsp;million. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of September&nbsp;30, 2002, we had lines of credit totaling $343.3&nbsp;million available for future borrowings. We do not have any borrowings at September&nbsp;30, 2002. We are
not a guarantor of any debt not included in the condensed consolidated balance sheet. As of September&nbsp;30, 2002, we had working capital of $564.7&nbsp;million, including $307.2&nbsp;million
in cash and cash equivalents and $58.9&nbsp;million of short-term investments. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
cash generated from operating activities for the nine months ended September&nbsp;30, 2002 was $142.9&nbsp;million higher than the 2001 level. This was primarily due to improved
operating performance
and accounts receivable collection efficiency. Days sales outstanding was 61&nbsp;days at September&nbsp;30, 2002 compared to 111&nbsp;days at September&nbsp;30, 2001. Net cash provided by
operations for the nine months ended September&nbsp;30, 2002 of $136.3&nbsp;million was primarily due to net income of $74.0&nbsp;million, adjusted for depreciation and amortization expense of
$15.1&nbsp;million, and increases in inventory reserves of $9.8&nbsp;million, allowance for doubtful accounts of $6.5&nbsp;million, accounts payable of $43.0&nbsp;million, other accrued
liabilities of $25.0&nbsp;million, deferred revenue of $31.5&nbsp;million and income taxes payable of $5.2&nbsp;million, and a decrease in accounts receivable of $7.7&nbsp;million. This was
offset by an increase in inventories, deferred tax assets and other current and non-current assets of $65.6&nbsp;million, $8.7&nbsp;million and $18.6&nbsp;million, respectively. Net
cash used in operations for the nine months ended September&nbsp;30, 2001 was $6.6&nbsp;million, and was primarily due to increases in inventories, accounts receivable, other current and
non-current assets and income taxes payable of $89.9&nbsp;million, $58.7&nbsp;million, $46.7&nbsp;million and $3.6&nbsp;million respectively. Net cash used in operations was also
due to depreciation and amortization expense of $12.1&nbsp;million, non-qualified stock option exercise tax benefits of $10.5&nbsp;million, amortization of deferred stock compensation
expense of $3.2&nbsp;million and an investment impairment charge of $1.6&nbsp;million. The net cash used in operations was partially offset by an increase in net income for the period, and by
increases in deferred revenue, accounts payable and other current liabilities of $42.8&nbsp;million, $41.5&nbsp;million and $24.2&nbsp;million respectively. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
cash used in investing activities for the nine months ended September&nbsp;30, 2002 of $43.6&nbsp;million was primarily due to purchases of property, plant and equipment of
$42.0&nbsp;million of </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>34</FONT></P>

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<P><FONT SIZE=2>
which $12.1&nbsp;million related to our new manufacturing facility in Hangzhou, business acquisitions of $17.7&nbsp;million including $14.1&nbsp;million relating to the purchase of the
remaining interest in HUTS, $1.5&nbsp;million net of cash acquired relating to the purchase of the remaining interest in GUTS and $2.1&nbsp;million relating to the acquisition of Issanni and
investment in affiliates of $11.0&nbsp;million which comprised investments in private technology companies, offset by net sales of short-term investments of $27.0&nbsp;million. Net
cash used in investing activities for the nine months ended September&nbsp;30, 2001 of $38.2&nbsp;million was primarily due to net purchases of short-term investments of
$10.7&nbsp;million, the acquisition of property, plant and equipment of $18.2&nbsp;million and investments in affiliates of $9.3&nbsp;million. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
cash used in financing activities for the nine months ended September&nbsp;30, 2002 of $106.4&nbsp;million was primarily due to the repurchase of our shares and related
transaction costs for $72.9&nbsp;million and net payments of $70.5&nbsp;million on borrowings under our lines of credit. We paid off our short and long-term debt in September and as of
September&nbsp;30, 2002, we had no debt. This was offset by $36.9&nbsp;million in proceeds from the sale of common stock in connection with the Softbank resale and the issuance of common stock
through the exercise of stock options. Net cash provided by financing activities for the nine months ended September&nbsp;30, 2001 of $171.6&nbsp;million was primarily due to net proceeds of
$139.9&nbsp;million from the issuance of common stock through our follow on public offering, $8.4&nbsp;million from the issuance of common stock through the exercise of stock options and net
proceeds of $22.6&nbsp;million from borrowing under our lines of credit. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
sales in China are generally denominated in local currency. Due to the limitations on converting Renminbi, we are limited in our ability to engage in currency hedging activities in
China. International sales outside China are generally denominated either in US dollars or in local currency. As of September&nbsp;30, 2002, we were not engaged in any currency hedging activities
and did not hold any derivative financial instruments. We cannot guarantee that fluctuations in currency exchange rates in
the future will not have a material adverse effect on revenues from international sales and, correspondingly, on our business, financial condition and results of operations. We also have contracts
negotiated in Japanese Yen for purchasing portions of our inventories and supplies. We have a multi-currency bank account for purchasing portions of our inventories and supplies. The balance of
Japanese Yen in this account as of September&nbsp;30, 2002 was approximately $21.9&nbsp;million. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
believe that our existing cash and cash equivalents, short-term investments and cash from operations will be sufficient to finance our operations through at least the next
12&nbsp;months. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
principal commitments as of September&nbsp;30, 2002 consist of obligations under operating and capital leases, capital expenditures relating to the construction of a new
manufacturing facility, and a commitment to invest up to an additional $5.0&nbsp;million in one of our investments. We lease certain of our facilities under non-cancelable operating
leases, which expire at various dates through 2006. We did not have any borrowings under our lines of credit at September&nbsp;30, 2002. Please refer to Note&nbsp;8 of our Notes to Condensed
Consolidated Financial Statements for more detailed information on our lines of credit. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
June&nbsp;2002, we invested $1.0&nbsp;million in Global Asia Partners L.P., with a commitment to invest up to an additional $5.0&nbsp;million. The remaining amount is due at
such times and in such amounts as shall be specified in one or more future capital calls to be issued by the general partner. The fund size is $100&nbsp;million and was formed to make private equity
investments in private or pre-IPO technology and telecommunications companies. The fund's geographic focus is on technology investments in Asia, in particular India and China. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have purchased the rights to use 49 acres of land located in Zhejiang Science and Technology Industry Garden of Hangzhou Hi-tech Industry Development Zone. We have
completed the design layout for a new manufacturing facility. We expect that construction of the new facility will be completed in 2003 at a projected cost of $95.0&nbsp;million. Capital
expenditures were $12.1&nbsp;million for the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>35</FONT></P>

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<P><FONT SIZE=2>
nine months ended September&nbsp;30, 2002, and are now expected to be approximately $25.0&nbsp;million during 2002. We have not engaged in any transactions or arrangements with unconsolidated
entities or other persons that are reasonably likely to materially affect our liquidity or the availability of, or requirements for, capital resources. </FONT></P>

<P><FONT SIZE=2><B>RECENT ACCOUNTING PRONOUNCEMENTS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July&nbsp;2001, the FASB issued SFAS No.&nbsp;141, "Business Combinations," and SFAS No.&nbsp;142, "Goodwill and Other Intangible Assets." SFAS
No.&nbsp;141 requires that the purchase method of accounting be used for all business combinations initiated or completed after June&nbsp;30, 2001. SFAS No.&nbsp;141 also specifies the criteria
intangible assets acquired in a purchase method business combination must meet to be
recognized and reported apart from goodwill. SFAS No.&nbsp;142 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead tested for impairment at
least annually. SFAS No.&nbsp;142 also requires that intangible assets with definite useful lives be amortized over their respective estimated useful lives to their estimated residual values, and
reviewed for impairment in accordance with SFAS No.&nbsp;144 "Accounting for the Impairment or Disposal of Long-Lived Assets." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
adopted SFAS No.&nbsp;141 in July&nbsp;2001. SFAS No.&nbsp;142 is effective for fiscal years beginning after December&nbsp;15, 2001, and was adopted by the Company on
January&nbsp;1, 2002. We completed the required transitional assessment of goodwill impairment during the first quarter of fiscal 2002. Based on this assessment, it was determined that there was no
impairment of goodwill and thus no transition goodwill impairment charge. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October&nbsp;3, 2001, the FASB issued SFAS No.&nbsp;144, "Accounting for the Impairment or Disposal of Long-Lived Assets." SFAS No.&nbsp;144 is effective for
financial statements issued for fiscal years beginning after December&nbsp;15, 2001 and interim periods within those fiscal years. This statement supercedes SFAS No.&nbsp;121 and amends APB
30&#151;"Reporting the Results of Operations&#151;Reporting the Effects of Disposal of a Segment of a Business." SFAS No.&nbsp;144 also requires that long-lived assets that
are to be disposed of by sale be measured at the lower of book value or fair value less cost to sell. Additionally, SFAS No.&nbsp;144 expands the scope of discontinued operations to include all
components of an entity with operations that (1)&nbsp;can be distinguished from the rest of the entity and (2)&nbsp;will be eliminated from the ongoing operations of the entity in a disposal
transaction. We adopted SFAS No.&nbsp;144 on January&nbsp;1, 2002, and the adoption had no impact on our consolidated financial statements. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
July&nbsp;2002, the FASB issued SFAS No.&nbsp;146, "Accounting for Costs Associated with Exit or Disposal Activities" which addresses the measurement, timing of recognition and
reporting of costs associated with exit or disposal activities and restructuring activities. SFAS No.146 requires that a liability for costs associated with exit or restructuring activities be
recognized only when the liability is incurred as opposed to at the time that a company formally approves and commits to an exit plan as set forth in EITF Issue No.&nbsp;94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity." SFAS No.&nbsp;146 is effective for exit or disposal activities that are initiated after
December&nbsp;31, 2002. We do not expect the adoption to have any impact on our consolidated financial statements. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>36</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
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<A NAME="toc_ds2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>FACTORS AFFECTING FUTURE OPERATING RESULTS    <BR>    <BR>    RISKS RELATING TO OUR COMPANY    <BR>  </B></FONT></P>


<P><FONT SIZE=2><B>Our future product sales are unpredictable, our operating results are likely to fluctuate from quarter to quarter, and if we fail to meet the expectations of securities
analysts or investors, our stock price could decline significantly  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our quarterly and annual operating results have fluctuated in the past and are likely to fluctuate in the future due to a variety of factors, some of which are
outside of our control. As a result, period-to-period comparisons of our operating results are not necessarily meaningful or indicative of future performance. Furthermore, it
is likely that in some future quarters our operating results will fall below the expectations of securities analysts or investors. If this occurs, the trading price of our common stock could decline. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Factors
that may affect our future operating results include: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
timing, number and size of orders for our products, as well as the relative mix of orders for each of our products, particularly the volume of lower
margin handsets;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>cancellation,
deferment or delay in implementation of large contracts;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
evolving and unpredictable nature of the economic, regulatory, competitive and political environments in China and other countries in which we market or
plan to market our products;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>price
reductions by our competitors;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>changes
in our customers' subscriber growth rate;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>currency
fluctuations;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>market
acceptance of our products and product enhancements;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
lengthy and unpredictable sales cycles associated with sales of our products combined with the impact of this variability on our suppliers' ability to
provide us with components on a timely basis;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>longer
collection periods of accounts receivable in China and other countries; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
decline in business activity we typically experience during the Lunar New Year, which leads to decreased sales during our first fiscal quarter. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
limited performance history of some of our products, our limited forecasting experience and processes and the emerging nature of our target markets make forecasting our future sales
and operating results difficult. Our expense levels are based, in part, on our expectations regarding future sales, and these expenses are largely fixed, particularly in the short term. In addition,
to enable us to promptly fill orders, we maintain inventories of finished goods, components and raw materials. As a result, we commit to considerable costs in advance of anticipated sales. In the
past, a substantial portion of our sales in each quarter resulted from orders received and shipped in that quarter, and we have operated with a limited backlog of unfilled orders. Accordingly, we may
not be able to reduce our costs in a timely manner to compensate for any unexpected shortfall between forecasted and actual sales. Any significant shortfall of sales may require us to maintain higher
levels of inventories of finished goods, components and raw materials than we require, thereby increasing our risk of inventory obsolescence and corresponding inventory write-downs and
write-offs. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>37</FONT></P>

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<P><FONT SIZE=2><B>Competition in our markets may lead to reduced prices, revenues, market share and gross profit as a percentage of net sales  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are increasingly facing intense competition in our target markets, especially from domestic companies in China. We believe that our strongest competition in
the future may come from these companies, many of which operate under lower cost structures and more favorable governmental policies and have much larger sales forces than we do. Furthermore, other
companies not presently offering competing products may also enter our target markets, particularly with the reduction of trade restrictions as a result of China's admission to the World Trade
Organization, or WTO. Many of our competitors have significantly greater financial, technical, product development, sales, marketing and other resources than we do. As a result, our competitors may be
able to respond more quickly to new or emerging technologies and changes in service provider requirements. Our competitors may also be able to devote greater resources than we can to the development,
promotion and sale of new products. These competitors may also be able to offer significant financing arrangements to service providers, in some cases facilitated by government policies, which is a
competitive advantage in selling systems to service providers with limited financial and currency resources. Increased competition is likely to result in price reductions, reduced gross profit as a
percentage of net sales and loss of market share, any one of which could materially harm our business, financial condition and results of operations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moreover,
current and potential competitors have established or may establish cooperative relationships among themselves or with third parties, including Telecommunications
Administrations,
Telecommunications Companies and other local organizations, to increase the ability of their products to address the needs of prospective customers in our target markets. Accordingly, alliances among
competitors or between competitors and third parties may emerge and rapidly acquire significant market share. To remain competitive, we believe that we must continue to partner with Telecommunications
Administrations and other local organizations, maintain a high level of investment in research and development and in sales and marketing, and manufacture and deliver products to service providers on
a timely basis and without significant defects. If we fail to meet any of these objectives, our business, financial condition and results of operations could be harmed. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
introduction of inexpensive wireless telephone service or other competitive services in China may also have an adverse impact on sales of our PAS systems and handsets in China. We
may not be able to compete successfully against current or future competitors, and competitive pressures in the future may materially adversely affect our business, financial condition and results of
operations. </FONT></P>

<P><FONT SIZE=2><B>Our business may suffer if we are unable to collect payments from our customers on a timely basis  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our customers often must make a significant commitment of capital to purchase our products. As a result, any downturn in a customer's business that affects the
customer's ability to pay us could harm our financial condition. Moreover, accounts receivable collection cycles historically tend to be much longer in China than in other markets. The failure of any
of our customers to make timely payments could require us to write-off accounts receivable or increase our accounts receivable reserves, either of which could adversely affect our
financial condition. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>38</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_du2327_1_39"> </A> </FONT> <FONT SIZE=2><B>Our market is subject to rapid technological change, and to compete effectively, we must continually introduce new products that achieve market acceptance  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The emerging market for telecommunications equipment in developing countries is characterized by rapid technological developments, frequent new product
introductions and evolving industry and regulatory standards. Our success will depend in large part on our ability to enhance our network access and switching technologies and develop and introduce
new products and product enhancements that anticipate changing service provider requirements and technological developments. We may need to make substantial capital expenditures and incur significant
research and development costs to develop and introduce new products and enhancements. If we fail to timely develop and introduce new products or enhancements to existing products that effectively
respond to technological change, our business, financial condition and results of operations could be materially adversely affected. From time to time, our competitors or we may announce new products
or product enhancements, technologies or services that have the potential to replace or shorten the life cycles of our products and that may cause customers to defer purchasing our existing products,
including the possible adoption and implementation of third generation, or 3G systems, resulting in inventory obsolescence. Future technological advances in the communications industry may diminish or
inhibit market acceptance of our existing or future products or render our products obsolete. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Even
if we are able to develop and introduce new products, they may not gain market acceptance. Market acceptance of our products will depend on various factors including: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>our
ability to obtain necessary approvals from regulatory organizations;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
perceived advantages of the new products over competing products;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>our
ability to attract customers who have existing relationships with our competitors;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>product
cost relative to performance; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
level of customer service available to support new products. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specifically,
sales of PAS, our wireless access system, will depend in part upon consumer acceptance of the mobility limitations of this service relative to other wireless service
systems, such as GSM or CDMA. If our existing or new products fail to achieve market acceptance for any reason, our business could be seriously harmed. </FONT></P>

<P><FONT SIZE=2><B>Our business will suffer if we are unable to deliver quality products on a timely and cost effective basis  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operating results depend on our ability to manufacture products on a timely and cost effective basis. In the past, we have experienced reductions in yields as
a result of various factors, including defects in components and human error in assembly. If we experience deterioration in manufacturing performance or a delay in production of any of our products,
we could experience delays in shipments and cancellations of orders. Moreover, networking products frequently contain undetected software or hardware defects when first introduced or as new versions
are released. In addition, our products are often embedded in or deployed in conjunction with service providers' products, which incorporate a variety of components produced by third parties. As a
result, when a problem occurs, it may be difficult to identify the source of the problem. These problems may cause us to incur significant warranty and repair costs, divert the attention of our
engineering personnel from our product development efforts and cause significant customer relation problems or loss of customers, any one of which could harm our business. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
contract with third parties in China to undertake high volume manufacturing and assembly of our handsets. In addition, we sometimes use third parties for high volume assembly of
circuit boards. We do not have any long-term contracts with these third party manufacturers, and in the event that </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>39</FONT></P>

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these manufacturers are unable or unwilling to continue to manufacture our products, we may be unable to secure alternative manufacturers or could experience delays in qualifying new manufacturers. </FONT></P>


<P><FONT SIZE=2><B>We depend on some sole source and other key suppliers for handsets, base stations, components and materials used in our products, and if these suppliers fail to provide us with
adequate supplies of high quality products at competitive prices, our competitive position, reputation and business could be harmed  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some components and materials used in our products are purchased from a single supplier or a limited group of suppliers. If any supplier is unwilling or unable to
provide us with high quality components and materials in the quantities required and at the costs specified by us, we may not be able to find alternative sources on favorable terms, in a timely
manner, or at all. Our inability to obtain or to develop alternative sources if and as required could result in delays or reductions in manufacturing or
product shipments. Moreover, these suppliers may delay product shipments or supply us with inferior quality products. If any of these events occur, our competitive position, reputation and business
could suffer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
ability to source a sufficient quantity of high quality components used in our products may be limited by China's import restrictions and duties. We require a significant number of
imported components to manufacture our products in China. Imported electronic components and other imported goods used in the operation of our business are subject to a variety of permit requirements,
approval procedures, import duties and registration requirements. Non-payment of required import duties could subject us to penalties and fines and could adversely affect our ability to
manufacture and sell our products in China. In addition, import duties increase the cost of our products and may make them less competitive. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
particular, components of our PAS system include the handset used by subscribers to make and receive mobile telephone calls and the base station unit. Our inability to obtain a
sufficient number of high quality components and assemblies for handsets and base stations could severely harm our business. From time to time, there has been a worldwide shortage of handsets, and
there currently exists a shortage of low-priced handsets, which we have found to be popular with many consumers in China. We have only used third parties to assemble and manufacture
handsets in China for us for a limited period of time. These manufacturers may be unable to produce adequate quantities of high-quality handsets to meet the demand of our customers. In
addition, we may be unable to obtain adequate quantities of base stations and may be unable to find alternative sources on favorable terms, in a timely manner, or at all. Our inability to obtain or to
develop alternative sources if and as required could result in delays or reductions in manufacturing or product shipments. </FONT></P>

<P><FONT SIZE=2><B>If we are unable to expand our direct sales operation in China and indirect distribution channels elsewhere or successfully manage our expanded sales organization, our
operating results may suffer  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our distribution strategy focuses primarily on developing and expanding our direct sales organization in China and our indirect distribution channels outside of
China. We may not be able to successfully expand our direct sales organization in China and the cost of any expansion may exceed the revenue generated from these efforts. Even if we are successful in
expanding our direct sales organization in China, we may not be able to compete successfully against the significantly larger and better-funded sales and marketing operations of current or potential
competitors. In addition, if we fail to develop relationships with significant international resellers or manufacturers' representatives, or if these resellers or representatives are not successful in
their sales or marketing efforts, we may be unsuccessful in our expansion efforts outside China. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>40</FONT></P>

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<P><FONT SIZE=2><B>We expect average selling prices of our products to decrease which may reduce our revenues and our gross margin as a percentage of net sales, and, as a result, we must
introduce new products and reduce our costs in order to maintain profitability  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The average selling prices for communications access and switching systems and subscriber terminal products, such as handsets, in China have been declining as a
result of a number of factors, including: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>increased
competition;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>aggressive
price reductions by competitors; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>rapid
technological change. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
anticipate that average selling prices of our products will decrease in the future in response to product introductions by us or our competitors or other factors, including price
pressures from customers. Therefore, we must continue to develop and introduce new products and enhancements to existing products that incorporate features that can be sold at higher average selling
prices. Failure to do so could cause our revenues and gross profit, as a percentage of net sales, to decline. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
cost reduction efforts may not allow us to keep pace with competitive pricing pressures or lead to improved gross profit, as a percentage of net sales. In order to be competitive, we
must continually reduce the cost of manufacturing our products through design and engineering changes. We may not be successful in these efforts or delivering our products to market in a timely
manner. Any redesign may not result in sufficient cost reductions to allow us to reduce the prices of our products to remain competitive or to improve or maintain our gross profit, as a percentage of
net sales. </FONT></P>

<P><FONT SIZE=2><B>Shifts in our product mix may result in declines in gross profit, as a percentage of net sales  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our gross profit, as a percentage of net sales, varies among our product groups. Our gross profit, as a percentage of net sales, is generally higher on our access
network system products and is significantly lower on our handsets. We also anticipate that the gross profit, as a percentage of net sales, may be lower for our newly developed products due to
start-up costs and may improve as unit volumes increase and efficiencies can be realized. Our overall gross profit, as a percentage of net sales, has fluctuated from period to period as a
result of shifts in product mix, the introduction of new products, decreases in average selling prices for older products and our ability to reduce manufacturing costs. </FONT></P>

<P><FONT SIZE=2><B>Service providers sometimes evaluate our products for long and unpredictable periods which causes the timing of purchases and our results of operations to be unpredictable  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The period of time between our initial contact with a service provider and the receipt of an actual purchase order may span a year or more. During this time,
service providers may subject our products to an extensive and lengthy evaluation process before making a purchase. The length of these qualification processes may vary substantially by product and
service provider, making our results of operations unpredictable. We may incur substantial sales and marketing expenses and expend significant management effort during this process, which ultimately
may not result in a sale. These qualification processes often make it difficult to obtain new customers, as service providers are reluctant to expend the resources necessary to qualify a new supplier
if they have one or more existing qualified sources. </FONT></P>

<P><FONT SIZE=2><B>Our multi-national operations subject us to various economic, political, regulatory and legal risks  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We market and sell our products in China and other markets, including Taiwan, Japan, Vietnam, India and Latin America. The expansion of our existing
multi-national operations and entry into </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>41</FONT></P>

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<P><FONT SIZE=2>
additional international markets will require significant management attention and financial resources. Multi-national operations are subject to inherent risks, including: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>difficulties
in designing products that are compatible with varying international communications standards;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>longer
accounts receivable collection periods and greater difficulty in accounts receivable collection;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>unexpected
changes in regulatory requirements or the regulatory environment;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>changes
in governmental control or influence over our customers;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>changes
to import and export regulations, including quotas, tariffs and other trade barriers;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>delays
or difficulties in obtaining export and import licenses;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>potential
foreign exchange controls and repatriation controls on foreign earnings;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>exchange
rate fluctuations and currency conversion restrictions;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
burdens of complying with a variety of foreign laws and regulations;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>difficulties
and costs of staffing and managing multi-national operations, including but not limited to internal control and compliance;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>reduced
protection for intellectual property rights in some countries;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>potentially
adverse tax consequences; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>political
and economic instability. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Multi-national
companies are required to establish intercompany pricing for transactions between their separate legal entities operating in different taxing jurisdictions. These
intercompany transactions are subject to audit by taxing authorities in the jurisdictions in which multi-national companies operate. An additional tax liability may be incurred if it is determined
that intercompany pricing was not done at arm's length. We believe we have adequately estimated and recorded our liability arising from intercompany pricing, but an additional tax liability may result
from audits of our intercompany pricing policies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
markets outside of China, we rely on a number of original equipment manufacturers, or OEMs, and third-party distributors and agents to market and sell our network access products. If
these OEMs, distributors or agents fail to provide the support and effort necessary to service developing markets effectively, our ability to maintain or expand our operations outside of China will be
negatively impacted. We may not successfully compete in these markets, our products may not be accepted and we may not successfully overcome the risks associated with international operations. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moreover,
in less developed markets we may face additional risks, such as inconsistent infrastructure support, unstable political and economic environments, and lack of a secure
environment for our personnel, facilities and equipment. We have in the past experienced cases of vandalism and armed theft of our equipment that had been or was being installed in the field. If
disruptions for any of these
reasons become too severe in any particular market, it may become necessary for us to terminate contracts and withdraw from that market and suffer the associated costs and lost revenue. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due
to the multi-national nature of our business and operations, we are subject to regulation in multiple governmental jurisdictions. Furthermore, as a result of the heavily regulated
nature of the markets in which we operate, we are continually subject to the risk of governmental investigations regarding our compliance with the rules and regulations of such jurisdictions. Should
we become subject to any such investigations, there may be significant and unanticipated expenses, and risks such </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>42</FONT></P>

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as the distraction of our key employees and disruptions to our operations. Such expenses and risks may result even in the event that such investigations are decided in our favor and no instances of
non-compliance are found. </FONT></P>

<P><FONT SIZE=2><B>We are subject to risks relating to currency exchange rate fluctuations  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are exposed to foreign exchange rate risk because our sales to China are denominated in Renminbi and portions of our accounts payable are denominated in
Japanese Yen. Due to the limitations on converting Renminbi, we are limited in our ability to engage in currency hedging activities in China. Although the impact of currency fluctuations of Renminbi
to date has been insignificant, fluctuations in currency exchange rates in the future may have a material adverse effect on our results of operations. </FONT></P>

<P><FONT SIZE=2><B>Our failure to meet international and governmental product standards could be detrimental to our business  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many of our products are required to comply with numerous government regulations and standards, which vary by market. As standards for products continue to
evolve, we will need to modify our products or develop and support new versions of our products to meet emerging industry standards, comply with government regulations and satisfy the requirements
necessary to obtain approvals. Our inability to obtain regulatory approval and meet established standards could delay or prevent our entrance into or force our departure from particular markets. </FONT></P>

<P><FONT SIZE=2><B>Our recent growth has strained our resources, and if we are unable to manage and sustain our growth, our operating results will be negatively affected  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have recently experienced a period of rapid growth and anticipate that we must continue to expand our operations to address potential market opportunities. If
we fail to implement or improve systems or controls or to manage any future growth and expansion effectively, our business could suffer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
expansion has placed and will continue to place a significant strain on our management, operational, financial and other resources. To manage our growth effectively, we will need to
take various actions, including: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>enhancing
management information systems and forecasting procedures;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>further
developing our operating, administrative, financial and accounting systems and controls;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>maintaining
close coordination among our engineering, accounting, finance, marketing, sales and operations organizations;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>expanding,
training and managing our employee base; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>expanding
our finance, administrative and operations staff. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>We may not be able to sustain profitability  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may not be able to remain profitable in future periods. We anticipate continuing to incur significant sales and marketing, research and development and general
and administrative expenses and, as a result, we will need to generate higher revenues to remain profitable. Numerous factors could negatively impact our results of operations, including a decrease in
sales, price pressures and significant fixed costs. Our past results should not be relied on as an indication of our future performance. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>43</FONT></P>

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<P><FONT SIZE=2><B>Our success is dependent on continuing to hire and retain qualified personnel, and if we are not successful in attracting and retaining these personnel, our business would be
harmed  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The success of our business depends in significant part upon the continued contributions of key technical and senior management personnel, many of whom would be
difficult to replace. In particular, our success depends in large part on the knowledge, expertise and services of Hong Liang Lu, our President and Chief Executive Officer, and Ying Wu, our Executive
Vice President and Chief Executive
Officer of China Operations. The loss of any key employee, the failure of any key employee to perform satisfactorily in his or her current position or our failure to attract and retain other key
technical and senior management employees could have a significant negative impact on our operations. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
effectively manage our recent growth as well as any future growth, we will need to recruit, train, assimilate, motivate and retain qualified employees. Competition for qualified
employees is intense, and the process of recruiting personnel with the combination of skills and attributes required to execute our business strategy can be difficult, time-consuming and
expensive. We are actively searching for research and development engineers and sales and marketing personnel, who are in short supply. Additionally, we have a need for and have experienced difficulty
in finding qualified accounting personnel knowledgeable in U.S. and China accounting standards who are resident in China. If we fail to attract, hire, assimilate or retain qualified personnel, our
business would be harmed. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competitors
and others have in the past and may in the future attempt to recruit our employees. In addition, companies in the telecommunications industry whose employees accept positions
with competitors frequently claim that the competitors have engaged in unfair hiring practices. We may be the subject of these types of claims in the future as we seek to hire qualified personnel.
Some of these claims may result in material litigation and disruption to our operations. We could incur substantial costs in defending ourselves against these claims, regardless of their merit. </FONT></P>

<P><FONT SIZE=2><B>Any acquisitions that we undertake could be difficult to integrate, disrupt our business, dilute our stockholders and harm our operating results  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may acquire complementary businesses, products and technologies. For example, in November&nbsp;2001, we acquired Advanced Communication Devices Corporation,
a system on chip semiconductor company. On April&nbsp;19, 2002, the Company completed the purchase of Issanni Communications,&nbsp;Inc., a RAS (remote access server) and local access technology
company, providing broadband over ADSL. On December&nbsp;18, 2001, we entered into an agreement to acquire the remaining 49% ownership interest in GUTS, one of our two primary manufacturing
facilities in China, in order to achieve 100% ownership in the joint venture. On January&nbsp;21, 2002, we entered into an agreement to acquire the remaining 12% ownership interest in HUTS, our
other manufacturing facility. Any anticipated benefits of an acquisition may not be realized. We have in the past and will continue to evaluate acquisition prospects that would complement our existing
product offerings, augment our market coverage, enhance our technological capabilities, or that may otherwise offer growth opportunities. Acquisitions of other companies may result in dilutive
issuances of equity securities, the incurrence of debt and the amortization of expenses related to intangible assets. In addition, acquisitions involve numerous risks, including difficulties in the
assimilation of operations, technologies, products and personnel of the acquired company, diversion of management's attention from other business concerns, risks of entering markets in which we have
no direct or limited prior experience, and the potential loss of key employees of the acquired company. </FONT></P>

<P><FONT SIZE=2><B>We may be unable to adequately protect our intellectual property and may be subject to claims that we infringe the intellectual property of others, either of which could
substantially harm our business  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely on a combination of patents, copyrights, trademarks, trade secret laws and contractual obligations to protect our technology. We have applied for patents
in the United States, three of which </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>44</FONT></P>

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have been issued. We have also filed patent applications in other countries. Additional patents may not be issued from our pending patent applications and our issued patents may not be upheld. In
addition, we have, from time to time, chosen to abandon previously filed applications. Moreover, we have not yet obtained, and may not be able to obtain, patents in China on our products or the
technology that we use to manufacture our products. Our subsidiaries and joint ventures in China rely upon our trademarks, technology and know-how to manufacture and sell our products. We
cannot guarantee that these and other intellectual property protection measures will be sufficient to prevent misappropriation of our technology or that our competitors will not independently develop
technologies that are substantially equivalent or superior to ours. In addition, the legal systems of many foreign countries, including China, do not protect intellectual property rights to the same
extent as the legal system of the United States. If we are unable to adequately protect our proprietary information and technology, our business, financial condition and results of operations could be
materially adversely affected. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
increasing dependence of the communications industry on proprietary technology has resulted in frequent litigation based on allegations of the infringement of patents and other
intellectual property. In the future we may be subject to litigation to defend against claimed infringements of the rights of others or to determine the scope and validity of the proprietary rights of
others. Future litigation also may be necessary to enforce and protect our trade secrets and other intellectual property rights. Any intellectual property litigation could be costly and could cause
diversion of management's attention from the operation of our business. Adverse determinations in any litigation could result in the loss of our proprietary rights, subject us to significant
liabilities or require us to seek licenses from third parties which may not be available on commercially reasonable terms, if at all. We could also be subject to court orders preventing us from
manufacturing or selling our products. </FONT></P>

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<P><FONT SIZE=2><B>Business interruptions could adversely affect our business  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations are vulnerable to interruption by fire, earthquake, power loss, telecommunications failure and other events beyond our control. We do not have a
detailed disaster recovery plan. Our headquarters facility in the State of California was subject to electrical blackouts as a consequence of a shortage of available electrical power. In the event
these blackouts resume, they could disrupt the operations at our headquarters. In addition, we do not carry sufficient business interruption insurance to compensate us for losses that may occur and
any losses or damages incurred by us could have a material adverse effect on our business. </FONT></P>


<P><FONT SIZE=2><B>We are exposed to fluctuations in the values of our portfolio investments  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We maintain an investment portfolio of various holdings, types, and maturities. Recently, part of this portfolio included an equity investment in a publicly
traded company, the value of which is subject to market price volatility. Recent events have adversely affected the public equities market and general economic conditions may continue to worsen.
Should the fair value of our publicly traded equity investments decline below their cost basis in a manner deemed to be other-than-temporary, it may become necessary for us to
take an impairment charge. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have also invested in several privately held companies as well as investment funds which invest primarily in privately held companies, many of which can still be considered in the
start-up or development stages. These investments are inherently risky, as the market for the technologies or products they have under development are typically in the early stages and may
never materialize. We could lose our entire initial investment in these companies and investment funds. </FONT></P>

<P><FONT SIZE=2><B>We have been named as a defendant in securities litigation  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company, some of our directors and officers and various underwriters for our initial public offering have been sued in a putative shareholder class action.
The complaint alleges undisclosed improper underwriting practices concerning the allocation of IPO shares, in violation of the federal securities laws. Similar complaints have been filed concerning
the IPOs of more than 300 companies, and the litigation has been coordinated in federal court for the Southern District of New York as </FONT><FONT SIZE=2><I>In re
Initial Public Offering Securities Litigation</I></FONT><FONT SIZE=2>, 21 MC 92. We believe we have meritorious defenses to the claims against us and intend to defend the litigation vigorously.
However, as litigation is by its nature uncertain, an unfavorable resolution of the lawsuit could have a material adverse effect on our business, results of operations, or financial condition. </FONT></P>

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NAME="dw2327_risks_relating_to_the_structur__ris03556"> </A>
<A NAME="toc_dw2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>RISKS RELATING TO THE STRUCTURE AND REGULATION OF CHINA'S<BR>  TELECOMMUNICATIONS INDUSTRY    <BR>  </B></FONT></P>

<P><FONT SIZE=2><B>China's telecommunications industry is subject to extensive government regulation  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;China's telecommunications industry is heavily regulated by the Ministry of Information Industry. The Ministry of Information Industry has broad discretion and
authority to regulate all aspects of the telecommunications and information technology industry in China, including managing spectrum bandwidths, setting network equipment specifications and standards
and drafting laws and regulations related to the electronics and telecommunications industries. Additionally, the Ministry of Information Industry can decide what types of equipment may be connected
to the national telecommunications networks, the forms and types of services that may be offered to the public, the rates that are charged to subscribers for those services and the content of material
available in China over the Internet. If the Ministry of Information Industry sets standards with which we are unable to comply or which render our products noncompetitive, our ability to sell
products in China may be limited, resulting in substantial harm to our operations. </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the end of May&nbsp;2000, we became aware of an internal notice, circulated within the Ministry of Information Industry, announcing a review of PHS-based
telecommunications equipment for future installation into China's telecommunications infrastructure. The Ministry of Information Industry requested service providers to temporarily halt new
deployments of PHS-based telecommunications equipment, including our PAS systems and handsets, pending conclusion of a review by the Ministry of Information Industry. Subsequently, at the
end of June&nbsp;2000, the Ministry of Information Industry issued a notice stating that it had concluded its review of PHS-based equipment and that the continued deployment of
PHS-based systems, such as our PAS systems and handsets, in China's county-level cities and towns and villages would be permitted. In addition, the notice stated that deployments within
large and medium-sized cities would only be allowed in very limited areas of dense population, such as campuses, commercial buildings and special development zones. The notice confirmed, however, that
new citywide deployments of our PAS system in large and medium cities would not be permitted. Failure of the Ministry of Information Industry to permit the sale or deployment of our PAS systems and
handsets, or the sale or deployment of our other products, or the imposition of additional limitations on their sale in the future could have a material adverse effect on our business and financial
condition. The Ministry of Information Industry may conduct further reviews or evaluations of
PHS-based telecommunications equipment or may change its position regarding PHS-based systems in the future. </FONT></P>

<P><FONT SIZE=2><B>China's telecommunications regulatory framework is in the process of being developed, which has led to uncertainties regarding how to conduct our business in China  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;China does not yet have a national telecommunications law. However, with China's recent admission into the WTO the Ministry of Information Industry, under the
direction of the State Council, must shortly present the first draft of the Telecommunications Law of the People's Republic of China for ultimate submission to the National People's Congress for
review and adoption. We do not know the nature and scope of regulation that the Telecommunications Law would create. Accordingly, we cannot predict whether it will have a positive or negative effect
on us or on some or all aspects of our business. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;China's
telecommunications regulatory framework is in the process of being developed. In September&nbsp;2000, the State Council issued the Telecommunications Regulations of the
People's Republic of China, known as the Telecom Regulations. The Telecom Regulations cover telecommunications services and market regulations, pricing, interconnection and connection, as well as
telecommunications construction and security issues. In May&nbsp;2001, the Ministry of Information Industry issued the Administrative Measures of Network Access Licenses to implement the Telecom
Regulations. Regulations in this area often require subjective interpretation and, given the relative infancy of the Telecom Regulations and the implementing regulations, we do not know how the
regulations will be interpreted or enforced. As a result, our attempts to comply with these regulations may be deemed insufficient by the appropriate regulatory agencies, which could subject us to
penalties that adversely affect our business. </FONT></P>

<P><FONT SIZE=2><B>Our business may suffer as a result of the recent restructuring of China Telecom  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;1999, the State Council approved a restructuring plan for the China Telecom system, under which the telecommunications operations of the China
Telecom system were separated along four business lines: fixed line, mobile, paging and satellite communications services. Following the announcement, we observed a reduction in orders from
Telecommunications Companies, which we attributed to the uncertainties surrounding the restructuring and the ultimate impact the restructuring would have on the Telecommunications Companies. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
in May&nbsp;2002, China Telecom was split into two entities by region, northern and southern. The 10 northern provinces, municipalities and autonomous regions of China
Telecom were merged with </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>47</FONT></P>

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China Netcom Co.&nbsp;Ltd. and China Jitong Network Communications Co.&nbsp;Ltd. to form&nbsp;a new company known as China Netcom ("China Netcom"). The remaining 21 provinces, municipalities
and
autonomous regions now constitute the southern entity, and have kept the name of China Telecom (the "New China Telecom"). China Netcom inherited 30% of the old China Telecom's national backbone
network, with the rest going to the New China Telecom. As this change is very recent, we cannot be certain what impact the restructuring of China Telecom will have on our business operations. However,
we may experience another decline in orders and related revenues similar to that which we experienced following the 1999 restructuring, resulting from uncertainty among our telecommunications company
customers associated with the restructuring. Moreover, following any restructuring, China Netcom, the New China Telecom or any other entity that may replace it as a result of any subsequent
restructuring may restrict or prohibit the sales of our products, which could cause substantial harm to our business. </FONT></P>

<P><FONT SIZE=2><B>We do not have some of the licenses we are required to have to sell our network access products in China  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under China's current regulatory structure, the communications products that we offer in China must meet government and industry standards, and a network access
license for the equipment must be obtained. Without the license, the equipment is not allowed to be connected to public telecommunications networks or sold in China. Moreover, we must ensure that the
quality of the telecommunications equipment for which we have obtained a network access license is stable and reliable, and may not lower the quality or performance of other installed licensed
products. The State Council's product quality supervision department, in concert with the Ministry of Information Industry, performs spot checks to track and supervise the quality of licensed
telecommunications equipment and publishes the results of such spot checks. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
regulations implementing these requirements are not very detailed, have not been applied by a court and may be interpreted and enforced by regulatory authorities in a number of
different ways. We have obtained the required network access licenses for our AN-2000 platform. We have applied for, but have not yet received, a network access license for our PAS systems
and handsets. Based upon conversations with the Ministry of Information Industry, we understand that our PAS systems and handsets are considered to still be in the trial period and that sales of our
PAS systems and handsets may continue to be made by us during this trial period, but a license will ultimately be required. Network access licenses will also be required for most additional products
that we are selling or may sell in China, including our mSwitch platform. If we fail to obtain the required licenses, we could be prohibited from making further sales of the unlicensed products,
including our PAS systems and handsets, in China, which would substantially harm our business, financial condition and results of operations. Our counsel in China has advised us that China's
governmental authorities may interpret or apply the regulations with respect to which licenses are required and the ability to sell a product while a product is in the trial period in a manner that is
inconsistent with the information received by our counsel in China, either of which could have a material adverse effect on our business and financial condition. </FONT></P>

<P><FONT SIZE=2><B>We are required to register the software incorporated in our products in accordance with relevant Chinese regulations  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October&nbsp;2000, the Ministry of Information Industry issued regulations which prohibit the production and sale of software products, or products
incorporating software, in China unless the software is registered with the government. We have accomplished the necessary registration with regards to the software incorporated in our
AN-2000 and PAS. However, additional registration is required for software incorporated in additional products that we are selling or may sell in China, including mSwitch. Based upon
verbal advice received from the Ministry of Information Industry, we believe that we will be able to sell products incorporating our software while any of our applications for </FONT></P>

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registration may be pending. However, the Chinese government may interpret or apply the regulations in such a way as to prohibit sales of products incorporating our unregistered software prior to
registration. If the government prohibits sales pending registration, or if we fail in our efforts to register any software required to be registered, we could be prohibited from making further sales
of products incorporating our unregistered software in China, which could substantially harm our business and financial condition. </FONT></P>

<P><FONT SIZE=2><B>Most of our customers in China have historically been part of the China Telecom system and under China Telecom's ultimate control; following the recent restructuring of China
Telecom, most of our customers in China are now part of the New China Telecom or China Netcom, and are subject to their ultimate control  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our main customers in China are the local Telecommunications Companies (formerly known as Telecommunications Bureaus) which historically operated under China
Telecom, China's state-owned fixed line operator, and were subject to its ultimate control. Following the recent restructuring of China Telecom, the Telecommunications Companies now operate under the
ultimate control of either the New China Telecom or China Netcom. Policy statements may be issued and decisions may be made by the New China Telecom and China Netcom, which govern the equipment
purchasing decisions of most of our customers in China. For example, in late 1999, China Telecom prohibited all Telecommunications Companies from purchasing PHS systems, such as our PAS systems, for
implementation in large cities, even before these sales were prohibited by the Ministry of Information Industry. As most of our sales are generated from our operations in China, any decisions by the
New China Telecom or China Netcom restricting or prohibiting the sales or deployment of our products could cause significant harm to our business. </FONT></P>

<P><FONT SIZE=2><B>Our customer base in China could effectively become increasingly concentrated if more purchasing decisions are coordinated or made by provincial or greater regional
telecommunications service entities rather than by local telecommunications service providers  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have historically considered local telecommunications service providers serving municipalities and counties to be our primary customers in China. Recently,
however, the provincial-level
telecommunications service entity in the Zhejiang province of China has begun to consolidate telecommunications purchasing decisions for that province. As a result of this trend in the Zhejiang
province, we have grouped all customers in Zhejiang province together and have treated these as one customer for the three and nine months ended September&nbsp;30, 2002. In each of those periods,
Zhejiang province accounted for more than 10% of our net sales. Without giving effect to this adjustment, at September&nbsp;30, 2002, we would have had approximately twenty-five
customers in Zhejiang province. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether
this represents the beginning of a greater trend throughout China towards increased consolidation of negotiations and purchasing decisions into the control of provincial-level
telecommunications service entities is unclear. If an increasing number of purchasing decisions and negotiations are controlled on a larger regional level in China by provincial-level
telecommunications service entities, this would effectively result in a concentration of the Company's customer base. The Company's financial results may increasingly depend in significant part upon
the success of a few major customers and the Company's ability to meet their future capital equipment needs. Although the composition of the group comprising the Company's largest customers may vary
from period to period, the loss of a significant customer or any reduction in orders by any significant customer, including reductions due to market, economic or competitive conditions in the
telecommunications industry, may have a material adverse effect on the Company's business, financial condition and results of operations. In addition to the business risks associated with dependence
on major customers, significant customer concentration may also result in significant concentrations of accounts receivable. Significant and concentrated receivables would expose the Company to
additional risks, including the risk of default by </FONT></P>

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one or more customers representing a significant portion of the Company's total receivables. If the Company is required to take additional accounts receivable reserves, its business, financial
condition and results of operations would be materially adversely affected. </FONT></P>

<P><FONT SIZE=2><B>Our ability to sell our PAS wireless systems and handsets could be significantly impaired if the New China Telecom or China Netcom are granted, or if they otherwise acquire,
mobile licenses allowing the New China Telecom or China Netcom to deliver cellular services  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The New China Telecom and China Netcom hold and operate the fixed line telephone and data communications assets in China, and currently do not have the licenses
necessary to offer cellular services. To offer wireless services to end users, the Telecommunications Companies must offer services that can be delivered over wireline networks, such as those
delivered over our PAS wireless systems and handsets. China's media sources have widely reported that after the restructuring of China Telecom, the Ministry of Information Industry may grant mobile
licenses to the New China Telecom or China Netcom, or to both. If the Ministry of Information Industry does grant a mobile license to the New China Telecom or China Netcom, or to both, or if such
entities otherwise acquire mobile licenses, local Telecommunications Companies will be free to offer cellular services such as GSM or CDMA to their customers, and they may therefore elect not to
deploy our PAS systems and handsets. If this were to occur, we could lose current and potential customers for our PAS systems and handsets, and our financial condition and results of operations could
be materially adversely affected. </FONT></P>

<P><FONT SIZE=2><B>Changes in telecommunications rates or pricing policies may result in decreased demand for our products  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2000, the Ministry of Information Industry announced significant changes in rates for telecommunications services in China. While long
distance, international, leased line and Internet connection fees were cut by up to 70%, the rates for local telephone services, which include certain types of wireless access services such as those
offered over our PAS systems and handsets, were increased, from approximately $0.01 per minute to approximately $0.02 per minute. The increase in rates may result in a reduced demand by end users for
wireless services delivered over our PAS system and a corresponding decline in demand for our products. In addition, mobile operators are offering price incentive plans that could impact demand for
our products. Additionally, the Ministry of Information Industry may implement future rate changes for wireline or wireless services in China or change telecommunications pricing policies, including
allowing carriers to set prices based on market conditions, any of which may lead to reduced demand for our systems and products and result in a material adverse effect on our business or results of
operations. </FONT></P>

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<BR></FONT><FONT SIZE=2><B>RISKS RELATING TO CONDUCTING OPERATIONS IN CHINA    <BR>  </B></FONT></P>

<P><FONT SIZE=2><B>Sales in China have accounted for most of our sales, and therefore, our business, financial condition and results of operations are to a significant degree subject to economic,
political and social events in China  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately $218.2&nbsp;million and $567.9&nbsp;million, or 82% and 83%, of our net sales for the three and nine months ended September&nbsp;30, 2002, and
$133.3&nbsp;million and $390.0&nbsp;million, or 78% and 91%, of our net sales for the corresponding periods in 2001, occurred in China. Additionally, a substantial portion of our fixed assets are
located in China. Of our total fixed assets, approximately 84% as of September&nbsp;30, 2002 and 75% as of December&nbsp;31, 2001 were in China. We expect to make further investments in China in
the future. Therefore, our business, financial condition and results of operations are to a significant degree subject to economic, political and social events in China. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>50</FONT></P>

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<P><FONT SIZE=2><B>Devaluation in the value of the Renminbi and fluctuations in exchange rates could adversely affect our financial results  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange rate fluctuations could have a substantial negative impact on our financial condition and results of operations. We purchase substantially all of our
materials in the United States and Japan and a significant portion of our cost of goods sold is incurred in U.S. dollars and Japanese yen. A significant portion of our operating expenses are incurred
in U.S. dollars. At the same time, most of our sales are denominated in Renminbi. The value of the Renminbi is fixed by China's national government and is subject to changes in China's governmental
policies and to international economic and political developments. China may choose to devalue the Renminbi against the U.S. dollar. Additionally, China's government has considered from time to time
whether to partially or fully abandon the official exchange rate for Renminbi to the U.S. dollar. The abandonment of this official exchange rate policy may lead to sharp depreciation of the Renminbi
against the U.S. dollar and other foreign currencies and to significantly more volatility in the Renminbi exchange rate in the future, both of which would adversely affect our financial results and
make our future results more subject to fluctuation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the past, financial markets in many Asian countries have experienced severe volatility and, as a result, some Asian currencies have experienced significant devaluation from time to
time. The devaluation of some Asian currencies may have the effect of rendering exports from China more expensive and less competitive and therefore place pressure on China's government to devalue the
Renminbi. Any devaluation of the Renminbi could result in an increase in volatility of Asian currency and capital markets. Future volatility of Asian financial markets could have an adverse impact on
our ability to expand our product sales into Asian markets outside of China. Moreover, due to the limitations on the convertibility of Renminbi, we are limited in our ability to engage in currency
hedging activities in China and do not currently engage in currency hedging activities with respect to international sales outside of China. </FONT></P>

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<P><FONT SIZE=2><B>Currency restrictions in China may limit the ability of our subsidiaries and joint ventures in China to obtain and remit foreign currency necessary for the purchase of imported
components and may limit our ability to obtain and remit foreign currency in exchange for Renminbi earnings  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;China's government imposes controls on the convertibility of Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China.
Under the current foreign exchange control system, sufficient foreign currency may not be available to satisfy our currency needs. Shortages in the availability of foreign currency may restrict the
ability of our Chinese subsidiaries to obtain and remit sufficient foreign currency to pay dividends to us, or otherwise satisfy their foreign currency denominated obligations, such as payments to us
for components which we export to them and for technology licensing fees. We may also experience difficulties in completing the administrative procedures necessary to obtain and remit needed foreign
currency. Our business could be substantially harmed if we are unable to convert and remit our sales received in Renminbi into U.S. dollars. Under existing foreign exchange laws, Renminbi held by our
China subsidiaries can be converted into foreign currencies and remitted out of China to pay current account items such as payments to suppliers for imports, labor services, payment of interest on
foreign exchange loans and distributions of dividends so long as the subsidiaries have adequate amounts of Renminbi to purchase the foreign currency. Expenses of a capital nature such as the repayment
of bank loans denominated in foreign currencies, however, require approval from appropriate governmental authorities before Renminbi can be used to purchase foreign currency and then remitted out of
China. This system could be changed at any time by executive decision of the State Council to impose limits on current account convertibility of the Renminbi or other similar restrictions. Moreover,
even though the Renminbi is intended to be freely convertible under the current account, the State Administration of Foreign Exchange, which is responsible for administering China's foreign currency
market, has a significant degree of administrative discretion in implementing the laws. From time to time, the State Administration of Foreign Exchange has used this discretion in ways which
effectively limit the convertibility of current account payments and restrict remittances out of China. Furthermore, in many circumstances the State Administration of Foreign Exchange must approve
foreign currency conversions and remittances. Under the current foreign exchange control system, sufficient foreign currency may not be available at a given exchange rate to satisfy our currency
demands. </FONT></P>

<P><FONT SIZE=2><B>China subjects foreign investors in the telecommunications industry to ownership and geographic limitations  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;China's government and its agencies, including the Ministry of Information Industry and the State Council, regulate foreign investment in the telecommunications
industry through the promulgation of various laws and regulations and the issuance of various administrative orders and decisions. Currently, foreign investors may engage in such activities only in
accordance with certain ownership and
geographic limitations. China may promulgate new laws or regulations, or issue administrative or judicial decisions or interpretations, which would further restrict or bar foreigners from engaging in
telecommunications-related activities. The promulgation of laws or regulations or the issuance of administrative orders or judicial decisions or interpretations restricting or prohibiting
telecommunications activities by foreigners could have a substantial impact on our ongoing operations. </FONT></P>

<P><FONT SIZE=2><B>Governmental policies in China could impact our business  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since 1978, China's government has been and is expected to continue reforming its economic and political systems. These reforms have resulted in and are expected
to continue to result in significant economic and social development in China. Many of the reforms are unprecedented or experimental and may be subject to change or readjustment due to a number of
political, economic and social factors. We believe that the basic principles underlying the political and economic reforms will continue to be implemented and provide the framework for China's
political and economic system. New reforms </FONT></P>

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or the readjustment of previously implemented reforms could have a significant negative effect on our operations. Changes in China's political, economic and social conditions and governmental
policies which could have a substantial impact on our business include: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>new
laws and regulations or the interpretation of those laws and regulations;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
introduction of measures to control inflation or stimulate growth;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>changes
in the rate or method of taxation;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
imposition of additional restrictions on currency conversion and remittances abroad; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
actions which limit our ability to develop, manufacture, import or sell our products in China, or to finance and operate our business in China. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>Economic policies in China could impact our business  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The economy of China differs from the economies of most countries belonging to the Organization for Economic Cooperation and Development in various respects such
as structure, government
involvement, level of development, growth rate, capital reinvestment, allocation of resources, self-sufficiency, rate of inflation and balance of payments position. In the past, the
economy of China has been primarily a planned economy subject to one- and five-year state plans adopted by central government authorities and largely implemented by provincial
and local authorities, which set production and development targets. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since
1978, increasing emphasis had been placed on decentralization and the utilization of market forces in the development of China's economy. Economic reform measures adopted by
China's government may be inconsistent or ineffectual, and we may not in all cases be able to capitalize on any reforms. Further, these measures may be adjusted or modified in ways which could result
in economic liberalization measures that are inconsistent from time to time or from industry to industry or across different regions of the country. China's economy has experienced significant growth
in the past decade. This growth, however, has been accompanied by imbalances in China's economy and has resulted in significant fluctuations in general price levels, including periods of inflation.
China's government has implemented policies from time to time to increase or restrain the rate of economic growth, control periods of inflation or otherwise regulate economic expansion. While we may
be able to benefit from the effects of some of these policies, these policies and other measures taken by China's government to regulate the economy could also have a significant negative impact on
economic conditions in China with a resulting negative impact on our business. </FONT></P>

<P><FONT SIZE=2><B>China's entry into the World Trade Organization creates uncertainty as to the future economic and business environments in China  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;China's entry into the WTO was approved in September&nbsp;2001. Entry into the WTO will require China to further reduce tariffs and eliminate
non-tariff barriers, which include quotas, licenses and other restrictions by 2005 at the latest. While China's entry into the WTO and the related relaxation of trade restrictions may lead
to increased foreign investment, it may also lead to increased competition in China's markets from international companies. China's entry into the WTO could have a negative impact on China's economy
with a resulting negative impact on our business. </FONT></P>

<P><FONT SIZE=2><B>If tax benefits available to our subsidiaries located in China are reduced or repealed, our business could suffer  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our subsidiaries and joint ventures located in China enjoy tax benefits in China which are generally available to foreign investment enterprises, including full
exemption from national enterprise income tax for two years starting from the first profit-making year and/or a 50% reduction in national </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>53</FONT></P>

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<P><FONT SIZE=2>
income tax rate for the following three years. In addition, local enterprise income tax is often waived or reduced during this tax holiday/incentive period. Under current regulations in China,
foreign investment enterprises that have been accredited as technologically advanced enterprises are entitled to additional tax incentives. These tax incentives vary in different locales and could
include preferential national enterprise income tax treatment at 50% of the usual rates for different periods of time. All of
our active subsidiaries in China were accredited as technologically advanced enterprises. Two of our principal subsidiaries, UTStarcom China and HUTS, accounted for approximately 95.1% of our revenues
for the nine months ended September&nbsp;30, 2002. The tax holidays applicable to UTStarcom China will expire at the end of 2002. At that time, the tax rate will increase from 7.5% to 15% and will
negatively impact our financial condition and results of operations. The tax holiday applicable to our other principal subsidiary, HUTS, expired in 2001 and is now subject to annual review. HUTS was
able to maintain the 10% rate for 2002, following its annual review. However, its tax rate could increase from 10% to 15% if it is unable to maintain a tax holiday in 2003. If we are unable to extend
the tax holiday described above to 2003, our financial condition and results of operations may be negatively impacted. Additionally, the Chinese government is considering the imposition of "unified"
corporate income tax that would phase out, over time, the preferential tax treatment to which foreign-funded enterprises, such as UTStarcom, are currently entitled. While it is not certain whether the
government will implement such a unified tax structure or whether, if implemented, UTStarcom will be grandfathered into the new tax structure, if the new tax structure is implemented, it will
adversely affect our financial condition. </FONT></P>

<P><FONT SIZE=2><B>We may be exposed to contingent tax liabilities in China resulting from our failure to withhold sufficient amounts for China's income tax purposes  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We employ a number of U.S. citizens who work on a full time basis in China. These expatriate employees participate in our stock option plans and have exercised a
number of options granted under the plans. The option exercises generated income that may be subject to personal income taxes under China's income tax laws. We did not withhold China income taxes on
the option exercises, and the employees have not yet paid any taxes in China that may be due. Should the employees fail to pay the income taxes, we may be liable for such taxes in our capacity as
withholding agent. In the event that it is determined that taxes are due in China, we, on behalf of our employees, will apply for a refund from the U.S. tax authorities corresponding to the amount of
the foreign tax credit which would then be applicable. The refund amounts are required to be paid to us by the employees who receive them. In addition, our failure to collect and remit China
withholding tax may also subject us to penalties. </FONT></P>

<P><FONT SIZE=2><B>China's legal system embodies uncertainties that could negatively impact our business  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;China has a civil law system. Decided court cases do not have binding legal effect on future decisions. Since 1979, many new laws and regulations covering general
economic matters have been promulgated in China. Despite this activity to develop the legal system, China's system of laws is not yet complete. Even where adequate law exists in China, enforcement of
existing laws or contracts based on existing law may be uncertain and sporadic and it may be difficult to obtain swift and equitable enforcement, or to obtain enforcement of a judgment by a court of
another jurisdiction. The relative inexperience of China's judiciary in many cases creates additional uncertainty as to the outcome of any litigation. Further, interpretation of statutes and
regulations may be subject to government policies reflecting domestic political changes. Moreover, government policies and internal rules promulgated by governmental agencies may not be published in
time, or at all. As a result, we may operate our business in violation of new rules and policies without having any knowledge of their existence. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;China
has adopted a broad range of related laws, administrative rules and regulations that govern the conduct and operations of foreign investment enterprises and restrict the ability of
foreign companies to conduct business in China. These laws, rules and regulations provide some incentives to </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>54</FONT></P>

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<P><FONT SIZE=2>
encourage the flow of investment into China, but also subject foreign companies, and foreign investment enterprises, including our subsidiaries in China, to a set of restrictions that may not always
apply to domestic companies in China. As a result of its admission into the WTO, China is increasingly according foreign companies and foreign investment enterprises established in China the same
rights and privileges as Chinese domestic companies. These special laws, administrative rules and regulations governing foreign companies and foreign investment enterprises may still place us and our
subsidiaries at a disadvantage in relation to Chinese domestic companies and may adversely affect our competitive position. Moreover, as China's legal system develops, the promulgation of new laws,
changes to existing laws and the pre-emption of local regulations by national laws may adversely affect foreign investors and companies. Many of our activities and products in China are
subject to administrative review and approval by various national and local agencies of China's government. Because of the changes occurring in China's legal and regulatory structure, we may not be
able to secure the requisite governmental approval for our activities and products. Failure to obtain the requisite government approval for any of our activities or products could substantially harm
our business. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dy2327_risks_relating_to_our_stock_performance"> </A>
<A NAME="toc_dy2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>RISKS RELATING TO OUR STOCK PERFORMANCE    <BR>  </B></FONT></P>

<P><FONT SIZE=2><B>Our stock price is highly volatile  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trading price of our common stock has fluctuated significantly since our initial public offering in March&nbsp;2000. Our stock price could be subject to
wide fluctuations in the future in response to many events or factors, including those discussed in the preceding risk factors relating to our operations, as well as: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>actual
or anticipated fluctuations in operating results, actual or anticipated gross profit as a percentage of net sales, our actual or anticipated rate of
growth and our actual or anticipated earnings per share;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>changes
in expectations as to future financial performance or changes in financial estimates or buy/sell recommendations of securities analysts;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>changes
in governmental regulations or policies in China, such as the temporary suspension of sales of our PAS systems that occurred in May and June of 2000,
which caused our stock price to drop;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>our,
or a competitor's, announcement of new products, services or technological innovations;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
operating and stock price performance of other comparable companies; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>news
and commentary emanating from the media, securities analysts, and government bodies in China relating to UTStarcom and to the industry in general. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General
market conditions and domestic or international macroeconomic factors unrelated to our performance may also affect our stock price. For these reasons, investors should not rely
on recent trends to predict future stock prices or financial results. In addition, following periods of volatility in a company's securities, securities class action litigation against a company is
sometimes instituted. This type of litigation could result in substantial costs and the diversion of management time and resources. </FONT></P>

<P><FONT SIZE=2><B>SOFTBANK CORP. and its related entities, including SOFTBANK America&nbsp;Inc., has significant influence over our management and affairs, which it could exercise against your
best interests  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SOFTBANK CORP. and its related entities, including SOFTBANK America&nbsp;Inc., beneficially own 21.3% of our outstanding stock. As a result, SOFTBANK CORP. and
its related entities, including SOFTBANK America&nbsp;Inc., have the ability to exercise significant influence over all matters submitted to our stockholders for approval and exert significant
influence over our management and affairs. This concentration of ownership may delay or prevent a change of control or discourage a potential acquirer </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>55</FONT></P>

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<P><FONT SIZE=2>
from making a tender offer or otherwise attempting to obtain control of our company, which could decrease the market price of our common stock. Matters that could require stockholder approval
include: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>election
and removal of directors;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>merger
or consolidation of our company; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>sale
of all or substantially all of our assets. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
interests of SOFTBANK America&nbsp;Inc. may not always coincide with our interests. SOFTBANK America&nbsp;Inc., acting through its designees on the Board of Directors and through
its ownership of voting securities, will have the ability to exercise significant influence over our actions irrespective of the desires of our other stockholders or directors. </FONT></P>

<P><FONT SIZE=2><B>Delaware law and our charter documents contain provisions that could discourage or prevent a potential takeover, even if the transaction would benefit our stockholders  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other companies may seek to acquire or merge with us. An acquisition or merger of our company could result in benefits to our stockholders, including an increase
in the value of our common stock. Some provisions of our Certificate of Incorporation and Bylaws, as well as provisions of Delaware law, may discourage, delay or prevent a merger or acquisition that a
stockholder may consider favorable. These provisions include: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>authorizing
the Board of Directors to issue additional preferred stock;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>prohibiting
cumulative voting in the election of directors;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>limiting
the persons who may call special meetings of stockholders;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>prohibiting
stockholder action by written consent;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>creating
a classified Board of Directors pursuant to which our directors are elected for staggered three year terms; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>establishing
advance notice requirements for nominations for election to the Board of Directors and for proposing matters that can be acted on by
stockholders at stockholder meetings. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><A
NAME="dy2327_item_3_#151;quantitative_and_q__ite02622"> </A>
<A NAME="toc_dy2327_2"> </A>
<BR></FONT><FONT SIZE=2><B>ITEM 3&#151;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS    <BR>  </B></FONT></P>

<UL>

<P><FONT SIZE=2>We
are exposed to the impact of interest rate changes, changes in foreign currency exchange rates and changes in the stock market. </FONT></P>

</UL>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Risk.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio.
The fair value of our investment portfolio would not be significantly affected by either a 10% increase or decrease in interest rates due mainly to the short- term nature of most of our investment
portfolio. However, our interest income can be sensitive to changes in the general level of U.S. interest rates since the majority of our funds are invested in instruments with maturities less than
one year. Our policy is to limit the risk of principal loss and ensure the safety of invested funds by generally attempting to limit market risk. Funds in excess of current operating requirements are
mostly invested in government-backed notes, commercial paper, floating rate corporate bonds, fixed income corporate bonds and tax exempt instruments. In accordance with our investment policy, all
short-term investments are invested in "investment grade" rated securities with minimum A or better ratings. Currently, most of our short-term investments have AA or better
ratings. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>56</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below represents carrying amounts and related weighted-average interest rates of maturity of interest bearing instruments in our investment portfolio at September&nbsp;30,
2002: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="75%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="82%" ALIGN="LEFT"><FONT SIZE=2>(In thousands, except interest rates)<BR></FONT>
<BR></TH>
<TH WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2><BR>
Cash and cash equivalents</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2><BR>
307,240</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2>Average interest rate</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>1.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2>Short-term investments</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>58,914</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2>Average interest rate</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>1.7</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2>Total investment securities</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>366,154</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2>Average interest rate</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>1.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD>
</TR>
</TABLE></DIV>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part
of our investment portfolio has recently included an equity investment in a publicly traded company, the value of which is subject to market price volatility. Recent events have
adversely affected
the public equities market and general economic conditions may continue to worsen. Should the fair value of our publicly traded equity investments decline below their cost basis in a manner deemed to
be other-than-temporary, it may become necessary for us to take an impairment charge. We have also invested in several privately held companies as well as investment funds
which invest primarily in privately held companies, many of which can still be considered in the start-up or development stages. These investments are inherently risky, as the market for
the technologies or products they have under development are typically in the early stages and may never materialize. We could lose our entire initial investment in these companies and investment
funds. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Exchange Rate Risk.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;We are exposed to foreign exchange rate risk because most of our sales in China are denominated
in Renminbi and portions of our accounts payable are denominated in Japanese Yen. Due to the limitations on converting Renminbi, we are limited in our ability to engage in currency hedging activities
in China. Although the impact of currency fluctuations of Renminbi to date has been insignificant, fluctuations in currency exchange rates in the future may have a material adverse effect on our
results of operations. We have a multi-currency bank account in Japanese Yen for purchasing portions of our inventories and supplies. The balance of this Japanese Yen account as of
September&nbsp;30, 2002 is approximately $21.9&nbsp;million. </FONT></P>

<P><FONT SIZE=2><A
NAME="dy2327_item_4_#151;controls_and_procedures"> </A>
<A NAME="toc_dy2327_3"> </A>
<BR></FONT><FONT SIZE=2><B>ITEM 4&#151;CONTROLS AND PROCEDURES    <BR>  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Evaluation
of disclosure controls and procedures. Our chief executive officer and our chief financial officer, after evaluating the effectiveness of the Company's disclosure controls
and procedures (as defined in Rules&nbsp;13a-14(c) and 15d-14(c) of the Securities Exchange Act of 1934) as of a date (the "Evaluation Date") within 90&nbsp;days before the
filing date of this quarterly report, believe that as of the Evaluation Date, the Company's disclosure controls and procedures were adequate and effective to ensure that material information relating
to the Company would be made known to them by others within the Company.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Changes
in internal controls. There were no significant changes in our internal controls or in other factors that could significantly affect our disclosure controls and procedures
subsequent to the Evaluation Date. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>57</FONT></P>

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<P><FONT SIZE=2><A
NAME="ea2327_part_ii_#151;other_information"> </A>
<A NAME="toc_ea2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>PART II&#151;OTHER INFORMATION    <BR>  </B></FONT></P>

<P><FONT SIZE=2><A
NAME="ea2327_item_2_#151;changes_in_securities_and_use_of_proceeds"> </A>
<A NAME="toc_ea2327_2"> </A></FONT> <FONT SIZE=2><B>ITEM 2&#151;CHANGES IN SECURITIES AND USE OF PROCEEDS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We completed our initial public offering ("IPO") on March&nbsp;3, 2000 pursuant to a Registration Statement on Form&nbsp;S-1 (File
No.&nbsp;333-93069). In the IPO, we sold an aggregate of 11,500,000 shares of common stock (including an over-allotment option of 1,500,000 shares) at $18.00 per share. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
managing underwriters of our initial public offering were Merrill Lynch&nbsp;&amp; Co., Banc of America Securities LLC, U.S. Bancorp Piper Jaffray, Merrill Lynch Japan&nbsp;Inc. and
E-TRADE Securities Co.,&nbsp;Ltd. The sale of the shares of common stock generated aggregate gross proceeds of approximately $207.0&nbsp;million. The aggregate net proceeds was
approximately $189.4&nbsp;million, after deducting underwriting discounts and commissions of approximately $14.5&nbsp;million and expenses of the offering of approximately $3.1&nbsp;million.
None of such amounts were direct or indirect payments to our directors or officers or their associates, to persons owning 10&nbsp;percent or more of any class of our equity securities or to our
affiliates. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
completed a follow-on public offering on August&nbsp;3, 2001 pursuant to a Registration Statement on Form&nbsp;S-3 (File No.&nbsp;333-63356).
A total of 10,350,000 shares of common stock (including the underwriters' over-allotment) were registered. We sold an aggregate of 7,400,000 shares of common stock, which included the
underwriters' over-allotment, at a price to the public of $20.00 per share. Selling stockholders sold an additional 2,950,000 shares of common stock in the offering. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
managing underwriter of our follow on public offering was Merrill Lynch&nbsp;&amp; Co. Salomon Smith Barney, Banc of America Securities LLC, HSBC Securities (USA)&nbsp;Inc., and U.S.
Bancorp Piper Jaffray served as co-managers of our offering. The sale of the shares of common stock generated aggregate gross proceeds of approximately $148.0&nbsp;million. The aggregate
net proceeds that we received was approximately $139.9&nbsp;million, after deducting underwriting discounts and commissions of approximately $7.3&nbsp;million and expenses of the offering of
approximately $1.0&nbsp;million. None of such amounts were direct or indirect payments to our directors or officers or their associates, to persons owning 10&nbsp;percent
or more of any class of our equity securities or to our affiliates. The aggregate gross proceeds for the selling stockholders was approximately $59.0&nbsp;million. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February&nbsp;28, 2002, we sold 1,500,000 shares of common stock upon exercise of the underwriter's over-allotment option in connection with the resale public offering
of 10,000,000 shares of our common stock by SOFTBANK America&nbsp;Inc., one of our stockholders, at a price to the public of $20.25 per share, pursuant to a Registration Statement on
Form&nbsp;S-3 (File No.&nbsp;333-82458). A total of 11,500,000 shares of common stock were registered. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
joint book-running managers of this public offering were Merrill Lynch&nbsp;&amp; Co. and Credit Suisse First Boston Corporation. Salomon Smith Barney, Banc of America
Securities LLC, U.S. Bancorp Piper Jaffray and HSBC Securities (USA)&nbsp;Inc., served as co-managers of our offering. The aggregate net proceeds we received was approximately
$28.9&nbsp;million, after deducting underwriting discounts and commissions and related expenses of $1.5&nbsp;million. None of such amounts were direct or indirect payments to our directors or
officers or their associates, to persons owning 10&nbsp;percent or more of any class of our equity securities or to our affiliates. We did not receive any proceeds from the offering of the shares of
our common stock by SOFTBANK America&nbsp;Inc. The aggregate gross proceeds for SOFTBANK America&nbsp;Inc., was approximately $202.5&nbsp;million. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
expect to use the net proceeds from these offerings for general corporate purposes, including research and development, expansion of our sales and marketing organization and working
capital and capital expenditures. The amounts actually expended for such purposes may vary significantly and will depend on a number of factors, including our future revenues and cash generated by
operations and the other factors described under "Factors Affecting Future Operating Results". Accordingly, we retain broad discretion in the allocation of the net proceeds of the offerings. A portion
of the net proceeds </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>58</FONT></P>

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<P><FONT SIZE=2>
may also be used to acquire or invest in complementary businesses, technologies or product offerings. As of October&nbsp;31, 2002 we have not used any of the net proceeds from the offerings
described above, and the entire amount of net proceeds from such offerings remains in our cash and cash equivalents and short-term investments accounts. </FONT></P>


<P><FONT SIZE=2><A
NAME="ea2327_item_5_#151;other_information"> </A>
<A NAME="toc_ea2327_3"> </A>
<BR></FONT><FONT SIZE=2><B>ITEM 5&#151;OTHER INFORMATION    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our directors, officers, or employees have entered, and may from time to time enter, into good faith trading plans pursuant to SEC
Rule&nbsp;10b5-1(c). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
audit committee has approved the performance of non-audit services by PricewaterhouseCoopers LLP. </FONT></P>


<P><FONT SIZE=2><A
NAME="ea2327_item_6_#151;exhibits_and_reports_on_form_8-k"> </A>
<A NAME="toc_ea2327_4"> </A>
<BR></FONT><FONT SIZE=2><B>ITEM 6&#151;EXHIBITS AND REPORTS ON FORM 8-K    <BR>  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Exhibits:
</FONT></DD></DL>
</UL>
<BR>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="12%" ALIGN="LEFT"><FONT SIZE=1><B>NUMBER<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="85%" ALIGN="CENTER"><FONT SIZE=1><B>EXHIBIT DESCRIPTION</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>10.78</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>*</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Professional Services Agreement between UTStarcom, Inc. and N.&nbsp;Lohr Bangle, Jr. dated as of September&nbsp;10, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.79</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>*</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
Teaming Agreement between UTStarcom, Inc. and Stellar Holdings, LLC dated as of September&nbsp;10, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.80</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>*</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
Joint Venture Contract between UTStarcom Telecom Co., Ltd., Matsushita Electric Industrial Co., Ltd. and Matsushita Communication Industrial Co., Ltd. dated as of July&nbsp;5, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.81</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>*</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
Amendment to OEM Agreement between UTStarcom, Inc. and Interwave Communications dated as of September&nbsp;27, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
Certification of Chief Executive Officer Pursuant to 18&nbsp;U.S.C. Section&nbsp;1350, as Adopted Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
Certification of Chief Financial Officer Pursuant to 18&nbsp;U.S.C. Section&nbsp;1350, as Adopted Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD><FONT SIZE=2>Certain
information in this Exhibit has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Reports
on Form&nbsp;8-K: </FONT></DD></DL>
</DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
current report on Form&nbsp;8-K was filed on August&nbsp;29, 2002 by the Company in connection with the repurchase of 6,000,000 shares of its common stock from SOFTBANK
Corp. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>59</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_jc2327_1_60"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><B>UTSTARCOM,&nbsp;INC.  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="jc2327_signatures"> </A>
<A NAME="toc_jc2327_1"> </A></FONT> <FONT SIZE=2><B>SIGNATURES    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized. </FONT></P>

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<TD WIDTH="49%"><FONT SIZE=2>Date: November 8, 2002</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>UTSTARCOM, INC.<BR>
(Registrant)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
BY:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>HONG LIANG LU</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Hong Liang Lu<BR></FONT> <FONT SIZE=2><I>President, Chief Executive Officer and Director</I></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>MICHAEL J. SOPHIE</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Michael J. Sophie<BR></FONT> <FONT SIZE=2><I>Chief Financial Officer and Assistant Secretary</I></FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>60</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_je2327_1_61"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="je2327_certification"> </A>
<A NAME="toc_je2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>CERTIFICATION    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Hong Liang Lu, certify that: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>I
have reviewed this quarterly report on Form&nbsp;10-Q of UTStarcom,&nbsp;Inc.;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Based
on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>Based
on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>The
registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules&nbsp;13a-14 and 15d-14) for the registrant and we have:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>a)</FONT></DT><DD><FONT SIZE=2>designed
such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this quarterly report is being prepared;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>b)</FONT></DT><DD><FONT SIZE=2>evaluated
the effectiveness of the registrant's disclosure controls and procedures as of a date within 90&nbsp;days prior to the filing date of this quarterly report (the "Evaluation
Date"); and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>c)</FONT></DT><DD><FONT SIZE=2>presented
in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; </FONT></DD></DL>
</DD></DL>
<UL>
<BR>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>The
registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent function):
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>a)</FONT></DT><DD><FONT SIZE=2>all
significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial
data and have identified for the registrant's auditors any material weaknesses in internal controls; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>b)</FONT></DT><DD><FONT SIZE=2>any
fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and </FONT></DD></DL>
</DD></DL>
<UL>
<BR>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>6.</FONT></DT><DD><FONT SIZE=2>The
registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. </FONT></DD></DL>
<BR>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Date: November 8, 2002</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>HONG LIANG LU</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Hong Liang Lu<BR></FONT> <FONT SIZE=2><I>Chief Executive Officer</I></FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>61</FONT></P>

<HR NOSHADE>
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<A NAME="page_je2327_1_62"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="je2327_certification_1"> </A>
<A NAME="toc_je2327_2"> </A>
<BR></FONT><FONT SIZE=2><B>CERTIFICATION    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Michael J. Sophie, certify that: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>I
have reviewed this quarterly report on Form&nbsp;10-Q of UTStarcom,&nbsp;Inc.;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Based
on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>Based
on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>The
registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules&nbsp;13a-14 and 15d-14) for the registrant and we have:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>a)</FONT></DT><DD><FONT SIZE=2>designed
such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this quarterly report is being prepared;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>b)</FONT></DT><DD><FONT SIZE=2>evaluated
the effectiveness of the registrant's disclosure controls and procedures as of a date within 90&nbsp;days prior to the filing date of this quarterly report (the "Evaluation
Date"); and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>c)</FONT></DT><DD><FONT SIZE=2>presented
in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; </FONT></DD></DL>
</DD></DL>
<UL>
<BR>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>The
registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent function):
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>a)</FONT></DT><DD><FONT SIZE=2>all
significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial
data and have identified for the registrant's auditors any material weaknesses in internal controls; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>b)</FONT></DT><DD><FONT SIZE=2>any
fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and </FONT></DD></DL>
</DD></DL>
<UL>
<BR>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>6.</FONT></DT><DD><FONT SIZE=2>The
registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. </FONT></DD></DL>
<BR>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Date: November 8, 2002</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>MICHAEL J. SOPHIE</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Michael J. Sophie<BR></FONT> <FONT SIZE=2><I>Chief Financial
Officer</I></FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>62</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_ka2327_1_63"> </A> </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ka2327_utstarcom,_inc._exhibit_index"> </A>
<A NAME="toc_ka2327_1"> </A>
<BR></FONT><FONT SIZE=2><B>UTSTARCOM,&nbsp;INC.<BR>  EXHIBIT INDEX    <BR>  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="12%" ALIGN="LEFT"><FONT SIZE=1><B>NUMBER<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="85%" ALIGN="CENTER"><FONT SIZE=1><B>EXHIBIT DESCRIPTION</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>10.78</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>*</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Professional Services Agreement between UTStarcom, Inc. and N.&nbsp;Lohr Bangle, Jr. dated as of September&nbsp;10, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.79</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>*</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
Teaming Agreement between UTStarcom, Inc. and Stellar Holdings, LLC dated as of September&nbsp;10, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.80</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>*</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
Joint Venture Contract between UTStarcom Telecom Co., Ltd., Matsushita Electric Industrial Co., Ltd. and Matsushita Communication Industrial Co., Ltd. dated as of July&nbsp;5, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.81</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>*</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
Amendment to OEM Agreement between UTStarcom, Inc. and Interwave Communications dated as of September&nbsp;27, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
Certification of Chief Executive Officer Pursuant to 18&nbsp;U.S.C. Section&nbsp;1350, as Adopted Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2><BR>
Certification of Chief Financial Officer Pursuant to 18&nbsp;U.S.C. Section&nbsp;1350, as Adopted Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD><FONT SIZE=2>Certain
information in this Exhibit has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>63</FONT></P>

<HR NOSHADE>
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<BR>
<P><br><A NAME="02PAL2327_1">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_bg2327_1">TABLE OF CONTENTS</A></FONT><BR>
<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_de2327_1">PART I&#151;FINANCIAL INFORMATION</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de2327_2">ITEM 1&#151;CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_de2327_3">UTSTARCOM, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per share data)</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dg2327_1">UTSTARCOM, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except per share data)</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_di2327_1">UTSTARCOM, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands)</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dk2327_1">UTSTARCOM, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)</A></FONT><BR>

<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_do2327_1">ITEM 2&#151;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ds2327_1">FACTORS AFFECTING FUTURE OPERATING RESULTS RISKS RELATING TO OUR COMPANY</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dw2327_1">RISKS RELATING TO THE STRUCTURE AND REGULATION OF CHINA'S TELECOMMUNICATIONS INDUSTRY</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dw2327_2">RISKS RELATING TO CONDUCTING OPERATIONS IN CHINA</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dy2327_1">RISKS RELATING TO OUR STOCK PERFORMANCE</A></FONT><BR>
<UL>
<FONT SIZE=2><A HREF="#toc_dy2327_2">ITEM 3&#151;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dy2327_3">ITEM 4&#151;CONTROLS AND PROCEDURES</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_ea2327_1">PART II&#151;OTHER INFORMATION</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ea2327_2">ITEM 2&#151;CHANGES IN SECURITIES AND USE OF PROCEEDS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ea2327_3">ITEM 5&#151;OTHER INFORMATION</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ea2327_4">ITEM 6&#151;EXHIBITS AND REPORTS ON FORM 8-K</A></FONT><BR>
</UL>
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<FONT SIZE=2><A HREF="#toc_jc2327_1">SIGNATURES</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_je2327_1">CERTIFICATION</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_je2327_2">CERTIFICATION</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_ka2327_1">UTSTARCOM, INC. EXHIBIT INDEX</A></FONT><BR>
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<TYPE>EX-10.78
<SEQUENCE>3
<FILENAME>a2092993zex-10_78.htm
<DESCRIPTION>EXHIBIT 10.78
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<p align="right" style="font-weight:bold;margin:0in 0in 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit
10.78</font></b></p>

<p align="left" style="font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">[***] 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</font></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTSTARCOM<br>
PROFESSIONAL SERVICES AGREEMENT</font></b></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is made this 10<sup>th</sup> day of September 2002,
between UTStarcom, a Delaware corporation having an address and place of
business at 1275 Harbor Bay Parkway, Alameda, CA 94502, (hereinafter referred
to as &#147;UTStarcom&#148;), and N. Lohr Bangle, Jr. (hereinafter referred to as
&#147;Consultant&#148;), having a Social Security Number of [***].</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Consultant is engaged in the general business of providing
[***] services to a variety of individuals including companies in the wireless
and telecommunications products and services companies;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, UTSI wishes to retain Consultant to provide services related
to its products related to [***].</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants contained herein, it is agreed as follows:</font></p>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Statement
of Work</u>.&#160; During the term of this
Agreement, Consultant will perform services as requested from time to time by
UTStarcom, at such place or places and at such times as shall be mutually
agreeable to the parties hereto.&#160;
Consultant shall assist UTStarcom with [***] supplied by UTSI.&#160; Consultant will coordinate [***] efforts
with companies and individuals and shall provide Purchase Orders for
UTStarcom&#146;s products to prospective customers pursuant to the Reseller
Agreement dated September&nbsp;10, 2002 between [***] and UTStarcom, Inc. (the
&#147;Reseller Agreement&#148;).</font></h1>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Payment</u>.&#160; UTStarcom shall pay Consultant according to
the following schedule:</font></h1>

<h2 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Fees</u>.&#160; In consideration of the services to be
performed by Consultant, UTStarcom agrees to pay Consultant a market
development fee of [***]</font></h2>

<h2 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Payments</u>.&#160; The market development fee for all submitted
Purchase Orders received by UTStarcom from Consultant or attributable end user
customers shall be paid to Consultant within [***] of receipt by the Consultant
of an invoice.&#160; Consultant shall send
invoices to: UTStarcom, Inc., ATTN: Accounts Payable, 1275 Harbor Bay Parkway,
Alameda, CA 94502.</font></h2>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Other
Obligations</u>.&#160; Consultant agrees to
allocate a minimum of [***] for UTSI use.&#160;
There will not be any other expenses or charges for this position unless
mutually agreed upon in writing by both parties.</font></h1>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Term
and Termination</u>.&#160; Consultant&#146;s
authority shall begin as of the date of this Agreement and shall continue for
an initial period of [***] (the &#147;Initial Period&#148;).&#160; At the end of the Initial Period, this Agreement shall
automatically renew for an additional [***] unless either party gives [***]
written notice to the other of intent to terminate Consultant&#146;s authority.</font></h1>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Confidentiality</u>.&#160; Both parties recognize and agree that the
terms of this Agreement and any information regarding each prospective
agreement shall be held confidential by its respective parties, agents,
employees and officers.</font></h1>

<h2 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; During
the term of this Agreement, Consultant will have access to and become
acquainted with various trade secrets and other proprietary and confidential
information which are owned by UTStarcom and which are used in the operation of
UTStarcom&#146;s business (collectively &#147;Confidential Information&#148;).&#160; Confidential Information consists of for
example, and not intending to be inclusive, (i)&nbsp;software (source and
object code), algorithms, computer processing systems, techniques,
methodologies, formulae, processes, compilations of information, drawings,
proposals, job notes, reports, records, and specifications, and
(ii)&nbsp;information concerning any matters relating to the business of
UTStarcom, any of its customers, customer contacts, licenses, the prices it
obtains or has obtained for the licensing of its software products and
services, or any other information concerning the business of UTStarcom and
UTStarcom&#146;s good will.&#160; All Confidential
Information disclosed to Consultant by UTStarcom, or acquired from a customer
or prospective customer of UTStarcom, are and shall remain the sole and
exclusive property and proprietary information of UTStarcom or such customers,
and are disclosed in confidence by UTStarcom or permitted to be acquired from
such customers in reliance on Consultant&#146;s agreement to maintain them in
confidence and not to use or disclose them to any other person except in
furtherance of UTStarcom&#146;s business.&#160;
Consultant specifically agrees to not disclose or use in any manner,
directly or indirectly, any such Confidential Information either during the
term of this Agreement or at any time thereafter, except as required in the
course of providing services pursuant to this Agreement.</font></h2>

<h2 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Nothing
herein shall be construed as an implied patent license under any UTStarcom
patent.</font></h2>

<h2 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Consultant
agrees to obtain an agreement similar to this Section&nbsp;5 from any agent,
employee, or associate performing work under this Agreement, and to be directly
responsible for the acts of such agent, employee, or associate.</font></h2>

<h2 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Consultant
represents and warrants that he/she has reviewed and understands UTStarcom&#146;s
Policy Requiring Compliance with the Economic Espionage Act of 1996 (&#147;EEA
Policy&#148;) (a copy of the policy is attached hereto as Exhibit&nbsp;A, and
incorporated by reference).&#160; Consultant
furthers agrees that by the duly authorized signature below, Consultant agrees
to abide in all respects with the attached EEA Policy.&#160; [***]</font></h2>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Subcontracting</u>.&#160; Consultant will not subcontract or assign
any of the work rights hereunder without prior written approval by UTStarcom.</font></h1>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Relationship
of Consultant</u>.&#160; Consultant will
serve as an independent contractor, and this Agreement will not be deemed to
create a partnership, joint enterprise, or employment</font></h1>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-2-</font></p>


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<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<h1 align="center" style="font-size:12.0pt;font-weight:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</h1>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">relationship
between the parties.&#160; Consultant shall
make appropriate filings with taxing authorities as a self-employed entity and
shall be liable for all required payments to the local, State, Federal, and
other taxing authorities (including income tax and social security and SDI
payments.)&#160; [***]</font></h1>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Eligibility
for Employment</u>.&#160; Consultant warrants
that he/she, and/or any subcontractor or assignee under this Agreement, is
eligible for employment in the United States, as required by the Immigration
Reform and Control Act (IRCA).&#160; [***]</font></h1>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Consultant&#146;s
Warranties</u>.&#160; Consultant warrants that
he/she, and/or any subcontractor or assignee under this Agreement, is
adequately insured for injuries to him/herself that may occur within the course
and scope of Consultant&#146;s provision of services pursuant to this Agreement.&#160; [***]</font></h1>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Foreign
Corrupt Practices Act</u>.&#160; Consultant
represents and warrants that he/she has reviewed and understands UTStarcom&#146;s
Policy Requiring Compliance with the Foreign Corrupt Practices Act (&#147;FCPA
Policy&#148;) (a copy of the policy is attached hereto as Exhibit&nbsp;B, and
incorporated by reference).&#160; Consultant
furthers agrees that by the duly authorized signature below, Consultant agrees
to abide in all respects with the attached FCPA Policy.&#160; [***]</font></h1>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [***]</font></h1>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Interpretation
of Contract</u>.&#160; This Agreement may not
be changed except in writing signed by Consultant and UTStarcom.&#160; This writing contains the entire agreement
between the parties, and supercedes any other prior agreements, whether in
written or oral form.&#160; In the event that
any of the provisions of this Agreement shall be held to be invalid or
unenforceable in whole or in part, those provisions to the extent enforceable
and all other provisions shall nevertheless continue to be valid and
enforceable as though the invalid or unenforceable parts had not been included
in this Agreement.&#160; The validity,
performance, construction, and effect of this Agreement shall be governed by
the laws of the State of California, with the exception of that State&#146;s choice
of law rules.&#160; Any dispute hereunder
will be resolved through binding arbitration using a mutually agreed
arbitrator.</font></h1>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-3-</font></p>


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<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties hereunto state they have the authority
and have duly executed this Agreement on the date first above written.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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  <td width="37%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom, Inc.</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.22%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:36.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consultant</font></p>
  </td>
 </tr>
 <tr>
  <td width="37%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.22%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:36.98%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ David
  Robison</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.22%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:31.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Norm Bangle,
  Jr.</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.68%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.12%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.22%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.16%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.12%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.22%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:31.16%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
</table>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT&nbsp;A</font></u></b></p>

<p style="font-weight:bold;margin:12.0pt 0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTSTARCOM,
INC. POLICY REQUIRING COMPLIANCE WITH THE<br>
ECONOMIC ESPIONAGE ACT OF 1996</font></b></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It is the policy of UTStarcom, Inc. (&#147;UTStarcom&#148;) that both UTStarcom
and its employees comply with the requirements of the Economic Espionage Act of
1996 (&#147;EEA&#148;).</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The EEA provides criminal penalties of up to $10,000,000, 15 years in
prison, or both, where an individual or company knowingly undertakes any of the
following acts (or attempts or conspires with others to commit any of the
following acts):</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Steals, or without authorization appropriates, takes,
carries away, or conceals, or by fraud, artifice or deception obtains a trade
secret;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Without authorization copies, duplicates, sketches,
draws, photographs, downloads, uploads, alters, destroys, photocopies,
replicates, transmits, delivers, sends, mails, communicates, or conveys a trade
secret, or</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Receives, buys, or possesses a trade secret, knowing the
same to have been stolen or appropriated, obtained, or converted without
authorization.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The EEA defines &#147;trade secret&#148; as: &#147;All forms and types of financial,
business, scientific, technical, economic, or engineering information . . .
whether tangible or intangible, and whether or how stored, compiled, or
memorialized physically, electronically, graphically, photographically, or in
writing if: 1)&nbsp;the owner of the trade secret has taken reasonable measures
to keep such information secret; and 2)&nbsp;the information derives
independent economic value, actual or potential, from not being generally known
to, and not being readily ascertainable through proper means by the public.&#148;</font></p>

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<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT B</font></u></b></p>

<p style="font-weight:bold;margin:12.0pt 0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTSTARCOM,
INC.&#160; POLICY REQUIRING COMPLIANCE WITH<br>
THE FOREIGN CORRUPT PRACTICES ACT (FCPA)</font></b></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It is the policy of UTStarcom, Inc. (referred to here as &#147;UTStarcom&#148; or
the &#147;Company&#148;) that:</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
use of Company funds or assets for any unlawful or improper purpose is strictly
prohibited.&#160; No payment shall be made
to, or for the benefit of, government employees for the purpose of, or
otherwise in connection with, the securing of sales to or obtaining favorable
action by a government agency.&#160; Gifts of
substantial value to or lavish entertainment of government employees are
prohibited since they can be construed as attempts to influence government
decisions in matters affecting the Company&#146;s operation.&#160; Any entertaining of public officials, or the
furnishing of assistance in the form of transportation or other services should
be of such nature that the official&#146;s integrity or reputation will not be
compromised.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
offer, payment, or promise to transfer in the future company funds or assets,
or the delivery of gifts or anything else of value to foreign officials,
foreign political parties or officials or candidates of foreign political
parties, is strictly prohibited for the purpose of influencing any act or
decision of any such person in his or her official capacity, including the
decision to fail to perform his or her official functions, or to use such
persons or party&#146;s influence with a foreign government or instrumentality in
order to affect or to influence any act or decision of such government or
instrumentality in order to assist the Company in obtaining or retaining
business for or with, or directing business to any person or entity.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
records must truly reflect the transactions they record.&#160; All assets and liabilities shall be recorded
in the regular books of account.&#160; No
undisclosed or unrecorded fund or asset shall be established for any
purpose.&#160; No false or artificial entries
shall be made in the books and records for any reason.&#160; No payment shall be approved or made with
the intention or understanding that any part of such payment is to be used for
any purpose other than that described by the document supporting the payment.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No
political contribution shall be made, directly or indirectly, with corporate
funds or assets regardless of whether the contributions are legal under the
laws of the country in which they are made.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any
person who learns of or suspects a violation of this Policy should promptly
report the matter to the President or Chief Financial Officer, as appropriate
in the circumstances.&#160; All managers
shall be responsible for the enforcement of and compliance with this Policy,
including the necessary distribution to insure employee knowledge and
compliance.</font></p>

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<DESCRIPTION>EXHIBIT 10.79
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<p align="right" style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 10.79</font></b></p>

<p align="left" style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">[***] 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</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">TEAMING AGREEMENT</font></b></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is made
and entered into as of September&nbsp;10, 2002, by and between Stellar
Holdings, LLC, a Texas Limited Liability Company and UTStarCom, Inc. a Delaware
Corporation for the purpose of pursuing telecommunications wireless local loop
and related projects as described in <u>Exhibit&nbsp;&#148;A&#148;</u> hereto.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b><font size="2" style="font-size:10.0pt;">, Stellar Holdings, LLC together with its
affiliate companies, is a company whose management team has substantial
experience and a solid record of success in developing telecommunications
partnerships and consortia.&#160; Stellar is
in the process of [***]. Stellar Holdings, LLC agrees to provide [***] and
other related services for telecommunications opportunities developed by the
Team.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b><font size="2" style="font-size:10.0pt;">, UTStarCom, Inc. is a publicly traded
company experienced in communications network equipment and product development
of miscellaneous components for wireless telecommunications.&#160; These products can be summarized as
communications equipment for wireless telephony networks.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b><font size="2" style="font-size:10.0pt;">, Stellar and UTStarCom have identified
certain projects in the telecommunications industry where third parties
(hereinafter called &#147;Partners&#148;) require, pursue, solicit or postulate [***]
and/or other required and related services (hereinafter called &#147;Services&#148;).</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b><font size="2" style="font-size:10.0pt;">, Stellar and UTStarCom believe it to be
mutually advantageous to form a teaming arrangement in order to pursue current
and future opportunities related to selected Partners and related Services, and
if successful, procure and provision Services with respect thereto.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THEREFORE</font></b><font size="2" style="font-size:10.0pt;">, UTStarCom, Inc. and Stellar Holdings,
LLC agree to work together to form a strong and mutually beneficial team
(heretofore and hereinafter called the &#147;Team&#148;) and to work in cooperation for
the development of Partnerships and Consortia as appropriate for the projects
listed in <u>Exhibit&nbsp;A</u> together with others that may be subsequently
and mutually agreed to fall under this Agreement (heretofore and hereinafter
called &#147;Projects&#148;).&#160; As more fully set
forth below, Stellar and UTStarCom intend to mutually endeavor to facilitate
and participate in the Projects.</font></p>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;1</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Submission of Proposals</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stellar Holdings, LLC
shall undertake to accomplish certain tasks in connection with the pursuits and
preparation of the Agreements and proposals to be submitted to the
Partners.&#160; The detailed organization and
function of the Partnerships will be agreed upon specifically for each</font></p>


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</font></div>

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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">project after
receipt and evaluation of the individual project requirements.&#160; It is understood that Stellar is responsible
for organizing and managing the proposal efforts.&#160; Additionally, Stellar shall be responsible for the final draft of
all Partnership documents and for submittal of the Proposal to the
Partners.&#160; The parties shall provide all
information at their disposal or reasonably attainable that is relevant to and
helpful to the proposal development, shall directly participate in the proposal
development efforts as required, and review the technical and
business/management Proposals prior to submittal.</font></p>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;2</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance of Contracts</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Team shall provide
such commercially reasonable assistance and support as may be requested for any
and all negotiations for Partnership Contracts and Agreements.&#160; Stellar shall be responsible for overseeing
the Projects and shall serve as the sole interface between the Partnerships and
all Suppliers and Contractors and will be responsible for all liabilities
associated with these contracts, suppliers and contractors.</font></p>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;3</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exclusivity</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To preserve the concepts
and ideas of the parties hereto in the competition for the Projects, UTStarCom
and Stellar agree to work exclusively with each other solely with respect to
the projects identified in <u>Exhibit&nbsp;A</u>.&#160; Likewise, Stellar Holdings, LLC shall work exclusively with
UTStarCom, Inc. solely with respect to specific and identified
telecommunications services for the projects.&#160;
UTStarCom, Inc. and Stellar Holdings, LLC each acknowledge that other
teaming partners may be appropriate for specific tasks on specific projects,
but such relationships shall be undertaken with the knowledge and prior written
consent of the other party.</font></p>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;4</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Discounts</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As outlined and agreed to
in the Reseller&#146;s Agreement attached hereto as <u>Exhibit&nbsp;B</u>, Stellar
Holdings, LLC is entitled to [***] for the term of the Reseller&#146;s Agreement.</font></p>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;5</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commitments</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nothing in this Agreement
shall grant to either party the right to make commitments of any kind for or on
behalf of the other party without the prior written consent of the other party,
nor shall this Agreement be construed as a joint venture or partnership, nor
shall this Agreement be construed as a commitment by either party to enter into
either a partnership or partnership.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-2-</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<h1 style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;6</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cooperation and
Assistance</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each party shall
furnish to the other party such cooperation and assistance as may be reasonably
required hereunder, provided, however, that the parties, as between themselves,
shall be deemed to be independent contractors, and the employees of one shall
not be deemed to be employees of the other.&#160;
Additionally the parties agree that they will not initiate efforts aimed
at the hiring of each other&#146;s personnel who may be part of the Proposal or
Contract Team, without prior consent of the other party, for a period of [***]
from the date of this Agreement, whichever shall last occur.</font></p>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;7</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exchange of Technology</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of this
Agreement, each party agrees to receive, from the other, technical information
and data (hereinafter called &#147;data&#148;) for the purpose of responding to the
project requirements.&#160; As between the
parties hereto, the provisions of this Article&nbsp;7 shall supersede the
provisions of any legend which may be affixed to said data by the disclosing
party and the provisions of such legend shall be without any force or effect.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For a term of two (2)
years from the date of this Agreement, each party agrees to keep in confidence
and prevent the disclosure to any person or persons outside its own
organization all data (i)&nbsp;which is designated in writing, by appropriate
stamp (or legend) by the disclosing party, to be of a proprietary or
confidential nature, (ii)&nbsp;which pertains to proprietary or confidential
data regarding the disclosing party&#146;s technological techniques, processes,
inventions, and research and development, <u>provided</u>, <u>however</u>, that
neither party shall be liable for use or disclosure of any such data if the
same:</font></p>

<h2 align="left" style="font-weight:normal;margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Is in the public domain at the time
it is disclosed; or</font></h2>

<h2 align="left" style="font-weight:normal;margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Is known as demonstrated by written
documentation, to the party receiving it at the time of disclosure; or</font></h2>

<h2 align="left" style="font-weight:normal;margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Is used or disclosed with the prior
written approval of the other party, or</font></h2>

<h2 align="left" style="font-weight:normal;margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Becomes known to the receiving party
from a source other than the disclosing party who then possessed the legal
right to disclose the data; or</font></h2>

<h2 align="left" style="font-weight:normal;margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Is disclosed under this Agreement to
the Government or an authorized representative thereof, or to fulfill the
obligations of either party under a Government contract or subcontract.</font></h2>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-3-</font></p>


<div align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=3,EFW="2092993",CP="UTSTARCOM, INC.",DN="3",CHK=230727,FOLIO='-3-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-79_2332.CHC",USER="DNICHOL",CD='Nov  7 19:24 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<h1 style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;8</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Term and Termination</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The term of this Agreement,
during which data may be received hereunder, shall be for a period of [***]
from the date hereof.&#160; This Agreement
shall also terminate (i)&nbsp;by mutual agreement between the parties; or
(ii)&nbsp;by either party upon the breach of any of the material terms of this
Agreement, where such breach had gone unremedied for a period of thirty (30)
calendar days following the aggrieved party&#146;s dispatch of written notice to the
breaching party Stellar Holdings, LLC</font></p>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;9</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Security</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To the extent that
obligations of the parties hereunder involve access to classified information,
UTStarCom, Inc. and Stellar Holdings, LLC shall conform to all appropriate
security regulations and requirements of the Partners, and shall be responsible
for safeguarding all classified information that may come into their possession
in connection with the performance of this Agreement.</font></p>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;10</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Conflict of Interest</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each party hereby
represents and covenants that neither it nor any of its employees or
representatives has or shall have, directly, or indirectly, any agreement or
arrangement with any official, employee or representative of any customer or
any government or governmental agency or of any political party under which any
such official, employee, representative or political party shall receive either
directly or indirectly anything of value whether monetary or otherwise as a
result of or in connection with any actual or contemplated sale of any product
or service of itself or any of its affiliated companies.&#160; In addition, each party shall disclose to
the other relevant information bearing on the possible existence of any
organizational conflicts of interest.&#160;
In the event that either party has reason to believe that it has, or may
have, a potential or actual organizational conflict of interest with respect to
any of the projects falling under the purview of this Agreement it shall so
notify the other party as soon as reasonably possible.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event that either
party reasonably believes that the other has an organizational conflict of
interest with respect to any particular project, the parties hereto will seek
in good faith to resolve the matter in a manner acceptable to themselves and
the Partners.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-4-</font></p>


<div align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=4,EFW="2092993",CP="UTSTARCOM, INC.",DN="3",CHK=256504,FOLIO='-4-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-79_2332.CHC",USER="DNICHOL",CD='Nov  7 19:24 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<h1 style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;11</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assignment and Subcontracting</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement shall not
be assigned by either party without the prior written approval of the other
party.</font></p>

<h1 style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;12</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Disclosure and Publicity</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It is understood and
agreed that either Stellar Holdings, LLC and UTStarCom, Inc. may, in its discretion,
disclose the terms and conditions of this Agreement (as it may be amended from
time to time) to the Partners.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No releases shall be made
to the news media or the general public relating to this Agreement by either
party without the prior written approval of the other party of which approval
shall not be unreasonably withheld.&#160; The
parties further agree that news releases made by either of them shall recognize
the participation and contributions of the other party.</font></p>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;13</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Development of Opportunities</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Team shall work
jointly and separately to develop telecommunications opportunities in keeping
with the business objectives of the individual team members.</font></p>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;14</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sanctioned Business Exclusions</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The parties to this
Agreement shall work exclusively with each other, as hereinbefore stated in
Article&nbsp;3 with respect to Projects, however either party (including any
officer, director, employee, shareholder, member, partner or other person
holding a legal or beneficial interest in Stellar or UTStarCom) may engage in
or possess an interest in other business ventures of every nature and
description, independently or with others including, but not limited to, any
business venture which competes or may compete with the Projects, Stellar or
UTStarCom.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-5-</font></p>


<div align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=5,EFW="2092993",CP="UTSTARCOM, INC.",DN="3",CHK=57722,FOLIO='-5-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-79_2332.CHC",USER="DNICHOL",CD='Nov  7 19:24 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE&nbsp;15</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notices</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All notices hereunder
shall be given by letter addresses, except as each may change its address
pursuant hereto as follows:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.02%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stellar Holdings, LLC</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.44%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="55%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:55.54%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarCom, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.02%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">190 South Seguin Ave,
  Suite 200</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.44%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="55%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:55.54%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.02%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New Braunfels, Texas
  78130</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.44%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="55%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:55.54%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.02%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Mr. N. Lohr
  Bangle, Jr.</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.44%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="11%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:11.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:</font></p>
  </td>
  <td width="44%" valign="top" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:44.46%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
</table>

<h1 style="margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE
17</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Applicable Law</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement shall be
governed by and construed in accordance with the laws of the State of Texas
without giving effect to the conflicts of law principles thereof.&#160; The parties agree that a judgment in any
such dispute may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law.</font></p>

<h1 style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 18</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Damages Limitation</font></b></h1>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In no event shall either
of the parties hereto be liable for consequential, special, or indirect
damages, including lost profits or lost goodwill, whether arising from
contract, negligence, or any other legal cause of action.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first above written.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarCom, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ David Robison</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
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  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
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 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stellar Holdings, LLC</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Norm Bangle, Jr.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">N. Lohr Bangle, Jr.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Managing Partner</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-6-</font></p>


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</font></div>

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<!-- ZEQ.=1,SEQ=6,EFW="2092993",CP="UTSTARCOM, INC.",DN="3",CHK=330118,FOLIO='-6-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-79_2332.CHC",USER="DNICHOL",CD='Nov  7 19:24 2002' -->
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT&nbsp;A</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Projects</font></b></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>


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<!-- ZEQ.=1,SEQ=7,EFW="2092993",CP="UTSTARCOM, INC.",DN="3",CHK=106911,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-79_2332.CHC",USER="DNICHOL",CD='Nov  7 19:24 2002' -->
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT&nbsp;B</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reseller&#146;s Agreement</font></b></p>


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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">RESELLER
AGREEMENT<br>
(North America/Single Tier)</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTSTARCOM<b><font style="font-weight:bold;">: </font></b></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTSTARCOM, Inc.</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="36%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:36.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RESELLER: Stellar Holdings, LLC</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="36%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:36.68%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Incorporation:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="36%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:36.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Incorporation: Texas (LLC)</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="36%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:36.68%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1275 Harbor Bay Parkway</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="24%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:24.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">190 South Seguin Avenue, #200</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Alameda, California 94502</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.74%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="24%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:24.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New Braunfels, TX 78130</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="24%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:24.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Legal Department</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="24%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:24.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Norm Bangle, Jr.</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="24%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:24.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(510) 864-8800</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="24%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:24.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">830.626.1193</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="24%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:24.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(510) 864-8802</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="24%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:24.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">830.626.1197</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="24%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:24.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.24%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Territory:</font></p>
  </td>
  <td width="57%" colspan="7" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:57.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">See Exhibit&nbsp;C (projects with exclusivity)</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="26%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:26.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="39%" colspan="5" valign="bottom" style="padding:0in .7pt 0in .7pt;width:39.26%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="21%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:21.52%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commitment </font></p>
  </td>
  <td width="28%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:28.82%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.66%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.42%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.58%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="66%" colspan="8" valign="top" style="padding:0in .7pt 0in .7pt;width:66.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effective Date: September&nbsp;10, 2002</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="227" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="59" style="border:none;"></td>
  <td width="96" style="border:none;"></td>
  <td width="38" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="70" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="63" style="border:none;"></td>
  <td width="113" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:6.0pt 0in .0001pt;text-align:center;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This RESELLER Agreement,
including all exhibits (&#147;Agreement&#148;), is the entire agreement between the
parties concerning Reseller&#146;s resale in the Territory of the Products (as
defined below).&#160; This Agreement
supersedes, and its terms govern, any prior agreements (including without
limitation any nondisclosure agreements), proposals or other communications,
oral or written, between the parties with respect to the Products.&#160; This Agreement may be changed only by mutual
written agreement of authorized representatives of the parties.&#160; This Agreement governs all documents
(e.g.,&nbsp;purchase orders) issued by RESELLER with respect to the Products
and any additional or conflicting terms and conditions contained in any such
documents are of no force and effect.&#160;
In consideration of the mutual promises herein, UTSTARCOM and RESELLER
agree to be bound by this Agreement, including the following exhibits:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Terms
and Conditions<br>
Exhibit&nbsp;B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Products And
Discounts<br>
Exhibit&nbsp;C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Projects</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PLEASE REVIEW THE ATTACHED EXHIBITS,
WHICH INCLUDE IMPORTANT<br>
LEGAL TERMS, SUCH AS LIMITATIONS OF WARRANTIES AND REMEDIES.</font></b></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTSTARCOM</font></b></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RESELLER</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ David Robison</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Norm Bangle, Jr.</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authorized Signature</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authorized Signature</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">David Robison</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">N. Lohr Bangle, Jr.</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Printed Name</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Printed Name</font></p>
  </td>
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  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">V.P. Sales</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Managing Partner</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9/15/02</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;13, 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.36%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date</font></p>
  </td>
 </tr>
</table>


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<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT&nbsp;A&#151;TERMS AND
CONDITIONS</font></b></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Appointment</u></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTSTARCOM appoints
RESELLER, and RESELLER accepts such appointment, as a non-exclusive reseller to
end user customers (and not to other distributors or resellers) within the Territory
for the products listed on <u>Exhibit&nbsp;B</u> hereto (&#147;Products&#148;).&#160; UTSTARCOM may unilaterally add products to,
or remove products from, <u>Exhibit&nbsp;B</u> from time to time during the
term of this Agreement, and any such addition or removal shall be effective immediately
upon written notification by UTSTARCOM.&#160;
UTSTARCOM reserves the right to sell directly to any other customer in
the Territory.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Prices</u></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RESELLER&#146;s purchase price for the
Products shall be: [***].</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [***]</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Orders</u></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RESELLER shall order Products by
written purchase order, which shall reference this Agreement and shall be
deemed governed by this Agreement.&#160;
Orders are subject to acceptance by UTSTARCOM and its assignment of
delivery schedules in accordance with Product availability.&#160; Any inconsistent or additional terms and
conditions contained on RESELLER&#146;s purchase orders shall not be binding on
UTSTARCOM.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Changes by RESELLER in delivery
schedule&nbsp;(including cancellation) made within [***] days of scheduled
delivery will be subject to a rescheduling charge of [***].</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Shipments</u></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Delivery of Products
purchased under this Agreement is F.O.B. [***], such delivery to be made to a
carrier or freight forwarder selected by UTSTARCOM unless otherwise specified
in writing by RESELLER.&#160; Products will
be packaged by UTSTARCOM in accordance with UTSTARCOM&#146;s standard
practices.&#160; Products are deemed accepted
by RESELLER, and title, possession and risk of loss shall pass to RESELLER,
upon delivery of the Products by UTSTARCOM to the designated carrier or freight
forwarder.&#160; [***]</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Payment Terms</u></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All Products sold to RESELLER shall
be invoiced in full [***].&#160; Payment is
[***] from date of invoice.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [***]</font></p>

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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; UTSTARCOM shall determine RESELLER&#146;s
credit limit from time to time at UTSTARCOM&#146;s discretion RESELLER will provide
to UTSTARCOM such financial information from time to time as may be reasonably
requested by UTSTARCOM.&#160; If any order by
RESELLER exceeds its credit limit, or RESELLER fails to make payments when due
or otherwise defaults or commits a breach hereunder, UTSTARCOM may, effective
immediately upon giving notice to RESELLER, (i)&nbsp;suspend credit and delay
shipment until such terms are met, and/or (ii)&nbsp;alter the terms of payment;
and/or (iii)&nbsp;cancel any order then outstanding and/or (iv)&nbsp;pursue any
other remedies available by law or equity.&#160;
Further, if RESELLER fails to pay any charges when due, UTSTARCOM may
charge RESELLER a late payment charge equal to [***].</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Other
Obligations of RESELLER</u></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RESELLER will use reasonable commercial
efforts to promote the sale of the Products.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RESELLER will purchase [***].</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RESELLER will purchase Products
having an aggregate invoice price no less than the quota set forth on the
signature page hereof during [***] and during [***].</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RESELLER will have [***] of its
personnel attend, each calendar quarter, at least [***] technical training
courses offered by UTSTARCOM, at [***] expense.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RESELLER will offer its customers
technical support services consistent with industry practices.&#160; To the extent that UTSTARCOM provides
RESELLER with access to upgrades or new releases of the Products purchased by
RESELLER hereunder, RESELLER will distribute those upgrades or new releases to
its customers.&#160; UTSTARCOM is not
responsible for providing any technical support services to RESELLER&#146;s
customers.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Within [***] after the end of each
calendar month, RESELLER will provide to UTSTARCOM written reports showing, for
the just completed calendar month, RESELLER&#146;s shipments of Products and current
inventory levels.&#160; Point-of-sale reports
(which will include at a minimum the name of the end user and the ship-to zip
code for all Products sold by RESELLER) and inventory reports shall be in the
formats prescribed by UTSTARCOM.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RESELLER shall promptly advise UTSTARCOM
of any complaints or claims brought or threatened against RESELLER with respect
to the sale or use of the Products or with respect to any alleged infringement.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RESELLER acknowledges that it is
familiar with the United States Foreign Corrupt Practices Act, which prohibits
the offering, giving or promising to offer or give, directly or indirectly,
money or anything of value to any official of a government, political party or
instrumentality thereof in order to assist RESELLER or UTSTARCOM in obtaining
or retaining business.&#160; RESELLER shall
not act in any fashion or take any action, in the performance of its
obligations under this Agreement, which violates, or would render UTSTARCOM
liable for a violation of, either the United States Foreign Corrupt Practices
Act or any similar statute or regulation in any jurisdiction in which RESELLER
does business.&#160; RESELLER&#146;s violation of
this</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

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<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">provision shall be deemed
a material breach of this Agreement, entitling UTSTARCOM to terminate this
Agreement immediately by written notice to RESELLER.&#160; RESELLER agrees to defend, indemnify and hold UTSTARCOM harmless
from all liabilities, claims, losses and damages arising from RESELLER&#146;s breach
of this obligation.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Other
Obligations of UTSTARCOM</u></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If sales transactions occur that
involve the sale of Products by UTSTARCOM directly to end user purchasers that
were referred to UTSTARCOM by RESELLER, UTSTARCOM will determine in its
complete and sole discretion whether to compensate RESELLER.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; While Products purchased by RESELLER
are under warranty as set forth under Section&nbsp;8 below, UTSTARCOM will
provide RESELLER with access to all new releases and upgrades specifically
applicable to such Products, subject to the configurations and options that
RESELLER has purchased.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Warranty</u></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Products Warranty</u>.&#160; UTSTARCOM warrants to RESELLER only that the
Products conform in all material respects to the end user documentation
provided with the Products and that the hardware components of the Products
will be free from defects in materials and workmanship until the date which is
[***] (&#147;Warranty Period&#148;); <u>provided</u> that the Warranty Period shall not
exceed [***].&#160; This limited warranty
does not cover [***].&#160; This warranty
extends only to RESELLER and is not assignable to any other party.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Warranty Claims</u>.&#160; If RESELLER believes that Products do not
conform to the warranty set forth in Section&nbsp;8.1, RESELLER shall promptly
notify UTSTARCOM in writing of such nonconformance, but in no event later than
[***] for those Products, and shall provide such details of the nonconformance
as UTSTARCOM reasonably requests.&#160;
RESELLER will, upon the request of UTSTARCOM and in accordance with UTSTARCOM&#146;s
standard return procedures, return such Products to UTSTARCOM at [***] expense
and risk.&#160; The final determination
whether Products fail to satisfy this warranty will be made [***].&#160; If UTSTARCOM determines that returned
Products do conform to this warranty, then UTSTARCOM will return such Products
at [***] expense and risk.&#160; If Products
are deemed to fail to conform to this warranty by UTSTARCOM, RESELLER&#146;s sole
remedy shall be, at [***] option and expense, the repair or replacement and
return of the Products, or a refund (or, at the option of RESELLER, a credit)
of the price or fee paid by RESELLER for the Products.&#160; NOTWITHSTANDING ANYTHING IN THIS AGREEMENT
TO THE CONTRARY, THE FOREGOING IS RESELLER&#146;S SOLE AND EXCLUSIVE REMEDY FOR
BREACH OF WARRANTY BY UTSTARCOM WITH RESPECT TO THE PRODUCTS.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Disclaimer of Warranties</u>.&#160; [***], UTSTARCOM DISCLAIMs ALL WARRANTIES
WITH RESPECT TO THE PRODUCTS, EXPRESS OR IMPLIED, INCLUDING AS TO PERFORMANCE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS, MERCHANTABILITY, OR FITNESS FOR A
PARTICULAR PURPOSE.</font></p>

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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Confidentiality</u></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No proprietary
information disclosed by either party to the other in connection with this
Agreement shall be disclosed to any person or entity other than the recipient
party&#146;s employees and contractors directly involved with the recipient party&#146;s
use of such information who are bound by a written agreement to protect the
confidentiality of such information, and such information shall otherwise be
protected by the recipient party from disclosure to others with the same degree
of care accorded to its own proprietary information.&#160; To be subject to this provision, information must be delivered in
writing and designated as proprietary or, if oral information, summarized in a
writing delivered to the recipient within [***] after the oral disclosure.&#160; Information will not be subject to this
provision if it is or becomes a matter of public knowledge without the fault of
the recipient party, if it was a matter of written record in the recipient
party&#146;s files prior to disclosure to it by the other party, or if it was or is
received by the recipient party from a third person under circumstances
permitting its</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-4-</font></p>


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<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT&nbsp;B&#151;PRODUCTS
AND DISCOUNTS</font></b></p>

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<DESCRIPTION>EXHIBIT 10.80
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<p align="right" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.80</font></b></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]
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</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">JOINT VENTURE CONTRACT</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:.25in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">for the Establishment of</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:.25in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UNIVERSAL COMMUNICATION TECHNOLOGY</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">(HANGZHOU) COMPANY LIMITED</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:24.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">by and among</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:24.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTSTARCOM TELECOM CO., LTD.,</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:24.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MATSUSHITA ELECTRIC INDUSTRIAL CO., LTD.</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:24.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:24.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MATSUSHITA COMMUNICATION INDUSTRIAL CO., LTD.</font></b></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Table of Content</font></b></p>
  </td>
 </tr>
 <tr>
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  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
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  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter1" title="Click to goto Chapter 1">Chapter 1.</a></font></font></p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">General Provisions</font></font></p>
  </td>
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  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter2" title="Click to goto Chapter 2">Chapter 2.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Definitions</font></font></p>
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  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter3" title="Click to goto Chapter 3">Chapter 3.</a></font></font></p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Joint Venture Parties</font></font></p>
  </td>
 </tr>
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  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter4" title="Click to goto Chapter 4">Chapter 4.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Establishment of the Company</font></font></p>
  </td>
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  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter5" title="Click to goto Chapter 5">Chapter 5.</a></font></font></p>
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  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Purpose and Business Scope</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter6" title="Click to goto Chapter 6">Chapter 6.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Total Amount of Investment &amp;
  Registered Capital</font></font></p>
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  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter7" title="Click to goto Chapter 7">Chapter 7.</a></font></font></p>
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  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Representation &amp; Warranty</font></font></p>
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  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter8" title="Click to goto Chapter 8">Chapter 8.</a></font></font></p>
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  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Responsibilities of Parties</font></font></p>
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  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter9" title="Click to goto Chapter 9">Chapter 9.</a></font></font></p>
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  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Board of Directors</font></font></p>
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  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter10" title="Click to goto Chapter 10">Chapter 10.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Business Management Organization</font></font></p>
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  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter11" title="Click to goto Chapter 11">Chapter 11.</a></font></font></p>
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  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Labor Management</font></font></p>
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  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter12" title="Click to goto Chapter 12">Chapter 12.</a></font></font></p>
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  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Tax, Financial Affairs and
  Accounting</font></font></p>
  </td>
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  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter13" title="Click to goto Chapter 13">Chapter 13.</a></font></font></p>
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  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Confidentiality</font></font></p>
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  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter14" title="Click to goto Chapter 14">Chapter 14.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Profit Distribution</font></font></p>
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  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter15" title="Click to goto Chapter 15">Chapter 15.</a></font></font></p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Insurance</font></font></p>
  </td>
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  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter16" title="Click to goto Chapter 16">Chapter 16.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Equipment and Materials</font></font></p>
  </td>
 </tr>
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  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter17" title="Click to goto Chapter 17">Chapter 17.</a></font></font></p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Sale of Products</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter18" title="Click to goto Chapter 18">Chapter 18.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Duration of the Company</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter19" title="Click to goto Chapter 19">Chapter 19.</a></font></font></p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Dissolution of the Company</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter20" title="Click to goto Chapter 20">Chapter 20.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Liquidation and Disposal of Assets</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter21" title="Click to goto Chapter 21">Chapter 21.</a></font></font></p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Liabilities for Breach of Contract;
  Indemnities</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter22" title="Click to goto Chapter 22">Chapter 22.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Force Majeure</font></font></p>
  </td>
 </tr>
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  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter23" title="Click to goto Chapter 23">Chapter 23.</a></font></font></p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Intellectual Property</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter24" title="Click to goto Chapter 24">Chapter 24.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Applicable Law</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter25" title="Click to goto Chapter 25">Chapter 25.</a></font></font></p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Settlement of Disputes</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter26" title="Click to goto Chapter 26">Chapter 26.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Language</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter27" title="Click to goto Chapter 27">Chapter 27.</a></font></font></p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Notice</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter28" title="Click to goto Chapter 28">Chapter 28.</a></font></font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Trademark</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;"><a href="#Chapter29" title="Click to goto Chapter 29">Chapter 29.</a></font></font></p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font style="color:blue;text-decoration:underline;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-decoration:none;">Effectiveness of Contract and
  Miscellaneous</font></font></p>
  </td>
 </tr>
</table>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=2,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=585787,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter1"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 1</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; GENERAL
PROVISIONS</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 1</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-family:'Times New Roman';line-height:normal;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THIS JOINT VENTURE CONTRACT</font></b><font size="2" style="font-size:10.0pt;"> (hereinafter referred to as the &#147;Contract&#148;) is signed
in on the fifth day of July in 2002 in Yokohama, Japan, in accordance with the
Law of the People&#146;s Republic of China on Chinese-Foreign Equity Joint Ventures
(the &#147;Joint Venture Law&#148;) and other applicable Chinese laws, by and among <b><font style="font-weight:bold;">UTStarcom Telecom Co., Ltd</font></b>. (hereinafter
referred to as &#147;Party&nbsp;A&#148;, or &#147;UTS&#148;), <b><font style="font-weight:bold;">Matsushita
Electric Industrial Co., Ltd</font></b>. (hereinafter referred to as
&#147;Party&nbsp;B&#148;, or &#147;MEI&#148;) and <b><font style="font-weight:bold;">Matsushita
Communication Industrial Co., Ltd</font></b>. (hereinafter referred to as
&#147;Party&nbsp;C&#148;, or &#147;MCI&#148;).&#160; The Parties
hereto agree to jointly invest to establish a sino-foreign equity joint venture
company in Hangzhou, Zhejiang Province of the People&#146;s Republic of China based
on the principles of equality and mutual benefit in accordance with the terms
and conditions set forth below.</font></p>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter2"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 2</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; DEFINITIONS</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 2</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For
purposes of this Contract, except as otherwise expressly provided or unless the
content clearly indicates a contrary intent, the following terms shall have the
meanings set forth below:</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Affiliate&#148; of a
Party&nbsp;means any corporation, partnership, joint venture or other entity or
natural person controlling, controlled by, or under common control with, such
Party, excluding the Company; a person or entity shall be deemed to &#147;control&#148;
another person or entity if the former possesses, directly or indirectly, the
power to direct or cause the direction of the management and policies of the
latter, through ownership of majority voting securities.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Articles of
Association&#148; shall mean, the Articles of Association of the Company as executed
by the Parties hereto and amended thereafter from time to time.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Board of
Directors&#148; shall mean the board of directors of the Company.</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=3,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=2138,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Company&#148; shall
mean &#147;<b><font style="font-weight:bold;">Universal Communication Technology
(Hangzhou) Company Limited</font></b>&#148; in English and [<b><font style="font-weight:bold;">Chinese Characters</font></b>] in Chinese, the joint
venture company formed by the Parties pursuant to the Joint Venture Law, other
applicable laws and regulations of the PRC and this Contract.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Contract&#148;, unless
otherwise indicated, shall mean this contract, including appendixes.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Party&#148; and
&#147;Parties&#148; shall mean each and all of Party&nbsp;A, Party&nbsp;B and
Party&nbsp;C.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;PRC law(s)&#148; shall
mean the national and local laws, regulations and rules of the PRC.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;RMB&#148; shall mean
the legal currency of China.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Trademark&#148; and
&#147;Business name&#148; shall mean the trademark and/or business name of the
Party&nbsp;A to be licensed to the Company.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;US Dollars&#148; or
&#147;US$&#148; shall mean the legal currency of the United States of America.</font></p>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter3"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 3</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; JOINT
VENTURE PARTIES</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 3</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Parties to this Contract are as follows:</font></p>

<p align="left" style="font-family:'Times New Roman';line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTStarcom Telecom Co., Ltd.,</font></b><font size="2" style="font-size:10.0pt;"> registered in Hangzhou, People&#146;s
Republic of China, with its legal address at 2,3 Yile Industrial Park, 129# Wen
Yi Road, Hangzhou, China</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="93%" style="border-collapse:collapse;font-family:'Times New Roman';margin-left:36.7pt;width:93.22%;">
 <tr>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.4%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal representative:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.6%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Ying Wu</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.4%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.6%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position: Chairman</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.4%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.6%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nationality: Chinese</font></p>
  </td>
 </tr>
</table>

<p align="left" style="font-family:'Times New Roman';line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Matsushita Electric Industrial Co.,
Ltd.,</font></b><font size="2" style="font-size:10.0pt;"> registered
in 1006 Kadoma, Kadoma-shi, Osaka 571-8501, Japan.</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-2-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=4,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=739835,FOLIO='-2-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="93%" style="border-collapse:collapse;font-family:'Times New Roman';margin-left:36.7pt;width:93.22%;">
 <tr>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.4%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal representative:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.6%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Kunio Nakamura</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.4%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.6%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position: President</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.4%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.6%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nationality: Japanese</font></p>
  </td>
 </tr>
</table>

<p align="left" style="font-family:'Times New Roman';line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Matsushita Communication Industrial
Co., Ltd</font></b><font size="2" style="font-size:10.0pt;">.,
registered in 4-3-1 Tsunashima-higashi, Kohoku-Ku, Yokohama, 223-8939, Japan.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="93%" style="border-collapse:collapse;font-family:'Times New Roman';margin-left:36.7pt;width:93.22%;">
 <tr>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.4%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal representative:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.6%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Yasuo Katsura</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.4%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.6%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position: President</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.4%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.6%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nationality: Japanese</font></p>
  </td>
 </tr>
</table>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter4"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 4</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; ESTABLISHMENT
OF THE COMPANY</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 4</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Parties hereto agree to set up a Sino-foreign joint venture company in
accordance with the Joint Venture Law and other applicable PRC laws and this
Contract.&#160; This Contract shall become
effective on the day on which the approval of this Contract by the examination
and approval authority be obtained.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 5</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
name of the Company shall be <b><font style="font-weight:bold;">Universal
Communication Technology (Hangzhou) Company Limited </font></b>in English and [<b><font style="font-weight:bold;">Chinese</font></b> <b><font style="font-weight:bold;">Characters</font></b>]
in Chinese.&#160; The legal address of the
Company shall be 3 Yile Industrial Park, 129# Wen Yi Road, Hangzhou, China.</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
6</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
activities of the Company shall be governed by and comply with PRC laws.</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
7</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company shall be a limited liability company under the laws of the PRC.&#160; The liability of the Parties for the losses,
risks, liabilities and any other obligations whatsoever of the Company shall be
limited and in proportion to the subscribed amount of their respective
contributions to the registered capital of the Company.&#160; No Party&nbsp;shall have any liability to
the Company or to any third Party&nbsp;in connection with the activities of the
Company either jointly or severally other than the requirement</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-3-</font></p>


<div align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=5,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=863937,FOLIO='-3-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">to
make such contribution, unless otherwise agreed to in writing by the
Parties.&#160; In no event shall any
Party&nbsp;be responsible for any losses, risks, liabilities or obligations
whatsoever resulting from any act of the other Parties.</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
8</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
production plan covering the period from the signature of this Contract to
commencement of production by the Company shall be in compliance with those
plan confirmed by the Parties upon signature of this Contract by the Parties.&#160; Each Party&nbsp;shall be responsible for
carrying out its obligation as assigned in accordance with such production
plan.</font></p>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter5"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 5</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; PURPOSE
AND BUSINESS SCOPE</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
9</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The purpose of establishment of the
Company is to cause the Company to engage in the business described in
Article&nbsp;9.2 hereof on the principles of maximizing the profit.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The business scope of the Company shall
be design and development, manufacturing, sales, repair service of
communication products such as [***] (hereinafter referred to as &#147;Products&#148;).</font></h2>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter6"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 6</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; TOTAL
AMOUNT OF INVESTMENT AND</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">REGISTERED CAPITAL</font></b></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
10</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
total amount of investment of the Company shall be [***].</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
11</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
registered capital of the Company shall be [***] US Dollars [***].&#160; Party&nbsp;A&#146;s contribution to the
registered capital of the Company shall be RMB in cash which is equivalent to
[***] which accounts for [***] of the total registered capital of the
Company.&#160; Party&nbsp;B&#146;s contribution to
the registered capital of the Company shall be [***] in cash, which accounts
for [***] of the total registered capital of the Company.&#160; Party&nbsp;C&#146;s contribution to the
registered capital of the Company shall be [***] in cash, which accounts for
[***] of the total registered capital of the Company.</font></p>

<h1 align="center" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 align="center" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-4-</font></h1>


<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></h1>

<font size="3" style="font-size:12.0pt;">
<!-- ZEQ.=1,SEQ=6,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=926445,FOLIO='-4-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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</font>

<p style="font-family:'Times New Roman';font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:justify;">&nbsp;</p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 12</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Parties hereto shall respectively make all of their contributions to the
registered capital of the Company within [***] following the issuance of the
business license of the Company.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 13</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After
the Parties have made their respective contributions in accordance with the
foregoing provision, the Company shall, on the basis of a capital contribution
verification report issued by an accounting firm registered in the PRC and
retained by the Company, issue an investment certificate to each Party.&#160; Such investment certificate shall specify
the name of the Company, the date of the establishment of the Company, the name
of the Party&nbsp;and the capital investment contributed thereby, the dates of
each contribution, and the date of the investment certificate.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 14</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
balance between the total amount of investment and registered capital of the
Company may, pursuant to the decision of the Board of Directors in accordance
with the business needs of the Company, be raised by the Company through loans
from domestic and/or foreign financial institutions.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 15</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company may increase and reduce its registered capital subject to any necessary
approval of the examination and approval authority.&#160; In case of any increase of the registered capital, each
Party&nbsp;shall have the right to subscribe to the amount of such additional
capital in accordance with its respective proportional equity interest at the
time.&#160; If any Party&nbsp;does not
subscribe to the amount of additional capital in accordance with its
proportional equity interest at the time, the other Parties may subscribe to
it, in which event appropriate adjustments shall be made to the ratio of the
equity interest of the Parties.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 16</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Except for transfer of any part of its
equity interest from Party&nbsp;C to Party&nbsp;B, no Party&nbsp;may transfer,
sell, assign, give or otherwise dispose of all or any part of its equity
interest in the Company without the express prior written consent of the other
Parties, the approval of the Board of Directors, and the approval of the
original examination and approval authority.</font></h2>

<h2 align="center" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-5-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event a
Party&nbsp;intends to assign and transfer all or part of its equity interest to
any of its Affiliates, however, the other Parties shall grant its consent.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The equity interest owned by each
Party&nbsp;shall be free and clear of any and all encumbrances, security and/or
liens of any nature whatsoever.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The transfer of its equity interest by
the Party&nbsp;shall become effective upon the approval by the original
examination and approval authority after the resolution of the Board of
Directors and, signature of the agreement for the transfer of equity interest.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">When one Party&nbsp;to the Company assigns,
or transfers all or part of its equity interest (hereinafter referred to as
&#147;Proposing Party&#148;), the other Parties shall have pre-emptive right to purchase
such equity interest.&#160; If such
pre-emptive right is not exercised within the [***] day period, the Proposing
Party&nbsp;shall have the right, exercisable after the expiry of the [***] day
period or the receipt of the offer to purchase portion of the equity interest
from the other Parties as the case may be, to transfer the equity interest to
the third Party&nbsp;at the price, determined based on the latest audited
financial statements and on terms and conditions not more favorable to such
third Party&nbsp;than those proposed by the Proposing Party&nbsp;for the
exercise of pre-emptive rights.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Upon any transfer by a Party&nbsp;of all
or any part of its equity interest in the Company, the transferring
Party&nbsp;shall surrender to the Company for cancellation its investment
certificates issued by the Company, and the Company shall issue a new
investment certificate to the transferee, if necessary.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">After the approval of the original
examination and approval authority of any increase or reduction of the
registered capital of the Company or of any transfer of any Party&#146;s interest in
the Company, procedures for registration shall be handled by the Company with
the relevant department of administration of industry and commerce.</font></h2>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-6-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter7"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 7</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; REPRESENTATION
AND WARRANTY</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 17</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;A hereby represents and
warrants that:</font></h2>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;A is a limited liability
company duly established, valid and existing in good standing as a legal person
in accordance with PRC laws.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;A has all requisite power and
authority and all necessary licenses and permits to execute and perform this
Contract, all of the Appendixes attached hereto, the Articles of Associations,
and any agreement and documents referred to in this Contract to which it is a
Party&nbsp;and will be bound by the terms and conditions therein.&#160; The execution, delivery and performance of
this Contract by Party&nbsp;A will not violate any provisions of PRC laws.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;A&#146;s representative, whose
signature is affixed to this Contract, has been fully authorized to execute
this Contract pursuant to a valid power of attorney.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;A&#146;s execution, and performance
of this Contract, the Articles of Association and any other agreements and
documents contemplated hereafter will not violate any of its constitution
documents, its any other agreement or obligation, or any currently effective
PRC law that may be applicable to any aspect of the transactions contemplated
hereafter.</font></h3>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;page-break-after:avoid;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;B and Party&nbsp;C hereby
represent that:</font></h2>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;B and Party&nbsp;C are limited
liability companies duly incorporated and valid existing in good standing under
the laws of Japan.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;B and Party&nbsp;C have all
requisite power and authority and all necessary licenses and permits to execute
and perform this Contract, all of the Appendixes attached hereto, the Articles
of Associations, and any agreement and documents referred to in this Contract
to which it is a Party&nbsp;and will be bound by the terms and conditions
therein.</font></h3>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-7-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Representatives of Party&nbsp;B and
Party&nbsp;C, whose signatures are affixed to this Contract, have been fully
authorized to execute this Contract pursuant to a valid power of attorney.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Execution, and performance of this
Contract, the Articles of Association and any other agreements and documents
contemplated hereafter by Party&nbsp;B and Party&nbsp;C will not violate any of
its constitution documents, its any other agreement or obligation, or any
currently effective law, regulation or decree of its jurisdiction of
organization or incorporation that may be applicable to any aspect of the
transactions contemplated hereafter.</font></h3>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter8"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 8</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; RESPONSIBILITIES
OF PARTIES</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 18</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;A, Party&nbsp;B and
Party&nbsp;C shall respectively be responsible for the following duties and
obligations:</font></h2>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Making timely contribution in full to the
registered capital pursuant to Articles&nbsp;12 herein.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Assisting each other in obtaining
necessary approval and registration from the Chinese authorities.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Assisting the Company in obtaining
availability of foreign currency in the PRC and loans from financial
institutions in the PRC, in purchasing or leasing of parts and office
equipment, in applying for supplies of fuel, water, electricity, gas and for
telephone, telegraph, facsimile, telex and other communication facilities, and
any other necessary for the Purpose of this Agreement.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">For the proper operation of the JV, each
party&nbsp;hereto agrees to order the members of the Board of Directors it
assigns to the JV to reach, after the establishment of the JV, a resolution of
the Board of Directors to duly execute the agreements attached hereto as
Appendix&nbsp;I (MCI Technical License Agreement), Appendix&nbsp;II (UTS
Technical</font></h3>

<h3 align="center" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-8-</font></p>


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</font></div>

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</font>

<p style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<h3 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">License
Agreement), Appendix&nbsp;III (Equipment Purchase Agreement) and
Appendix&nbsp;IV (Personnel Assignment Agreement).</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">v.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Licensing or caused to be licensed to the
Company, pursuant to the terms and conditions of the Technical License
Agreement.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">vi.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">For Party&nbsp;B, entering into Personnel
Assignment; and for Party&nbsp;C, Equipment Purchase Agreement and Personnel
Assignment Agreement.</font></h3>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any expense arising out of the period
from the signature of this Contact by all Parties to the commencement of the
production of the Products shall be appropriated for start-up expenses of the
Company to the extent agreed by the Parties.&#160;
Any expense firstly owed by the Party(s) prior to the signature of this
Contract by all Parties and to be appropriated for start-up expenses shall be
appropriated for start-up expense after written consent of all Parties.</font></h2>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter9"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 9</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; BOARD
OF DIRECTORS</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 19</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company shall establish a Board of Directors.&#160;
The date of issuance of the Company business license shall be the date
of the establishment of the Board of Directors of the Company.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 20</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Board of Directors shall be composed of [***] members including the chairman,
of which [***] shall be appointed by Party&nbsp;A, [***] shall be appointed by
Party&nbsp;B and the [***] by Party&nbsp;C.&#160;
The chairman of the Board of Directors (hereinafter referred to as the
&#147;Chairman&#148;) shall be appointed by [***].</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 21</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
term of office for the directors and the Chairman shall be [***]; the term of
office for the directors may be renewed by the appointing Party.&#160; Each Party&nbsp;may, by giving [***] of
prior written notice to the other Parties, remove at any time any director whom
it has appointed.&#160; If a director is
removed during his term of office, the director succeeding him shall serve for
the remaining term of office of such former director.</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-9-</font></p>


<div align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=11,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=551697,FOLIO='-9-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 22</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Chairman shall be the legal representative of the Company.&#160; Should the Chairman be unable to perform his
responsibilities for some reasons, he/she may authorize any other director to
represent the Company temporarily.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 23</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Board of Directors shall be the
highest authority of the Company and shall have the right to make decisions on
all major and important matters of the Company.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;page-break-after:avoid;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Resolutions involving the following
matters shall require the unanimous approval of the directors present, including
any proxies at a duly convened meeting of Board of Directors:</font></h2>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">any amendment or modification of the
Articles of Association.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">increase, assignment or deduction of
registered capital and the adjustment of each Party&#146;s contribution to the
registered capital&#146;s ratio.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">merger of the Company with any other
economic organization.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">termination, dissolution or liquidation
of the Company.</font></h3>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Resolutions involving the following
matters shall require an affirmative vote of at least four fifths (4/5) of the
directors present, including any proxies at a duly convened meeting of Board of
Directors:</font></h2>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">issuance of any guarantees for the
payment obligations of any person or entity or the making of any other
financing arrangements.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">approval of an individual loan
transaction or aggregate loan transactions on behalf Company.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">approval of capital expenditures or
capital commitments with a value exceeding [***].</font></h3>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-10-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=12,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=819731,FOLIO='-10-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">assignment, transfer, sale, lease or
other disposition of any business or assets of the Company with a value
exceeding [***] or the taking over or acquisition of any business or assets of
any other person or entity with a value exceeding [***].</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">v.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">mortgage, pledge or granting of a security
interest or other types of liens in any building, factory, office space or
other fixed assets or capital equipment of the Company with a value exceeding
[***].</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">vi.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">addition of items to or change of the
scope of business of the Company:</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">vii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">establishment of any subsidiaries or
related legal persons, including but not limited to representative offices,
branch offices and/or subsidiaries.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">viii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">reorganization of the management
organization of the Company.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ix.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">appointment, suspension and dismissal of
the general manager, deputy general manager, chief financial officer as well as
his/her scope of authority.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">formulation of annual operating plan and
marketing policies of the Company.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xi.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">formulation of pricing policy for
Products</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">distribution of profits of the Company</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xiii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">execution of any contracts with a
performance term of greater than [***] or involving individually or in the
aggregate more than [***].</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xiv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">licensing of technology or know-how to or
from any third party.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">approval of remuneration and benefits of
the general manager, deputy general manager, and chief financial officer.</font></h3>

<p align="left" style="font-family:'Times New Roman';line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">approval of the annual business plan and
annual budget of the Company</font></p>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xvii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">approval of the annual auditing report of
the Company.</font></h3>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-11-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=13,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=686846,FOLIO='-11-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xviii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">approval of any insurance to be carried
by the Company.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xix.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">determination of the Company&#146;s employment
plans, employee salary plans, pensions, fringe benefits and bonus plan.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xx.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">contribution, use or expenditure of the
general reserve fund, the bonus&#160; and
welfare fund and the enterprise expansion fund to be established under the PRC
laws.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xxi.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">establishment or change of the accounting
system of the Company, or appointment or dismissal of Company independent
financial accountants or legal counsel.</font></h3>

<h3 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xxii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">other matters submitted to the Board of
Directors.</font></h3>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 24</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Board of Directors shall meet at
least once each year.&#160; The First meeting
of Board of Directors shall be held within thirty (30) days from the date of
the issuance of the business license of the Company.&#160; The Chairman shall set the agenda of meetings of Board of
Directors and shall be responsible for convening and presiding over meetings of
the Board of Directors.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Chairman shall call a special or interim
meeting of the Board of Directors under a request of at least two (2) directors
specifying the matters to be discussed, and shall notify all directors in
writing of the agenda .</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Chairman shall notify each director
in writing of the time, date, place and agenda of any meeting of Board of
Directors thirty (30) days prior to a regular meeting and twenty (20) days
prior to a special or interim meeting.&#160;
However, upon the request of at least three fifths (3/5) of all the
directors, any special or interim meeting of the Board of Directors may be held
without going through such advance notification procedure, but reasonable time
and writing notice shall be given to all the directors for their attending.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Unless otherwise agreed to by the Board
of Directors, all meetings of the Board of Directors shall be held at the
Company&#146;s legal address.</font></h2>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-12-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=14,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=255284,FOLIO='-12-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:150%;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Meetings of the Board of Directors may be
held by telephone or other electronic audio means such that all persons
participating in the meeting are able to hear, be heard and communicate with
each other at all times, and participation by a director or his proxy in a
meeting by such means shall constitute presence of such director or his proxy
in person at the meeting.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any action to be taken at any meeting of
the Board of Directors may be taken without a meeting of Board of Directors if
all directors consent to such action in writing, and such written consent shall
be filed in the minute book.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.7</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If the Chairman gets sick or injured and
becomes unable to preside over regular meeting of Board of Directors, another
director specifically authorized by the Chairman shall call upon the aforesaid
meeting and take over the rights and powers of the Chairman.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.8</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any director who is unable to attend a
meeting of Board of Directors for any reason may appoint a proxy in writing, to
attend and vote on his/her behalf.&#160; The
proxy shall have the same rights and powers as the director who entrusted him.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.9</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Majority of the Board of Directors shall
be present in person or by proxy at any meetings of the Board of Directors to
form a quorum.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.10</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Detailed minutes shall be made for each
meeting of the Board of Directors and be signed by all directors and proxies
present at the meeting.&#160; The minutes
shall be written in both Chinese and English, but only the English text shall
be authentic and have legal force.&#160;
Minutes shall be kept by the Company during its term of existence and be
made freely available to all directors and each Party&nbsp;at any time.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.11</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The traveling expenses, accommodation and
other costs and expenses directly incurred by a director or a proxy in
performing its duties as a director of the Company shall be borne by the
Company.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.12</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Meetings of the Board of Directors shall
proceed in accordance with the agenda determined pursuant to the provisions
herein, and each matter on the agenda shall be discussed appropriately and, if
necessary, put to a decision by way of resolutions.&#160; Any resolutions</font></h2>

<h2 align="center" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-13-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=15,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=91044,FOLIO='-13-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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</font>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">made at a meeting
conducted by telephone or other means of communication shall be confirmed in
writing by all the persons participating in the meeting no later than seven (7)
days after the meeting and filed in the minute books of the Company.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.13</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">All information discussed at meetings of
the Board of Directors shall be treated as confidential and shall not be
disclosed to any third Party&nbsp;other than Parties without the approval of
the Board of Directors, unless otherwise required by law.</font></h2>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter10"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 10</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; BUSINESS
MANAGEMENT ORGANIZATION</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 25</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company shall establish a management office under the Board of Directors to be
responsible for the daily operation and management of the Company.&#160; The management office shall have one (1)
general manager and one (1) deputy general manager.&#160; The general manager shall be nominated by Party&nbsp;A and
appointed by the Board of Directors, while the deputy general manager shall be
nominated by Party&nbsp;C and appointed by the Board of Directors.&#160; The deputy general manager shall assist the
general manager in the daily operation and management of the Company, and the
general manager and the deputy general manager shall jointly organize and lead
the daily operation and the management of the Company.&#160; The Company may set up various departments
to be responsible for such matters as technology, manufacturing, finance,
customer services, and administration.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 26</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
management office shall directly report to the Board of Directors, and shall
carry out the decisions of the Board of Directors, and shall organize and lead
the daily operation and management of the Company.&#160; The specific rights and powers of the management office are
prescribed below:</font></p>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">implement this Contract and its appendixes,
the Articles of Association and the resolutions made by the Board of Directors.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">formulate the annual operating plan and
submit to the Board of Directors for review and approval.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">organize and manage the daily operation
of the Company.</font></h4>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-14-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">submit regularly to the Board of
Directors written reports on the revenue and expenses of the Company.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">formulate and implement the rules and
regulations on the operation and management of the Company.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">appoint and dismiss the department
managers</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">determine the specific duties and
responsibilities of the deputy general manager and the department managers.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">determine the employment and dismissal of
employees other than those to be determined by the Board of Directors, the
policies regarding rewards and punishment, promotion and salaries of employees
and personnel training programs.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">approve capital expenditures or capital
commitments or such commitment in the aggregate of less than [***] in any
fiscal year.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">formulation of marketing policies of the
Company subject to approval of the Board of Directors.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">establishment of policies and procedures
for the management of the Company and change of the structure of the management
organization of the Company subject to approval of the Board of Directors.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">formulation of the Company&#146;s employment
plans, employee salary plans, pensions, fringe benefits, and bonus plans
subject to approval of the Board of Directors.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Formulation of contribution, use or
expenditure of the general reserve fund, the bonus and welfare fund and the
enterprise expansion fund to be established in accordance with PRC law, subject
to approval of the Board of Directors.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">approval of any insurance to be carried
by the Company, subject to approval of the Board of Directors.</font></h4>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-15-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=17,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=722990,FOLIO='-15-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">refer matters of importance to the
Company to the Board of Directors for its consideration.</font></h4>

<h4 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">handle other matters within the scope of
authorization granted by the Board of Directors.</font></h4>

<p style="line-height:150%;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 27</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
term of office of the general manager and the deputy general manager shall be
[***] and their term of office may be renewed by the Board of Directors if they
are continuously nominated and recommended by the nominating and recommending
Party.</font></p>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter11"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 11</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LABOUR
MANAGEMENT</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 28</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
recruitment and employment of employees of the Company shall be made in
accordance with the provisions of the Contract and the guidelines adopted by
the Board of Directors and based on the merits of the candidates and shall be
supervised and approved by the general manager, subject to the consultation of
the deputy general manager.&#160; However,
the Company shall accept employees dispatched by Party&nbsp;A, Party&nbsp;B or
Party&nbsp;C as long as necessary for the purpose of this Contract in
accordance with Personnel Assignment Agreement attached hereto as
Appendix&nbsp;IV for Party&nbsp;C.&#160;
Dispatched employees from Party&nbsp;A, Party&nbsp;B and Party&nbsp;C
(except the general manager, the deputy general manager, chief financial
officer and deputy department manager of design and development department)
shall be decided by the General Manager based on business needs.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 29</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company shall sign labor contracts with its employees, which contracts shall
cover dismissal and resignation, wages, insurance, welfare benefits, rewards,
disciplines, penalties and other matters, in accordance with applicable PRC
laws.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 30</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Without the consent of the general
manager subject to the consultation of the deputy general manager, no employees
of the Company except those dispatched by either Party&nbsp;B or Party&nbsp;C,
shall maintain any employment relationship, whether contractual or otherwise,
with</font></h2>

<h2 align="center" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-16-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=18,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=692306,FOLIO='-16-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">any third
Party&nbsp;during their employment with the Company.&#160; In the event any such employee is found to be maintaining an
employment relationship with any third party, the Company shall have the right
to terminate the employment of such employee at any time without any liability.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">All personnel of the Company shall be
subject to confidentiality obligations concerning information obtained from the
Company and all Parties and shall be strictly forbidden from disclosing any of
such information to any third Party&nbsp;without the prior authorization and
approval of the general manager and the deputy general manager.</font></h2>

<p style="font-family:'Times New Roman';font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter12"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 12</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; TAX,
FINANCIAL AFFAIRS AND ACCOUNTING</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 31</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company shall pay taxes and make proper withholding of income taxes from
payments made to its employees in accordance with the requirements of PRC laws.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 32</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company shall establish a financial and accounting system in accordance with
PRC laws and this Contract.&#160; Such
financial and accounting system and any major change thereof shall be subject
to the approval of the Board of Directors.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 33</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
fiscal year of the Company shall coincide with the calendar year, i.e. from
January&nbsp;1 to December&nbsp;31 of each year.&#160; The first fiscal year shall begin from the date of the
establishment of the Company and end on December&nbsp;31 of that year and the
last fiscal year shall end on the date of the dissolution of the Company.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 34</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The accounting of the Company shall be
subject to the International Uniform Regime of Rights and Liabilities and the
International Uniform Accounting System of Debit and Credit.&#160; All accounting records, vouchers, books and
statements of the Company shall be made and</font></h2>

<h2 align="center" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-17-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=19,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=592403,FOLIO='-17-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:32 2002' -->
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</font>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">kept in both
Chinese and English.&#160; All financial
statements and reports of the Company shall be made and kept in both Chinese
and English.</font></h2>

<h2 align="left" style="font-family:'Times New Roman';font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any Party&nbsp;may, at its own expense
and at any time, appoint an accountant for its own audit (the &#147;<b><font style="font-weight:bold;">Accountant</font></b>&#148;), who may be either an
accountant registered abroad or registered in the PRC.&#160; Auditing results by the Accountant shall not
be deemed as an official report issued by the Company, provided, however, that
the Company shall fully cooperate with the Accountant in its auditing and
provided, further, that the auditing results by the Accountant shall be
properly reflected to the Company, to the extent permitted by applicable laws
and regulations.</font></h2>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 35</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company shall have its account denominated in RMB, but may, if necessary, also
adopt US Dollars or other foreign currencies as supplementary bookkeeping
currencies.&#160; Where RMB is converted to
other currencies, the conversion coefficient shall [***].</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 36</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Allocations
for reserve funds and enterprise expansion funds of the Company and bonuses and
welfare funds for staff and workers shall be set aside in accordance with
applicable laws.&#160; The annual proportion
of allocations shall be decided by the Board of Directors according to the
financial conditions of the Company and applicable PRC laws.&#160; The target annual proportion of allocations
shall be [***] subject to changes, of after-tax profit as determined in
Article&nbsp;45.1.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 37</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company shall open RMB and foreign currency accounts with banks registered in
China in accordance with PRC laws.&#160; The
foreign exchange matters of the Company shall be handled in accordance with the
provisions of the PRC foreign exchange laws.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 38</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company shall pay the reasonable costs of preparing regular financial
statements as may be needed by Party&nbsp;A, Party&nbsp;B or Party&nbsp;C.</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-18-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<div style="font-family:'Times New Roman';">

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter13"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 13</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; CONFIDENTIALITY</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 39</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Party&nbsp;shall maintain the secrecy
and confidentiality of and not disclose to any third person or party, directly
or indirectly, any proprietary information or any secret or confidential
information which is disclosed by the Company or the other Parties, except
where the information properly comes into public domain.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 40</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Parties hereto shall cause their
directors, senior staff and other employees to comply with the confidentiality
obligations set forth in Article&nbsp;39.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 41</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Without the approval of the Board of
Directors, the Company shall not disclose proprietary information concerning
the Company to any persons or entities except to Party&nbsp;A, Party&nbsp;B and
Party&nbsp;C during the valid term of this Contract (excluding information
which is required to be reported to officials or departments of the Chinese
government), unless such information is already in the public domain.&#160; For business purpose, the Company may
disclose proprietary information to any third Party&nbsp;company under a
non-disclosure agreement with this third Party company.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 42</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Chapter shall survive for ten (10) years
after the expiration or termination of this Contract and the termination or
dissolution of the Company.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 43</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Both Parties to this Contract shall cause
their appointed directors to the Company to require the Company personnel to
execute appropriate contracts or agreements to maintain the secrecy of
proprietary and confidential information of the Company.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 44</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Party&nbsp;Breaching the obligations of
confidentiality shall be liable for damages suffered by the other Parties.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-19-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=21,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=378688,FOLIO='-19-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter14"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 14</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; PROFIT
DISTRIBUTION</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 45</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall distribute profits to the
Parties as follows:</font></p>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Within [***] from the end of each fiscal
year, the Board of Directors shall determine the amount of after-tax profit of
the Company to be reserved for production and operation and the amount of
profits to be distributed to the Parties [***].&#160; Distribution of profits to the Parties&nbsp;B and C shall be made
in Japanese Yen.</font></h2>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Losses from previous years must be made
up before any profits from the current year shall be distributed to the
Parties.&#160; The undistributed profits of
the past year(s) may be distributed together with this years&#146; profits.</font></h2>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter15"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 15</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; INSURANCE</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 46</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Insurance of the Company against all risks
shall be from the insurance companies registered within China.&#160; The cover, amount, period, etc of the
insurance shall be proposed by the general manager and the deputy general
manager in accordance with the needs of the Company, subject to approval by the
Board of Directors.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter16"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 16</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; EQUIPMENT
AND MATERIALS</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 47</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall purchase equipment from
Party&nbsp;A, Party&nbsp;B, Party&nbsp;C and any third Party in accordance with
Equipment Purchase Agreement attached hereto as Appendix&nbsp;III for purchase
from Party&nbsp;C.&#160; Other equipment,
materials and parts of the Products necessary for the operation and business of
the Company shall be procured in or outside the PRC in accordance with the
operation plan and the business plan authorized by the Board of Directors.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party&nbsp;A shall assist the Company in
procuring equipment and parts and materials necessary for the Products in PRC
by introducing sellers, negotiation for purchase agreements for such equipment
and parts and materials.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-20-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=22,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=688196,FOLIO='-20-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter17"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 17</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; SALE
OF PRODUCTS</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 48</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The sale of Products shall be in accordance
with the business operation authorized by the Board of Directors.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter18"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 18</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; DURATION
OF THE COMPANY</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 49</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The duration of the Company shall be [***]
commencing from the date on which the business license of the Company is
issued.&#160; An application for the
extension of duration, proposed by one Party and unanimously approved by the
Board of Directors, shall be submitted to the examination and approval
authority six months prior to the expiration date of the term of the Company.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter19"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 19</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; DISSOLUTION
OF THE COMPANY</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 50</font></h1>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company shall be dissolved and this
Contract shall be terminated in case any of the following situations or
accidents occurs</font></h2>

<h3 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the term of this Contract expires and is
not extended.</font></h3>

<h3 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">any Party&nbsp;delays to perform its
obligations to contribute in full its subscription of the registered capital
pursuant to this Contract and fails to perform the said obligations within
[***] commencing from the date specified in this Contract.</font></h3>

<h3 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the Company does not generate, as
reported by its audited financial statements, a net profit for [***] after
consultation, the Parties fail to agree on how to improve satisfactorily the
financial situation of the Company.</font></h3>

<h3 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">due to an event of force majeure as
stipulated herein, the Company is unable to continue to carry out operations
for [***] consecutive days from the day the event of force majeure occurs and
the Parties fail to agree on how to improve the situation.</font></h3>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-21-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=23,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=767249,FOLIO='-21-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">v.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the Company is ordered to close in
accordance with PRC laws because of serious violations of PRC laws.</font></h3>

<h3 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">vi.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the operation and business as approved by
the relevant departments of Chinese government are prohibited or significantly
restricted by any government authority.</font></h3>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event any of the conditions set
forth in (ii) above occurs, any non-breaching Party shall have the right to
unilaterally apply to the examination and approval authority to terminate this
Contract and dissolve the Company.</font></h2>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event any of the conditions set
forth in any of (iii) through (vi) above occurs, either Party shall have the
right to notify the other Parties in writing and request that this Contract be
terminated and the Company be dissolved.&#160;
Upon such request, the Board of Directors shall within thirty (30) days
of such written request, adopt resolutions for such termination, and the
Company shall apply to the relevant PRC authorities for approval of such
termination and dissolution.&#160; Each Party
shall cause the directors it has appointed to vote in favor of such termination
resolutions.</font></h2>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;page-break-after:avoid;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In case of termination of this Contract,
the following agreements shall terminate forthwith.</font></h2>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;I:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Technical License Agreement by MCI</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;II:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Technical License Agreement by UTS</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;III:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Equipment Purchase Agreement</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;IV:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Personnel Assignment Agreement</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter20"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 20</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LIQUIDATION
AND DISPOSAL OF ASSETS</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 51</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall carry out liquidation in a
timely manner in accordance with PRC laws upon expiration or termination of
this Contract and dissolution of the Company in accordance with the provisions
herein.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-22-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=24,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=376812,FOLIO='-22-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 52</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall organize a liquidation
committee in accordance with the resolutions of the Board of Directors and
formulate rules for the disposition of properties in accordance with applicable
laws.&#160; In the event of the dissolution
described in Article&nbsp;50 hereof, upon payment of the obligations of the
Company, the remaining assets shall be distributed in accordance with [***].</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter21"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 21</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LIABILITIES
FOR BREACH OF CONTRACT;</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 53</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Failure by any Party to make the full capital
contributions subscribed for pursuant to this Contract shall be liable for
breach of this</font><font size="2" style="font-size:10.0pt;"> Contract.&#160;
In such event the breaching Party&nbsp;shall pay to the non&#150;breaching
Party&nbsp;an amount equal to [***] of its unpaid contribution per day from the
first month after the time limit.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 54</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any Party who otherwise breaches this
Contract shall be liable to the other Parties for all losses suffered by the
other Parties as a result of such breach.&#160;
Should all or part of this Contract be unable to be performed owing to
the fault of one Party&nbsp;hereto, the Party&nbsp;at fault shall be liable to
the other Parties for losses thus caused to such other Parties.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 55</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding any contrary provision in
this Contract, except any breach of obligations stated in Chapter&nbsp;13,
neither Party&nbsp;A, Party&nbsp;B nor Party&nbsp;C shall be liable to the
other, or to the Company, for any indirect, special or consequential damages,
as may be based upon any legal theory whatsoever.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter22"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 22</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; FORCE
MAJEURE</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 56</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Force Majeure&#148; shall mean all events which are
beyond the control of the Parties to this Contract and which are unforeseen or
if</font><font size="2" style="font-size:10.0pt;"> foreseen are unavoidable and which arise after the date of execution
of this Contract and which prevent total or partial performance by either
Party.&#160; Force Majeure may include but is
not limited to explosions, fires, floods, earthquakes and other natural
disasters, acts of</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-23-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=25,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=969692,FOLIO='-23-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">war or civil disturbances, acts of any
government in its sovereign capacity, sabotage, condemnation or expropriation.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 57</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event of an Force Majeure, the
Party&nbsp;whose performance is hindered or is absolutely impossible shall
notify the other Parties by most expedient means without delay and within [***]
thereafter provide to the other Parties written report detailing the
events.&#160; The Party&nbsp;experiencing the
Force Majeure event shall exercise all reasonable endeavors to terminate the
Force Majeure condition and to minimize all loss to the Company and to the
other Parties.&#160; Parties shall then,
through consultation, decide whether or not to terminate or postpone the
performance of this Contract or to exempt the part of obligations of the
prevented Party&nbsp;according to the effects of the event on the performance
of this Contract.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 58</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the Company is unable to operate or this
Contract is impossible to be performed due to an event of Force Majeure, the
obligations of the Parties hereto (except obligations pertaining to Chapters 6
and 13) shall be suspended during the period of delay caused by the Force
Majeure and shall automatically be extended, without penalty, for a period
equal to such suspension.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter23"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 23</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; INTELLECTUAL
PROPERTY</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 59</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Parties shall cause the Company to enter
into the Technical License Agreements with Party&nbsp;C and Party&nbsp;A
respectively.&#160; The Parties agree the
following:</font></p>

<h4 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;A will grant to the Company a
[***] right to use technology regarding [***] in accordance with Technical
License Agreement by UTS attached hereto as Appendix&nbsp;11;</font></h4>

<h4 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party&nbsp;C will grant to the Company, a
[***] right to use technology regarding [***] in accordance with Technical
License Agreement by MCI attached hereto as Appendix&nbsp;I;</font></h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-24-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=26,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=520796,FOLIO='-24-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h4 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any patents, patent applications,
copyrights, trade secrets, mask works, industrial design rights, know-how,
design processes, techniques and methodologies and any and all other legal rights
protecting intangible confidential information (collectively &#147;<b><font style="font-weight:bold;">IPR</font></b>&#148;) developed by the Company shall be
jointly owned by the Company, Party&nbsp;A and Party&nbsp;C in equal share, if
such IPR derives from, based on or in connection with the LICENSED TECHNOLOGY,
except that any IPR relating to [***] shall be jointly owned by the Company and
Party&nbsp;C and that any IPR relating to [***] shall be jointly owned by the
Company and Party&nbsp;A;</font></h4>

<h4 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Each joint owner of IPR set forth in
above section (c) shall be free to practice and use such jointly owned IPR on
non-exclusive basis without accounting to and royalty-free to the other
party.&#160; UTS and MCI may sublicense such
jointly owned IPR to its subsidiaries, affiliates, parent company or any direct
or indirect subsidiary of parent company, without the consent of the other
joint owners.</font></h4>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 60</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In case of termination of this Contract or
dissolution of the Company, IPR owned by the Company (in case the Company owns
certain portion hereof, such portion) shall be transferred to Party&nbsp;C, for
IPR relating to [***] to Party&nbsp;A, for IPR relating to [***], and to
Party&nbsp;A and Party&nbsp;C in proportion to the share of ownership, for any
other IPR.&#160; The transfer price shall be
determined upon agreement between the Company and such Parties.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter24"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 24</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; APPLICABLE
LAW</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 61</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It is mutually understood that this is a
contract for which the entering, effects, construction, performance and
resolution of disputes are all subject to PRC laws.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-25-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=27,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=297465,FOLIO='-25-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter25"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 25</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; SETTLEMENT
OF DISPUTES</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 62</font></h1>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">62.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event a dispute arises out of or
in connection with the interpretation or implementation of this Contract, the
Parties shall attempt in the first instance to resolve such dispute through
friendly consultations.</font></h2>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">62.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If the dispute is not resolved through
friendly consultations within sixty (60) days after the commencement of
discussions, or such longer period as the Parties agree in writing at that
time, then notwithstanding any other provision of this Contract, any
Party&nbsp;may submit the dispute for arbitration.</font></h2>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">62.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any disputes initiated by Party&nbsp;A,
arising out of or in connection with this Contract shall be finally settled by
an arbitration in Tokyo, Japan by the Japan Commercial Arbitration Association
(&#147;JCAA&#148;) in accordance with JCAA&#146;s arbitration rules in effect at the time of
arbitration.&#160; Any disputes initiated by
Party&nbsp;B or Party&nbsp;C, arising out of or in connection with this
Contract shall be finally settled by an arbitration in Shanghai, PRC by the
China International Economic and Trade Arbitration Commission (&#147;CIETAC&#148;) in
accordance with CIETAC&#146;s arbitration rules in effect at the time of
arbitration.&#160; The award rendered by the
arbitrators shall be final and binding upon the Parties.&#160; The Parties hereto agree to honor such
award.&#160; Any competent court may enforce
such award.&#160; All arbitration costs,
including costs, for the enforcement of any arbitration award, shall be borne
by the losing Party.</font></h2>

<h2 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">62.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Parties agree that during the
arbitration proceedings, they shall continue to observe and perform this
Contract except for the provisions subject to or involved in arbitration.</font></h2>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter26"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 26</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LANGUAGE</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 63</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Contract shall be signed in the Chinese
language in six (6) originals and in the English language in six (6)
originals.&#160; Both language versions shall
be equally authentic.&#160; Each
Party&nbsp;shall retain one (1) of each original English and Chinese copies,
and the remaining originals shall be submitted to the related authorities for
approval.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-26-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=28,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=945092,FOLIO='-26-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter27"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 27</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; NOTICE</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 64</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notices or other communications required to
be given to any Party&nbsp;pursuant to this Contract shall be written in
English and delivered in person or sent by mail, courier or facsimile to the
address of the Party&nbsp;set forth below, or to such other addresses as may
from time to time be designated by the Party&nbsp;through notification to the
other Parties, and if to the Company, delivered to its legal address as in
effect from time to time.&#160; The dates on
which notices shall be deemed to have been effectively given shall be
determined as follows:</font></p>

<h3 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Notices delivered by person shall be
deemed as being effectively given on the date of personal delivery.</font></h3>

<h3 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Notices delivered by mail shall be deemed
as being effectively given on the seventh day after the date mailed (as
indicated by the postmark) by registered airmail, postage prepaid, or on the
fourth day after delivery to any internationally recognized courier service.</font></h3>

<h3 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Notices delivered by facsimile shall be
deemed as being effectively given on the first business day following the date
of transmission, as indicated on the transmission confirmation slip of the
document in question.</font></h3>

<p style="margin:0in 0in .0001pt 2.0in;page-break-after:avoid;text-indent:-1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="86%" style="border-collapse:collapse;margin-left:72.7pt;width:86.58%;">
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party&nbsp;A:</font></p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom
  Telecom Co., Ltd.</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:
  3, Yile Industrial Park, 129 Wenyi Road,</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="margin:0in 0in .0001pt 35.3pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hangzhou, PRC</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt 35.3pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Zip
  Code: 310012</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:
  Mr. Johnny Chou, General Manager</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:
  (86571)-8886-2336</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in .7pt 0in .7pt;width:84.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile:
  (86571)-8886-2349</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-27-</font></p>


<div style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=29,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=557802,FOLIO='-27-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;">&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="86%" style="border-collapse:collapse;margin-left:72.7pt;width:86.58%;">
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party&nbsp;B:</font></p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matsushita
  Electric Industrial Co., Ltd.</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:
  2-1-61, Shiromi, Chuo-ku, Osaka, Japan</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Zip
  Code: 540-6255</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.82%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:</font></p>
  </td>
  <td width="71%" valign="top" style="padding:0in .7pt 0in .7pt;width:71.84%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.
  Etsuto Okamoto, General Manager of</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.82%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="71%" valign="top" style="padding:0in .7pt 0in .7pt;width:71.84%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.82%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="71%" valign="top" style="padding:0in .7pt 0in .7pt;width:71.84%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accounting
  &amp; Business Support Group,</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.82%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="71%" valign="top" style="padding:0in .7pt 0in .7pt;width:71.84%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.82%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="71%" valign="top" style="padding:0in .7pt 0in .7pt;width:71.84%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Corporate
  Management Division for China &amp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.82%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="71%" valign="top" style="padding:0in .7pt 0in .7pt;width:71.84%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.82%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="71%" valign="top" style="padding:0in .7pt 0in .7pt;width:71.84%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Northeast
  Asia</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:
  (816)-6937-7253</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: (816)-6937-7249</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party&nbsp;C:</font></p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matsushita
  Communication Industrial Co., Ltd.</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:
  4-3-1 Tsunashima-higashi, Kohoku-ku, Yokohama,</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt 35.4pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Japan</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Zip
  Code: 223-8639</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:
  Mr. Nobuyoshi Itoh, Director of</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mobile
  Network Division</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:
  (8145)-540-5250</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.34%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="84%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:84.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: (8145)-544-3620</font></p>
  </td>
 </tr>
</table>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter28"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 28</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; TRADEMARK</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 65</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall manufacture Products to be
sold in the PRC under the Trademark and Business name to be licensed to the
Company by Party&nbsp;A or the customer.&#160;
For Products to be sold outside the PRC, Parties shall discuss to
determine trademark and business name of the Products.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter29"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 29</font></b></a><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; EFFECTIVENESS
OF CONTRACT AND MISCELLANEOUS</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 66</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All appendices (Appendix&nbsp;I: Technical
License Agreement by MCI, Appendix&nbsp;II: Technical License Agreement by UTS,
Appendix&nbsp;III: Equipment Purchase Agreement, Appendix&nbsp;IV: Personnel
Assignment Agreement) to this Contract shall be integral parts hereof.&#160; This Contract and any</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-28-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=30,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=899717,FOLIO='-28-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">appendices hereto shall become effective and
come into force from the date of their approval by the examination and approval
authority.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 67</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any amendment to this Contract shall come
into force only by written agreement duly executed by the Parties hereto and
approved by the original examination and approval authority.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 68</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A Party that in a particular situation waives
its rights in respect of a breach of contract by another Party&nbsp;shall not
be deemed to have waived its rights against the other Parties for a similar
breach of contract in other situations.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 69</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Contract constitutes the complete and
exclusive agreement between the Parties on the establishment of the Company,
and this Contract supersedes all previous oral or written agreements,
contracts, undertakings and communications of the Parties with respect of the
establishment of the Company.</font></p>

<h1 align="left" style="font-weight:normal;line-height:normal;margin:12.0pt 0in 6.0pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 70</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapters&nbsp;7, 13, 20, 21, 23, 24, 25 and
28 shall survive the termination of the Contract until they are fulfilled.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-29-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=31,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=913941,FOLIO='-29-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 19:34 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the Parties hereto caused
their authorized representatives to execute this Agreement on the date first
above written.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="40%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:40.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom Telecom Co., Ltd.</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:26.72%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:26.72%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:26.72%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="32%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Johnny Chou</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:26.72%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="32%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:32.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Johnny Chou</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:26.72%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="32%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:32.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">General Manager</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:26.72%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="26%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:26.72%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="13%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:13.28%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Witnessed by:</font></p>
  </td>
  <td width="26%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:26.72%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Hong Liang Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.96%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="30%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:30.04%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hong Liang Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.96%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position: </font></p>
  </td>
  <td width="30%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:30.04%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President &amp; CEO</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.96%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="30%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:30.04%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="40%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:40.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matsushita Electric Industrial Co., Ltd.</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="32%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Yukio Shohtoku</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="32%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:32.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yukio Shohtoku</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="32%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:32.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Managing Director</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="40%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:40.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matsushita Communication Industrial Co., Ltd.</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="32%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Yasuo Katsura</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="32%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:32.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yasuo Katsura</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position: </font></p>
  </td>
  <td width="32%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:32.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="20%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr height="0">
  <td width="57" style="border:none;"></td>
  <td width="87" style="border:none;"></td>
  <td width="144" style="border:none;"></td>
  <td width="144" style="border:none;"></td>
  <td width="72" style="border:none;"></td>
  <td width="24" style="border:none;"></td>
  <td width="49" style="border:none;"></td>
  <td width="144" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-30-</font></p>


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</font></div>

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</div>


<div style="font-family:'Times New Roman';">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix I</font></p>

<p style="font-weight:bold;line-height:normal;margin:.5in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Technical License Agreement</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:.5in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">between</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:.5in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Universal Communication Technology (Hangzhou)</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company Limited</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matsushita
Communication Industrial Co., Ltd.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=33,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=987665,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AE_2332.CHC",USER="DNICHOL",CD='Nov  7 09:35 2002' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS AGREEMENT, dated as of __________, is
made and entered into by and between Universal Communication Technology
(Hangzhou) Company Limited ( hereinafter referred to as &#147;JV&#148;) , and Matsushita
Communication Industrial Co., Ltd. ( hereinafter referred to as &#147;MCI&#148;)</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WITNESSETH</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, MCI owns technologies with respect
to [***] (hereinafter referred to as [***]) as a part of infrastructure of the
advanced mobile terminal communications; and</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, JV desires to acquire licenses to
utilize MCI&#146;s technical information and know-how so that JV may develop and
manufacture [***] and</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, MCI is willing to grant such
licenses to JV</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the
mutual covenants and premises contained herein, the parties hereto agree as
follows:</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><font size="2" face="Times New Roman" style="font-size:10.0pt;">DEFINITIONS</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purpose of this Agreement, and in
addition to certain terms defined on first use herein and in any attachments
and exhibits attached hereto, the following terms shall have the following
meanings.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;page-break-after:avoid;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;LICENSED TECHNOLOGY&#148; shall mean the
following items, as specifically described in Attachment I hereto:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [***]</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;TECHNICAL INFORMATION&#148; shall mean
certain MCI technical information, circuit diagram , data, formulas, knowledge,
processes and/or know-how developed or acquired by MCI during the term hereof
relating to the LICENSED TECHNOLOGY.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;SELLING PRICE&#148; shall mean the price on
the JV&#146;s sales invoice to customers for the portion of PRODUCTS , including
hardware and software.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;CONFIDENTIAL INFORMATION&#148; shall mean
(1)&nbsp;TECHNICAL INFORMATION (2)&nbsp;all ideas and information of any kind,
including, without limitation, technology, know-how, technical data, products,
software, works of authorship, business plans or any other aspect of MCI&#146;s
business, in written, other tangible or electronic form provided by MCI to JV
(3)&nbsp;software in any form (including, without limitation, related
documentation), whether or not labeled in accordance with the preceding; and
(4)&nbsp;information orally disclosed and identified as confidential at the
time of such disclosure.&#160; Confidential
Information shall not, however, include any information that (a)&nbsp;lawfully
in the JV&#146;s possession, with no restriction on use or disclosure, prior to its
acquisition from MCI (b)&nbsp;received in good faith by JV, with no
restrictions on use or disclosure, from a third Party&nbsp;not subject to any
confidential obligation to MCI (c)&nbsp;now or later becomes publicly known
through no breach of confidential obligation by JV (d)&nbsp;independently
developed by JV without any reliance on or use of CONFIDENTIAL INFORMATION of
the disclosing party.&#160; The foregoing
exceptions shall not apply to software in any form.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;EFFECTIVE DATE&#148; shall mean the date on
which this Agreement is duly executed by both parties hereto.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;PRODUCTS&#148; shall mean [***].</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; GRANT OF LICENSES</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MCI hereby grants for the term of this
Agreement to JV [***] right and license to utilize LICENSED TECHNOLOGY only for
the purpose of development, manufacture and sale of the PRODUCTS within the
territory of [***].&#160; The rights granted
under this Article&nbsp;does not include rights under patents, utility models
and designs held or to be held by MCI.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LICENSE FEE</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In consideration of the license set forth in
Article&nbsp;2 above, JV shall pay MCI a royalty of [***] of SELLING PRICE of
the PRODUCT which are manufactured by JV.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-2-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; PAYMENTS, REPORTS, RECORDS AND
TAX</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The royalty set forth in Section 3.1
above shall be computed and paid to MCI by JV within [***] after the end of
each quarter ending on March 31<sup>st</sup>, June 30<sup>th</sup>,
September&nbsp;30<sup>th</sup>, and December&nbsp;31<sup>st</sup>.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall, at the time of each payment of
the royalty under Section 4.1 above, furnish to MCI a royalty report in
suitable form prepared by chief financial officer of JV, which shall describe
sales quantity, type number and gross SELLING PRICE, any deduction from and/or
adjustment to the gross SELLING PRICE.&#160;
JV shall, within [***] after the end of each calendar year, also furnish
to MCI a royalty compliance report certified by an outside certified public
accountant, for the period of the year.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Payment hereunder shall be made
[***].&#160; However, income taxes or taxes
of similar nature imposed on by the Government of PRC or any other political
subdivision thereof and paid by JV for the account of MCI shall be [***].&#160; To assist [***], JV shall furnish MCI with
such evidence as may be required by taxing authorities of the Government of
Japan to establish that any such taxes have been paid.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If JV fails to make any payment
stipulated in this Agreement within the time specified herein, JV shall pay an
interest of [***] per year on the unpaid balance payable from the due date
until fully paid.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any payment from JV to MCI hereunder
shall be made by means of telegraphic transfer remittance in U.S. Dollars, at
selling rate of exchange [***] to the bank account of as designated by MCI, and
notice of the payment shall be sent by JV to MCI&#146;s address set forth below:</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; ACCOUNTING AND AUDIT</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With respect to the royalty set forth in
Article&nbsp;3 above, JV shall keep full, clear and accurate records and accounts
for PRODUCTS subject to royalty for a period of [***].&#160; MCI shall have the right through a person(s)
appointed by MCI to audit, not more than [***] in each calendar year and during
</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-3-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=36,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=734537,FOLIO='-3-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AE_2332.CHC",USER="DNICHOL",CD='Nov  7 09:35 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">normal business hours, all such records and
accounts to the extent necessary to verify that no underpayment has made by JV
hereunder.&#160; Such audit shall be
conducted at MCI&#146;s own expense, provided that if any discrepancy or error
exceeding [***] of the money actually due is found through the audit, the cost
of the audit shall be born by JV.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; MAINTENANCE OF QUALITY &amp;
SAFETY STANDARDS</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV hereby agrees to strictly comply with
quality standards of the PRODUCTS in manufacturing the PRODUCTS hereunder.&#160; At the request of MCI, JV agrees to submit
to MCI its quality control and inspection data for MCI&#146;s inspection.&#160; JV shall reimburse to MCI in Japanese Yen or
United States Dollars the actual expenses of inspection or test of such
PRODUCTS.&#160; MCI shall give JV pertinent
advice or instruction, if MCI deems necessary after studying such reports of
quality control and inspection data, with which advice or instruction JV shall
always and strictly comply.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In case JV purchase components or
materials of the PRODUCTS in PRC, JV shall check duality of such components or
materials so that such components or materials may not harm duality standards
of the PRODUCTS.&#160; If such components or
materials are found to be defective or insufficient, JV shall procure
substituting components or materials.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV further agrees to promptly furnish MCI
with information in connection with claims, if any, from customers of the
PRODUCTS, their nature and disposition thereof by JV, and MCI will give JV
pertinent advice after checking the information so furnished hereunder.&#160; The preceding provision shall not be
interpreted to obligate MCI to be responsible for any such claims.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Manufacture and sale, use or other
disposition of the PRODUCTS as well as duality guarantee to customers,
responsibility for product liability, advertising and servicing of the
PRODUCTS, obtaining approval(s) for the PRODUCTS pursuant to any standard,
legal or otherwise applicable to the PRODUCTS shall be made by JV entirely at
JV&#146;s own account and responsibility, and MCI, its parent company, subsidiaries
and/or affiliates shall not be responsible therefor to JV or any third
party.&#160; JV shall indemnify MCI (or its
parent company, subsidiaries) for and hold MCI (or its parent company,
subsidiaries) harmless from </font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-4-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=37,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=345180,FOLIO='-4-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AE_2332.CHC",USER="DNICHOL",CD='Nov  7 09:35 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">any liabilities, damages and costs and
expenses arising out of or in connection with Ws operations.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; TRAINING</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MCI shall provide JV necessary training only
for the purpose of using LICENSED TECHNOLOGY at location and/or on a date to be
determined by MCI.&#160; MCI has the sole
discretion to determine the duration and program of such necessary
training.&#160; The cost of such training shall
be determined later.&#160; [***].</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; TERM AND TERMINATION</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement shall become effective on
EFFECTIVE DATE and shall , continue until terminated pursuant to
Article&nbsp;8.2 or 8.3 below.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In event of a breach of this Agreement by
JV hereto, and if such breach is not corrected [***] after written notice
complaining thereof is received by JV, MCI may terminate this Agreement
forthwith by written notice to that effect to JV.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">MCI shall also have the right to
terminate this Agreement forthwith by giving written notice of termination to
JV at any time, upon or after:</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the termination or expiration of the
Joint Venture Contract by and between UTStarcom Telecom Co., Ltd., Matsushita
Electric Industrial Co., Ltd, and MCI;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the making by JV of any assignment for
the benefit of creditors;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the institution of any proceedings for
the liquidation or winding up of JV&#146;s business or for the termination of its
corporate charter;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the assignment to third Party&nbsp;of all
or substantially all of the assets of JV;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">important change in controlling ownership
of JV; or</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">any activity or assistance by JV of
challenging the validity of any LICENSED TECHNOLOGY or restricting the scope
thereof.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event of expiration or termination
of this Agreement by MCI pursuant to Article&nbsp;8.2 or 8.3 above, the
licenses granted hereunder to JV shall automatically terminate when JV </font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-5-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=38,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=45382,FOLIO='-5-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AE_2332.CHC",USER="DNICHOL",CD='Nov  7 09:35 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">receives or deems to receives such
termination notice hereunder, except those in stock.&#160; JV shall pay the amount of the royalty accrued on or before the date
of termination within [***] thereafter.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Upon expiration or termination of this&#146;
Agreement, JV shall immediately return LICENSED TECHNOLOGY to MCI.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; IMPROVEMENT OF LICENSED
TECHNOLOGY</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any new intellectual property rights
(hereinafter referred to as &#147;IPR&#148;) derived from, based on or in connection with
the LICENSED TECHNOLOGY shall be owned jointly by MCI and JV in equal share, if
such IPR is for or related to [***], and derived from, based on, or in
connection with the LICENSED TECHNOLOGY of MCI.&#160; Each Party&nbsp;shall be free to practice and use such jointly
owned IPR on non-exclusive basis without accounting to and royalty-free to the
other party.&#160; However, licenses to third
parties may be granted only upon the other party&#146;s prior consent, which may not
be unreasonably withheld, except that MCI may sublicense such jointly owned IPR
to its subsidiaries, affiliates, the parent company or the subsidiaries and the
affiliates of the parent company, without the consent of the other joint
owners.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; CONFIDENTIAL INFORMATION</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Restrictions.&#160; JV understands that LICENSED TECHNOLOGY, and TECHNICAL
INFORMATION provided from MCI to JV for the purpose of this Agreement is the
CONFIDENTIAL INFORMATION of MCI and any unauthorized disclosure of CONFIDENTIAL
INFORMATION causes unrepairable harm to MCI, and MCI shall have the right to
take all necessary proceedings to prevent and restrain such unauthorized
disclosure Further, JV shall not disclose CONFIDENTIAL INFORMATION to any third
Party&nbsp;and shall not use CONFIDENTIAL INFORMATION for any other purposes
than authorized under this Agreement.&#160;
JV shall instruct all of employees of JV who engage in work under this
Agreement that they shall keep CONFIDENTIAL INFORMATION confidential regardless
of whether their relationship with JV is terminated at some future time.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-6-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Continuing Obligation.&#160; The obligation of nondisclosure and nonuse
with respect to Confidential Information of the disclosing Party&nbsp;shall
survive the expiration or termination of this Agreement</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 11&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LIMITATION OF LIABILITY</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***] neither party&nbsp;be entitled to
recover from the other Party&nbsp;any incidental, consequential, indirect,
special damages (including, without limitation, damages for loss of business,
loss of profits or loss of use), whether based on contract, tort (including,
without limitation, negligence), or any other cause of action relating to
intellectual property rights assigned or licensed hereunder or confidential
information, or otherwise relating to this Agreement, even if the other
Party&nbsp;has been informed of or should have known the possibility of such
damages.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 12&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; REPRESENTATIONS AND WARRANTIES</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;page-break-after:avoid;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">OWNERSHIP.&#160; MCI has the full power and right to enter into this Agreement.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">NO ENCUMBRANCE.&#160; To the best of MCI&#146;s knowledge, the MCI rights in relation to the
LICENSED TECHNOLOGY hereunder are free and clear of any and all encumbrances
and /or liens of any nature whatsoever, other than those identified by MCI
pursuant to this Agreement, and other than non-exclusive licenses granted by
MCI to others to use the MCI rights.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">NO CONFLICTS.&#160; To the best of MCI&#146;s knowledge, MCI&#146;s performance of this
Agreement does not conflict with any other agreement to which MCI is bound and,
while performing this Agreement, MCI will not knowingly enter into any other
agreement in conflict with this Agreement or which would impair the ability of
MCI to perform this Agreement.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">NO HARMFUL CODE.&#160; In the event that any of the LICENSED
TECHNOLOGY and TECHNICAL INFORMATION are software or include software of any
type, to the best of MCI&#146;s knowledge, to be free of any known viruses and or
known bugs.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">LIMITATION OF WARRANTIES.&#160; Except as stated above, MCI disclaims all
warranties, either express or implied, with respect to the LICENSED TECHNOLOGY
and </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-7-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">TECHNICAL INFORMATION,, including but not
limited to the implied warranties of merchantability and fitness for a
particular purpose..</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 13&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; GENERAL</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Notice.&#160;
Any written notice either Party&nbsp;may give the other concerning the
subject matter of this Agreement shall be in writing and given or made by means
that obtain a written acknowledgment of receipt.&#160; Notices shall be sent to the parties at the following addresses,
which maybe changed by written notice:</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To MCI:</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:4-3-1 Tsunashima-higashi, Kohoku-ku, Yokohama,</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Japan</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Zip Code:223-8639</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Mr. Nobuyoshi Itoh, Director of</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mobile Network Division</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone: (8145)-540-5250</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: (8145)-544-3620</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To JV:</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:3, Yile Industrial Park, 129 Wenyi Road, Hangzhou,</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PRC</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Zip Code:310012</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Mr. John Yang, General Manager</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone: (86571)-8886-2336</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: (86571)-8886-2349</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notice shall be deemed to have been given or
made when actually received, as evidenced by written acknowledgment of receipt.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any disputes initiated by JV, arising out
of or in connection with this Agreement shall be finally settled by an
arbitration in Tokyo, Japan by the Japan Commercial Arbitration </font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-8-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Association (&#147;JCAA&#146;) in accordance with
JCAA&#146;s arbitration rules in effect at the time of arbitration.&#160; Any disputes initiated by MCI, arising out
of or in connection with this Agreement shall be finally settled by an
arbitration in Shanghai, PRC by the China International Economic and Trade
Arbitration Commission (&#147;CIETAC&#148;) in accordance with CIETAC&#146;s arbitration rules
in effect at the time of arbitration.&#160;
The award rendered by the arbitrators shall be final and binding upon
the Parties.&#160; The Parties hereto agree
to honor such award.&#160; Any competent
court may enforce such award.&#160; All
arbitration costs, including costs for the enforcement of any arbitration
award, shall be borne by the losing Party.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Compliance.&#160; MCI and JV shall each comply with the provisions of all
applicable laws, ordinances, regulations and codes (including, without
limitation, procurement of required permits or certificates) in fulfillment of
their obligations under this Agreement.&#160;
All Intellectual Property Rights held by either Party&nbsp;are subject
to PRC export and import technology control regulations.&#160; Each Party&nbsp;undertakes that it shall
neither export, nor cause nor permit to be exported, without the other party&#146;s
prior written consent and without compliance with applicable law and
regulation.&#160; Each Party&nbsp;agrees to
comply with all applicable laws and regulations relating to the exportation of
technical information, as they currently exist and as they may be amended from
time to time.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Assignment, Subcontracting.&#160; Neither this Agreement nor any rights or
obligations hereunder shall be assignable or subcontracted by JV without MCI&#146;s
prior written consent.&#160; ; Any attempted
or purported assignment in violation of the foregoing shall be void.&#160; Subject to the foregoing, this Agreement
shall be binding upon and inure to the benefit of the successors and permitted
assigns of each Party&nbsp;hereto.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Waiver of Terms and Conditions.&#160; Failure to enforce any of the terms or
conditions of this Agreement shall not constitute a waiver of any such terms or
conditions, or of any other terms or conditions.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Severability.&#160; Where any provision of this Agreement is declared invalid,
illegal, void or unenforceable, or any changes or modifications are required by
regulatory or judicial action, and any such invalid, illegal, void or
unenforceable provision, or such change or </font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-9-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=42,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=103111,FOLIO='-9-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AE_2332.CHC",USER="DNICHOL",CD='Nov  7 09:35 2002' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">modification, substantially affects any
material obligation of a Party&nbsp;hereto, the remaining provisions of this
Agreement shall remain in effect and the parties shall mutually agree upon a
course of action with respect to such invalid provision or such change or
modification to the end that the purposes of this Agreement are carried out.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.7</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Governing Law.&#160; This Agreement, and the rights and obligations contained in it,
shall be governed by and construed in accordance with the laws of PRC, without
regard to any conflicts of law principles that would require the application of
the laws of any other jurisdiction.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.8</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">No Unreasonable Delay or
Withholding.&#160; Where agreement, approval,
acceptance, consent or similar action by MCI or JV is required, such action
shall not be unreasonably delayed or withheld.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.9</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Force Majeure.&#160; If performance of any obligations by either Party&nbsp;under this
Agreement is prevented, restricted or interfered with by reason of acts of God,
wars, revolution, civil commotion, acts of public enemy, embargo, acts of
government in its sovereign capacity, labor difficulties, including, without
limitation, strikes, slowdowns, picketing or boycotts, communication line
failures, power failures, or any other circumstances beyond the reasonable
control and not involving any fault or negligence of the Party&nbsp;affected,
the Party&nbsp;affected, upon giving prompt notice to the other party, shall be
excused from such performance on a day-to-day basis during the continuance of
such prevention, restriction or interference (and the other Party&nbsp;shall
likewise be excused, on a day-to-day basis during the same period, from
performance of its obligations which are dependent upon or affected by such
nonperformance); provided, however, that the Party&nbsp;so affected shall use
its best reasonable efforts to avoid or remove such causes of nonperformance
and both parties shall proceed immediately with the performance of their
obligations under this Agreement whenever such causes are removed or cease.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.10</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Entire Agreement.&#160;
This Agreement represents the entire understanding between the parties
with the respect to its provisions and cancels and supersedes all prior
agreements or understandings, whether written or oral, with respect to the
subject matter.&#160; This Agreement </font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-10-</font></p>


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<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">may only be modified or amended by an
instrument in writing signed by duly authorized representatives of the
parties.&#160; This Agreement shall be deemed
to include all attachments and exhibits, if any attached hereto.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.11</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement is made in Chinese and English, each
Party retaining one copy.&#160; Both Chinese
and English versions are equally authentic.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-11-</font></p>


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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the Parties hereto cause
their authorized representatives to execute this Agreement on the date first
above written.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Universal Communication Technology (Hangzhou)
  Company Limited.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matsushita Communication Industrial Co., Ltd.</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
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  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
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  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
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  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-12-</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attachment
I</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">The detail
of LICENSED TECHNOLOGY shall be as follows:</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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</font></div>

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<div style="font-family:'Times New Roman';">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;II</font></p>

<p style="font-weight:bold;line-height:normal;margin:.75in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Technical License Agreement</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:24.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">by and between</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:24.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Universal Communication Technology (Hangzhou)</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company Limited.,</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:24.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom Telecom Co., Ltd.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS AGREEMENT, dated as of ________ is made
and entered into by and between Universal Communication Technology (Hangzhou)
Company Limited (hereinafter referred to as &#147;JV&#148;), and UTStarcom Telecom Co.,
Ltd. ( hereinafter referred to as &#147;UTS&#148;)</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WITNESSETH</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, UTS owns technologies with respect
to [***] (hereinafter referred to as [***]) as a part of infrastructure of the
advanced mobile communications; and</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, JV desires to acquire licenses to
utilize UTS&#146;s technical information and know-how so that JV may develop and
manufacture [***] and</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, UTS is willing to grant such
licenses to JV.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the
mutual covenants and premises contained herein, the parties hereto agree as
follows:</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; DEFINITIONS</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purpose of this Agreement, and in
addition to certain terms defined on first use herein and in any attachments
and exhibits attached hereto, the following terms shall have the following
meanings.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;LICENSED TECHNOLOGY&#148; shall mean the
following items, as specifically described in Attachment&nbsp;I hereto:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [***]</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;"> &#147;TECHNICAL INFORMATION&#148; shall mean
certain UTS any and all technical information, circuit diagram, data, formulas,
knowledge, processes and/or know-how developed or acquired by UTS during the
term hereof relating to the LICENSED TECHNOLOGY</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;SELLING PRICE&#148; shall mean the price on
the JV&#146;s sales invoice to customers for the portion of PRODUCTS, including
hardware and software.</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;CONFIDENTIAL INFORMATION&#148; shall mean
(1)&nbsp;TECHNICAL INFORMATION (2)&nbsp;all ideas and information of any kind,
including, without limitation, technology, know-how, technical data, products,
software, works of authorship, business plans or any other aspect of UTS&#146;s
business, in written, other tangible or electronic form provided by UTS to JV
(3)&nbsp;software in any form (including, without limitation, related
documentation), whether or not labeled in accordance with the preceding; and
(4)&nbsp;information orally disclosed and identified as confidential at the
time of such disclosure .&#160; Confidential
Information shall not, `however, include any information that (a)&nbsp;lawfully
in the JV&#146;s possession, with no restriction on use or disclosure, prior to its
acquisition from UTS (b)&nbsp;received in good faith by JV with no restrictions
on use or disclosure, from a third Party&nbsp;not subject to any confidential
obligation to UTS (c)&nbsp;now or later becomes publicly known through no
breach of confidential obligation by JV (d)&nbsp;independently developed by JV
without any reliance on or use of CONFIDENTIAL INFORMATION of the disclosing
party.&#160; The foregoing exceptions shall
not apply to software in any form.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;EFFECTIVE DATE&#148; shall mean the date on
which this Agreement is duly executed by both parties hereto.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;PRODUCTS&#148; shall mean [***].</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; GRANT OF LICENSES</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS hereby grants for the term of this
Agreement to JV a [***] right and license to utilize LICENSED TECHNOLOGY only
for the purpose of development, manufacture and sale of the PRODUCTS within the
territory of [***].&#160; The rights granted
under this Article&nbsp;does not include rights under patents, utility models
and designs held or to be held by UTS.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LICENSE FEE</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In consideration of the license set forth in
Article&nbsp;2 above, JV shall pay UTS, a royalty of [***] of SELLING PRICE of
the PRODUCT which are manufactured by JV.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-2-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=49,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=766684,FOLIO='-2-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AG_2332.CHC",USER="DNICHOL",CD='Nov  7 04:43 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; PAYMENTS, REPORTS, RECORDS AND
TAX</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The royalty set forth in Section&nbsp;3.1
above shall be computed and paid to UTS by JV within [***] after the end of
each quarter ending on March 31<sup>st</sup>, June 30<sup>th</sup>,
September&nbsp;30<sup>th</sup>, and December&nbsp;31<sup>st</sup>.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall, at the time of each payment of
the royalty under Section 4.1 above, furnish to UTS a royalty report in
suitable form prepared by chief financial officer of JV, which shall describe
sales quantity, type number and gross SELLING PRICE, any deduction from and/or
adjustment to the gross SELLING PRICE.&#160;
JV shall, within [***] after the end of each calendar year, also furnish
to UTS a royalty compliance report certified by an outside certified public
accountant, for the period of the year.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Payment hereunder shall be made [***].</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If JV fails to make any payment
stipulated in this Agreement within the time specified herein, JV shall pay an
interest of [***] per year on the unpaid balance payable from the due date
until fully paid.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any payment from JV to UTS hereunder
shall be made by means of telegraphic transfer remittance in U.S. Dollars, at
selling rate of exchange [***] to the bank account of as designated by UTS, and
notice of the payment shall be sent by JV to UTS&#146;s address set forth below:</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; ACCOUNTING AND AUDIT</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With respect to the royalty set forth in
Article&nbsp;3 above, JV shall keep full, clear and accurate records and
accounts for PRODUCTS subject to royalty for a period of [***].&#160; UTS shall have the right through a person(s)
appointed by UTS to audit, not more than [***] in each calendar year and during
normal business hours, all such records and accounts to the extent necessary to
verify that no underpayment has made by JV hereunder.&#160; Such audit shall be conducted at UTS&#146;s own expense, provided that
if any discrepancy or error exceeding [***] of the money actually due is found
through the audit, the cost of the audit shall be born by JV.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-3-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=50,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=209250,FOLIO='-3-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AG_2332.CHC",USER="DNICHOL",CD='Nov  7 04:43 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; MAINTENANCE OF QUALITY &amp;
SAFETY STANDARDS</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV hereby agrees to strictly comply with
quality standards of the PRODUCTS in manufacturing the PRODUCTS hereunder.&#160; At the request of UTS, JV agrees to submit
to UTS its quality control and inspection data for UTS inspection.&#160; JV shall reimburse to UTS in Chinese
currency the actual expenses of inspection or test of such PRODUCTS.&#160; UTS shall give JV pertinent advice or
instruction, if UTS deems necessary after studying such reports of quality
control and inspection data, with which advice or instruction JV shall always
and strictly comply.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In case JV purchase components or
materials of the PRODUCTS in PRC, JV shall check quality of such components or
materials so that such components or materials may not harm quality standards
of the PRODUCTS.&#160; If such components or
materials are found to be defective or insufficient, JV shall procure
substituting components or materials.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV further agrees to promptly furnish UTS
with information in connection with claims, if any, from customers of the
PRODUCTS, their nature and disposition thereof by JV, and UTS will give JV
pertinent advice after checking the information so furnished hereunder.&#160; The preceding provision shall not be
interpreted to obligate UTS to be responsible for any such claims.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Manufacture and sale, use or other
disposition of the PRODUCTS as well as quality guarantee to customers,
responsibility for product liability, advertising and servicing of the
PRODUCTS, obtaining approval(s) for the PRODUCTS pursuant to any standard,
legal or otherwise applicable to the PRODUCTS shall be made by JV entirely at
JV&#146;s own account and responsibility, and UTS, its parent company, subsidiaries
and/or affiliates shall not be responsible therefor to JV or any third
party.&#160; JV shall indemnify UTS (or its
parent company, subsidiaries) for and hold UTS (or its parent company,
subsidiaries) harmless from any liabilities, damages and costs and expenses
arising out of or in connection with JV&#146;s operations.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-4-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=51,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=625438,FOLIO='-4-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AG_2332.CHC",USER="DNICHOL",CD='Nov  7 04:43 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; TRAINING</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS shall provide JV necessary training only
for the purpose of using LICENSED TECHNOLOGY at location and/or on a date to be
determined by UTS.&#160; UTS has the sole
discretion to determine the duration and program of such necessary
training.&#160; The cost of such training
shall be determined later.&#160; [***].</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; TERM AND TERMINATION</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement shall become effective on
EFFECTIVE DATE and shall continue until terminated pursuant to Article&nbsp;8.2
or 8.3 below.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In event of a breach of this Agreement by
JV hereto, and if such breach is not corrected within [***] after written
notice complaining thereof is received by JV, UTS may terminate this Agreement
forthwith by written notice to that effect to JV.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">UTS shall also have the right to terminate
this Agreement forthwith by giving written notice of termination to JV at any
time, upon or after:</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the termination or expiration of the
Joint Venture Contract by and between Matsushita Communications Industrial Co.,
Ltd., Matsushita Electric Industrial Co., Ltd, and UTS</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the making by JV of any assignment for
the benefit of creditors;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the institution of any proceedings for
the liquidation or winding up of JV&#146;s business or for the termination of its
corporate charter;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the assignment to third Party&nbsp;of all
or substantially all of the assets of JV;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">important change in controlling ownership
of JV; or</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">any activity or assistance by JV of
challenging the validity of any LICENSED TECHNOLOGY or restricting the scope
thereof.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event of expiration or termination
of this Agreement by UTS pursuant to Article&nbsp;8.2 or 8.3 above, the
licenses granted hereunder to JV shall automatically terminate when JV receives
or deems to receives such termination notice hereunder, except those in stock.&#160; JV</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-5-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">shall pay the amount of the royalty
accrued on or before the date of termination within [***] days thereafter.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Upon expiration or termination of this
Agreement, JV shall immediately return LICENSED TECHNOLOGY to UTS.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; IMPROVEMENT OF LICENSED
TECHNOLOGY</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any new intellectual property rights
(hereinafter referred to as &#147;IPR&#148;) derived from, based on or in connection with
the LICENSED TECHNOLOGY shall be owned jointly by UTS and JV in equal share, if
such IPR is for or related to [***], and derived from, based on, or in
connection with the LICENSED TECHNOLOGY of UTS.&#160; Each Party&nbsp;shall be free to practice and use such jointly
owned IPR on non-exclusive basis without accounting to and royalty-free to the
other party.&#160; However, licenses to third
parties may be granted only upon the other party&#146;s prior consent, which may not
be unreasonably withheld, except that UTS may sublicense such jointly owned IPR
to its subsidiaries, affiliates, the parent company or the subsidiaries and the
affiliates of the parent company, without the consent of the other joint
owners.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; CONFIDENTIAL INFORMATION</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Restrictions.&#160; JV understands that LICENSED TECHNOLOGY, and TECHNICAL
INFORMATION provided from UTS to JV for the purpose of this Agreement is the
CONFIDENTIAL INFORMATION of UTS and any unauthorized disclosure of CONFIDENTIAL
INFORMATION causes unrepairable harm to UTS, and UTS shall have the right to
take all necessary proceedings to prevent and restrain such unauthorized
disclosure.&#160; Further, JV shall not
disclose CONFIDENTIAL INFORMATION&#146; to any third Party&nbsp;and shall not use
CONFIDENTIAL INFORMATION for any other purposes than authorized under this
Agreement.&#160; JV shall instruct all of
employees of JV who engage in work under this Agreement that they shall keep
CONFIDENTIAL INFORMATION confidential regardless of whether their relationship
with JV is terminated at some future time.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-6-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Continuing Obligation.&#160; The obligation of nondisclosure and nonuse
with respect to Confidential Information of the disclosing Party&nbsp;shall
survive the expiration or termination of this Agreement.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 11&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LIMITATION OF LIABILITY</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***] neither Party&nbsp;Be entitled to
recover from the other Party&nbsp;any incidental, consequential, indirect,
special damages (including, without limitation, damages for loss of business,
loss of profits or loss of use), whether based on contract, toil (including,
without limitation, negligence), or any other cause of action relating to
intellectual property rights assigned or licensed hereunder or confidential
information, or otherwise relating to this Agreement, even if the other
Party&nbsp;has been informed of or should have known the possibility of such
damages.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 12&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; REPRESENTATIONS AND WARRANTIES</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">OWNERSHIP.&#160; UTS has the full power and right to enter into this Agreement.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">NO ENCUMBRANCE.&#160; To the best of UTS&#146;s knowledge, the UTS rights in relation to the
LICENSED TECHNOLOGY hereunder are free and clear of any and all encumbrances
and /or liens of any nature whatsoever, other than those identified by UTS
pursuant to this Agreement, and other than non-exclusive licenses granted by
UTS to others to use the UTS rights.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">NO CONFLICTS.&#160; To the best of UTS&#146;s knowledge, UTS&#146;s performance of this
Agreement does not conflict with any other agreement to which UTS is bound and,
while performing this Agreement, UTS will not knowingly enter into any other
agreement in conflict with this Agreement or which would impair the ability of
UTS to perform this Agreement.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">NO HARMFUL CODE.&#160; In the event that any of the LICENSED
TECHNOLOGY and TECHNICAL INFORMATION are software or include software of any
type, to the best of UTS&#146;s knowledge, to be free of any known viruses and or
known bugs.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">LIMITATION OF WARRANTIES.&#160; Except as stated above, UTS disclaims all
warranties, either express or implied, with respect to the LICENSED TECHNOLOGY
and </font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-7-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">TECHNICAL INFORMATION, including but not
limited to the implied warranties of merchantability and fitness for a
particular purpose.</font></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 13&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; GENERAL</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Notice.&#160;
Any written notice either Party&nbsp;may give the other concerning the
subject matter of this Agreement shall be in writing and given or made by means
that obtain a written acknowledgment of receipt.&#160; Notices shall be sent to the parties at the following addresses,
which may be changed by written notice:</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To UTS:</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:2,3, Yile Industrial Park, 129 Wenyi Road, Hangzhou, PRC</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Zip Code:310012</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Mr. Johnny Chou, General Manager</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:(86571)-8886-2336</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile:(86571)-8886-2349</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To JV:</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:3, Yile Industrial Park, 129 Wenyi Road, Hangzhou, PRC</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Zip Code:310012</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Mr. John Yang, General Manager</font></p>

<p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:(86571)-8886-2336</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: (86571)-8886-2349</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notice shall be deemed to have been given or
made when actually received, as evidenced by written acknowledgment of receipt.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The parties hereto shall use their best
efforts to resolve by mutual agreement any disputes, controversies or
differences which may arise from, under, out of or in connection with this
Agreement.&#160; If any such disputes,
controversies or differences can not be settled between the parties hereto,
they shall be finally submitted to China International Economic and Trade
Arbitration Commission for arbitration.&#160;
The award rendered by the arbitrators shall be final and binding upon
the parties hereto.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-8-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Compliance.&#160; UTS and JV shall each comply with the provisions of all
applicable laws, ordinances, regulations and codes (including, without
limitation, procurement of required permits or certificates) in fulfillment of
their obligations under this Agreement.&#160;
All Intellectual Property Rights held by either Party&nbsp;are subject
to PRC export and import technology control regulations.&#160; Each Party&nbsp;undertakes that it shall
neither export, nor cause nor permit to be exported, without the other party&#146;s
prior written consent and without compliance with applicable law and
regulation.&#160; Each Party&nbsp;agrees to
comply with all applicable laws and regulations relating to the exportation of
technical information, as they currently exist and as they may be amended from
time to time.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Assignment, Subcontracting.&#160; Neither this Agreement nor any rights or
obligations hereunder shall be assignable or subcontracted by JV without UTS&#146;s
prior written consent.&#160; Any attempted or
purported assignment in violation of the foregoing shall be void.&#160; Subject to the foregoing, this Agreement
shall be binding upon and inure to the benefit of the successors and permitted
assigns of each Party&nbsp;hereto.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Waiver of Terms and Conditions.&#160; Failure to enforce any of the terms or
conditions of this Agreement shall not constitute a waiver of any such terms or
conditions, or of any other terms or conditions.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Severability.&#160; Where any provision of this Agreement is declared invalid,
illegal, void or unenforceable, or any changes or modifications are required by
regulatory or judicial action, and any such invalid, illegal, void or
unenforceable provision, or such change or modification, substantially affects
any material obligation of a Party&nbsp;hereto, the remaining provisions of
this Agreement shall remain in effect and the parties shall mutually agree upon
a course of action with respect to such invalid provision or such change or
modification to the end that the purposes of this Agreement are carried out.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.7</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Governing Law.&#160; This Agreement, and the rights and obligations contained in it,
shall be governed by and construed in accordance with the laws of PRC, without
regard to any conflicts of law principles that would require the application of
the laws of any other jurisdiction.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-9-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=56,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=743350,FOLIO='-9-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AG_2332.CHC",USER="DNICHOL",CD='Nov  7 04:43 2002' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.8</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">No Unreasonable Delay or
Withholding.&#160; Where agreement, approval,
acceptance, consent or similar action by UTS or JV is required, such action
shall not be unreasonably delayed or withheld.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.9</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Force Majeure.&#160; 1f performance of any obligations by either Party&nbsp;under this
Agreement is prevented, restricted or interfered with by reason of acts of God,
wars, revolution, civil commotion, acts of public enemy, embargo, acts of
government in its sovereign capacity, labor difficulties, including, without
limitation, strikes, slowdowns, picketing or boycotts, communication line
failures, power failures, or any other circumstances beyond the reasonable
control and not involving any fault or negligence of the Party&nbsp;affected,
the Party&nbsp;affected, upon giving prompt notice to the other party, shall be
excused from such performance on a day-to-day basis during the continuance of
such prevention, restriction or interference (and the other Party&nbsp;shall
likewise be excused, on a day-to-day basis during the same period, from
performance of its obligations which are dependent upon or affected by such
nonperformance); provided, however, that the Party&nbsp;so affected shall use
its best reasonable efforts to avoid or remove such causes of nonperformance
and both parties shall proceed immediately with the performance of their
obligations under this Agreement whenever such causes are removed or cease.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.10</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Entire Agreement.&#160;
This Agreement represents the entire understanding between the parties
with the respect to its provisions and cancels and supersedes all prior
agreements or understandings, whether written or oral, with respect to the
subject matter.&#160; This Agreement may only
be modified or amended by an instrument in writing signed by duly authorized
representatives of the parties.&#160; This
Agreement shall be deemed to include all attachments and exhibits, if any
attached hereto.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.11</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement is made in Chinese and English, each
Party&nbsp;retaining one copy.&#160; Both
Chinese and English versions are equally authentic.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-10-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the Parties hereto cause
their authorized representatives to execute this Agreement on the date first
above written:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Universal Communication Technology (Hangzhou)
  Company Limited.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom Telecom Co., Ltd.</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-11-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=58,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=54479,FOLIO='-11-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AG_2332.CHC",USER="DNICHOL",CD='Nov  7 04:43 2002' -->
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<p align="center" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attachment l</font></p>

<p style="margin:24.0pt 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">The detail of LICENSED TECHNOLOGY shall be as follows:</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=59,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=97298,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AG_2332.CHC",USER="DNICHOL",CD='Nov  7 04:43 2002' -->
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</div>


<div style="font-family:'Times New Roman';">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;III</font></p>

<p style="font-weight:bold;line-height:normal;margin:.75in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Equipment Purchase Agreement</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">by
and between</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Universal
Communication Technology (Hangzhou)<br>
Company Limited.,</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matsushita
Communication Industrial Co., Ltd.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=60,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=730939,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AI_2332.CHC",USER="DNICHOL",CD='Nov  7 04:49 2002' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS AGREEMENT, dated as of ________, is made
and entered into by and between Universal Communication Technology (Hangzhou)
Company Limited (hereinafter referred to as &#147;JV&#148;), and Matsushita Communication
Industrial Co., Ltd. (hereinafter referred to as &#147;MCI&#148;).</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WITNESSETH</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, MCI owns technologies with respect
to [***] (hereinafter referred to as [***] as a part of infrastructure of the
[***]; and</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, MCI desires to sell equipment to JV
and JV desires to acquire such equipment from MCI to modulate and test [***]
developed and manufactured by JV, and</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the
mutual covenants and premises contained herein, the parties hereto agree as
follows:</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Basic Agreement</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In accordance with the terms and conditions
set forth herein, MCI agrees to supply to JV the Equipment defined in
Article&nbsp;2 hereof and JV agrees to purchase such Equipment from the MCI.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Equipment</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV desires to purchase from MCI the
following equipment (hereinafter referred to as the &#147;Equipment&#148;) necessary for
the production of BTS:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [***]</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The detailed list of Equipment shall be
designated by MCI and attached hereto as Attachment&nbsp;1 hereof.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Both parties may discuss otherwise to
change the subject matter hereof in case of any changes in JV&#146;s production and
business.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=61,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=12700,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AI_2332.CHC",USER="DNICHOL",CD='Nov  7 04:49 2002' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Spare parts of Equipment shall be delivered
from MCI to JV together with the Equipment contemplated in this Agreement.&#160; The detailed list of the spare parts shall
be determined later.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Due to the necessity of the production
and operation of JV&#146;s plant, the Equipment shall include new products as well
as second-hand products that have been used in MCI&#146;s plan or that are procured
otherwise.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any machine, instruments and related
goods consisting of the Equipment may be procured [***].&#160; Such machine, instruments and related goods
procured [***] shall not be included in the subject matter of this Contract as
defined in Article&nbsp;1 hereto.&#160; The
detail of such procurement in PRC shall be determined later.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Orders</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">MCI shall determine the specifications of
the Equipment of MCI and any other necessary conditions for the purpose of this
Agreement, and submit quotation(s) to JV</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">After receipt of quotation(s), JV subject
to confirmation of both general manager and deputy general manager of JV shall
issue individual purchase order(s) of the Equipment (hereinafter referred to as
&#147;Individual Purchase Order&#148;) to MCI.&#160;
Individual Purchase Order shall become effective upon acceptance by MCI,
and in that event, the terms and conditions of this Agreement shall be applied
to such Individual Purchase Orders.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Order number, model number of the
Equipment, quantity, date of shipment and delivery, price and other matters
necessary for the delivery of the Equipment shall be described in each
Individual Purchase Order subject to the approval by the general manager.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">As long as the Individual Purchase Order
of Equipment fulfills the terms and conditions of this Agreement, or unless
there is any reason justifiable to refuse, JV shall issue the Individual
Purchase Order.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event of any conflict or
contradiction between the terms of this Agreement and any of the Individual
Purchase Orders, the terms of this Agreement shall govern and prevail.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-2-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=62,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=111491,FOLIO='-2-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AI_2332.CHC",USER="DNICHOL",CD='Nov  7 04:49 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The price of the Equipment shall be
established in Japanese Yen or US Dollars in terms of CIF Hangzhou via
Shanghai.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Payment</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JV shall, [***] before the shipment of the
Equipment by MCI, open an irrevocable, unalterable and non-transferable letter
of credit, issued by the bank in PRC which is internationally recognized, at
sight with MCI as beneficiary, the value of which shall be [***] of the total
contract value.&#160; The letter of credit
shall be payable at sight.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Packaging</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MCI may prepare packing materials (including
carton box, labels and printing) for the Equipment.&#160; The detail of packing shall be determined later.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Loading sand Delivery
Date of Equipment</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Equipment shall be delivered by MCI
to JV in accordance with progress of localization of production in which such
progress consists of phases as follows:</font></p>

<p style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The first phase shall begin from the
start of operation of JV and end by the end of [***], and subsequently, the
second phase shall end by the end of [***].</font></p>

<p style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In case of the third or fourth phases,
period of each phase is [***] thereafter.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The delivery of Equipment for phases
above shall be made upon the Acceptance of Equipment according to
Article&nbsp;7.1.4 subject to the adjustment based on the business needs.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Installation, Testing
Operation, Trial Production and Acceptance of Equipment</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;page-break-after:avoid;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Definitions:</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Installation&#148;
means assembling the Equipment and installing them in the plant of JV subject
to the adjustment based on the business needs.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Testing
Operation&#148; means, after the Installation of Equipment, checking the operation
of the Equipment under unloaded and loaded conditions and also checking whether
it satisfies the </font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-3-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=63,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=104854,FOLIO='-3-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AI_2332.CHC",USER="DNICHOL",CD='Nov  7 04:49 2002' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">performances
provided in the specifications of the Equipment subject to the adjustment based
on the business needs.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Trial
Production&#148; means, prior to the pre-production in the plant of JV, trial
production directed by JV&#146;s technical personnel of a testing nature by using
the materials procured by JV and the Equipment which passes Testing Operation.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Acceptance&#148;
means acceptance of the delivery of Equipment of JV after going through Testing
Operation and Trial Production, by checking the performances of the Equipment
in accordance with the specifications of Equipment prepared at the time of
quotation of the Equipment, and checking whether the Equipment properly
operates in the plant of JV for production.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">MCI shall assist JV to complete the
Installation, Testing Operation, Trial Production and Acceptance of the
Equipment.&#160; If necessary, MCI shall
assist JV by using the materials procured by JV for Testing Operation.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In case problems arise out of the
procedure of Acceptance of the Equipment, both JV and MCI shall discuss with
each other and determine the share of responsibilities after reviewing the
cause of such problems in order to satisfactorily solve the problems and
complete the procedure of Acceptance.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any expenses in relation to the business
trip(s) made by MCI to JV&#146;s plant necessary for the Installation, Testing
Operation, Trial Production, and Acceptance of Equipment shall be borne by JV.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Repair Warranty</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">MCI warrants that Equipment, whether new
product or not, provided by MCI meets the requirement of the performance necessary
for production of the Equipment in the plant of MCI as well as JV&#146;s plant for
the period provided in Article&nbsp;8.2.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Warranty period</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-4-</font></p>


<div style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160; Warranty for Equipment that is new
product</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the warranty period,
for defects not attributable to JV, MCI shall use its best effort to repair
such defect at no cost to JV.&#160; The
warranty period shall be [***] commencing on the date of Acceptance of
Equipment.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.2.2&#160;&#160;&#160;&#160;&#160;&#160;&#160; Warranty for Equipment that is second
hand</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the warranty period,
for defects not attributable to JV MCI shall use its best effort to repair such
defect at no cost to JV.&#160; The warranty
period shall be [***] commencing on the date of Acceptance of Equipment.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">After the warranty period expires, MCI
shall, with its reasonable efforts, assist JV to repair or fix any breakdown in
utilizing Equipment, and provide necessary parts for such repair at
preferential prices to be determined by MCI.&#160;
However, all the costs in relation to dispatching engineers of MCI to JV
including air fare, transportation and accommodation, shall be borne by JV.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Technical Information</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MCI shall use its best efforts to provide JV
with specifications and instruction manuals in two (2) copies for each Equipment.&#160; The methods of delivery of such
specifications, manuals and instructions shall be determined by MCI.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Technical Support</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">MCI shall dispatch its engineers to JV&#146;s
plant for training engineers of JV in relation to Installation, operation and
maintenance of the Equipment, in accordance with the necessity of such
training.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">MCI may provide training in relation to
Installation, operation and maintenance of the Equipment, in both Japan and
China, at JV&#146;s costs; including air fare, transportation and
accommodation.&#160; The training period
shall be decided by both JV and MCI considering the time necessary for the JV&#146;s
engineers to independently operate Equipment for production.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-5-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=65,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=42667,FOLIO='-5-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AI_2332.CHC",USER="DNICHOL",CD='Nov  7 04:49 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The training shall be, if provided in the
plant of MCI, held by accepting JV&#146;s engineers or if provided in the plant of
JV held by dispatching MCI&#146;s engineers.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
11&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Modification</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MCI may make any modifications and keep JV
informed of the modifications and explain reasons of modifications to the
specifications of the Equipment without the prior written consent of JV.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
12&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Export Control Regulation</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event that the Equipment and the
components, parts and materials thereof are the object of export regulations of
Japan, MCI use its best effort to obtain the license necessary for JV&#146;s export
of such Equipment and the components, parts and materials.&#160; JV shall furnish, without delay, any
information to MCI as requested by MCI in the event that MCI requires such
information from JV for the purpose of conforming to the Foreign Exchange and
Foreign Trade Control Act and the Export Trade Control Order and the Foreign
Exchange Control Ordinance of Japan.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
13&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Term</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement shall become effective on the
date of signature of this Agreement by both parties and shall continue until
terminated pursuant to Article&nbsp;14.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
14&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Termination</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement and any Individual Purchase
Oder may be immediately terminated by either Party&nbsp;upon written notice to
the other:</font></p>

<p style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">in the event of a default not
attributable to Force Majeure or a breach by the other Party&nbsp;of any
obligation of this Agreement and/or any Individual Purchase Order hereunder and
the failure to cure such breach within [***]; or</font></p>

<p style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">in the event that the performance of this
Agreement and/or any Individual Purchase Order by other Party&nbsp;is wholly
suspended for a period of [***] or more, due to Force Majeure, and thereafter
such suspension is not cured within [***] after notice; or</font></p>

<p style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">in the event of insolvency or ceasing its
business of the other party; or</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-6-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=66,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=414078,FOLIO='-6-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AI_2332.CHC",USER="DNICHOL",CD='Nov  7 04:49 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">in the event that the other
Party&nbsp;shall be dissolved, liquidated, declared bankrupt or has commenced
proceedings relating to bankruptcy, creditor composition or reorganization of
company, either voluntarily or otherwise, or any other similar event occurs in
the other party.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event of the termination or expiration
of this Agreement, any Individual Purchase Order which exists prior to such
termination or expiration shall be deemed to be terminated and both parties
shall not perform the respective obligations thereunder.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Indemnity</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
16&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Confidential Information</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All drawings, technical information, data,
and other information, and industrial property rights in Equipment and any
other equipment with related components, parts materials, supplied to JV by MCI
in relation to this Agreement (hereinafter called &#147;Information&#148;) are the
property of MCI.&#160; JV shall keep the
Information confidential and shall return all Information (including any copies
thereof) to MCI when requested by MCI.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JV shall use the Information only for the
purpose of this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JV shall not allow any third party to use the
Information without MCI&#146;s prior written consent nor allow in any circumstances
such third party to use the Information not for the purpose of this Agreement.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
17&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Insurance</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JV shall maintain at its own expense
insurance for product liability in the reasonable amount in US Dollars or
equivalents in Chinese currency for bodily injury and death liability and
property damage liability.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Such insurance shall be carried during the
term of this Agreement, including extension, [***].&#160; (Coverage should cover injury or damage during the year, even
though claim may be filed at a later date, up to the time limit established by
the applicable statute of limitation laws.)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-7-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=67,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=747820,FOLIO='-7-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AI_2332.CHC",USER="DNICHOL",CD='Nov  7 04:49 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
18&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Force Majeure</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neither MCI nor JV shall be liable for
failure in the performance of this Agreement and/or individual purchase orders
under this Agreement arising from war, sabotage, rebellion, riots, hostile
activities, accident of transportation, acts of governmental or
quasi-governmental authorities, regulations or restrictions imposed by law or
by court action, fires, explosions, floods, storms or other catastrophes, or
any other cause beyond the control of either party.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
19&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Settlement of Disputes</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event a dispute arises in
connection with the interpretation or implementation of this Agreement, both
parties shall attempt in the first instance to resolve such dispute through
friendly consultations.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If the dispute is not resolved through
friendly consultations within sixty (60) days after the commencement of
discussions, or such longer period as the parties agree in writing at that
time, then notwithstanding any other provision of this Agreement, any
Party&nbsp;may submit the dispute for arbitration.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any disputes initiated by JV, arising out of
or in connection with this Agreement shall be finally settled by an arbitration
in Tokyo, Japan by the Japan Commercial Arbitration Association (&#147;JCAA&#148;) in
accordance with JCAA&#146;s arbitration rules in effect at the time of arbitration.&#160; Any disputes initiated by MCI, arising out
of or in connection with this Agreement shall be finally settled by an
arbitration in Shanghai, PRC by the China International Economic and Trade
Arbitration Commission (&#147;CIETAC&#148;) in accordance with CIETAC&#146;s arbitration rules
in effect at the time of arbitration.&#160;
The award rendered by the arbitrators shall be final and binding upon
the Parties.&#160; The Parties hereto agree
to honor such award.&#160; Any competent
court may enforce such award.&#160; All
arbitration costs, including costs for the enforcement of any arbitration
award, shall be borne by the losing Party.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
20&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Languages</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is made in Chinese and
English, each Party&nbsp;retaining one copy.&#160;
Both Chinese and English versions are equally authentic.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-8-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=68,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=31181,FOLIO='-8-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AI_2332.CHC",USER="DNICHOL",CD='Nov  7 04:49 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
21&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; GENERAL</font></b></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Notice.&#160;
Any written notice either Party may give the other concerning the
subject matter of this Agreement shall be in writing and given or made by means
that obtain a written acknowledgment of receipt.&#160; Notices shall be sent to the parties at the following addresses,
which may be changed by written notice:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To
MCI:</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:4-3-1 Tsunashima-higashi, Kohoku-ku, Yokohama, Japan</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Zip Code:223-8639</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Mr. Nobuyoshi Itoh, Director of</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mobile Network Division</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone: (8145)-540-5250</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: (8145)-544-3620</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To
JV:</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:3, Yile Industrial Park, 129 Wenyi Road, Hangzhou, PRC</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Zip Code:310012</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Mr. John Yang, General Manager</font></p>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone: (86571)-8886-2336</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: (86571)-8886-2349</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notice shall be deemed to have been given or
made when actually received, as evidenced by written acknowledgment of receipt.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Assignment, Subcontracting.&#160; Neither this Agreement nor any rights or
obligations hereunder shall be assignable or subcontracted by JV without MCI&#146;s
prior written consent.&#160; Any attempted or
purported assignment in violation of the foregoing shall be void.&#160; Subject to the foregoing, this Agreement
shall be binding upon and inure to the benefit of the successors and permitted
assigns of each party hereto.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-9-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Waiver of Terms and Conditions.&#160; Failure to enforce any of the terms or
conditions of this Agreement shall not constitute a waiver of any such terms or
conditions, or of any other terms or conditions.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Severability.&#160; Where any provision of this Agreement is declared invalid,
illegal, void or unenforceable, or any changes or modifications are required by
regulatory or judicial action, and any such invalid, illegal, void or
unenforceable provision, or such change or modification, substantially affects
any material obligation of a party&nbsp;hereto, the remaining provisions of
this Agreement shall remain in effect and the parties shall mutually agree upon
a course of action with respect to such invalid provision or such change or
modification to the end that the purposes of this Agreement are carried out.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Survival.&#160; After the expiration or termination of this Agreement and any
Individual Purchase Order for any reason, the provisions of Article&nbsp;15,
Article&nbsp;16, Article&nbsp;17, Article&nbsp;19 and Article&nbsp;21 of this
Agreement shall remain in effect.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Governing Law.&#160; This Agreement, and the rights and obligations contained in it,
shall be governed by and construed in accordance with the laws of China,
without regard to any conflicts of law principles that would require tile
application of the laws of any other jurisdiction.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.7</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">No Unreasonable Delay or
Withholding.&#160; Where agreement, approval,
acceptance, consent or similar action by MCI or JV is required, such action
shall not be unreasonably delayed or withheld.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
22&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Entire Agreement</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement represents the entire
understanding between the parties with the respect to its provisions and
cancels and supercedes all prior agreements or understandings, whether written
or oral, with respect to the subject matter.&#160;
This Agreement may only be modified or amended by an instrument in
writing signed by duly authorized representatives of the parties.&#160; This Agreement shall be deemed to include
all individual purchase orders.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-10-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the Parties hereto cause
their authorized representatives to execute this Agreement on the date first
above written.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Universal Communication Technology (Hangzhou)
  Company Limited.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matsushita Communication Industrial Co., Ltd.</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-11-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<div style="font-family:'Times New Roman';">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;IV</font></p>

<p style="font-weight:bold;line-height:normal;margin:48.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Personnel Assignment Agreement</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:48.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">by and among</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UNIVERSAL
COMMUNICATION TECHNOLOGY<br>
(HANGZHOU) COMPANY LIMITED,</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MATSUSHITA
ELECTRIC INDUSTRIAL CO., LTD.</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:48.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MATSUSHITA COMMUNICATION INDUSTRIAL CO., LTD.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Table
of Contents</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">General</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article1_DispatchOfMatsushitaEmploy" title="Click to goto Article 1. Dispatch of MATSUSHITA employees">Dispatch of
  MATSUSHITA employees</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article2_Safety" title="Click to goto Article 2. Safety">Safety</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article3_Compensation" title="Click to goto Article 3. Compensation">Compensation</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article4_TheSalaryLaidInPrc" title="Click to goto Article 4. The salary laid in PRC">The salary paid in
  PRC</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article5_RemittanceToJapan" title="Click to goto Article 5. Remittance to Japan">Remittance to Japan</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article6_IncomeTax" title="Click to goto Article 6. Income tax">Income
  tax</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article7_BusinessTrip" title="Click to goto Article 7. Business trip">Business
  trip</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article8_Dwelling" title="Click to goto Article 8. Dwelling">Dwelling</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article9_Transportation" title="Click to goto Article 9. Transportation">Transportation</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article10_LanguageTraining" title="Click to goto Article 10. Language Training">Language Study</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article11_Holidays" title="Click to goto Article 11. Holidays">Holidays</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article12_MedicalCare" title="Click to goto Article 12. Medical Care">Medical
  Care</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article13_OtherWelfare" title="Click to goto Article 13. Other Welfare">Other
  Welfares</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article14_OtherExpenses" title="Click to goto Article 14. Other Expenses">Other Expenses</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article15_Modification" title="Click to goto Article 15. Modification">Modification</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article16_Effectiveness" title="Click to goto Article 16. Effectiveness">Effectiveness</a></font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="87%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Article17_Miscellaneous" title="Click to goto Article 17. Miscellaneous">Miscellaneous</a></font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=73,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=936608,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AK_2332.CHC",USER="DNICHOL",CD='Nov  7 09:39 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Personnel Assignment Agreement</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is made as of _________, 2002,
by and among UNIVERSAL COMMUNICATION TECHNOLOGY (HANGZHOU) COMPANY LIMITED
(hereinafter referred to as the &#147;JV&#148;), MATSUSHITA ELECTRIC INDUSTRIAL CO., LTD.
and MATSUSHITA COMMUNICATION INDUSTRIAL CO., LTD. (hereinafter collectively
referred to as &#147;MATSUSHITA&#148;)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Whereas, upon the terms and subject to
conditions of this Agreement and in accordance with Article&nbsp;28 of the
JOINT VANTURE CONTRACT (hereinafter referred to as &#147;JV CONTRACT&#148;), MATSUSHITA
desires to provide and dispatch their employees to the People&#146;s Republic of
China (hereinafter referred to as &#147;PRC&#148;) and JV desires to accept employees provided
and dispatched by MATSUSHITA;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Whereas during the term of employment in JV
the dispatched employee and his/her family members shall be entitled to receive
the treatments and benefits contained in the &#147;Rules on Overseas Work of
MATSUSHITA Employees&#148;;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Now, THEREFORE, Parties agree as follows:</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article1_DispatchOfMatsushitaEmploy"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Dispatch of MATSUSHITA
employees</font></b></a></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In accordance with the JV CONTRACT and
the discussions among the parties of the JV MATSUSHITA shall dispatch to the JV
employees competent for the posts that they shall hold in the JV for the
relevant work, and those employees are referred to as &#147;Dispatched MATSUSHITA
Employee&#148; (hereinafter referred to as &#147;DIME&#148;).</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The term of dispatch shall be set forth
in accordance with the JV CONTRACT (upon conferring with JV)</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall get the prior consent from
MATSUSHITA before requesting DME to perform work assignments out of the scope
set forth in the JV CONTRACT or Technical License Agreement attached to JV
CONTRACT as Appendix&nbsp;II.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=74,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=496517,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AK_2332.CHC",USER="DNICHOL",CD='Nov  7 09:39 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Article2_Safety"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Safety</font></b></a></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of employment in the JV, DME
and his/her family members shall abide by the Laws and Regulations of PRC.&#160; JV shall do its best efforts to guarantee
the safety of the DME and his/her family members.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Article3_Compensation"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Compensation</font></b></a></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">For compensations for DME during their
term of employment in JV, JV shall be responsible for the salaries (including
applicable taxes) to be paid in PRC and the remittance to Japan and in
accordance with the agreement between JV and MATSUSHITA.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The compensation for the DME shall be
counted from the date when DME receive the work assignment after arriving in
PRC.&#160; In case that such DME does not
work for a full month, his/her salary shall be calculated at a daily rate,
which is one thirtieth (30<sup>th</sup>) of his/her one month salary per day.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Article4_TheSalaryLaidInPrc"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The salary laid in PRC</font></b></a></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The salary of DME in PRC shall consist of
the following items, and the net standard amount paid shall be subject to
[***].</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [***]</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Payment of net standard amount
received shall be made in U.S dollars on a monthly basis by JV and such
standard amount as of September l of each year shall be submitted to the board
of directors of JV.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In case of significant changes with
respect to the living expenses in PRC, JV and the board of directors of JV
shall have the right to alter the part of DME&#146;s salary to be paid in PRC.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall make salary payments to DME on
the specified date of each month in the currency of RMB or U.S. dollar.&#160; The exchange rate shall be [***].</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">During the term of dispatch, DME shall be
entitled to receive the normal salary payment when he/she is out for business
trips and on holidays.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-2-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=75,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=526798,FOLIO='-2-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AK_2332.CHC",USER="DNICHOL",CD='Nov  7 09:39 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(6)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall guarantee to make net salary
payments in accordance with the amount notified by MATSUSHITA.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article5_RemittanceToJapan"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Remittance to Japan</font></b></a></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Of the compensations for DME, the remittance
to Japan shall be requested in Japanese Yen in accordance with the amount
actually paid in Japan.The requested amount, based on actual payment made by
MATSUSHITA in Japan, will be billed to JV at the end of June and December of
each year.&#160; JV shall remit the required
amounts to MATSUSHITA in Japanese Yen.&#160;
JV shall bear all the fees and expenses occurring in PRC and in relation
to such remittance.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article6_IncomeTax"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Income tax</font></b></a></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The income tax imposed on DUE, the amount of
which shall comply with the relevant tax laws and regulations of PRC, shall be
borne by [***] and paid in full amount.&#160;
(the expenses associated therewith shall be included in compensations)</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Article7_BusinessTrip"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Business
trip</font></b></a></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In case that DME takes business trip (in PRE
or outside PRC) for JV&#146;s business, the transportation fee, accommodation
expenses, business allowances and any cost and expenses associated with such
business trips, shall be paid or reimbursed by JV in accordance with the Rules
for Business Trip stipulated by JV.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article8_Dwelling"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Dwelling</font></b></a></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall provide dwelling with furniture
furnished for DME to living at JV&#146;s cost.&#160;
The furniture shall include the following:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt .25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bed,
desk, book cabinet, three sets of two sofas and a table for the living room,
dinner table, cupboard, clothes closet, carpet, curtains, lighting apparatus,
refrigerator, vacuum cleaner, washing machine, color TV, video (DVD) player,
air-conditioner (warm and cold) and microwave oven.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The fees for electricity, water, and gas
shall be paid by the dweller.&#160; The
standard of the aforementioned fees shall be calculated in accordance with that
of Hangzhou City.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-3-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=76,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=71476,FOLIO='-3-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AK_2332.CHC",USER="DNICHOL",CD='Nov  7 09:39 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall bear all the accommodation expenses
and taxes caused by DME in four-star hotels, before JV provides him/her with
dwellings.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article9_Transportation"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Transportation</font></b></a></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of a DME working in JV, JV
shall furnish gratuitously vehicles necessary for work and shall endeavor to
offer transportation convenience to DME and his family members.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article10_LanguageTraining"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Language Training</font></b></a></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If the general manager and the deputy
general manager of JV deems it necessary for a DME to learn Chinese for work
purpose, JV shall bear all fees pertinent to such employee&#146;s training.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If it is necessary for the family of a
DME to learn Chinese, [***] shall be offered to each person until one year
elapses, commencing on the date of receiving training.&#160; If Japanese is not the language used in the
school, JV shall offer [***] to each person with respect to each language.&#160; However, JV shall not bear fees for training
if JV provides DME and his family with gratuitous language training.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article11_Holidays"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Holidays</font></b></a></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Under one of the following circumstances,
DME and his/her family, after joint permission of the general manager and the
deputy general manager, may enjoy a furlough back to Japan as long as [***] and
[***] shall bear any traveling fees incurred for round trip and the necessary
accommodation fees.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">When the DME&#146;s wife, parents, son and/or
daughter, sister and/or brother pass(es) away or falls into critical condition.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">When a DME supposed to work in JV more
than two years is preparing for marriage in Japan.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">When the son and/or daughter of a DME
is/are preparing for marriage in Japan.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">When the sister and/or brother of a DME
or his/her spouse is/are preparing for marriage.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-4-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=77,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=991119,FOLIO='-4-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AK_2332.CHC",USER="DNICHOL",CD='Nov  7 09:39 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The DME and his/her family may enjoy
[***] furloughs back to Japan each year as long as [***] and JV shall bear any
traveling fees incurred for round trip and the necessary accommodation fees.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Before the DNE&#146;s return to Japan, if
his/her son and/or daughter should come back to Japan to attend examinations
held by a secondary school or by a school at a higher level, his/her son and/or
daughter may return to Japan, accompanied by one guardian, upon the joint
approval of the general manager and the deputy general manager.&#160; JV shall bear any the traveling fee incurred
for round trip.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">For circumstances other than those
mentioned above, the general manager and the deputy general manager may
negotiate and determine rewards during furlough for DME.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article12_MedicalCare"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Medical Care</font></b></a></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall be responsible for, at its
expense, health examination conducted once a year for DME and his/her family.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall promptly take measures to
provide proper medical care, at its expense, for DME who is sick or injured
during work.&#160; DME may enjoy sick leave
according to the doctor&#146;s diagnosis.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall offer assistance in language and
the selection of doctors when the family of a DME is sick or injured.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall bear any traveling fee incurred
for round trip, if the family member of a DNIE sick or injured during work,
after the permission of the general manager and the&#146; deputy general manager,
comes back to Japan for medical treatment in accordance with the doctor&#146;s
advice.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall bear the following fees, when
the wife of a DME who stays in PRC for more than one year gets childbirth.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt .15in;text-indent:-.15in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#149;<font size="2" style="font-size:10.0pt;">&#160;&#160;&#160; Normal childbirth: 70% of hospitalization
and medical treatment</font></p>

<p style="margin:0in 0in .0001pt .15in;text-indent:-.15in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt .15in;text-indent:-.15in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#149;<font size="2" style="font-size:10.0pt;">&#160;&#160;&#160; Abnormal childbirth: 90% of hospitalization
and medical treatment</font></p>

<p style="margin:0in 0in .0001pt .15in;text-indent:-.15in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-5-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=78,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=293507,FOLIO='-5-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AK_2332.CHC",USER="DNICHOL",CD='Nov  7 09:39 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Article13_OtherWelfare"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Other Welfare</font></b></a></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JV shall reimburse DNIE and his/her family
the following fees:</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Allowance for Arrival</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DME and his/her family who are supposed to
work in JV in PRC for more than one year may enjoy the following allowances
when they arrive in PRC.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [***]</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Allowances for Return to Japan</font></p>

<p align="left" style="margin:0in 0in .0001pt .25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The DME and his/her
family who have worked in JV in PRC for more than one year may enjoy the
following allowances when they return to Japan for work.</font></p>

<p align="left" style="margin:0in 0in .0001pt .25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Delivery charges for Personal Belongings</font></p>

<p align="left" style="margin:0in 0in .0001pt .25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JV shall bear delivery
charges for personal belongings in accordance with the following items when the
DME and his/her family return to Japan.</font></p>

<p align="left" style="margin:0in 0in .0001pt .25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>

<p style="font-weight:bold;margin:24.0pt 0in .0001pt;text-align:center;"><a name="Article14_OtherExpenses"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article
14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Other Expenses</font></b></a></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">MATSUSHITA shall bear the air fare from
Japan to PRC for DME and his/her family&#146;s coming to PRC while JV shall bear the
air fare from PRC to Japan for their return to Japan.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">JV shall make effort to assist DME and
his/her family in applying for the entry &amp; exit procedure, residency
procedure and in movement of personal belongings.&#160; JV shall bear airport construction charges.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Membership Fees for Japanese.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt .25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Both
parties understand that he Japanese club is an organization established for
promotion of friendship and assistance among Japanese residing outside
Japan.&#160; If a DME wishes to join in the </font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-6-</font></p>


<div align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=79,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=137746,FOLIO='-6-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AK_2332.CHC",USER="DNICHOL",CD='Nov  7 09:39 2002' -->
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt .25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">club,
JV shall bear the membership fee for legal person while the individual DIVE
shall bear his/her personal membership fee.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Local social insurance</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt .25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
such social insurance as health insurance is available in PRC, Party&nbsp;A
shall effect, at its own cost, health insurance for DME with the permission of
the general manager and the deputy general manager.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article15_Modification"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Modification</font></b></a></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement after consultation may be
modified with the consent of Parties hereto in writing.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article16_Effectiveness"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Effectiveness</font></b></a></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is valid until the Joint
Venture Contract is expired or terminated.</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Article17_Miscellaneous"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Miscellaneous</font></b></a></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is made in Chinese and English
with three copies, each Party&nbsp;retaining one copy.&#160; Both Chinese and English versions are
equally authentic.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-7-</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=80,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=409071,FOLIO='-7-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AK_2332.CHC",USER="DNICHOL",CD='Nov  7 09:39 2002' -->
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the Parties hereto cause
their authorized representatives to execute this Agreement on the date first
above written.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Universal Communication Technology
  (Hangzhou) Company Limited.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Matsushita Electric Industrial Co.,
  Ltd.</font></b></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Matsushita Communication Industrial
  Co., Ltd.</font></b></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=81,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=541222,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AK_2332.CHC",USER="DNICHOL",CD='Nov  7 09:39 2002' -->
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<div style="font-family:'Times New Roman';">

<p style="font-weight:bold;line-height:normal;margin:1.0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLES OF ASSOCIATION</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">OF</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:1.0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UNIVERSAL COMMUNICATION<br>
TECHNOLOGY (HANGZHOU COMPANY)<br>
LIMITED</font></b></p>

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<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Table of Contents</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="13%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter1GeneralProvisions" title="Click to goto Chapter 1 General Provisions">CHAPTER 1</a></font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">GENERAL PROVISIONS</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter2purposescopeandscaleofbu" title="Click to goto Chapter 2 Purpose, Scope and Scale of Business">CHAPTER
  2</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" style="padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PURPOSE, SCOPE AND SCALE OF BUSINESS</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter3TotalAmountOfInvestmentAnd" title="Click to goto Chapter 3 Total Amount of Investment and the Registered Capital">CHAPTER
  3</a></font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TOTAL AMOUNT OF INVESTMENT AND THE
  REGISTERED CAPITAL</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter4BoardOfDirectors" title="Click to goto Chapter 4 Board of Directors">CHAPTER 4</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" style="padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">BOARD OF DIRECTORS</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="13%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter5BusinessManagementOrganizati" title="Click to goto Chapter 5 Business Management Organization">CHAPTER 5</a></font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MANAGEMENT OFFICE</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter6FinancialAffairsAndAuditing" title="Click to goto Chapter 6 Financial Affairs and Auditing">CHAPTER 6</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" style="padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FINANCIAL AFFAIRS AND AUDITING</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="13%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter7Taxation" title="Click to goto Chapter 7 Taxation">CHAPTER 7</a></font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TAXATION</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter8ProfitDistribution" title="Click to goto Chapter 8 Profit Distribution">CHAPTER 8</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" style="padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PROFIT DISTRIBUTION</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="13%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter9EmployeesAndLaborManagement" title="Click to goto Chapter 9 Employees and Labor Management">CHAPTER 9</a></font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMPLOYEES AND LABOR MANAGEMENT</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter10TradeUnion" title="Click to goto Chapter 10 Trade Union">CHAPTER
  10</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" style="padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TRADE UNION</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
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  <td width="13%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter11_Insurance" title="Click to goto Chapter 11. Insurance">CHAPTER
  11.</a></font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INSURANCE</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter12termterminationdissoluti" title="Click to goto Chapter 12. Term, Termination, Dissolution and Liquidation">CHAPTER
  12.</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" style="padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TERM, TERMINATION, DISSOLUTION AND
  LIQUIDATION</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter13RulesAndRegulations" title="Click to goto Chapter&#160; 13 Rules and Regulations">CHAPTER&nbsp; 13</a></font></p>
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  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RULES AND REGULATIONS</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter14ApplicableLaw" title="Click to goto Chapter 14 Applicable Law">CHAPTER
  14</a></font></p>
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  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" style="padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">APPLICABLE LAW</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter15SettlementOfDisputes" title="Click to goto Chapter 15 Settlement of Disputes">CHAPTER 15</a></font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SETTLEMENT OF DISPUTES</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.42%;">
  <p style="line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Chapter16Miscellaneous" title="Click to goto Chapter&#160;16 Miscellaneous">CHAPTER&nbsp;16</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="70%" valign="top" style="padding:0in .7pt 0in .7pt;width:70.9%;">
  <p style="line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MISCELLANEOUS</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.82%;">
  <p align="right" style="font-size:1.0pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 99.0pt;text-align:left;text-indent:-99.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=83,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=200143,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Articles
of Association</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter1GeneralProvisions"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; General Provisions</font></b></a></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">These
Articles of Association </font></b><font size="2" style="font-size:10.0pt;">are made on the fifth day of July in 2002 in Yokohama, Japan, in
accordance with the Law of the People&#146;s Republic of China on Sino-Foreign
Equity Joint Ventures (the &#147;<b><font style="font-weight:bold;">Joint Venture Law</font></b>&#148;),
the Regulations for the Implementation of the Law of the People&#146;s Republic of
China on Sino-Foreign Equity Joint Ventures (the &#147;<b><font style="font-weight:bold;">Joint Venture Regulations</font></b>&#148;) and other relevant officially
published laws and regulations, and the provisions of the Joint Venture Contact
on the Establishment of <b><font style="font-weight:bold;">UNIVERSAL
COMMUNICATION TECHNOLOGY (HANGZHOU) COMPANY LIMITED</font></b> (hereinafter
referred to as the &#147;<b><font style="font-weight:bold;">Company</font></b>&#148;) made
on the fifth day of July in 2002 in Yokohama, Japan, among <b><font style="font-weight:bold;">UTStarcom Telcom Co., Ltd.</font></b> (hereinafter
referred to as &#147;<b><font style="font-weight:bold;">Party&nbsp;A</font></b>&#148; or &#147;<b><font style="font-weight:bold;">UTS</font></b>&#148;), and <b><font style="font-weight:bold;">Matsushita Electric Industrial Co., Ltd.</font></b> (hereinafter referred
to as &#147;<b><font style="font-weight:bold;">Party&nbsp;B</font></b>&#148; or &#147;<b><font style="font-weight:bold;">MEI</font></b>&#148;), and <b><font style="font-weight:bold;">Matsushita Communication Industrial Co., Ltd.</font></b> (hereinafter
referred to as &#147;<b><font style="font-weight:bold;">Party&nbsp;C</font></b>&#148; or &#147;<b><font style="font-weight:bold;">MCI</font></b>&#148;).</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MEI, MCI and UTS
hereunder are collectively called &#147;<b><font style="font-weight:bold;">Parties</font></b>&#148;
and each a &#147;<b><font style="font-weight:bold;">Party</font></b>&#148;.&#160; The Joint Venture Contract on the
Establishment of <b><font style="font-weight:bold;">UNIVERSAL COMMUNICATION
(HANGZHOU) TECHNOLOGY COMPANY LIMITED</font></b> are called &#147;<b><font style="font-weight:bold;">JVC Contract</font></b>&#148;.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless a provision
of these Articles of Associations otherwise provides, terms defined in the JVC
Contract shall have the same meanings when used herein.</font></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 1</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The name of the
Company shall be <b><font style="font-weight:bold;">Universal Communication
Technology (Hangzhou) Company Limited </font></b>in English and <b><font style="font-weight:bold;">[Chinese Characters] </font></b>in Chinese.&#160; The legal address of the Company shall be 3
Yile Industrial Park, 129# Wen Yi Road, Hangzhou,, China.</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=84,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=214149,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 2</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The names and addresses of the investors of COMPANY
areas follows:</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="93%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:93.22%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(1) UTStarcom Telecom Co., Ltd.</font></b><font size="2" style="font-size:10.0pt;">, registered in Hangzhou, People&#146;s
  Republic of China, with its legal address at 2,3&nbsp;Yile Industrial Park,
  129# Wen Yi Road, Hangzhou, China</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal representative:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Ying Wu</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position: Chairman</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nationality: Chinese</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="93%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:93.22%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(2)Matsushita Electric Industrial
  Co., Ltd.</font></b><font size="2" style="font-size:10.0pt;">,
  registered in 1006 Kadoma, Kadoma-shi, Osaka 571-8501, Japan.</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal representative:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:Kunio Nakamura</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:President</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nationality:Japanese</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="93%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:93.22%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(3)Matsushita Communication
  Industrial Co., Ltd.</font></b><font size="2" style="font-size:10.0pt;">, registered in 4-3-1 Tsunashima-higashi, Kohoku-Ku, Yokohama,
  223-8939, Japan.</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal representative:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:Yasuo Katsura</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position:President</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.78%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="69%" valign="top" style="padding:0in .7pt 0in .7pt;width:69.12%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nationality:Japanese</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 3</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company shall be a limited liability company.&#160;
The liability of each party to the Company shall be limited to the
amount subscribed and paid into the registered capital (as defined in
Article&nbsp;8).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 4</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company is a Chinese corporation and is subject to the jurisdiction and
protection of Chinese law.&#160; Any and all
activities engaged in by the Company shall comply with the laws, rules and
regulations of China.</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-2-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=85,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=945529,FOLIO='-2-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><a name="Chapter2purposescopeandscaleofbu"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter 2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purpose, Scope and Scale of
Business</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 5</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The purpose of
establishment of the Company is to cause the Company to engage in the business
described in Article 6 hereof on the principles of maximizing the profit.</font></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 6</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The business scope
of the Company shall be design and development, manufacturing, sales, repair
service of communication products such as [***].</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter3TotalAmountOfInvestmentAnd"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Total Amount of Investment
and the Registered Capital</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 7</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The total amount of investment of the Company shall
be&#160; [***].</font></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 8</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The registered
capital of the Company shall be [***].</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party&nbsp;A&#146;s
contribution to the registered capital of the Company shall be RMB in cash
which is equivalent to [***] which accounts for [***] of the total registered
capital of the Company.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party&nbsp;B&#146;s
contribution to the registered capital of the Company shall be [***] in cash,
which accounts for [***] of the total registered capital of the Company:</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party&nbsp;C&#146;s
contribution to the registered capital of the Company shall be [***] in cash,
which accounts for [***] of the total registered capital of the Company:</font></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 9</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Parties hereto
shall respectively make all of their contributions to the registered capital of
the Company within [***] following the issuance of the business license of the
Company.</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-3-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=86,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=874614,FOLIO='-3-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 10</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After the parties
have made their respective contributions in accordance with the foregoing
provision, the Company shall, on the basis of a capital contribution
verification report issued by an accounting firm registered in the PRC and
retained by the Company, issue an investment certificate to each Party.&#160; Such investment certificate shall specify
the name of the Company, the date of the establishment of the Company, the name
of the Party and the capital investment contributed thereby, the dates of each
contribution, and the date of the investment certificate.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 11</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The balance
between the total amount of investment and registered capital of the Company
may, pursuant to the decision of the Board of Directors in accordance with the
business needs of the Company, be raised by the Company through loans from
domestic and/or foreign financial institutions.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 12</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company may
increase and reduce its registered capital subject to any necessary approval of
the examination and approval authority.&#160;
In case of any increase of the registered capital, each Party shall have
the right to subscribe to the amount of such additional capital in accordance
with its respective proportional equity interest at the time.&#160; If any Party does not subscribe to the
amount of additional capital in accordance with its proportional equity
interest at the time, the other Party may subscribe to it, in which event
appropriate adjustments shall be made to the ratio of the equity interest of
the Parties.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 13</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Except for transfer of any part of its
equity interest from Party&nbsp;C to Party&nbsp;B, no party may transfer, sell,
assign, give or otherwise dispose of all or any part of its equity interest in
the Company without the express prior written consent of the other Party, the approval
of the Board of Directors, and the approval of the original examination and
approval authority.&#160; In the event a
Party intends to assign and transfer all or part of its investment to any of
its affiliated companies affiliates, however, the other Parties shall grant
their consent.</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-4-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=87,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=664367,FOLIO='-4-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">When one Party to the Company assigns, or
transfers all or part of its equity interest (hereinafter referred to as
&#147;Proposing Party&#148;), the other Parties shall have pre-emptive right to purchase
such equity interest.&#160; If such
pre-emptive right is not exercised within the [***] period, the Proposing Party
shall have the right, exercisable after the expiry of the [***] period or the
receipt of the offer to purchase portion of the equity interest from the other
Parties as the case may be, to transfer the equity interest to the third party
at the price, determined based on the latest audited financial statements and
on terms and conditions not more favorable to such third party than those
proposed by the Proposing Party for the exercise of pre-emptive rights.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Upon any transfer by a Party of all or
any part of its equity interest in the Company, the transferring Party shall
surrender to the Company for cancellation its investment certificates issued by
the Company, and the Company shall issue a new investment certificate to the
transferee, if necessary.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">After the approval of the original
examination and approval authority of any increase or reduction of the registered
capital of the Company or of any transfer of any Party&#146;s interest in the
Company, procedures for registration shall be handled by the Company with the
relevant department of administration for industry and commerce.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter4BoardOfDirectors"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Board of Directors</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 14</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Board of
Directors is established for the Company which represents the supreme authority
thereof.&#160; The date of issuance of the
Company business license shall be the date of the establishment of the Board of
Directors of the Company.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 15</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Board of
Directors shall be composed of [***] members including the chairman, of which
[***] shall be appointed by Party&nbsp;A, [***] shall be appointed by
Party&nbsp;B and the other [***] by Party&nbsp;C.&#160; The chairman of the Board of Directors (hereinafter referred to
as &#147;Chairman&#148;) shall be appointed by [***].</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-5-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=88,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=359961,FOLIO='-5-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 16</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The term of office
for the directors and the Chairman shall be [***] years; the term of office for
the directors may be renewed by the appointing Party.&#160; Each Party may, by giving [***] of prior written notice to the
other Parties, remove at any time any director whom it has appointed.&#160; If a director is removed during his term of
office, the director succeeding him shall serve for the remaining term of
office of such former director.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 17</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Chairman shall
be the legal representative of the Company.&#160;
Should the chairman be unable to perform his responsibilities for any
reasons, he/she may authorize any other director to represent the Company temporarily.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 18</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Board of Directors shall be the
highest authority of the Company and shall have the right to make decisions on
all major and important matters of the Company.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Resolutions involving the following
matters shall require the unanimous approval of the directors present,
including any proxies at a duly convened meeting of Board of Directors:</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">any amendment or modification of the
Articles of Association.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">increase, assignment or deduction of
registered capital and the adjustment of each Party&#146;s contribution to the
registered capital&#146;s ratio.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">merger of the Company with any other
economic organization.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iv.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">termination, dissolution or liquidation
of the Company.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Resolutions
involving the following matters shall require an affirmative vote of at least
four fifths (4/5) of the directors present, including any proxies at a duly
convened meeting of Board of Directors:</font></p>

<p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">issuance of any guarantees for the payment obligations
of any person or entity or the making of any other financing arrangements.</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .25in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-6-</font></p>


<div align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=89,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=707938,FOLIO='-6-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">approval of an individual loan transaction or
  aggregate loan transactions on behalf of the Company.</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">approval of capital expenditures or capital
  commitments with a value exceeding [***].</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iv.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">assignment, transfer, sale, lease or other
  disposition of any business or assets of the Company with a value exceeding
  [***] or the taking over or acquisition of any business or assets of any
  other person or entity with a value exceeding [***].</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">v.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">mortgage, pledge or granting of a security interest
  or other types of liens in any building, factory, office space or other fixed
  assets or capital equipment of the Company with a value exceeding [***].</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">vi.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">addition of items to or change of the scope of
  business of the Company.</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">vii.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">establishment of any subsidiaries or related legal
  persons, including but not limited to representative offices, branch offices
  and/or subsidiaries.</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">viii.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reorganization of the management organization of the
  Company.</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ix.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">appointment, suspension and dismissal of the general
  manager, deputy general manager, chief financial officer as well as his/her
  scope of authority.</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">formulation of annual operating plan and marketing
  policies of the Company.</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xi.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">formulation of pricing policy for Products</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xii.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">distribution of profits of the Company</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xiii.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">execution of any contracts with a performance term
  of greater than [***] or involving individually or in the aggregate more than
  [***].</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xiv.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">licensing of technology or know-how to or from any
  third party.</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xv.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">approval of remuneration and benefits of the general
  manager, deputy general manager, and chief financial officer.</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xvi.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">approval of the annual business plan and annual
  budget of the Company.</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xvii.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">approval of the annual auditing report of the
  Company.</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xviii.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">approval of any insurance to be carried by the
  Company</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xix.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.5%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="83%" valign="top" style="padding:0in .7pt 0in .7pt;width:83.24%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">determination of the Company&#146;s employment plans,
  employee salary plans, pensions, fringe benefits and bonus plan.</font></p>
  </td>
 </tr>
</table>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-7-</font></p>


<div align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=90,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=580137,FOLIO='-7-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xx.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">contribution, use or expenditure of the general
reserve fund, the bonus and welfare fund and the enterprise expansion fund to
be established under the PRC laws.</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xxi.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">establishment or change of the accounting system of
the Company, or appointment or dismissal of Company independent financial
accountants or legal counsel.</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">xxii.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">other matters submitted to the Board of Directors</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 19</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Board of Directors shall meet at
least once each year.&#160; The First meeting
of Board of Directors shall be held within thirty (30) days from the date of
the issuance of the business license of the Company.&#160; The Chairman shall set the agenda of meetings of the Board of
Directors and shall be responsible for convening and presiding over meetings of
the Board of Directors.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Chairman shall call an interim
meeting of the Board of Directors under a request of at least two (2) directors
specifying the matters to be discussed, and shall notify all directors in
writing of the agenda.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Chairman shall notify each director
in writing of the time, date, place and agenda of any meeting of the Board of
Directors thirty (30) days prior to a regular meeting and twenty (20) days
prior to a special or interim meeting.&#160;
However, upon the request of at least three fifths (3/5) of all the
directors, any special or interim meeting of the Board of Directors may be held
without going through such advance notification procedure, but reasonable time
and writing notice shall be given to all the directors for their attending.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Unless otherwise agreed to by the Board
of Directors, all meetings of the Board of Directors shall be held at the
Company&#146;s legal address.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Meetings of the Board of Directors may be
held by telephone or other electronic audio means such that all persons
participating in the meeting are able to hear, be heard and communicate with
each other at all times, and participation by a director or his proxy in a
meeting by such means shall constitute presence of such director or his proxy
in person at the meeting.</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-8-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=91,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=891903,FOLIO='-8-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any action to be taken at any meeting of
the Board of Directors may be taken without a meeting of Board of Directors if
all directors consent to such action in writing, and such written consent shall
be filed in the minute book.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.7</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If the Chairman gets sick or injured and
becomes unable to preside over regular meeting of Board of Directors, another
director specifically authorized by the Chairman shall call upon the aforesaid
meeting and take over the rights and powers of the Chairman.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.8</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any director who is unable to attend a
meeting of the Board of Directors for any reason may appoint a proxy in
writing, the proxy may be a director or not, to attend and vote on his/her
behalf.&#160; The proxy shall have the same
rights and powers as the director who entrusted him.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.9</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Majority of the Board of Directors shall
be present in person or by proxy at any meetings of the Board of Directors to
form a quorum.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.10</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Detailed minutes shall be made for each meeting of the
Board of Directors and be signed by all directors and proxies present at the
meeting.&#160; The minutes shall be written
in both Chinese and English, but only the English text shall be authentic and
have legal force.&#160; Minutes shall be kept
by the Company during its term of existence and be made freely available to all
directors and each Party at any time.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.11</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The traveling expenses, accommodation and other costs
and expenses directly incurred by a director or a proxy in performing its
duties as a director of the Company shall be borne by the Company.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.12</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Meetings of the Board of Directors shall proceed in
accordance with the agenda determined pursuant to the provisions herein, and
each matter on the agenda shall be discussed appropriately and, if necessary,
put to a decision by way of resolutions.&#160;
Any resolutions made at a meeting conducted by telephone or other means
of communication shall be confirmed in writing by all the persons participating
in the meeting no later than seven (7) days after the meeting and filed in the
minute books of the Company.</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-9-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=92,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=793260,FOLIO='-9-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.13</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">All information discussed at meetings of the Board of
Directors shall be treated as confidential and shall not be disclosed to any
third party without the approval of the Board of Directors, unless otherwise
required by law.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter5BusinessManagementOrganizati"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Business Management
Organization</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 20</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall
establish a management office under the Board of Directors to be responsible
for the daily operation and management of the Company.&#160; The management office shall have one (1)
general manager and one (1) deputy general manager.&#160; The general manager shall be nominated by Party&nbsp;A and
appointed by the Board of Directors, while the deputy general manager shall be
nominated by Party&nbsp;C and appointed by the Board of Directors.&#160; The deputy general manager shall assist the
general manager in the daily operation and management of the Company, and the
general manager and deputy general manager shall jointly organize and lead the
daily operation and the management of the Company.&#160; The Company may set up various departments to be responsible for
such matters as technology, manufacturing, finance, customer services, and
administration.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 21</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The management
office shall directly report to the Board of Directors, shall carry out the
decisions of the Board of Directors, and shall organize and lead the daily
operation and management of the Company.&#160;
The specific rights and powers of the management office are prescribed
below:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">implement JVC Contract and its
appendixes, the Articles of Association and the resolutions made by the Board
of Directors.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">formulate the annual operating plan and
submit to the Board of Directors for review and approval,</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">organize and manage the daily operation
of the Company.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">submit regularly to the Board of
Directors written reports on the revenue and expenses of the Company.</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-10-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=93,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=10414,FOLIO='-10-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">formulate and implement the rules and
regulations on the operation and management of the Company.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">appoint and dismiss the department
managers</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">determine the specific duties and
responsibilities of the deputy general manager and the department managers.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">determine the employment and dismissal of
employees other than those to be determined by the Board of Directors, the
policies regarding rewards and punishment, promotion and salaries of employees
and personnel training programs.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">approve capital expenditures or capital
commitments or such commitment in the aggregate of less than [***] in any
fiscal year.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">formulation of marketing policies of the
Company subject to approval of the Board of Directors;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">establishment of policies and procedures
for the management of the Company and change of the structure of the management
organization of the Company subject to approval of the Board of Directors</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">formulation of the Company&#146;s employment
plans, employee salary plans, pensions, fringe benefits, and bonus plans
subject to approval of the Board of Directors</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Formulation of contribution, use or
expenditure of the general reserve fund, the bonus and welfare fund and the
enterprise expansion fund to be established under PRC law, subject to approval
of the Board of Directors</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">approval of any insurance to be carried
by the Company, subject to approval of the Board of Directors</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">refer matters of importance to the
Company to the Board of Directors for its consideration.</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-11-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=94,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=13376,FOLIO='-11-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">handle other matters within the scope of
authorization granted by the Board of Directors.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 22</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The term of office
of the general manager and the deputy general managers shall be [***], and
their term of office may be renewed by the Board of Directors if they are
continuously nominated and recommended by the nominating and recommending
Party.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter6FinancialAffairsAndAuditing"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Financial Affairs and
Auditing</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 23</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall
establish a financial and accounting system in accordance with PRC laws and the
JVC Contract.&#160; Such financial and
accounting system and any major changes thereof shall be subject to the
approval of the Board of Directors.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 24</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The fiscal year of
the Company shall coincide with the calendar year, i.e. from January&nbsp;1 to
December&nbsp;31 of each year.&#160; The
first fiscal year shall begin from the date of the establishment of the Company
and end on December&nbsp;31 of that year and the last fiscal year shall end on
the date of the dissolution of the Company.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 25</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The accounting of
the Company shall be subject to the International Uniform Regime of Rights and
Liabilities and the International Uniform Accounting System of Debit and
Credit.&#160; All accounting records,
vouches, books and statements of the Company shall be made and kept in both
Chinese and English.&#160; All financial
statements and reports of the Company shall be made and kept in both Chinese
and English.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 26</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall
have its account denominated in RMB, but may, if necessary, also adopt US
Dollars or other foreign currencies as supplementary bookkeeping
currencies.&#160; Where RMB is converted to
other currencies, the conversion coefficient [***].</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-12-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=95,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=746755,FOLIO='-12-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 27</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Allocations for
reserve funds and enterprise expansion funds of the Company and bonuses and
welfare funds for staff and workers shall be set aside in accordance with
applicable laws.&#160; The annual proportion
of allocations shall be decided by the Board of Directors according to the
financial conditions of the Company and applicable PRC laws.&#160; The target annual proportion of allocations
shall be [***], subject to change of after-tax profits as determined in
Article&nbsp;32.1</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 28</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall
open RMB and foreign currency accounts with banks registered in China in
accordance with PRC laws.&#160; The foreign
exchange matters of the Company shall be handled in accordance with the
provisions of the PRC foreign exchange laws.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 29</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall
pay the reasonable costs of preparing regular financial statements as may be
needed by Party&nbsp;A, Party&nbsp;B or Party&nbsp;C.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter7Taxation"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Taxation</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 30</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company shall pay taxes in accordance
with the laws and regulations of the PRC in relation to taxes of foreign
investment enterprise.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The parties shall apply to obtain the
benefits for the Company, the parties hereto and all of their personnel, for
all of the applicable tax exemptions, reductions, privileges and preferences
which are now or in the future become obtainable under the laws and regulations
of the PRC and under any applicable treaties or international agreements to
which the PRC may now be or may hereafter become a party.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 31</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The employees of
the Company shall pay individual income tax in accordance with the Individual
Income Tax Law of the PRC.&#160; Party&nbsp;A
and the Company shall assist the members of the </font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-13-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=96,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=624411,FOLIO='-13-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Management Office
and employees dispatched to the Company by Party&nbsp;B or Party&nbsp;C in
relation to the procedure for payment of individual income tax.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter8ProfitDistribution"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Profit Distribution</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 32</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall
distribute profits to the Parties as follows:</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Within [***] from the end of each fiscal
year, the Board of Directors shall determine the amount of after-tax profit of
the Company to be reserved for production and operation and the amount of
profits to be distributed to the Parties [***].&#160; Distribution of profits to the Parties&nbsp;B and C shall be made
in Japanese Yen.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Losses from previous years must be made
up before any profits from the current year are distributed to the
Parties.&#160; The undistributed profits of
the past year(s) may be distributed together with this year&#146;s profits.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter9EmployeesAndLaborManagement"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Employees and Labor
Management</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 33</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The recruitment
and employment of employees of the Company shall be made in accordance with the
provisions of the Contract and the guidelines adopted by the Board of Directors
and based on the merits of the candidates and shall be supervised and approved
by the general manager subject to the consultation of the deputy general
manager.&#160; However, the Company shall
accept employees dispatched by Party&nbsp;A, Party&nbsp;B or Party&nbsp;C as
long as necessary for the purpose of the JVC Contract in accordance with
Personnel Assignment Agreement attached hereto as Appendix&nbsp;IV.&#160; Dispatched employees from Party&nbsp;A,
Party&nbsp;B and Party&nbsp;C (except the general manager, the deputy general
manager, chief financial officer and deputy department manager of design and
development department ) shall be decided by the general manager based on
business needs.</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-14-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=97,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=658062,FOLIO='-14-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 34</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall
sign labor contracts with its employees, which contracts shall cover dismissal
and resignation, wages, insurance, welfare benefits, rewards, disciplines,
penalties and other matters, in accordance with applicable PRC laws</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 35</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Without the consent of the general
manager subject to the consultation of the deputy general manager, no employees
of the Company except those dispatched by either Party&nbsp;B or Party&nbsp;C,
shall maintain any employment relationship, whether contractual or otherwise,
with any third party during their employment with the Company.&#160; In the event any such employee is found to
be maintaining an employment relationship with any third party, the Company
shall have the right to terminate the employment of such employee at any time
without any liability.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">All personnel of the Company shall be
subject to confidentiality obligations concerning information obtained from the
Company and all the Parties and shall be strictly forbidden from disclosing any
of such information to any third party without the prior authorization and
approval of the general manager and the deputy general manager.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter10TradeUnion"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Trade Union</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 36</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The PRC employees
of the Company shall have the right to establish a trade union and to
participate in the activities of such trade union in accordance with the Trade
Union Law of the People&#146;s Republic of China, Articles of Association of Chinese
Trade Union and other relevant regulations applicable to foreign investment
enterprises.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 37</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The trade union
established pursuant to Article&nbsp;34 hereof has the right to represent the
interests of the employees in signing labor contracts with the Company and to
supervise the execution of labor contracts.&#160;
It shall also have the right to protect the legal rights and material
benefits of the employees of the Company.&#160;
The trade union will assist the mediation of disputes arising between </font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-15-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=98,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=562088,FOLIO='-15-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the Company and
the employees thereof, and may negotiate such disputes with the Company if
entrusted by the relevant employee.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter11_Insurance"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Insurance</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 38</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Insurance of the
Company against all risks shall be from the insurance companies registered
within China.&#160; The cover, amount,
period, etc of the insurance shall be proposed by the general manager and the
deputy general manager in accordance with the needs of the Company, subject to
approval by the Board of Directors.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter12termterminationdissoluti"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Term, Termination,
Dissolution and Liquidation</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 39</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The duration of
the Company shall be [***] commencing from the date on which the business
license of the Company is issued.&#160; An
application for the extension of duration, proposed by one Party and
unanimously approved by the Board of Directors, shall be submitted to the
examination and approval authority six months prior to the expiration date of
the term of the Company.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 40</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company shall be dissolved and the
JVC Contract shall be terminated in case any of the following situations or
accidents occurs:</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the term of JVC Contract expires and is
not extended.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">any Party delays to perform its
obligations to contribute in full its subscription of the registered capital
pursuant to JVC Contract and fails to perform the said obligations within [***]
commencing from the date specified in the JVC Contract.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the Company does not generate, as
reported by its audited financial statements, a net profit for [***], after
consultation, the Parties fail to agree on how to improve satisfactorily the
financial situation of the Company.</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-16-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=99,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=747841,FOLIO='-16-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">due to an event of force majeure as
stipulated herein, the Company is unable to continue to carry out operations
for [***] from the day the event of force majeure occurs and the Parties fail
to agree on how to improve the situation.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the Company is ordered to close in
accordance with PRC laws because of serious violations of PRC laws.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(6)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the operation and business as approved by
the relevant departments of Chinese government are prohibited or significantly
restricted by any government authority.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event any of the conditions set
forth in (ii) above occurs, any non-breaching Party shall have the right to
unilaterally apply to the examination and approval authority to terminate the
JVC Contract and dissolve the Company.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event any of the conditions set
forth in any of (iii) through (vi) above occurs, either Party shall have the
right to notify the other Parties in writing and request that the JVC Contract
be terminated and the Company be dissolved.&#160;
Upon such request, the Board of Directors shall within thirty (30) days
of such written request, adopt resolutions for such termination, and the
Company shall apply to the relevant PRC authorities for approval of such
termination and dissolution.&#160; Each Party
shall cause the directors it has appointed to vote in favor of such termination
resolutions.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In case of termination of the JVC
Contract, the following appendixes shall terminate forthwith.</font></p>

<p style="line-height:150%;margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .75in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;I: Technical License Agreement by MCI</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .75in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;II: Technical License Agreement by UTS</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .75in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;III: Equipment Purchase Agreement</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .75in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Appendix&nbsp;IV: Personnel Assignment Agreement</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter13RulesAndRegulations"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter&nbsp;
13&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Rules and Regulations</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 41</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The rules and
regulations made by the Board of Directors and Management Office include:</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-17-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=100,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=138386,FOLIO='-17-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Business administration regulations,
including those in respect of the functions and powers of all sub-sections and
the work procedures;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Employees regulations;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Manpower and payment regulations;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Employees&#146; attendance, promotion, reward,
and punishment regulations;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Employees&#146; welfare regulations;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Finance rules;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Liquidation procedures where the COMPANY
dissolves;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Other rules and regulations where
necessary.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter14ApplicableLaw"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
14&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Applicable Law</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 42</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The conclusion,
validity, interpretation and implementation of these Articles of Association
and resolution of disputes thereunder shall be governed by the laws of the PRC.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter15SettlementOfDisputes"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter
15&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Settlement of Disputes</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 43</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event a dispute arises in
connection with the interpretation or implementation of these Articles, the
Parties shall attempt in the first instance to resolve such dispute through
friendly consultations.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If the dispute is not resolved through
friendly consultations within sixty (60) days after the commencement of
discussions, or such longer period as the Parties agree in writing at that
time, then notwithstanding any other provision of these Articles, any Party may
submit the dispute for arbitration.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any disputes initiated by Party&nbsp;A, arising
out of or in connection with these Articles, shall be finally settled by an
arbitration in Tokyo, Japan by the Japan Commercial Arbitration Association
(&#147;JCAA&#148;) in accordance with JCAA&#146;s arbitration rules in effect at the time of
arbitration.&#160; Any disputes initiated by
Party&nbsp;B or Party&nbsp;C, arising out of or in connection with </font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-18-</font></p>


<div align="left" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=101,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=507421,FOLIO='-18-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
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</font>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">these Articles shall be finally settled
by an arbitration in Shanghai, PRC by the China International Economic and
Trade Arbitration Commission (&#147;CIETAC&#148;) in accordance with CIETAC&#146;s arbitration
rules in effect at the time of arbitration.&#160;
The award rendered by the arbitrators shall be final and binding upon
the Parties.&#160; The Parties hereto agree
to honor such award.&#160; Any competent
court may enforce such award.&#160; All
arbitration costs, including costs for the enforcement of any arbitration
award, shall be borne by the losing Party.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Parties agree that during the
arbitration proceedings, they shall continue to observe and perform these
Articles except for the provisions subject to or involved in arbitration.</font></p>

<p style="font-weight:bold;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><a name="Chapter16Miscellaneous"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chapter&nbsp;16&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Miscellaneous</font></b></a></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 44</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any modification
of these Articles of Association shall be adopted by the Board of Directors by
unanimous consent of the directors present including any proxies, at the
meeting, and shall be reported to and ratified by the original Approval
Authority.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 45</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These Articles of
Association have been concluded by execution of six original copies each in
Chinese and English.&#160; Both of the
language versions shall be equally authentic.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 46</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These Articles of
Association shall not take effect unless they win the approval of the Approval
Authority.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 47</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In case of any
inconsistency or conflict between any of the provisions of these Articles of
Association and the provisions of the JVC Contract, the provisions of the JVC
Contract shall prevail.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article 48</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless otherwise
agreed by the parties the Company shall bear all the costs incurred in
connection with these Articles of Association and all the costs of the business
license application.</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-19-</font></p>


<div align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=102,EFW="2092993",CP="UTSTARCOM, INC.",DN="4",CHK=720614,FOLIO='-19-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-80_AM_2332.CHC",USER="DNICHOL",CD='Nov  7 19:37 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;line-height:normal;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These Articles of
Association are signed in the Chinese language in six (6) originals and in
English language in six (6) originals by the legal or authorized
representatives of the parties on the date first set forth above.</font></p>

<p align="left" style="line-height:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom Telecom Co., Ltd.</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="45%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Johnny Chou</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Johnny Chou</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position: General Manager</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Witnessed by:</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Hong Liang Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Hong Liang Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position: President
  &amp; CEO</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matsushita Communication Industrial Co., Ltd.</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="45%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Yukio Shohtoku</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Yukio Shohtoku</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position: Managing Director</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matsushita
  Communication Industrial Co., Ltd.</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.56%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="45%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:45.44%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Yasuo Katsura</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name. Yasuo Katsura</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position: President</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.2%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.8%;">
  <p align="left" style="font-size:1.0pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="line-height:150%;margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-20-</font></p>


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<DOCUMENT>
<TYPE>EX-10.81
<SEQUENCE>6
<FILENAME>a2092993zex-10_81.htm
<DESCRIPTION>EXHIBIT 10.81
<TEXT>
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<p align="right" style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 10.81</font></b></p>

<p align="left" style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">[***] 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</font></b></p>

<p style="font-weight:bold;margin:6.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">AMENDMENT</font></b></p>

<p style="font-weight:bold;margin:6.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">TO
OEM AGREEMENT BETWEEN UTSTARCOM, INC. AND INTERWAVE</font></b></p>

<p style="font-weight:bold;margin:6.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMMUNICATIONS
INTERNATIONAL, LTD., DATED JULY 14, 2000</font></b></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Amendment is
dated and entered into as of the 27<sup>th</sup> day of September 2002 by and
between UTStarcom, Inc., a Delaware corporation with its place of business at
1275 Harbor Bay Parkway, Alameda, CA 94502, USA (hereinafter referred to as
&#147;UTStarcom&#148;) and Interwave Communications International, Ltd., a Bermuda
company having offices at Clarendon House, 2 Church Street, Hamilton HM DX,
Bermuda (hereinafter referred to as &#147;Interwave&#148;) (collectively, the &#147;Parties&#148;).</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, The
Parties entered into a contractual relationship on July&nbsp;14, 2000 (referred
to herein as the &#147;Original OEM Agreement&#148;) for UTStarcom to purchase certain
products and for resale as defined in the Original OEM Agreement;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, UTStarcom
has expressed an interest in making an equity investment in Interwave in
exchange for a)&nbsp;the development and production by Interwave of certain
technology relating to [***] compatible with UTStarcom&#146;s [***] specifications;
and b)&nbsp;incorporation of said technology into [***], where UTStarcom would
purchase said products from Interwave pursuant to the terms of the Original OEM
Agreement and this Amendment;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in
consideration of the premises and of the mutual covenants and conditions herein
contained, the Parties mutually agree as follows:</font></p>

<h1 align="left" style="font-weight:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>[***]
Purchase Agreement</u></font></h1>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
consideration of Interwave&#146;s provision of technical design and product
production services as described herein, UTStarcom shall purchase [***]
pursuant to the terms of a [***] Purchase Agreement (attached hereto as
Exhibit&nbsp;A).</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<h1 align="left" style="font-weight:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Technical
Design Services</u></font></h1>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
return for UTStarcom&#146;s equity investment in Interwave as described in
Section&nbsp;1 of this Amendment, Interwave shall provide technical design
services with respect to [***] being made compatible with UTStarcom&#146;s [***]
specifications. These technical design services shall be provided pursuant to
the specifications attached hereto as Exhibit&nbsp;B, and shall be completed
pursuant to the delivery schedule attached hereto as Exhibit&nbsp;C.</font></p>

<h1 align="left" style="font-weight:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Product
Production Services</u></font></h1>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
further consideration of [***] as described in Section&nbsp;1 of this
Amendment, Interwave shall produce, pursuant to the terms of this Amendment and
the Original OEM Agreement, [***] described in Section&nbsp;2 of this Amendment.
Interwave shall provide these [***] to UTStarcom at [***]. Interwave
acknowledges and agrees that [***].</font></p>

<h1 align="left" style="font-weight:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Software
Escrow</u></font></h1>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interwave
acknowledges the importance to UTStarcom of having access to the technical
designs created by Interwave pursuant to Section&nbsp;2 of this Amendment in
the event that interWAVE goes into liquidation or ceases business. Accordingly,
Interwave agrees that it shall forthwith upon the completion of the technical
designs intended by Section&nbsp;2 place all software (including source code),
firmware, documentation, and all other intellectual property necessary for the
manufacture of the [***] into an escrow reasonably acceptable to UTStarcom,
pursuant to terns and conditions expressed in the Software Escrow Agreement
attached hereto as Exhibit&nbsp;D of this Amendment. All items placed into said
escrow shall be used by UTStarcom only for the purpose of manufacturing the
[***] that incorporates such technical designs and for no other purpose.</font></p>

<h1 align="left" style="font-weight:normal;margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Limited
Effect of Amendment</u></font></h1>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Aside
from the modification in this Amendment, the remaining terms and conditions of
the Original OEM Agreement shall remain unaffected by this Amendment.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-2-</font></p>


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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS
WHEREOF, the Parties hereto have caused this Amendment to be executed by their
respective duly authorized representatives as of the date first above written.
All copies of this Amendment, signed by both Parties, shall be deemed
originals.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="54%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:54.48%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Interwave
  Communications</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:42.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTStarcom,
  Inc.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="54%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:54.48%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:42.2%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:54.48%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">International,
  Ltd.</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:42.2%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:54.48%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:42.2%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:46.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ PRISCILLA LU</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="34%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:34.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ HONG LU</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.6%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.44%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Priscilla Lu</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hong Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive
  Officer</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font></p>
  </td>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive
  Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.6%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.44%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: </font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;__,
  2002</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: </font></p>
  </td>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;__,
  2002</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-3-</font></p>


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</font></div>

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<!-- ZEQ.=1,SEQ=3,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=208482,FOLIO='-3-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="right" style="margin:12.0pt 0in .0001pt;text-align:right;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Execution
Copy</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTSTARCOM, INC.</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">AND</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERWAVE COMMUNICATIONS
INTERNATIONAL LTD.</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">STOCK PURCHASE AGREEMENT</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SEPTEMBER 27, 2002</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=5,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=236606,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">STOCK PURCHASE AGREEMENT</font></b></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THIS
STOCK PURCHASE AGREEMENT</font></b><font size="2" style="font-size:10.0pt;"> is made as of the ___ day of September 2002, by and between UTStarcom,
Inc. (&#147;UTStarcom&#148; or the &#147;Investor&#148;), a corporation organized under the laws of
the State of Delaware, USA, with its principal place of business at 1275 Harbor
Bay Parkway, Alameda, CA 94502 USA and interWAVE Communications International,
Ltd. (the &#147;Company&#148;), a corporation organized under the laws of Bermuda, with
its principal place of business at Clarendon House, 2 Church Street, P.O. Box
HM 1022, Hamilton, Bermuda.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the parties have
agreed in principle upon the purchase of shares of Common Stock of the Company
by the Investor.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, THE
PARTIES HEREBY AGREE AS FOLLOWS:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purchase and Sale of Common Stock</font></b><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Sale of the Common Shares</font></b><font size="2" style="font-size:10.0pt;">.&#160;
At the Closing (as defined below) and subject to the terms and
conditions of this Agreement, Company will issue and sell for [***] the number
of shares of the Company&#146;s Common Stock obtained by dividing the [***] into
[***] (the &#147;Common Stock&#148;) to the Investor, and the Investor will buy the
Common Stock from the Company, at the Closing, for the per share purchase price
determined as set forth above (the &#147;Purchase Price&#148;). The parties agree that
the Investor may assign the right and obligation to purchase the Common Stock
for the Purchase Price, and all of its other rights and obligations under this
Agreement, to an &#147;Affiliate,&#148; in which case the term &#147;Investor&#148; shall refer
herein to such Affiliate.&#160; &#147;Affiliate&#148;
means, with respect to any specified person, any other person that directly or
indirectly through one or more intermediaries, controls, is controlled by, or
is under common control with, such specified person.&#160; In the event that Investor assigns this Agreement to an
Affiliate, UTStarcom shall guarantee and remain liable for the performance of
such Affiliate&#146;s obligations hereunder. &#160;as reported by the Nasdaq National Market (or, if such market is
not the principal trading market for the Common Stock, as reported by such
principal trading market).</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Closing</font></b><font size="2" style="font-size:10.0pt;">.&#160; The closing
of purchase and sale of the Shares to be sold and purchased hereunder (the
&#147;Closing&#148;) shall occur on September&nbsp;26, 2002 (the &#147;Closing Date&#148;) at 10:00
a.m. at the offices Wilson, Sonsini, Goodrich and Rosati, 650 Page Mill Road,
Palo Alto, California 94304, USA.&#160; The
per share price is calculated to be [***] US dollars, and the number of shares
to be sold is calculated to be [***] shares, as shown in the attached
calculation in Exhibit&nbsp;A.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Closing Date, Delivery</font></b><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Closing Date</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Closing shall be held on September&nbsp;26, 2002 or such other date
as the Company and the Investor may agree upon (the &#147;Closing Date&#148;).</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-2-</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=6,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=112972,FOLIO='-2-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Delivery</font></b><font size="2" style="font-size:10.0pt;">.&#160;
At the Closing, the Company will deliver to the Investor a stock
certificate, registered in the Investor&#146;s name, representing the Shares,
against payment of the Purchase Price by certified or cashier&#146;s check payable
to the Company, or by wire transfer of immediately available same day funds per
the Company&#146;s wiring instructions.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Further Assurances</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company and the Investor hereby covenant and agree without the
necessity of any further consideration, to execute, acknowledge and deliver any
and all such other documents and take any such other action as may be
reasonably necessary to carry out the intent and purposes of this Agreement.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Representations and Warranties of the Company</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company hereby represents and warrants to the Investor that, except
as set forth on the Schedule of Exceptions (the &#147;Schedule of Exceptions,&#148;
attached hereto as Exhibit&nbsp;A1) furnished to the Investor on the date
hereof, which exceptions shall be deemed to be representations and warranties
as if made hereunder and which shall be identified as exceptions to specific
Sections of this Agreement:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Organization, Good Standing and Qualification</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company is a corporation duly organized, validly existing and in
good standing under the laws of Bermuda.&#160;
The Company has all requisite corporate power and corporate authority to
own and operate its properties and assets, to carry on its business as now conducted
and as proposed to be conducted, to sell the Shares, to enter into this
Agreement, and to carry out the transactions contemplated hereunder and
thereunder.&#160; The Company, and each of
its subsidiaries, is qualified to transact business and is in good standing in
each jurisdiction in which the failure to qualify would have, or could
reasonably be expected to have, a material adverse effect on the business,
properties, financial condition or results of operations of the Company and its
subsidiaries taken as a whole (a &#147;Material Adverse Effect&#148;).&#160; The Company has delivered to the Investor
true, correct and complete copies of the Company&#146;s Certificate of Incorporation
(the &#147;Certificate&#148;) and the Company&#146;s By-laws in effect on the date hereof.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Capitalization and Voting Rights</font></b><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The capital stock of the Company as
of September&nbsp;5, 2002 consisted of:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 2.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">100,000,000 authorized shares of Common Stock, of
which 58,130,029 shares are issued and outstanding</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt 2.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">10,000,000 authorized shares of Preferred Stock, of
which zero shares are issued and outstanding</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as set forth in the Company&#146;s
report on Form&nbsp;10-K for the fiscal year ended June&nbsp;30, 2001, the
Company&#146;s proxy statement for its 2001 annual general meeting of shareholders
and the Company&#146;s Quarterly Reports on Form&nbsp;10-Q for the periods ended
September&nbsp;30, 2001, December&nbsp;31, 2002, and March&nbsp;31, 2001
(collectively, the &#147;Company&#146;s Public Filings&#148;) or in Section&nbsp;3.2 of the
Schedule of Exceptions there are: (i)&nbsp;no outstanding options, warrants,
rights (including conversion or preemptive rights) or agreements pursuant to
which the</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-3-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="center">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=7,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=425882,FOLIO='-3-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company is or may
become obligated to issue, sell or repurchase any shares of its capital stock
or any other securities of the Company; (ii)&nbsp;no restrictions on the
transfer of capital stock of the Company imposed by the Certificate or By-laws
of the Company, or any agreement to which the Company is a party, any order of
any court or any governmental agency to which the Company is subject, or any
statute other than those imposed by relevant state and federal securities laws;
and (iii)&nbsp;no cumulative voting rights for any of the Company&#146;s capital
stock.&#160; The Company has, as of December&nbsp;31,
2001, reserved up to Nineteen Million Seven Hundred Thirty Thousand
(19,730,000) shares of its Common Stock for the issuance of Common Stock
pursuant to the exercise of outstanding options and warrants or options to be
granted in the future under its stock option and stock purchase plans listed on
Section&nbsp;3.2 of the Schedule of Exceptions.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as set forth in the Company&#146;s
Public Filings or in Section&nbsp;3.2 of the Schedule of Exceptions, the
Company is not a party to any agreement or understanding which affects or
relates to, the voting of shares of capital stock of the Company or the giving
of written consents by a shareholder or director of the Company.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subsidiaries</font></b><font size="2" style="font-size:10.0pt;">.&#160;
Except as set forth in the Company&#146;s Public Filings or in
Section&nbsp;3.3 of the Schedule of Exceptions, the Company has never owned and
does not presently own or control, directly or indirectly, any other
corporation, association, or other business entity and has never owned or
controlled and does not currently own or control, directly or indirectly, any
capital stock or other ownership interest, directly or indirectly, in any
corporation, association, partnership, trust, joint venture or other
entity.&#160; Each of the Company&#146;s
subsidiaries is duly organized and existing under the laws of its jurisdiction
or organization and is in good standing under such laws.&#160; None of the Company&#146;s subsidiaries owns or
leases property or engages in any activity in any jurisdiction that might
require its qualification to do business as a foreign corporation and in which
failure to do so would have a Material Adverse Effect.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Authorization</font></b><font size="2" style="font-size:10.0pt;">.&#160;
All corporate action on the part of the Company and its stockholders
necessary, for the authorization, execution and delivery of the Transaction
Agreements, the performance of all obligations of the Company hereunder and
thereunder and the authorization, issuance and delivery of the Shares to be
sold hereunder, has been taken or will be taken prior to the Closing.&#160; The Transaction Agreements have been duly
executed and delivered by the Company and constitute valid and legally binding
obligations of the Company, enforceable against the Company in accordance with
their terms (except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of general application
relating to or affecting enforcement of creditors rights).&#160; The execution, delivery and performance of
the Transaction Agreements and compliance with the provisions thereof by the
Company, will not:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; violate any provision of law,
statute, ordinance, rule or regulation or any ruling, writ, injunction, order,
judgment or decree of any court, administrative agency or other governmental
body, the violation of which would have a Material Adverse Effect;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; conflict with or result in any breach
of any of the terms, conditions or provisions of, or constitute (with due
notice or lapse of time, or both) a default (or give rise to any</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-4-</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=8,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=955767,FOLIO='-4-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">right of termination,
cancellation or acceleration) under (i)&nbsp;any material agreement, document,
instrument, contract, understanding, arrangement, note, indenture, mortgage or
lease to which the Company is a party or under which the Company or any of its
assets is bound or affected, (ii)&nbsp;the Company&#146;s Restated Certificate, or
(iii)&nbsp;the By-laws of the Company; or</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; result in the creation of any lien,
security interest, charge or encumbrance upon any of the properties or assets
of the Company.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Valid Issuance of Common Stock</font></b><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; When issued, sold and delivered in
accordance with the terms hereof for the consideration expressed herein, the
Shares will be validly issued and outstanding, fully paid and nonassessable and
not subject to any preemptive rights, rights of first refusal or other similar
rights imposed by the Company.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The outstanding shares of Common
Stock are all duly authorized and validly issued, fully paid and nonassessable.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Governmental Consents</font></b><font size="2" style="font-size:10.0pt;">.&#160;
No consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any federal, state or
local governmental authority on the part of the Company is required in
connection with the consummation of the transactions contemplated by the
Agreement, except for registration or qualification, or taking such action to
secure exemption from such registration or qualification, of the Shares under
applicable state or federal securities laws, which actions shall be taken, by
and at the expense of the Company, on a timely basis as may be required.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Litigation</font></b><font size="2" style="font-size:10.0pt;">.&#160;
Except as set forth in Section&nbsp;3.7 of the Schedule of Exceptions,
there is no action, suit, proceeding or investigation pending or, to the
Company&#146;s knowledge, currently threatened against the Company which questions
the validity of the Transaction Agreements or the right of the Company to enter
into such agreements, or to consummate the transactions contemplated thereby,
or which reasonably would be expected to have, either individually or in the
aggregate, a Material Adverse Effect, nor is the Company aware that there is
any basis for the foregoing.&#160; To the
Company&#146;s knowledge, there are no legal actions or investigations pending or
threatened in writing involving the employment by or with the Company of any of
the Company&#146;s current or former employees, their use in connection with the
Company&#146;s business of any information or techniques allegedly proprietary to
any of their former employers, or their obligations under any agreements with
prior employers or alleging a violation of any federal, state or local statute
or common law relationship with the Company.&#160;
The Company is not a party to any order, writ, injunction; judgment or
decree of any court that has had, or could reasonably be expected to have, a
Material Adverse Effect.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-5-</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=9,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=432267,FOLIO='-5-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Employees and Consultants</font></b><font size="2" style="font-size:10.0pt;">.&#160;
Except as set forth in Section&nbsp;3.8 of the Schedule of Exceptions:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To the Company&#146;s knowledge; none of
its employees is obligated under any contract (including licenses, covenants or
contracts of any nature) or other agreement, or subject to any judgment, decree
or order of any court or administrative agency, that would interfere with the
use of his best efforts to promote the interests of the Company or that would
conflict with the Company&#146;s business as proposed to be conducted.&#160; Neither the execution nor delivery of the
Transaction Agreements, nor the carrying on of the Company&#146;s business by the
employees of the Company, nor the conduct of the Company&#146;s business as
proposed, will, to the Company&#146;s knowledge, conflict with or result in a breach
of the terms, conditions or provisions of, or constitute a default under, any
material contract, covenant or instrument under which any of such employees is
now obligated.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each employee of, or consultant to,
the Company, who has or is proposed to have access to confidential or
proprietary information of the Company, is a signatory to, and is bound by, an
agreement with the Company relating to nondisclosure, proprietary information
and, with respect to employees, assignment of patent, copyright and other
intellectual property rights.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To the knowledge of the Company, no
employee of, or consultant to, the Company is in violation of any term of any
employment contract, patent disclosure agreement or any other contract or
agreement between such individual and the Company including, but not limited
to, those matters relating to (i)&nbsp;the relationship of any such employee
with the Company or to any other party as a result of the nature of the
Company&#146;s business as currently conducted, or (ii)&nbsp;unfair competition,
trade secrets or proprietary information.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Patents and Trademarks</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company owns or possesses all rights to use all patents, patent
rights or licenses, inventions, collaborative research agreements, trade
secrets, know-how, trademarks, service marks, trade names and copyrights which
are necessary to conduct its businesses as described in the Company&#146;s Public
Filings.&#160; Except as set forth in the
Company&#146;s Public Filings or in Section&nbsp;3.9 of the Schedule of Exceptions,
The Company has not received any written communications alleging that the
Company has violated or, by conducting its business as proposed, would violate
any of the Intellectual Property of any other person or entity.&#160; Compliance with Other Instruments.&#160; The Company is not in violation or default
of any provisions of the Restated Certificate or the Company&#146;s By-laws or of
any instrument, judgment, order, writ or decree.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.10&#160;&#160;&#160;&#160;&#160;&#160;&#160; Agreements;
Action</font></b><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except for agreements explicitly
contemplated hereby and as set forth in the Company&#146;s Public Filings or in
Section&nbsp;3.10 of the Schedule of Exceptions, there are no agreements,
understandings, transactions or proposed transactions between the Company and
any of its officers, directors, or affiliates, or any affiliate thereof of a
nature required to be disclosed pursuant to the provisions of
Regulation&nbsp;S-K.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as set forth in the Company&#146;s
Public Filings or in Section&nbsp;3.10 of the Schedule of Exceptions, since
December&nbsp;31, 2001 the Company has not (i)&nbsp;declared or paid any
dividends, or authorized or made any distribution upon or with respect to any
class or series of its</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-6-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">capital stock, or
(ii)&nbsp;sold, exchanged or otherwise disposed of any of its assets or rights,
other than in the ordinary course of business.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company has not admitted in
writing its inability to pay its debts generally as they become due, filed or
consented to the filing against it of a petition in bankruptcy or a petition to
take advantage of any insolvency act, made an assignment for the benefit of
creditors, consented to the appointment of a receiver for itself or for the
whole or any substantial part of its property, or had a petition in bankruptcy
filed against it, been adjudicated a bankrupt, or filed a petition or answer
seeking reorganization or arrangement under the federal bankruptcy laws or any
other laws of the United States or any other jurisdiction.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company is in compliance in all
material respects with all obligations, agreements and conditions contained in
any evidence of indebtedness or any loan agreement or other contract or
agreement (whether or not relating to indebtedness) to which the Company is a
party or is subject (collectively, the &#147;Obligations&#148;), the lack of compliance
with which could afford to any person the right to (i)&nbsp;accelerate any
indebtedness or (ii)&nbsp;terminate any right or agreement of the Company, the
termination of which would have a Material Adverse Effect.&#160; To the Company&#146;s knowledge, all other
parties to such Obligations are in compliance with the terms and conditions of
such Obligations.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.11&#160;&#160;&#160;&#160;&#160;&#160;&#160; Title to Property and Assets</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company has good title to all of its assets, including all
properties and assets reflected on its December&nbsp;31, 2001 Balance Sheet,
free and clear of all liens, claims, restrictions or encumbrances, except those
assets disposed of since the date of such Balance Sheet in the ordinary course
of business, none of which either alone or in the aggregate are material,
either in nature or amount, to the business of the Company.&#160; All machinery and equipment included in such
properties which are material to the business of the Company are in good
condition and repair, ordinary wear and tear excepted, and each lease of real
or personal property to which the Company is a party is effective, affords the
Company peaceful and undisturbed possession of the subject matter of the lease,
and such lease is free of any liens, claims restrictions or encumbrances.&#160; Each such lease constitutes a valid and
binding obligation of, and is enforceable in accordance with its terms against,
the Company and, to the Company&#146;s knowledge, the other respective parties
thereto.&#160; Except as provided in the
Company&#146;s Public Filings or in Section&nbsp;3.11 of the Schedule of Exceptions;
with respect to the property and assets it leases, the Company is in all
respects in compliance with such leases, has not received notice of any
allegations that it is in default thereunder in any respect and holds a valid
leasehold interest free of any liens, claims or encumbrances.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.12&#160;&#160;&#160;&#160;&#160;&#160;&#160; Financial Statements</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company has delivered to the Investor (i)&nbsp;its report on
Form&nbsp;10-K for the year ended June&nbsp;30, 2001 containing its audited
Balance Sheets at June&nbsp;30, 2000 and 2001 and its audited Statements of
Operations, Statements of Shareholder&#146;s Equity and Statements of Cash Flow for
the years ended June&nbsp;30, 1999, 2000 and 2001 (the &#147;Audited Financial
Statements&#148;); and (ii)&nbsp;the unaudited financial statements appearing in the
Company&#146;s reports on Form&nbsp;10-Q for the quarters ended September&nbsp;30,
2001, December&nbsp;31, 2001 and March&nbsp;31, 2002 (the &#147;Unaudited Financial
Statements&#148;).&#160; The Audited Financial
Statements and the Unaudited Financial</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-7-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=11,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=551429,FOLIO='-7-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Statements are
collectively referred to as the &#147;Financial Statements&#148;.&#160; The Financial Statements have been prepared
in accordance with the United States generally accepted accounting principles
(&#147;GAAP&#148;) applied on a consistent basis throughout the periods indicated and
fairly present the financial condition and consistent operating results of the
Company as of the dates, and for the periods, indicated therein, provided that
the Unaudited Financial Statements may not contain complete footnote disclosure
which would be required by GAAP and are subject to audit adjustments.&#160; Since December&nbsp;31, 2001, the Company
has conducted its business in the ordinary course, and there has not been any
material adverse change in the financial condition or operations of the
Company.&#160; Except as set forth in the
Financial Statements and in the material agreements listed in Section&nbsp;3.12
of the Schedule of Exceptions, the Company has no material liabilities,
contingent or otherwise, other than (i)&nbsp;liabilities incurred in the
ordinary course of business subsequent to September&nbsp;30, 2001 and
(ii)&nbsp;obligations under contracts and commitments incurred in the ordinary
course of business and not required under GAAP to be reflected in the Financial
Statements, which, in both cases, individually or in the aggregate, are not
material to the financial condition or operating results of the Company.&#160; Except as disclosed in the Financial
Statements, the Company is not a guarantor or indemnitor of any indebtedness of
any other person, firm or corporation.&#160;
The Company maintains and consistently applies and will continue to
maintain and consistently apply a standard system of accounting established and
administered in accordance with GAAP.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Since June&nbsp;30, 2000,
the Company has filed all required reports, schedules, forms, statements and
other documents (including exhibits and all other information incorporated
therein) with the SEC (&#147;Company SEC Documents&#148;).&#160; As of their respective dates, the Company SEC Documents complied
in all material respects with the requirements of the Securities Act or the
Securities Exchange Act, as the case may be, and the rules and regulations of
the SEC promulgated thereunder applicable to such Company SEC Documents, and no
Company SEC Documents when filed contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.&#160; The financial statements of the Company
included in Company SEC Documents complied as to form, as of their respective
dates of filing with the SEC, in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with
respect thereto, have been prepared in accordance with GAAP (except, in the
case of unaudited statements, as permitted by Form&nbsp;10-Q of the SEC)
applied on a consistent basis during the periods involved (except as may be
indicated in the notes thereto) and fairly present the consolidated financial
position of the Company and its consolidated subsidiaries as of the dates
thereof and the consolidated results of their operations and cash flows for the
periods then ended (subject, in the case- of unaudited statements, to normal
year-end audit adjustments).</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.13&#160;&#160;&#160;&#160;&#160;&#160;&#160; Employee Benefit Plans</font></b><font size="2" style="font-size:10.0pt;">.&#160;
To the Company&#146;s knowledge, the Company is in compliance with applicable
laws governing the Company&#146;s &#147;employee benefit plans&#148; as such term is defined
in Section&nbsp;3(3) of the Employee Retirement Income Security Act of 1974,
except where such failure to comply would not have a Material Adverse Effect.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-8-</font></p>


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</font></div>

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</font>

<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.14&#160;&#160;&#160;&#160;&#160;&#160;&#160; Tax Returns, Payments and Elections</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company has filed all tax returns and reports as required, and
within the time prescribed, by law, including without limitation, all federal,
state and local income, excise or franchise tax returns, real estate and
personal property tax returns, sales and use tax returns, payroll tax returns and
other tax returns or reports required to be filed by it.&#160; These returns and reports are true and
correct in all material respects.&#160; The
Company has paid or made provision for the payment of all accrued and unpaid
taxes and other charges to which the Company is subject and which are not
currently due and payable.&#160; The federal
income tax returns of the Company have never been audited by the Internal
Revenue Service, and the Company has not agreed to an extension of the statute
of limitations with respect to any of its tax years.&#160; Neither the Internal Revenue Service nor any other taxing
authority is now asserting, nor is threatening in writing to assert, against
the Company any deficiency or claim for additional taxes or interest thereon or
penalties in connection therewith; nor does such deficiency or claim or basis
for such deficiency or claim exist.&#160; The
Company has not made any elections pursuant to the Internal Revenue Code of
1986, as amended (the &#147;Code&#148;) (other than elections which relate solely to methods
of accounting, depreciation or amortization) which would have a Material
Adverse Effect as the Company&#146;s business is presently conducted or proposed to
be conducted.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.15&#160;&#160;&#160;&#160;&#160;&#160;&#160; Insurance</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company has in full force and effect fire, casualty and liability
insurance policies, with coverage, in the case of property insurance,
sufficient in amount (subject to reasonable deductibles) to allow it to replace
any of its material properties or assets that might be damaged or destroyed,
and in the case of casualty and liability insurance, in amounts customary and
adequate for businesses similar to the business of the Company.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.16&#160;&#160;&#160;&#160;&#160;&#160;&#160; Labor Agreements and Actions</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company does not have any collective bargaining agreements covering
any of its employees, nor is the Company bound by or subject to (and none of
its assets or properties is bound by or subject to) any written or oral,
express or implied, contract, commitment or arrangement with any labor union,
and no labor union has requested or, to the knowledge of the Company, has
sought to represent any of the employees, representatives or agents of the
Company.&#160; There is no strike or other
labor dispute involving the Company pending, or to the knowledge of the Company
threatened in writing, which could have a Material Adverse Effect (as the
Company&#146;s business is presently conducted and as it is proposed to be
conducted), nor is the Company aware of any labor organization activity
involving its employees.&#160; Offering.&#160; Subject to the accuracy of the Investor&#146;s
representations set forth in Section&nbsp;4 of this Agreement, the offer, sale
and issuance of the Shares to be issued in conformity with the terms of this
Agreement constitute transactions which are: (i)&nbsp;in compliance with
applicable federal and state securities laws; and (ii)&nbsp;exempt from the
registration requirements of the Securities Act and from all applicable state
registration or qualification requirements, other than those with which the
Company has complied or will comply.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.17&#160;&#160;&#160;&#160;&#160;&#160;&#160; Environmental
Matters</font></b><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To the Company&#146;s knowledge, the
Company is not in violation of any Environmental Law (as hereinafter defined)
and to its knowledge, no material expenditures are or will be required in order
to comply with any Environmental Law.&#160;
As used in this Agreement,</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-9-</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Environmental Law&#148; shall
mean any applicable federal, state and local law, ordinance, rule or regulation
that regulates, fixed liability for, or otherwise relates to, the handling, use
(including use in industrial processes, in construction, as building materials,
or otherwise), treatment, storage and disposal of hazardous and toxic wastes
and substances, and to the discharge, leakage, presence, migration, actual
Release (as hereinafter defined) or threatened Release (whether by disposal, a
discharge into any water source or system or into the air, or otherwise) of any
pollutant or effluent.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company has not used, generated,
manufactured, refined, treated, transported, stored, handled, disposed,
transferred, produced, processed or released (hereinafter together defined as
&#147;Release&#148;) any Hazardous Materials (as hereinafter defined) on, from or
affecting any Property (as hereinafter defined) in any manner or by any means
in violation of any Environmental Laws and to the best of the Company&#146;s
knowledge and belief after due investigation, there is no threat of such
Release.&#160; As used herein, the term
&#147;Property&#148; shall include, without limitation, land, buildings and laboratory
facilities owned or leased by the Company or as to which the Company now has
any duties, responsibilities (for cleanup, remedy or otherwise) or liabilities
under any Environmental Laws, or as to which the Company or any subsidiary of
the Company may have such duties, responsibilities or liabilities because of
past acts or omissions of the Company or any such subsidiary or their
predecessors, or because the Company or any such subsidiary or their
predecessors in the past was such an owner or operator of, or bore some other
relationship with, such land, buildings or laboratory facilities.&#160; The term &#147;Hazardous Materials&#148; shall
include, without limitation, any flammable explosives, petroleum products,
petroleum by-products, radioactive materials, hazardous wastes, hazardous
substances, toxic substances or related materials as defined by Environmental
Laws.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company has not received written
notice that the Company is a party potentially responsible for costs incurred
at a cleanup site or corrective action under any Environmental Laws.&#160; The Company has not received any written
requests for information in connection with any inquiry by any Governmental
Authority (as hereinafter defined) concerning disposal sites or other
environmental matters.&#160; As used herein,
&#147;Governmental Authority&#148; shall mean any nation or government, any federal,
state, municipal, local, provincial, regional or other political subdivision
thereof, and any entity or person exercising executive, legislative, judicial
regulatory or administrative functions of or pertaining to government.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The stockholders of the Company have
had no control over, or authority with respect to, the waste disposal
operations of the Company.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.18&#160;&#160;&#160;&#160;&#160;&#160;&#160; Permits and Other Rights; Compliance with
Laws</font></b><font size="2" style="font-size:10.0pt;">.&#160; The Company has all franchises, permits,
licenses and other rights and privileges necessary to permit it to own its
properties and to conduct its business as presently conducted and is in
compliance in all material respects thereunder.&#160; The Company is in compliance in all material respects with all
laws and governmental rules and regulations applicable to its business,
properties and assets, and to the products and services sold by it, including,
without limitation, all such rules, laws and regulations relating to fair
employment practices, occupational safety and health and public safety, except
where the failure to comply would not have a Material Adverse Effect.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-10-</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.20&#160;&#160;&#160;&#160;&#160;&#160;&#160; Corporate Records</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The minute books of the Company provided to the Investor contain a
complete summary of all meetings of directors and stockholders since the time
of incorporation and reflect all material transactions of the Company
accurately in all material respects.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.21&#160;&#160;&#160;&#160;&#160;&#160;&#160; Reliance</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company understands that the foregoing representations and
warranties shall be deemed material and to have been relied upon by the
Investor.&#160; No representation or warranty
by the Company in this Agreement, and no written statement contained in any
document, certificate or other writing delivered by the Company to the Investor
contains any untrue statement of material fact or omits to state any material
fact necessary to make the statements herein or therein, in light of the
circumstances under which they were made, not misleading.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.22&#160;&#160;&#160;&#160;&#160;&#160;&#160; Real Property Holding Corporation</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company is not a United States real property holding corporation as
defined in Section&nbsp;897 of the Code.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Representations and Warranties of the
Investor</font></b><font size="2" style="font-size:10.0pt;">.&#160; UTStarcom hereby represents and warrants the
following:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Authorization, Governmental Consents and
Compliance with Other Instruments</font></b><font size="2" style="font-size:10.0pt;">.&#160; All
corporate action on the part of the Investor necessary for the authorization,
execution and delivery of the Transaction Agreements and the performance of all
obligations of the Investor thereunder has been taken or will be taken prior to
the Closing.&#160; The Transaction Agreements
constitute valid and legally binding obligations of the Investor, enforceable
in accordance with their terms, except as such enforcement is limited by
bankruptcy, insolvency and similar laws affecting creditor rights.&#160; No consent, approval, order or authorization
of, or registration, qualification, designation, declaration or filing with,
any federal, state or local governmental authority on the part of the Investor
is required in connection with the consummation of the transactions
contemplated by the Transaction Agreements.&#160;
The execution, delivery and performance of the Transaction Agreements
and the consummation of the transactions contemplated thereby will not result
in any violation or be in conflict with or constitute, with or without the
passage of time and giving of notice, either a default under any provision of
the Investor&#146;s corporate charter or By-laws or any instrument, judgment, order,
writ, decree or contract to which the Investor is a party or by which it is
bound.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purchase Entirely for Own Account</font></b><font size="2" style="font-size:10.0pt;">.&#160;
By the Investor&#146;s execution of this Agreement, the Investor hereby
confirms that the Shares will be acquired for investment for the Investor&#146;s own
account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and the Investor has no present intention of
selling, granting any participation, or otherwise distributing the Shares.&#160; By executing this Agreement, the Investor
further represents that the Investor does not have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant
participation to such person or to any third person, with respect to any of the
Shares.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Disclosure of Information</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Investor has received all the information from the Company and its
management that the Investor considers necessary or appropriate for deciding</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-11-</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">whether to purchase the
Shares hereunder.&#160; The Investor further
represents that it has had an opportunity to ask questions and receive answers
from the Company regarding the terms and conditions of the offering of the
Shares.&#160; The foregoing, however, does
not limit or modify the representations and warranties of the Company in
Section&nbsp;3 of this Agreement.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Investment Experience and Accredited Investor
Status</font></b><font size="2" style="font-size:10.0pt;">.&#160; The Investor either (i)&nbsp;is an
accredited investor (as defined in Regulation&nbsp;D promulgated under the
Securities Act) or (ii)&nbsp;is not a United States Person as that term is
defined in Regulation&nbsp;S of the Securities Act, as amended and is not
acquiring the Common Shares for the account or benefit of any United States
Person.&#160; The Investor is an investor in
securities of companies in the development stage and acknowledges that it is
able to fend for itself, and bear the economic risk of its investment and has
such knowledge and experience in financial or business matters that it is
capable of evaluating the merits and risks of the investment in the Shares
hereunder.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Restricted Securities</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Investor understands that the Shares, when issued, will be
restricted securities under the federal securities laws inasmuch as they are
being acquired from the Company in a transaction not involving a public
offering and that under such laws and applicable regulations such securities
may be resold without registration under the Securities Act only in certain
limited circumstances, including pursuant to Regulation&nbsp;S and
Rule&nbsp;144 under the Securities Act.&#160;
In this connection, the Investor represents that it is familiar with
Regulation&nbsp;S and Rule&nbsp;144 under the Securities Act, as presently in
effect, and understands the resale limitations imposed thereby and by the
Securities Act.&#160; Notwithstanding the
provisions of this section, Company hereby agrees to register the subject
securities pursuant to the terms and conditions contained in the Securities
Registration terms And Conditions, which is attached hereto as Exhibit&nbsp;B,
and incorporated into this Stock Purchase Agreement by reference thereto.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Further Limitations on Disposition</font></b><font size="2" style="font-size:10.0pt;">.&#160;
Without in any way limiting the representations set forth above, the
Investor further represents, warrants and agrees that it will not make any
disposition of all or any portion of the Shares, except to an Affiliate,
unless:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; There is then in effect a
registration statement under the Securities Act covering such proposed
disposition and such disposition is made in accordance with such registration
statement; or</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The disposition is made pursuant to
Rule&nbsp;144 or Regulation&nbsp;S or similar provisions of federal securities
laws as in effect from time to time; or</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Investor shall have notified the
Company of the proposed disposition; and if requested by the Company, the
Investor shall have furnished the Company with an opinion of counsel;
reasonably satisfactory tot the Company, that such disposition will not require
registration of such Shares under the Securities Act.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-12-</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Legends</font></b><font size="2" style="font-size:10.0pt;">.&#160; It is
understood that the certificates evidencing the Shares will bear legends to the
effect of the following:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;These securities
have not been registered under the Securities Act of 1933.&#160; They may not be sold, offered for sale,
pledged or hypothecated in the absence of a registration statement in effect
with respect to the securities under such Act or an opinion of counsel
reasonably satisfactory to the Company that such registration is not required
or unless sold pursuant to Regulation&nbsp;S or Rule&nbsp;144 of such Act.&#148;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;The securities
evidenced by this certificate are subject to restrictions on transfer set forth
in an agreement between the original purchaser thereof and the corporation, a
copy of which agreement is on file at the principal executive offices of the
corporation.&#148;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Conditions to Closing of Investor</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Investor&#146;s obligation to purchase the Shares at the Closing is
subject to the fulfillment as of the Closing Date of the following conditions:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Representations and Warranties Correct</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The representations and warranties made by the Company in Section&nbsp;3
hereof shall be true and correct in all material respects as of the Closing
Date with the same force and effect as though such representations and
warranties had been made on the Closing Date, except that representations and
warranties that speak as of a particular date shall be true and correct in all
material respects as of such date.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Covenants</font></b><font size="2" style="font-size:10.0pt;">.&#160;
All covenants, agreements and conditions contained in this Agreement to
be performed by the Company on or prior to the Closing Date shall have been
performed or complied with in all material respects.&#160; All proceedings to have been taken and all waivers and consents
to be obtained in connection with the transactions contemplated by this Agreement
shall have been taken or obtained, and all documents incidental thereto shall
be satisfactory to the Investor and its counsel, and the Investor and its
counsel shall have received copies (executed or certified, as may be
appropriate) of all documents which the Investor or its counsel may reasonably
have requested in connection with such transactions.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Compliance Certificate</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company shall have delivered to the Investor a certificate of the
Company in the form of Exhibit&nbsp;B hereto, executed by the President and
Chief Executive Officer of the Company or the Chief Financial Officer of the
Company, certifying to the fulfillment of the conditions specified in
Sections&nbsp;5.1 and 5.2 of this Agreement.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Legal Opinion</font></b><font size="2" style="font-size:10.0pt;">.&#160;
All legal matters incident to the purchase of the Shares shall be
satisfactory to the Investor&#146;s counsel and the Investor shall have received
from Wilson, Sonsini, Goodrich &amp; Rosati, P.C., counsel for the Company,
such firm&#146;s opinion addressed to the Investor and dated the date of the Closing,
in form and substance satisfactory to counsel to the Investor.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Certification of Resolutions and Officers</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company shall have delivered to the Investor a certificate or
certificates, dated the date of the Closing, of the Secretary of the Corporation
certifying as to (a)&nbsp;the resolutions of the Company&#146;s Board of Directors
authorizing the execution</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-13-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=17,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=541428,FOLIO='-13-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and delivery of the
Transaction Agreements, the issuance to the Investor of the Shares, the
execution and delivery of such other documents and instruments as may be
required by this Agreement, and the consummation of the transactions
contemplated thereby, and certifying that such resolutions were duly adopted
and have not been rescinded or amended as of said date and (b)&nbsp;the name
and the signature of the officers of the, Company authorized to sign, as
appropriate, the Transaction Agreements and the other documents and
certificates to be delivered pursuant to this Agreement by either the Company or
any of its officers.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Certification of No Material Adverse Change</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company shall have delivered to the Investor a certificate, dated
the date of the Closing, of the Chief Financial Officer of the Corporation
certifying that since December&nbsp;31, 2001, there has not been any material
adverse change in the financial condition or operations of the Company.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Stock Certificates</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company shall have delivered to the Investor a certificate or
certificates representing the Shares purchased by the Investor on the Closing
Date.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Confirmation Letter</font></b><font size="2" style="font-size:10.0pt;">.&#160;
A letter shall have been issued and delivered by the Investor&#146;s counsel
that this agreement and other related agreements have been duly executed by the
parties concerned in the agreed forms.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Conditions to Closing of the Company</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company&#146;s obligation to sell the Shares at the Closing is subject to
the fulfillment as of the date of the following condition:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Representations and Warranties Correct</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The representations and warranties made by the Investor in
Section&nbsp;4 hereof shall be true and correct in all material respects as of
the date of the Closing with the same force and effect as though such
representations and warranties had been made on the Closing Date.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Mutual Conditions of Closing</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The obligations of each of the Investor and the Company to consummate
the Closing are subject to the fulfillment as of the Closing Date of the
following conditions:</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Qualifications</font></b><font size="2" style="font-size:10.0pt;">.&#160;
All consents, permits, approvals, qualifications and registrations to be
obtained or effected with any governmental authority, including, without
limitation, necessary Blue Sky law permits and qualifications required by any
state for the offer and sale to the investor of the Shares, shall have been
obtained or effected.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Absence of Litigation</font></b><font size="2" style="font-size:10.0pt;">.&#160;
There shall be no injunction, actions, suits, proceeding or
investigations pending or currently threatened against the Company or the
Investor which questions the validity of the Transaction Agreements or the right
of the Company or the Investor to enter into such agreements, or to consummate
the transactions contemplated thereby.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-14-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=18,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=377211,FOLIO='-14-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:center;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Additional Covenants and Agreements</font></b><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Inspection of Books and Records</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Company shall permit the Investor from time to time, at the
Investor&#146;s expense, to visit and inspect the Company&#146;s properties, to examine
its books of account and records and to discuss the Company&#146;s affairs, finances
and accounts with its officers, all at such reasonable times as may be
requested by the Investor; provided, however, that the Company shall not be
obligated pursuant to this Section&nbsp;8.1 to provide access to any
information which it reasonably considers to be a trade secret or similar
proprietary or confidential information.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Standstill</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Investor shall not, at any time from and after the date hereof until
the tenth anniversary of the Closing Date (the &#147;Restricted Period&#148;), acquire
shares of Common Stock of the Company, or securities convertible into, exchangeable
for or exercisable for, Common Stock of the Company such that the Investor
would, at any time during the Restricted Period own in excess of 19.9% of the
Total Voting Power (as defined below) of the Company&#146;s securities.&#160; For purposes hereof, the percentage of the
Total Voting Power of the Company&#146;s securities shall be determined by dividing
(x) by (y) and expressing the resulting quotient as a percentage, where</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)&nbsp;equals the
number of shares of Common Stock of the Company held by the Investor and the
number of shares of Common Stock of the Company issuable upon conversion,
exercise or exchange of securities of the Company held by the Investor which
are convertible into, exchangeable for or exercisable for Common Stock of the
Company, either directly or indirectly; and</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(y)&nbsp;equals the
number of issued and outstanding shares of Common Stock of the Company.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event that
Investor&#146;s ownership at any time exceeds the limits set forth above, Investor
shall be deemed, automatically and with no further action on the part of
Investor, to have granted the Company&#146;s Chairperson an irrevocable proxy to
vote all shares of Company Common Stock held by Investor in excess of the
foregoing limits in such manner as may be recommended by the Board of Directors
of the Company with respect to any matter for which approval of the Company&#146;s
shareholders is sought.&#160; The remedy set
forth in the preceding sentence shall not be in lieu of, but shall be in
addition to, any other remedies which Company may have at law or pursuant to
this Agreement or otherwise for breach of this provision.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Miscellaneous</font></b><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Survival of Warranties</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The warranties and representations of the Company and the Investor
contained in this Agreement shall survive the closing until the first anniversary
of the Closing Date.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Remedies</font></b><font size="2" style="font-size:10.0pt;">.&#160;
In case any one or more of the covenants or agreements set forth in this
Agreement shall have been breached by any party hereto, the party or parties
entitled to the benefit of such covenants or agreements may proceed to protect
and enforce their rights either by suit in equity or action at law, including,
but not limited to, an action for damages as a result of any such breach or an
action for specific performance of any such covenant or agreement contained in
this</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-15-</font></p>


<div align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="center">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=19,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=507317,FOLIO='-15-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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</font>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement.&#160; The rights, powers and remedies of the
parties under this Agreement are cumulative and not exclusive of any other
right, power or remedy which such parties may have under any other agreement or
law.&#160; No single or partial assertion or
exercise of any right, power or remedy of a party hereunder shall preclude any
other or further assertion or exercise thereof.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Successors and Assigns</font></b><font size="2" style="font-size:10.0pt;">.&#160;
Except as otherwise expressly provided herein, the terms and conditions
of this Agreement shall inure to the benefit of and be binding upon the
respective successors and assigns of the parties.&#160; This Agreement and the rights and duties of the Company set forth
herein may be freely assigned, in whole or in part, upon the written consent of
the Investor, which consent may not be unreasonably withheld.&#160; Notwithstanding the foregoing sentence, the
Company may assign this Agreement, and the rights and the duties of the Company
set forth herein, to an entity or person which purchases all or substantially
all of its assets or voting securities, so long as the successor agrees in
writing to be bound by all of the terms this Agreement.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Entire Agreement</font></b><font size="2" style="font-size:10.0pt;">.&#160;
This Agreement and the other writings referred to herein or delivered
pursuant hereto which form a part hereof contain the entire agreement among the
parties with respect to the subject matter hereof and supersede all prior and
contemporaneous arrangements or understandings, whether written or oral, with
respect thereto; provided, however, that this Agreement is not intended to
supersede the OEM Agreement or any other agreement not related to the purchase
and sale of the Company&#146;s securities between the Company and the Investor.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Governing Law and Consent to Jurisdiction</font></b><font size="2" style="font-size:10.0pt;">.&#160;
This Agreement shall be governed by and construed under the laws of the
State of California, U.S.A. (without regard to the conflict of law principles
thereof).&#160; Each of the parties
irrevocably submits to the exclusive jurisdiction of the state and federal
courts within the State of California, U.S.A. for the purposes of any suit,
action or other proceeding arising out of this Agreement or any transaction
contemplated hereby.&#160; Each of the
parties agrees to commence any action, suit or proceeding relating hereto in
the federal courts within the State of California, U.S.A. or if such suit,
action or other proceeding may not be brought in such court for jurisdictional
purposes, in the state courts within the State of California, U.S.A.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Counterparts</font></b><font size="2" style="font-size:10.0pt;">. &#160;This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Titles and Subtitles</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The titles and subtitles used in this Agreement are used for convenience
only and are not to be considered in construing or interpreting this Agreement.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Nouns and Pronouns</font></b><font size="2" style="font-size:10.0pt;">.&#160;
Whenever the context may require, any pronouns used herein shall include
the corresponding masculine, feminine or neuter forms, and the singular form of
names and pronouns shall include the plural and vice-versa.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Notices</font></b><font size="2" style="font-size:10.0pt;">.&#160; Unless
otherwise provided, all notices, requests, consents and other communications
hereunder to any party shall be given in writing and shall be deemed effectively
given upon personal delivery to the party to be notified or duly sent by first
class registered or</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-16-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="center">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=20,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=196633,FOLIO='-16-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">certified mail, or other
courier service, postage prepaid, or telecopied with a confirmation copy by
regular mail, and addressed or telecopied to the party to be notified at the
address or telecopier number indicated for such party, as the case may be, set
forth below or such other address or telecopier number, as the case may be, as
may hereafter be designated in writing by the addressees to the addressor
listing all parties:</font></p>

<p style="margin:12.0pt 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="78%" style="border-collapse:collapse;margin-left:114.7pt;width:78.8%;">
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To the Company:</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cal Hoagland, Chief Financial Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interwave Communications International Ltd.</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c/o Interwave Communications, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">312 Constitution Drive</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Menlo Park, CA 94025</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: 1-650-321-6570</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With a copy to:</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robin E. Foor, Esq.</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President and General Counsel</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interwave Communications, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">312 Constitution Drive</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Menlo Park, CA 94025</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: 1-650 321-6381</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To the Investor:</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Sophie</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1275 Harbor Bay Parkway</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Alameda, CA 94502</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: 1-510-</font></p>
  </td>
 </tr>
</table>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All such notices,
requests, consents and other communications shall be deemed to have been
received: (a)&nbsp;in the case of personal delivery, on the date of such
delivery; (b)&nbsp;in the case of sending by international overnight courier
service, on the fifth business day following the date of such sending by
international overnight courier service fully prepaid; and (c)&nbsp;in the case
of facsimile transmission, when confirmed by facsimile machine report.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.10&#160;&#160;&#160;&#160;&#160;&#160;&#160; Finder&#146;s Fee</font></b><font size="2" style="font-size:10.0pt;">.&#160;
The Investor agrees to indemnify and to hold harmless the Company from
any liability for any commission or compensation in the nature of a finder&#146;s
fee (and the reasonable costs and expenses of defending against such liability
or asserted liability) for which the Investor or any of its officers, partners,
employees, or representatives is responsible.&#160;
The Company agrees to indemnify and hold harmless the Investor from any
liability for any commission or compensation in the nature of a finder&#146;s fee
(and the reasonable costs and expenses of defending against such liability or
asserted liability) for which the Company or any of its officers, employees or
representatives is responsible.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.11&#160;&#160;&#160;&#160;&#160;&#160;&#160; Expenses</font></b><font size="2" style="font-size:10.0pt;">.&#160;
Each party shall pay its own fees and expenses with respect to this
Agreement.&#160; If any action at law or in
equity is necessary to enforce or interpret the terms of this</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-17-</font></p>


<div align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=21,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=247660,FOLIO='-17-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement or the Research
and Collaboration Agreement, the prevailing party shall be entitled to
reasonable attorney&#146;s fees, costs and necessary disbursements in addition to
any other relief to which such party may be entitled.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.12&#160;&#160;&#160;&#160;&#160;&#160;&#160; Amendments and Waivers</font></b><font size="2" style="font-size:10.0pt;">.&#160;
Any term of this Agreement may be amended and the observance of any term
of this Agreement may be waived (either generally or in a particular instance
and either retroactively or prospectively), only with the written consent of
the Company and the Investor.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.13&#160;&#160;&#160;&#160;&#160;&#160;&#160; Severability</font></b><font size="2" style="font-size:10.0pt;">.&#160;
If one or more provisions of this Agreement are held to be unenforceable
under applicable law, in any jurisdiction, such provision shall be ineffective,
as to such jurisdiction, and the balance of the Agreement shall be interpreted
as if such provision were so excluded, without invalidating the remaining
provisions of this Agreement; and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.14&#160;&#160;&#160;&#160;&#160;&#160;&#160; Confidentiality and Publicity</font></b><font size="2" style="font-size:10.0pt;">.&#160;
Neither the Company nor the Investor will disclose to any person (other
than its attorneys, accountants, employees, officers, and directors) the
existence or terms of this Agreement or any of the transactions contemplated
hereby without the prior written consent of the other party, except as may, in
the reasonable opinion of such party&#146;s counsel, be required by law (in which
event the disclosing party will first consult with the other party with respect
to such disclosure).&#160; Except to the
extent public disclosure is required by law, the Company and the Investor will
consult and reach agreement with one another as to the form and substance of
any press release or any other public disclosure of the existence or terms of
this Agreement or the transactions contemplated hereby prior to issuing any
such press release or making any such public disclosure.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-18-</font></p>


<div align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=22,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=623138,FOLIO='-18-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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</font>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the
parties have executed and delivered this Agreement as of the date first above
Written.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.02%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTSTARCOM, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:42.26%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ HONG LU</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0in .7pt 0in .7pt;width:42.26%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hong Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0in .7pt 0in .7pt;width:42.26%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INTERWAVE COMMUNICATIONS</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INTERNATIONAL LTD.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="42%" valign="top" style="padding:0in .7pt 0in .7pt;width:42.26%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:42.26%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ PRISCILLA LU</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:42.26%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Priscilla Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0in .7pt 0in .7pt;width:42.26%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-19-</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=23,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=292665,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
A</font></b></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Stock
Purchase Agreement</font></b></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTStarcom,
Inc. and interWAVE Communications</font></b></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-20-</font></p>


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</font></div>

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<!-- ZEQ.=1,SEQ=24,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=718541,FOLIO='-20-',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AA_2332.CHC",USER="DNICHOL",CD='Nov  7 19:49 2002' -->
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<div>

<p style="margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Schedule of Exceptions</font></b></p>

<p style="margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTStarcom, Inc. and</font></b></p>

<p style="margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">interWAVE Communications International, Ltd.</font></b></p>

<p style="margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Stock Purchase Agreement</font></b></p>

<p style="margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">September&nbsp;27, 2002</font></b></p>

<p align="left" style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>


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</font></div>

<font size="3" style="font-size:12.0pt;">
<!-- ZEQ.=1,SEQ=25,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=993622,FOLIO='1',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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<p style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<p align="left" style="font-weight:bold;margin:12.0pt 0in .0001pt .5in;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT B - SECURITIES REGISTRATION TERMS AND
CONDITIONS</font></b></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Form
D Filing; Registration; Compliance with the Securities Act, Covenants</u>.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1.1&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Registration
Statement; Expenses</u>.&#160; The Company
shall:</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; file
in a timely manner a Form D relating to the sale of the Shares under this
Agreement, pursuant to Securities and Exchange Commission Regulation&nbsp;D.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; as
soon as practicable after the Closing Date, but in no event later than the
[***] day following the Closing Date, prepare and file with the Commission a
Registration Statement on Form F-3 relating to the sale of the Shares by the
Purchaser from time to time on the Nasdaq National Market (or the facilities of
any national securities exchange on which the Company&#146;s Common Stock is then
traded) or in privately negotiated transactions (the &#147;Registration Statement&#148;);</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; provide
to the Purchaser any information required to permit the sale of the Shares
under rule 144A of the Securities Act;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; subject
to receipt of necessary information from the Purchaser, use its best efforts to
cause the Commission to notify the Company of the Commission&#146;s willingness to
declare the Registration Statement effective on or before 90 days after the
Closing Date;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; notify
Purchaser promptly upon the Registration Statement, or any post-effective
amendment thereto, being declared effective by the Commission;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; prepare
and file with the Commission such, amendments and supplements to the
Registration Statement and the Prospectus (as defined in Section&nbsp;1.3.1
below) and take such other action, if any, as may be necessary to keep the
Registration Statement effective until the earlier of (i)&nbsp;one year after
the effective date of the Registration Statement, (ii)&nbsp;the date on which
the Shares may be resold by the Purchaser without registration or without
regard to any volume limitations by reason of Rule&nbsp;144(k) under the
Securities Act or any other rule of similar effect or (iii)&nbsp;all of the
Shares have been sold pursuant to the Registration Statement or
Rule&nbsp;144(k) under the Securities Act or any other rule of similar effect;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; promptly
furnish to the Purchaser with respect to the Shares registered under the
Registration Statement such reasonable number of copies of the Prospectus,
including any supplements to or amendments of the Prospectus, in order to
facilitate the public sale or other disposition of all or any of the Shares by
the Purchaser;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; during
the period when copies of the Prospectus are required to be delivered under the
Securities Act or the Exchange Act, will file all documents required to be
filed with the Commission pursuant to Section&nbsp;13, 14 or 15 of the Exchange
Act, to the extent such</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=26,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=942182,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">requirements
are applicable to the Company, within the time periods required by the Exchange
Act and the rules and regulations promulgated thereunder;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; file
documents required of the Company for customary Blue Sky clearance in all
states requiring Blue Sky clearance; <i><font style="font-style:italic;">provided,
however,</font></i> that the Company shall not be required to qualify to do
business or consent to service of process in any jurisdiction in which it is
not now so qualified or has not so consented; and</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; bear
[***] expenses in connection with the procedures in paragraphs&nbsp;(a) through
(f) of this Section&nbsp;1.1.1 and the registration of the Shares pursuant to
the Registration Statement, including fees and expenses (whether external or
internal) of up to [***] of the Purchaser, but not including any fees and
expenses of any other advisers to the Purchaser or brokerage fees and
commissions incurred by the Purchaser.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1.2&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Delay
in Effectiveness of Registration Statement</u>.&#160; [***]</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Transfer
of Shares After Registration</u>.&#160; The
Purchaser agrees that it will not effect any disposition of the Shares or its
right to purchase the Shares that would constitute a sale within the meaning of
the Securities Act, except as contemplated in the Registration Statement
referred to in Section&nbsp;1.1 or as otherwise permitted by law, and that it
will promptly notify the Company of any changes in the information set forth in
the Registration Statement regarding the Purchaser or its plan of distribution.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification</u>.&#160; For the purpose of this Section&nbsp;1.3,
the term &#147;Registration Statement&#148; shall include any preliminary or final
prospectus, exhibit, supplement or amendment included in or relating to the
Registration Statement referred to in Section&nbsp;1.1.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification
by the Company</u>.&#160; The Company agrees
to indemnify and hold harmless the Purchaser and each person, if any, who
controls the Purchaser within the meaning of the Securities Act, against any
losses, claims, damages, liabilities or expenses, joint or several, to which
the Purchaser or such controlling person may become subject, under the
Securities Act, the Exchange Act, or any other federal or state statutory law
or regulation, or at common law or otherwise (including in settlement of any
litigation, if such settlement is effected with the written consent of the
Company, which consent shall not be unreasonably withheld), insofar as such
losses, claims, damages, liabilities or expenses (or actions in respect thereof
as contemplated below) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the Registration
Statement, including the Prospectus, financial statements and schedules, and
all other documents filed as a part thereof, as amended at the time of
effectiveness of the Registration Statement, including any information deemed
to be a part thereof as of the time of effectiveness pursuant to
paragraph&nbsp;(b) of Rule&nbsp;430A, or pursuant to Rule&nbsp;434, of the
Rules and Regulations, or the Prospectus, in the form first filed with the
Commission pursuant to Rule&nbsp;424(b) of the Regulations, or filed as part of
the Registration Statement at the time of effectiveness if no Rule&nbsp;424(b)
filing is required (the &#147;Prospectus&#148;), or any amendment or supplement thereto,
or arise out of or are based upon the omission or alleged omission to state in
any of them a material fact required to be stated therein or necessary to make
the statements in any of them, in light of the</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=27,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=286538,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">circumstances
under which they were made, not misleading, or arise out of or are based in
whole or in part on any inaccuracy in the representations and warranties of the
Company contained in this Agreement, or any failure of the Company to perform
its obligations under this Agreement or under law, and will reimburse the
Purchaser and each such controlling person for any legal and other expenses as
such expenses are reasonably incurred by the Purchaser or such controlling
person in connection with investigating, defending, settling, compromising or paying
any such loss, claim, damage, liability, expense or action; provided, however,
that the Company will not be liable in any such case to the extent that any
such loss, claim, damage, liability or expense arises out of or is based upon
(i)&nbsp;an untrue statement or alleged untrue statement or omission or alleged
omission made in the Registration Statement, the Prospectus or any amendment or
supplement of the Registration Statement or Prospectus in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
the Purchaser expressly for use in the Registration Statement or the
Prospectus, or (ii)&nbsp;the failure of the Purchaser to comply with the
covenants and agreements contained in Section&nbsp;1.2 of this Agreement
respecting resale of the Shares, or (iii)&nbsp;the inaccuracy of any
representations made by the Purchaser in this Agreement or (iv)&nbsp;any untrue
statement or omission of a material fact required to make such statement not
misleading in any Prospectus that is corrected in any subsequent Prospectus
that was delivered to the Purchaser before the pertinent sale or sales by the
Purchaser.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3.2&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification
by the Purchaser</u>.&#160; The Purchaser
will indemnify and hold harmless the Company, each of its directors, each of
its officers who signed the Registration Statement and each person, if any, who
controls the Company within the meaning of the Securities Act, against any
losses, claims, damages, liabilities or expenses to which the Company, each of
its directors, each of its officers who signed the Registration Statement or
controlling persona may become subject, under the Securities Act, the Exchange
Act, or any other federal or state statutory law or regulation, or at common
law or otherwise (including in settlement of any litigation, if such settlement
is effected with the written consent of the Purchaser, which consent shall not
be unreasonably withheld) insofar as such losses, claims, damages, liabilities
or expenses (or actions in respect thereof as contemplated below) arise out of
or are based upon (i)&nbsp;any failure on the part of the Purchaser to comply
with the covenants and agreements contained in Section&nbsp;1.2 of this
Agreement respecting the sale of the Shares or (ii)&nbsp;the inaccuracy of any
representation made by the Purchaser in this Agreement or (iii)&nbsp;any untrue
or alleged untrue statement of any material fact contained in the Registration
Statement, the Prospectus, or any amendment or supplement to the Registration
Statement or Prospectus, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue statement
or omission or alleged omission was made in the Registration Statement, the
Prospectus, or any amendment or supplement thereto, in reliance upon, and in
conformity with written information furnished to the Company by or on behalf of
the Purchaser expressly for use therein; provided, however, that the Purchaser
shall not be liable for any such untrue or alleged untrue statement or omission
or alleged omission of which the Purchaser has delivered to the Company in
writing a correction before the occurrence of the transaction from which such
loss was incurred, and the Purchaser will reimburse the Company, each of its
directors, each of its officers who signed the Registration Statement or
controlling person for any legal and</font></p>


<div style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=28,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=362761,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">other
expense reasonably incurred by the Company, each of its directors, each of its
officers who signed the Registration Statement or controlling person in
connection with investigating, defending, settling, compromising or paying any
such loss, claim, damage, liability, expense or action.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3.3&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification
Procedure</u>.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Promptly
after receipt by an indemnified party under this Section&nbsp;1.3 of notice of
the threat or commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party under this
Section&nbsp;1.3, promptly notify the indemnifying party in writing of the
claim; but the omission so to notify the indemnifying party will not relieve it
from any liability which it may have to any indemnified party for contribution
or otherwise under the indemnity agreement contained in this Section&nbsp;1.3
or to the extent it is not prejudiced as a result of such failure:</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In
case any such action is brought against any indemnified party and such
indemnified party seeks or intends to seek indemnity from an indemnifying
party, the indemnifying party will be entitled to participate in, and, to the
extent that it may wish, jointly with all other indemnifying parties similarly
notified, to assume the defense thereof with counsel reasonably satisfactory to
such indemnified party; <i><font style="font-style:italic;">provided, however,</font></i>
if the defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be a conflict between the positions of the indemnifying party
and the indemnified party in conducting the defense of any such action or that
there may be legal defenses available to it or other indemnified parties that
are different from or additional to those available to the indemnifying party,
the indemnified party or parties shall have the right to select separate
counsel to assume such legal defenses and to otherwise participate in the
defense of such action on behalf of such indemnified party or parties. Upon
receipt of notice from the indemnifying party to such indemnified party of its
election so to assume the defense of such action and approval by the
indemnified party of counsel, the indemnifying party will not be liable to such
indemnified party under this Section&nbsp;1.3 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof unless;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160; the
indemnified party shall have employed such counsel in connection with the
assumption of legal defenses in accordance with the proviso to the preceding
sentence (it being understood, however, that the indemnifying party shall not
be liable for the expenses of more than one separate counsel, approved by such
indemnifying party representing all of the indemnified parties who are parties
to such action) or</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160; the
indemnifying party shall not have employed counsel reasonably satisfactory to
the indemnified party to represent the indemnified party within a reasonable
time after notice of commencement of action, in each of which cases the
reasonable fees and expenses of counsel shall be at the expense of the
indemnifying party. Notwithstanding the provisions of this Section&nbsp;1.3,
the Purchaser shall not be liable for any indemnification obligation under this
Agreement in excess of the amount of gross proceeds received by the Purchaser
from the sale of the Shares.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=29,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=260922,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3.4&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Contribution</u>.&#160; If the indemnification provided for in this
Section&nbsp;1.3 is required by its terms but is for any reason held to be
unavailable to or otherwise insufficient to hold harmless an indemnified party
under this Section&nbsp;1.3 in respect to any losses, claims, damages,
liabilities or expenses referred to in this Agreement, then each applicable
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of any losses, claims, damages, liabilities or
expenses referred to in this Agreement</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; in
such proportion as is appropriate to reflect the relative benefits received by
the Company and the Purchaser from the placement of Common Stock or</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if
the allocation provided by clause&nbsp;(a) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause&nbsp;(a) above but the relative fault of the
Company and the Purchaser in connection with the statements or omissions or.
inaccuracies in the representations and warranties in this Agreement that
resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The respective relative benefits
received by the Company on, the one hand and the Purchaser on the other shall
be deemed to be in the same proportion as the amount paid by the Purchaser to
the Company pursuant to this Agreement for the Shares purchased by the
Purchaser that were sold pursuant to the Registration Statement bears to the
difference (the &#147;Difference&#148;) between the amount the Purchaser paid for the
Shares that were sold pursuant to&#146; the Registration Statement and the amount
received by the Purchaser from such sale. The relative fault of the Company and
the Purchaser shall be determined by reference to, among other things, whether
the untrue or alleged statement of a material fact or the omission or alleged
omission to state a material fact or the inaccurate or the alleged inaccurate
representation or warranty relates to information supplied by the Company or by
the Purchaser and the parties&#146; relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The amount paid or payable by a party as a result of the losses, claims,
damages, liabilities and expenses referred to above shall be deemed to include,
subject to the limitations set forth in Section&nbsp;1.3.3, any legal or other
fees or expenses reasonably incurred by such party in connection with
investigating or defending any action or claim,. The provisions set forth in
Section&nbsp;1.3.3 with respect to the notice of the threat or commencement of
any threat or action shall apply if a claim for contribution is to be made
under this Section&nbsp;1.3.4; provided, however, that no additional notice
shall be required with respect to any threat or action for which notice has
been given under Section&nbsp;1.3 for purposes of indemnification. The Company
and the Purchaser agree that it would not be just and equitable if contribution
pursuant to this Section&nbsp;1.3 were determined solely by pro rata allocation
(even if the Purchaser were treated as one entity for such purpose) or by any
other method of allocation which does not take account of the equitable
considerations referred to in this paragraph. Notwithstanding the provisions of
this Section&nbsp;1.3, no Purchaser shall be required to contribute any amount
in excess of the amount by which the Difference exceeds the amount of any
damages that the Purchaser has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section&nbsp;11(f)
of the Securities Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation. The Purchaser&#146; obligations
to contribute pursuant to this Section&nbsp;1.3 are several and not joint.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=30,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=449428,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination
of Conditions and Obligations</u>.&#160; The
restrictions imposed by this Section&nbsp;1 upon the transferability of the
Shares shall cease and terminate as to any particular number of the Shares upon
[***] or at such time as an opinion of counsel satisfactory in form and
substance to the Company shall have been rendered to the effect that such
conditions are not necessary in order to comply with the Securities Act.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Information
Available</u>.&#160; So long as the
Registration Statement is effective covering the resale of Shares owned by the
Purchaser, the Company will furnish to the Purchaser;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; as
soon as practicable after available (but in the case of the Company&#146;s Annual
Report to Stockholders, within [***] after the end of each fiscal year of the
Company), one copy of</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160; its Annual
Report to Stockholders (which Annual Report shall contain financial statements
audited in accordance with generally accepted accounting principles by a
national firm of certified public accountants);</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160; if not
included in substance in the Annual Report to Stockholders, its Annual Report
on Form 10-K;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160; if not
included in substance in its Quarterly Reports to Stockholders, its quarterly
reports on Form 10-Q; and</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160; a full copy
of the particular Registration Statement covering the Shares (the foregoing, in
each case, excluding exhibits);</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:2.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160; upon the
request of the Purchaser, a reasonable number of copies of the Prospectus to
supply to any other party requiring the Prospectus.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Rule&nbsp;144
Information</u>.&#160; For two years after
the date of this Agreement, the Company shall file all reports required to be
filed by it under the Securities Act, the Rules and Regulations and the
Exchange Act and shall take such further action to the extent required to
enable the Purchaser to sell the Shares pursuant to Rule&nbsp;144 under the
Securities Act (as such rule may be amended from time to time).</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Consultation
Prior to the Issuance of Certain Securities</u>.&#160; The Company shall not sell or issue shares of Common Stock or any
other security of the Company convertible, exercisable or exchangeable into
shares of Common Stock, for a purchase, conversion, exercise or exchange price
per share which is subject to adjustment based on the market price of the
Common Stock at the time of conversion, exercise or exchange of such security into
Common Stock, without first consulting the Purchaser immediately prior to the
approval by the Company&#146;s Board of Directors of such sale or issuance;
provided, however, that (i)&nbsp;the Company&#146;s obligation to enter into such
consultations with the Purchaser shall be subject to the Purchaser entering
into a nondisclosure agreement in form and substance appropriate for
transactions of this nature, (ii)&nbsp;nothing in this Section&nbsp;1.7 shall
prohibit the Company from consummating any such transaction provided that it
has</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=31,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=932186,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">complied with the
consultation provisions hereof and (iii)&nbsp;the provisions of this
Section&nbsp;1.7 shall not be applicable to transactions that are not effected
for the purpose of raising capital.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=32,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=155210,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Compliance Certificate</font></b></p>

<p style="margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTStarcom, Inc. and</font></b></p>

<p style="margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">interWAVE Communications International, Ltd.</font></b></p>

<p style="margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Stock Purchase Agreement</font></b></p>

<p style="margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">September&nbsp;27, 2002</font></b></p>

<p style="margin:24.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; September&nbsp;27,
2002</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I, Priscilla Lu, Chief Executive Officer of
interWAVE Communications International, Ltd. (&#147;interWAVE&#148;), certify as follows,
as to the Stock Purchase Agreement of September&nbsp;27, 2002 between
UTStarcom, Inc. and interWAVE:</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="font-family:'Times New Roman';margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Representations and Warranties Correct</font></b><font size="2" style="font-size:10.0pt;">.&#160; The representations and warranties made by the Company in
Section&nbsp;3 of the Agreement are true and correct in all material respects
as of the Closing Date with the same force and effect as though such
representations and warranties had been made on the Closing Date, except that
representations and warranties that speak as of a particular date are true and
correct in all material respects as of such date.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="font-family:'Times New Roman';margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Covenants</font></b><font size="2" style="font-size:10.0pt;">.&#160; All
covenants, agreements and conditions contained in the Agreement to be performed
by the Company on or prior to the Closing Date have been performed or complied
with in all material respects. All proceedings to have been taken and all
waivers. and consents to be obtained in connection with the transactions
contemplated by this Agreement have been taken. or obtained.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I certify that the foregoing is true and
correct.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERWAVE COMMUNICATIONS</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERNATIONAL, LTD.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt 17.3pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ PRISCILLA LU</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Priscilla Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=33,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=837695,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section&nbsp;5.4</font></b></p>

<p style="margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Certification of Resolutions and Officers</font></b></p>

<p style="margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTStarcom, Inc.</font></b></p>

<p style="margin:0in 0in 24.0pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">September&nbsp;27,
2002</font></b></p>

<p style="margin:0in 0in 6.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I,
Robin E. Foor, Secretary of interWAVE Communications International, Ltd. (the
&#147;Company&#148;), certify that:</font></p>

<p style="margin:0in 0in 6.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)
the Board of Directors of the Company has adopted resolutions duly authorizing
the execution and delivery of the Agreement, the issuance to the Investor of
the Shares, the execution and delivery of such other documents and instruments
as may be required by the Agreement, and the consummation of the transactions
contemplated thereby, and such resolutions were duly adopted and have not been
rescinded or amended as of this date, and</font></p>

<p style="margin:0in 0in 6.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)
Priscilla Lu, Chief Executive Officer, is authorized to sign, as appropriate,
the Agreement and the other documents and certificates to be delivered pursuant
to this Agreement by either the Company or any of its officers, and her
signature appears on the Agreement.</font></p>

<p style="margin:0in 0in 6.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I
certify that the foregoing is true and correct.</font></p>

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  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERWAVE COMMUNICATIONS</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERNATIONAL, LTD.</font></p>
  </td>
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  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
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  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt 17.3pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ ROBIN E. FOOR</font></p>
  </td>
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  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robin E. Foor</font></p>
  </td>
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  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Secretary</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=34,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=24928,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section&nbsp;5.6</font></b></p>

<p style="margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Certification of No Material Adverse Change</font></b></p>

<p style="margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTStarcom - interWAVE Amendment to OEM Agreement</font></b></p>

<p style="margin:0in 0in 24.0pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">September&nbsp;27,
2002</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I, Cal Hoagland, Chief
Financial Officer of interWAVE Communications International, Ltd. (the
&#147;Company&#148;) represent, to the best of my knowledge and belief, that since
June&nbsp;30, 2002, there has not been any material adverse change in the
financial position or results of operations of the Company other than that
described in Section&nbsp;3.12 of the Stock Purchase Agreement and in the
Schedule of Exceptions.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
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  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERWAVE COMMUNICATIONS</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERNATIONAL, LTD.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt 17.3pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ CAL HOAGLAND</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cal Hoagland</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=35,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=992191,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;B</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Specifications - Statement of Work</font></b></p>

<p style="margin:0in 0in .0001pt 1.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTStarcom - interWAVE Amendment to OEM Agreement</font></b></p>

<p style="margin:0in 0in .0001pt 1.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">September&nbsp;27, 2002</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
parties will meet upon signing of the Amendment to OEM Agreement to develop a
detailed written Statement of Work (&#147;SOW&#148;), and a written Product Specification
from the SOW.&#160; The SOW shall include the
following:</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
parties will send people from [***] and from [***] to develop the written SOW.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
party will appoint a project manager as the single point of contact for the
project.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [***]
will be the project manager for interWAVE.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A
preliminary SOW is attached and will be superceded by the SOW created.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=36,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=459593,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;C</font></b></p>

<p style="margin:0in 0in .0001pt 1.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delivery Schedule</font></b></p>

<p style="margin:0in 0in .0001pt 1.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTStarcom - interWAVE Amendment to OEM Agreement</font></b></p>

<p style="margin:0in 0in 12.0pt 1.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">September&nbsp;27,
2002 (= Amendment Effective Date)</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The parties shall complete the Statement of
Work and interWAVE shall develop the interface between the UTSI iPAS, using a
third party media gateway, as follows:</font></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Development Milestones</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.86%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***] - Milestones</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.7%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.42%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Completion Date</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.86%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.7%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.42%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.86%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.7%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.42%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.86%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.7%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.42%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom must provide [***] to work [***] on
the project.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">interWAVE/GBase will staff the project with
[***].</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom must provide [***] for the project
by [***].</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Development
will begin, and all completion dates are measured from [***]</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Development will proceed in parallel to the
preparation of the detailed written Statement of Work and the written Product
Specification, to be completed by [***].</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The development schedule for an alternative
path shall be defined by the Statement Work.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=37,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=3583,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PREFERRED ESCROW
AGREEMENT</font></b></p>

<p style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Account Number ____________________</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This agreement (&#147;Agreement&#148;) is effective
September&nbsp;27, 2002 among DSI Technology Escrow Services, Inc. (&#147;DSI&#148;),
Interwave Communications International, Ltd. (&#147;Depositor&#148;) and UTStarcom, Inc.
(&#147;Preferred Beneficiary&#148;), who collectively may be referred to in this
Agreement as the parties (&#147;Parties&#148;).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Depositor
and Preferred Beneficiary have entered or will enter into a license agreement,
development agreement, and/or other agreement regarding certain proprietary
technology of Depositor (referred to in this Agreement as &#147;the License
Agreement&#148;).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Depositor
desires to avoid disclosure of its proprietary technology except under certain
limited circumstances.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
availability of the proprietary technology of Depositor is critical to Preferred
Beneficiary in the conduct of its business and, therefore, Preferred
Beneficiary needs access to the proprietary technology under certain limited
circumstances.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Depositor
and Preferred Beneficiary desire to establish an escrow with DSI to provide for
the retention, administration and controlled access of the proprietary
technology materials of Depositor.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">E.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
parties desire this Agreement to be supplementary to the License Agreement
pursuant to 11 United States [Bankruptcy] Code, Section&nbsp;365(n).</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 1 &#151; <b><font style="font-weight:bold;">DEPOSITS</font></b></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Obligation to Make Deposit</u>.
Upon the completion of the development agreed to by the parities in the
September&nbsp;27, 2002 Amendment to the OEM Agreement between UTStarcom and
Interwave Communications International, Ltd. (the &#147;License Agreement&#148;),
Depositor shall deliver to DSI the proprietary technology and other materials
(&#147;Deposit Materials&#148;) required to be deposited pursuant to the terms and
conditions of the License Agreement or, if the License Agreement does not
identify the materials to be deposited with DSI, then such materials will be
identified on Exhibit&nbsp;A. If Exhibit&nbsp;A is applicable, it is to be
prepared and signed by Depositor and Preferred Beneficiary. DSI shall have no
obligation with respect to the preparation, signing or delivery of
Exhibit&nbsp;A.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Identification of Tangible Media</u>.
Prior to the delivery of the Deposit Materials to DSI, Depositor shall
conspicuously label for identification each document, magnetic tape, disk, or
other tangible media upon which the Deposit Materials are written or stored.
Additionally, Depositor shall complete Exhibit&nbsp;B to this Agreement by
listing each such tangible media by the item label description, the type of
media and the quantity. Exhibit&nbsp;B shall be signed by Depositor and delivered
to DSI with the Deposit Materials. Unless and until Depositor makes the initial
deposit with DSI, DSI shall have no obligation with respect to this Agreement,
except the obligation to notify the parties regarding the status of the account
as required in Section&nbsp;2.2 below.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=38,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=717336,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Deposit Inspection</u>. When DSI
receives the Deposit Materials and Exhibit&nbsp;B, DSI will conduct a deposit
inspection by visually matching the labeling of the tangible media containing
the Deposit Materials to the item descriptions and quantity listed on
Exhibit&nbsp;B.&#160; In addition to the
deposit inspection, Preferred Beneficiary may elect to cause a verification of
the Deposit Materials in accordance with Section&nbsp;1.6 below.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Acceptance of Deposit</u>. At
completion of the deposit inspection, if DSI determines that the labeling of
the tangible media matches the item descriptions and quantity on
Exhibit&nbsp;B, DSI will date and sign Exhibit&nbsp;B and mail a copy thereof
to Depositor and Preferred Beneficiary. If DSI determines that the labeling
does not match the item descriptions or quantity on Exhibit&nbsp;B, DSI will
(a)&nbsp;note the discrepancies in writing on Exhibit&nbsp;B; (b)&nbsp;date and
sign Exhibit&nbsp;B with the exceptions noted; and (c)&nbsp;mail a copy of
Exhibit&nbsp;B to Depositor and Preferred Beneficiary. DSI&#146;s acceptance of the
deposit occurs upon the signing of Exhibit&nbsp;B by DSI. Delivery of the
signed Exhibit&nbsp;B to Preferred Beneficiary is Preferred Beneficiary&#146;s
notice that the Deposit Materials have been received and accepted by DSI.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Depositor&#146;s Representations</u>. Depositor
represents as follows:</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Depositor lawfully possesses all of the
Deposit Materials deposited with DSI;</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">With respect to all of the Deposit
Materials, Depositor has the right and authority to grant to DSI and Preferred
Beneficiary the rights as provided in this Agreement;</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Deposit Materials are not subject to
any lien or other encumbrance;</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Deposit Materials consist of the
proprietary technology and other materials identified either in the License
Agreement or Exhibit&nbsp;A, as the case may be; and</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Deposit Materials are readable and
useable in their current form or, if any portion of the Deposit Materials is
encrypted, the decryption tools and decryption keys have also been deposited.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Verification</u>. Preferred
Beneficiary shall have the right, at Preferred Beneficiary&#146;s expense, to cause
a verification of any Deposit Materials. Preferred Beneficiary shall notify
Depositor and DSI of Preferred Beneficiary&#146;s request for verification.
Depositor shall have the right to be present at the verification. A
verification determines, in different levels of detail, the accuracy,
completeness, sufficiency and quality of the Deposit Materials. If a
verification is elected after the Deposit Materials have been delivered to DSI,
then only DSI, or at DSI&#146;s election an independent person or company selected
and supervised by DSI, may perform the verification.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Deposit Updates</u>. Unless
otherwise provided by the License Agreement, Depositor shall update the Deposit
Materials within [***] of each release of a new version of the product which is
subject to the License Agreement. Such updates will be added to the existing
deposit. All deposit updates shall be listed on a new Exhibit&nbsp;B and
Depositor shall sign the new Exhibit&nbsp;B. Each Exhibit&nbsp;B will be held
and maintained separately within the escrow account. An independent record will
be created which will document the activity for each Exhibit&nbsp;B. The
processing of all deposit updates shall be in accordance with Sections&nbsp;1.2
through 1.6 above. All references in this Agreement to the Deposit Materials
shall include the initial Deposit Materials and any updates.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=39,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=363402,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Removal of Deposit Materials</u>.
The Deposit Materials may be removed and/or exchanged only on written
instructions signed by Depositor and Preferred Beneficiary, or as otherwise
provided in this Agreement.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 2 &#151; <b><font style="font-weight:bold;">CONFIDENTIALITY AND RECORD
KEEPING</font></b></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Confidentiality</u>. DSI shall
maintain the Deposit Materials in a secure, environmentally safe, locked
facility which is accessible only to authorized representatives of DSI. DSI
shall have the obligation to reasonably protect the confidentiality of the
Deposit Materials. Except as provided in this Agreement, DSI shall not
disclose, transfer, make available, or use the Deposit Materials. DSI and Preferred
Beneficiary shall not disclose the content or existence of this Agreement to
any third party unless having been agreed to by all parties in writing. If DSI
receives a subpoena or any other order from a court or other judicial tribunal
pertaining to the disclosure or release of the Deposit Materials, DSI will
immediately notify the parties to this Agreement unless prohibited by law. It
shall be the responsibility of Depositor and/or Preferred Beneficiary to
challenge any such order; provided, however, that DSI does not waive its rights
to present its position with respect to any such order. DSI will not be
required to disobey any order from a court or other judicial tribunal. (See
Section&nbsp;7.5 below for notices of requested orders.)</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Status Reports</u>. DSI will issue
to Depositor and Preferred Beneficiary a report profiling the account history
[***]. DSI may provide copies of the account history pertaining to this
Agreement upon the request of any party to this Agreement.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Audit Rights</u>. During the term
of this Agreement, Depositor and Preferred Beneficiary shall each have the
right to inspect the written records of DSI pertaining to this Agreement. Any
inspection shall be held during normal business hours and following reasonable
prior notice.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 3 &#151; <b><font style="font-weight:bold;">GRANT OF RIGHTS TO DSI</font></b></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Title to Media</u>. Depositor
hereby transfers to DSI the title to the media upon which the proprietary
technology and materials are written or stored. However, this transfer does not
include the ownership of the proprietary technology and materials contained on
the media such as any copyright, trade secret, patent or other intellectual
property rights.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Right to Make Copies</u>. DSI
shall have the right to make copies of the Deposit Materials as reasonably
necessary to perform this Agreement. DSI shall copy all copyright,
nondisclosure, and other proprietary notices and titles contained on the
Deposit Materials onto any copies made by DSI. With all Deposit Materials
submitted to DSI, Depositor shall provide any and all instructions as may be
necessary to duplicate the Deposit Materials including but not limited to the
hardware and/or software needed.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Right to Transfer Upon Release</u>.
Depositor hereby grants to DSI the right to transfer the Deposit Materials to
Preferred Beneficiary upon any release of the Deposit Materials for use by
Preferred Beneficiary in accordance with Section&nbsp;4.5. Except upon such a
release or as otherwise provided in this Agreement, DSI shall not transfer the
Deposit Materials.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=40,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=390558,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 4 &#151; <b><font style="font-weight:bold;">RELEASE OF DEPOSIT</font></b></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Release Conditions</u>. As used in
this Agreement, &#147;Release Condition&#148; shall mean the following:</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Depositor&#146;s failure to carry out a
material obligation imposed on it pursuant to the License Agreement, after
[***] written notice and opportunity to cure; or</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Depositor&#146;s appointment of a receiver,
execution of an assignment for the benefit of creditors, going into liquidation
in bankruptcy, or ceasing to operate its business for a period of [***].</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Where any dispute arises over the meaning and
interpretation of the term &#147;Release Condition&#148; as applied to the terms and
conditions of the License Agreement, the matter shall be submitted to
arbitration before a retired judge at Judicial Arbitration and Mediation
Service (&#147;JAMS&#148;) in San Francisco, California under the JAMS Rules.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Filing For Release</u>. If
Preferred Beneficiary believes in good faith that a Release Condition has
occurred, Preferred Beneficiary may provide to DSI written notice of the
occurrence of the Release Condition and a request for the release of the
Deposit Materials. Upon receipt of such notice, DSI shall provide a copy of the
notice to Depositor by commercial express mail.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Contrary Instructions</u>. From
the date DSI mails the notice requesting release of the Deposit Materials, Depositor
shall have [***] to deliver to DSI contrary instructions (&#147;Contrary
Instructions&#148;). Contrary Instructions shall mean the written representation by
Depositor that a Release Condition has not occurred or has been cured. Upon
receipt of Contrary Instructions; DSI shall send a copy to Preferred
Beneficiary by commercial express mail. Additionally, DSI shall notify both
Depositor and Preferred Beneficiary that there is a dispute to be resolved
pursuant to Section&nbsp;7.3 of this Agreement. Subject to Section&nbsp;5.2 of
this Agreement, DSI will continue to store the Deposit Materials without
release pending (a)&nbsp;joint instructions from Depositor and Preferred
Beneficiary; (b)&nbsp;dispute resolution pursuant to Section&nbsp;7.3; or
(c)&nbsp;order of a court.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Release of Deposit</u>. If DSI
does not receive Contrary Instructions from the Depositor, DSI is authorized to
release the Deposit Materials to the Preferred Beneficiary or, if more than one
beneficiary is registered to the deposit, to release a copy of the Deposit
Materials to the Preferred Beneficiary. However, DSI is entitled to receive any
fees due DSI before making the release. Any copying expense in excess of $300
will be chargeable to Preferred Beneficiary. This Agreement will terminate upon
the release of the Deposit Materials held by DSI.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Right to Use Following Release</u>.
Unless otherwise provided in the License Agreement, upon release of the Deposit
Materials in accordance with this Article 4, Preferred Beneficiary shall have
the right to use the Deposit Materials for the sole purpose of continuing the
benefits afforded to Preferred Beneficiary by the License Agreement. Preferred
Beneficiary shall be obligated to maintain the confidentiality of the released
Deposit Materials.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=41,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=773144,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 5 &#151; <b><font style="font-weight:bold;">TERM AND TERMINATION</font></b></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Term of Agreement</u>. The initial
term of this Agreement is for a period of [***]. Thereafter, this Agreement
shall automatically renew from year-to-year unless (a)&nbsp;Depositor and
Preferred Beneficiary jointly instruct DSI in writing that the Agreement is
terminated; or (b)&nbsp;DSI instructs Depositor and Preferred Beneficiary in
writing that the Agreement is terminated for nonpayment in accordance with
Section&nbsp;5.2 or by resignation in accordance with Section&nbsp;5.3. If the
Deposit Materials are subject to another escrow agreement with DSI, DSI
reserves the right, [***] to adjust the anniversary date of this Agreement to
match the then prevailing anniversary date of such other escrow arrangements.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination for Nonpayment</u>. In
the event of the nonpayment of fees owed to DSI, DSI shall provide written
notice of delinquency to all parties to this Agreement. Any party to this
Agreement shall have the right to make the payment to DSI to cure the default.
If the past due payment is not received in full by DSI within one month of the
date of such notice, then DSI shall have the right to terminate this Agreement
at any time thereafter by sending written notice of termination to all parties.
DSI shall have no obligation to take any action under this Agreement so long as
any payment due to DSI remains unpaid.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination by Resignation</u>.
DSI reserves the right to terminate this Agreement, for any reason, by
providing Depositor and Preferred Beneficiary with [***] written notice of its
intent to terminate this Agreement. Within the [***], the Depositor and
Preferred Beneficiary may provide DSI with joint written instructions
authorizing DSI to forward the Deposit Materials to another escrow company
and/or agent or other designated recipient. If DSI does not receive said joint
written instructions within [***] of the date of DSI&#146;s written termination
notice, then DSI shall destroy, return or otherwise deliver the Deposit
Materials in accordance with Section&nbsp;5.4.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Disposition of Deposit Materials
Upon Termination</u>. Subject to the foregoing termination provisions, and upon
termination of this Agreement, DSI shall destroy, return, or otherwise deliver
the Deposit Materials in accordance with Depositor&#146;s instructions. If there are
no instructions, DSI may, at its sole discretion, destroy the Deposit Materials
or return them to Depositor. DSI shall have no obligation to destroy or return
the Deposit Materials if the Deposit Materials are subject to another escrow
agreement with DSI or have been released to the Preferred Beneficiary in
accordance with Section&nbsp;4.4.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Survival of Terms Following
Termination</u>. Upon termination of this Agreement, the following provisions
of this Agreement shall survive:</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Depositor&#146;s Representations
(Section&nbsp;1.5);</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The obligations of confidentiality with
respect to the Deposit Materials;</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The rights granted in the sections
entitled Right to Transfer Upon Release (Section&nbsp;3.3) and Right to Use
Following Release (Section&nbsp;4.5), if a release of the Deposit Materials has
occurred prior to termination;</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The obligation to pay DSI any fees and
expenses due;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=42,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=742131,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The provisions of Article 7; and</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any provisions in this Agreement which
specifically state they survive the termination of this Agreement.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 6 &#151; <b><font style="font-weight:bold;">DSI&#146;S FEES</font></b></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Fee Schedule</u>. DSI is entitled
to be paid its standard fees and expenses applicable to the services provided.
DSI shall notify the party responsible for payment of DSI&#146;s fees [***] prior to
any increase in fees. For any service not listed on DSI&#146;s standard fee
schedule, DSI will provide a quote prior to rendering the service, if
requested.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Payment Terms</u>. DSI shall not
be required to perform any service unless the payment for such service and any
outstanding balances owed to DSI are paid in full. Fees are due upon receipt of
a signed contract or receipt of the Deposit Materials whichever is earliest. If
invoiced fees are not paid, DSI may terminate this Agreement in accordance with
Section&nbsp;5.2.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 7 &#151; <b><font style="font-weight:bold;">LIABILITY AND DISPUTES</font></b></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Right to Rely on Instructions</u>.
DSI may act in reliance upon any instruction, instrument, or signature
reasonably believed by DSI to be genuine. DSI may assume that any employee of a
party to this Agreement who gives any written notice, request, or instruction
has the authority to do so. DSI will not be required to inquire into the truth
or evaluate the merit of any statement or representation contained in any
notice or document. DSI shall not be responsible for failure to act as a result
of causes beyond the reasonable control of DSI.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification</u>. Depositor and
Preferred Beneficiary each agree to indemnify, defend and hold harmless DSI
from any and all claims, actions, damages, arbitration fees and expenses,
costs, attorney&#146;s fees and other liabilities (&#147;Liabilities&#148;) incurred by DSI
relating in any way to this escrow arrangement unless such Liabilities were
caused solely by the negligence or willful misconduct of DSI.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Dispute Resolution</u>. Any
dispute relating to or arising from this Agreement shall be resolved by
arbitration under the Commercial Rules of the American Arbitration Association.
Three arbitrators shall be selected. The Depositor and Preferred Beneficiary
shall each select one arbitrator and the two chosen arbitrators shall select
the third arbitrator, or failing agreement on the selection of the third
arbitrator, the American Arbitration Association shall select the third
arbitrator. However, if DSI is a party to the arbitration, DSI shall select the
third arbitrator. Unless otherwise agreed by Depositor and Preferred
Beneficiary, arbitration will take place in San Diego, California, U.S.A. Any
court having jurisdiction over the matter may enter judgment on the award of
the arbitrator(s). Service of a petition to confirm the arbitration award may
be made by First Class mail or by commercial express mail, to the attorney for
the party or, if unrepresented, to the party at the last known business
address.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Controlling Law</u>. This
Agreement is to be governed and construed in accordance with the laws of the
State of California, without regard to its conflict of law provisions.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=43,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=726261,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Notice of Requested Order</u>. If
any party intends to obtain an order from the arbitrator or any court of
competent jurisdiction which may direct DSI to take, or refrain from taking any
action, that party shall:</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Give DSI at least [***] prior notice of
the hearing;</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Include in any such order that, as a
precondition to DSI&#146;s obligation, DSI be paid in full for any past due fees and
be paid for the reasonable value of the services to be rendered pursuant to such
order; and</font></p>

<p align="left" style="font-family:'Times New Roman';margin:12.0pt 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Ensure that DSI not be required to
deliver the original (as opposed to a copy) of the Deposit Materials if DSI may
need to retain the original in its possession to fulfill any of its other
duties.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE 8 &#151; <b><font style="font-weight:bold;">GENERAL PROVISIONS</font></b></font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Entire Agreement</u>. This
Agreement, which includes Exhibits described herein, embodies the entire
understanding among the parties with respect to its subject matter and
supersedes all previous communications, representations or understandings,
either oral or written. DSI is not a party to the License Agreement between
Depositor and Preferred Beneficiary and has no knowledge of any of the terms or
provisions of any such License Agreement. DSI&#146;s only obligations to Depositor
or Preferred Beneficiary are as set forth in this Agreement. No amendment or
modification of this Agreement shall be valid or binding unless signed by all
the parties hereto, except that Exhibit&nbsp;A need not be signed by DSI,
Exhibit&nbsp;B need not be signed by Preferred Beneficiary and Exhibit&nbsp;C
need not be signed.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Notices</u>. All notices,
invoices, payments, deposits and other documents and communications shall be
given to the parties at the addresses specified in the attached Exhibit&nbsp;C.
It shall be the responsibility of the parties to notify each other as provided
in this Section in the event of a change of address. The parties shall have the
right to rely on the last known address of the other parties. Unless otherwise
provided in this Agreement, all documents and communications may be delivered
by First Class mail.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severability</u>. In the event any
provision of this Agreement is found to be invalid, voidable or unenforceable,
the parties agree that unless it materially affects the entire intent and
purpose of this Agreement, such invalidity, voidability or unenforceability
shall affect neither the validity of this Agreement nor the remaining
provisions herein, and the provision in question shall be deemed to be replaced
with a valid and enforceable provision most closely reflecting the intent and
purpose of the original provision.</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Successors</u>. This Agreement
shall be binding upon and shall inure to the benefit of the successors and
assigns of the parties. However, DSI shall have no obligation in performing
this Agreement to recognize any successor or assign of Depositor or Preferred
Beneficiary unless DSI receives clear, authoritative and conclusive written
evidence of the change of parties.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=44,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=807166,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
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</font>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Regulations</u>. Depositor and
Preferred Beneficiary are responsible for and warrant compliance with all applicable
laws, rules and regulations, including but not limited to customs laws, import,
export, and re-export laws and government regulations of any country from or to
which the Deposit Materials may be delivered in accordance with the provisions
of this Agreement,</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interwave
  Communications International, Ltd.</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:42.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depositor</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:42.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preferred
  Beneficiary</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:42.24%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="38%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ PRISCILA LU</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ HONG LU</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Priscilla Lu</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hong Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive
  Officer</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font></p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive
  Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: </font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;27,
  2002</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: </font></p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;27,
  2002</font></p>
  </td>
 </tr>
</table>

<p style="margin:48.0pt 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:36.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DSI Technology Escrow
  Services, Inc.</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:36.08%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:29.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Grant Jones</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="29%" valign="top" style="padding:0in .7pt 0in .7pt;width:29.44%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="29%" valign="top" style="padding:0in .7pt 0in .7pt;width:29.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Grant Jones</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="29%" valign="top" style="padding:0in .7pt 0in .7pt;width:29.44%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="29%" valign="top" style="padding:0in .7pt 0in .7pt;width:29.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Regional Sales Manager</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="29%" valign="top" style="padding:0in .7pt 0in .7pt;width:29.44%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font></p>
  </td>
  <td width="29%" valign="top" style="padding:0in .7pt 0in .7pt;width:29.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November 4, 2002</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.92%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="29%" valign="top" style="padding:0in .7pt 0in .7pt;width:29.44%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
</table>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=45,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=396097,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="right" style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT A</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MATERIALS TO BE DEPOSITED</font></b></p>

<p style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Account Number ____________________</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depositor represents to Preferred Beneficiary
that Deposit Materials delivered to DSI shall consist of the following:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[***]</font></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interwave
  Communications International, Ltd.</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:42.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depositor</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:42.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preferred
  Beneficiary</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:42.24%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="38%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ PRISCILA LU</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Hong Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Priscilla Lu</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hong Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive
  Officer</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font></p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive
  Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: </font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;27,
  2002</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: </font></p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;27,
  2002</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=46,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=321837,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:12.0pt 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT B</font></b></p>

<p style="font-weight:bold;margin:12.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">DESCRIPTION OF DEPOSIT
MATERIALS</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depositor Company Name: interWAVE
Communications International, Ltd.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Account
Number <u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160
;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Product
Name:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [***]<br>
<i><font style="font-style:italic;">(Product Name will appear as the
Exhibit&nbsp;B Name on Account History report)</font></i></font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEPOSIT
MATERIAL DESCRIPTION:</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="9%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:9.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Quantity</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.16%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Media Type &amp; Size</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.98%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Label Description of
  Each Separate Item</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:5.68%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.16%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Disk 3.5&#148; or _____</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.98%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:5.68%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt 10.0pt;text-align:left;text-indent:-10.0pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.16%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DAT tape _____mm</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.98%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:5.68%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.16%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CD-ROM</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.98%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:5.68%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.16%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Data cartridge tape
  _____</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.98%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:5.68%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.16%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TK 70 or _____ tape</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.98%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:5.68%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.16%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Magnetic tape _____</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.98%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:5.68%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.16%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Documentation</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.98%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:5.68%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="40%" valign="top" style="padding:0in .7pt 0in .7pt;width:40.16%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other____________________</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.64%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.98%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="24%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:24.52%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PRODUCT
  DESCRIPTION:</font></b></p>
  </td>
  <td width="75%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:75.48%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Environment</font></p>
  </td>
  <td width="87%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:87.68%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr height="0">
  <td width="89" style="border:none;"></td>
  <td width="88" style="border:none;"></td>
  <td width="545" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="88%" colspan="6" valign="top" style="padding:0in .7pt 0in .7pt;width:88.62%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEPOSIT
  MATERIAL INFORMATION:</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.7%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.68%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="8" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Is the media or are any of
  the files encrypted? Yes / No If yes, please include any passwords and the
  decryption tools.</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Encryption tool name</font></p>
  </td>
  <td width="50%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.96%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Version</font></p>
  </td>
  <td width="21%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:21.18%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hardware required</font></p>
  </td>
  <td width="82%" colspan="7" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:82.12%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Software required</font></p>
  </td>
  <td width="82%" colspan="7" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:82.12%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="24%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:24.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other required information</font></p>
  </td>
  <td width="75%" colspan="5" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:75.48%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr height="0">
  <td width="129" style="border:none;"></td>
  <td width="16" style="border:none;"></td>
  <td width="32" style="border:none;"></td>
  <td width="336" style="border:none;"></td>
  <td width="56" style="border:none;"></td>
  <td width="71" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="63" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I certify for <b><font style="font-weight:bold;">Depositor</font></b> that the above described<br>
  Deposit Materials have been transmitted to DSI:</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DSI</font></b><font size="2" style="font-size:10.0pt;"> has inspected and accepted the above<br>
  materials <i><font style="font-style:italic;">(any exceptions are noted above)</font></i>:</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.4%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.28%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:37.4%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.28%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:37.4%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:32.28%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Print Name</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:37.4%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Print Name</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.28%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:37.4%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:32.28%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:37.4%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date Accepted</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.28%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:37.4%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.82%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;B#</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.28%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Send
materials to: [***]</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- ZEQ.=1,SEQ=47,EFW="2092993",CP="UTSTARCOM, INC.",DN="5",CHK=211595,FOLIO='',FILE="DISK027:[02PAL2.02PAL2332.EDGAR]EX10-81_AC_2332.CHC",USER="DNICHOL",CD='Nov  7 21:10 2002' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-family:'Times New Roman';font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT C</font></b></p>

<p style="font-weight:bold;margin:9.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">DESIGNATED
CONTACT</font></b></p>

<p style="margin:9.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Account Number ____________________</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notices, deposit
  material returns and communications to Depositor should be addressed to:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Invoices to Depositor
  should be addressed to:</font></p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="14%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:14.66%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company Name: </font></p>
  </td>
  <td width="21%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:21.1%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interwave Advanced </font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt 23.4pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robin Foor </font></p>
  </td>
 </tr>
 <tr>
  <td width="14%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:14.66%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="21%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:21.1%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Communications, Inc. </font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt 23.4pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President
  and General Counsel </font></p>
  </td>
 </tr>
 <tr>
  <td width="14%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:14.66%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:</font></p>
  </td>
  <td width="21%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:21.1%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">420 Widget Lane </font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt 23.4pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interwave
  Communications, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="14%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:14.66%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="21%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:21.1%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Walnut Creek, CA 94598</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt 23.4pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">312 Constitution
  Drive,</font></p>
  </td>
 </tr>
 <tr>
  <td width="14%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:14.66%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="21%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:21.1%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt 23.4pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Menlo Park, CA
  94025</font></p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Designated Contact:
  Kiomars Anvari</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt 23.4pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tel 650-838-2168</font></p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone: 925-287-4441</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="8%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:8.88%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contact:</font></p>
  </td>
  <td width="52%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:52.06%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Febi Herrera
  650-838-2212</font></p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: 925-935-8597</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">E-mail: <u>anvarik@gbasecom.com</u></font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="15%" colspan="3" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">P.O.#,
  if required</font></b><font size="2" style="font-size:10.0pt;">:</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:45.42%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Verification Contact:
  Bob Nakata </font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="8%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:8.88%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">E-mail:</font></p>
  </td>
  <td width="52%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:52.06%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">rfoor@iwv.com</font></u><font size="2" style="font-size:10.0pt;">&#160;
  <u>faquino@iwv.com</u></font></p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 650-838-2054</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notices and
  communications to Preferred Beneficiary should be addressed to:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Invoices to Preferred
  Beneficiary should be addressed to:</font></p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="14%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:14.66%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company Name:</font></p>
  </td>
  <td width="21%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:21.1%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom, Inc. </font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Same</font></p>
  </td>
 </tr>
 <tr>
  <td width="14%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:14.66%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:</font></p>
  </td>
  <td width="21%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:21.1%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1275 Harbor Bay Parkway
  </font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="14%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:14.66%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="21%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:21.1%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Alameda, CA&#160; 94502&#160;
  </font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="14%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:14.66%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="21%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:21.1%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="17%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:17.94%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Designated Contact:</font></p>
  </td>
  <td width="17%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:17.82%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Russell Boltwood </font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="8%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:8.88%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contact:</font></p>
  </td>
  <td width="52%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:52.06%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:10.22%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone: </font></p>
  </td>
  <td width="25%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:25.54%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(510) 864-8800</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="10%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:10.22%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: </font></p>
  </td>
  <td width="25%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:25.54%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(510) 864-8802</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="16%" colspan="4" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:16.62%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">P.O.#,
  if required</font></b><font size="2" style="font-size:10.0pt;">:</font></p>
  </td>
  <td width="44%" valign="top" style="border-bottom:solid windowtext .5pt;border-left:none;border-right:none;border-top:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:44.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="7%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:7.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">E-mail:</font></p>
  </td>
  <td width="27%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:27.84%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Russell@utstar.com</font></u></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.76%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">E-mail:</font></p>
  </td>
  <td width="53%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:53.18%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="35%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:35.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="13" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Requests from Depositor
  or Preferred Beneficiary to change the designated contact should be given in
  writing by the designated contact or an authorized employee of Depositor or
  Preferred Beneficiary.</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="13" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr height="15" style="height:11.25pt;">
  <td width="35%" colspan="6" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:35.7%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contracts, Deposit
  Materials and notices to</font></p>
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DSI should be addressed
  to:</font></p>
  </td>
  <td width="3%" colspan="2" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:3.38%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Invoice inquiries and
  fee remittances to DSI should be addressed to:</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.25pt;">
  <td width="35%" colspan="6" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:35.7%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" colspan="2" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:3.38%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr height="15" style="height:11.25pt;">
  <td width="35%" colspan="6" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:35.7%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DSI Technology Escrow
  Services, Inc.</font></p>
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contract Administration</font></p>
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9265 Sky Park Court,
  Suite 202</font></p>
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">San Diego, CA&#160; 92123</font></p>
  </td>
  <td width="3%" colspan="2" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:3.38%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DSI Technology Escrow
  Services, Inc.</font></p>
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PO Box 45156</font></p>
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">San Francisco, CA&#160; 94145-0156</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.25pt;">
  <td width="35%" colspan="6" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:35.7%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone: (858)
  499-1600</font></p>
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile: (858)
  694-1919</font></p>
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">E-mail: <u>ca@dsiescrow.com</u></font></p>
  </td>
  <td width="3%" colspan="2" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:3.38%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(858) 499-1636</font></p>
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(848) 499-1637</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.25pt;">
  <td width="5%" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:5.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font></p>
  </td>
  <td width="30%" colspan="5" height="15" valign="top" style="border:none;border-bottom:solid windowtext .5pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:30.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" colspan="2" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:3.38%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="60%" colspan="5" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:60.94%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr height="0">
  <td width="41" style="border:none;"></td>
  <td width="16" style="border:none;"></td>
  <td width="17" style="border:none;"></td>
  <td width="32" style="border:none;"></td>
  <td width="24" style="border:none;"></td>
  <td width="128" style="border:none;"></td>
  <td width="0" style="border:none;"></td>
  <td width="24" style="border:none;"></td>
  <td width="56" style="border:none;"></td>
  <td width="8" style="border:none;"></td>
  <td width="48" style="border:none;"></td>
  <td width="8" style="border:none;"></td>
  <td width="320" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>7
<FILENAME>a2092993zex-99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<HTML>
<HEAD>

</HEAD>
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<div style="font-family:'Courier New';">

<h1 align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">Exhibit 99.1</font></b></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">CERTIFICATION OF
CHIEF EXECUTIVE OFFICER</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PURSUANT TO</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">18 U.S.C. SECTION
1350,</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">AS ADOPTED
PURSUANT TO</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I, Hong Liang Lu, certify, pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, that the Quarterly Report of UTStarcom, Inc. on Form 10-Q for the
quarterly period ended September 30, 2002 fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that
information contained in such Form 10-Q fairly presents in all material
respects the financial condition and results of operations of UTStarcom, Inc.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="91%" style="border-collapse:collapse;font-family:'Times New Roman';width:91.58%;">
 <tr>
  <td width="59%" valign="top" style="padding:0in .7pt 0in .7pt;width:59.44%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: </font></p>
  </td>
  <td width="33%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:33.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ HONG LIANG LU</font></p>
  </td>
 </tr>
 <tr>
  <td width="59%" valign="top" style="padding:0in .7pt 0in .7pt;width:59.44%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="33%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:33.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hong Liang Lu</font></p>
  </td>
 </tr>
 <tr style="font-family:'Courier New';">
  <td width="59%" valign="top" style="font-size:1.0pt;padding:0in .7pt 0in .7pt;width:59.44%;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.24%;"><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p></td>
  <td width="33%" valign="top" style="padding:0in .7pt 0in .7pt;width:33.32%;"><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer</font></p></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></p><font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>8
<FILENAME>a2092993zex-99_2.htm
<DESCRIPTION>EXHIBIT 99.2
<TEXT>
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<h1 align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">Exhibit 99.2</font></b></h1>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">CERTIFICATION OF
CHIEF FINANCIAL OFFICER</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PURSUANT TO</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">18 U.S.C. SECTION
1350,</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">AS ADOPTED
PURSUANT TO</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; I, Michael J. Sophie, certify, pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, that the Quarterly Report of UTStarcom, Inc. on Form 10-Q for the
quarterly period ended September 30, 2002 fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that
information contained in such Form 10-Q fairly presents in all material
respects the financial condition and results of operations of UTStarcom, Inc.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:'Times New Roman';width:100.0%;">
 <tr>
  <td width="52%" valign="top" style="padding:0in .7pt 0in .7pt;width:52.22%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: </font></p>
  </td>
  <td width="41%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:41.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ MICHAEL J. SOPHIE</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in .7pt 0in .7pt;width:52.22%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: </font></p>
  </td>
  <td width="41%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:41.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael J. Sophie</font></p>
  </td>
 </tr>
 <tr style="font-family:'Courier New';">
  <td width="52%" valign="top" style="font-size:1.0pt;padding:0in .7pt 0in .7pt;width:52.22%;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.64%;"><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p></td>
  <td width="41%" valign="top" style="padding:0in .7pt 0in .7pt;width:41.14%;"><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer</font></p></td>
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