TECHNICAL LICENSE AND ASSISTANCE AGREEMENT This Agreement is dated and entered into as of 2nd day of November, 1999 (hereinafter referred to as 'Effective Date') 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 'UTStarcom') and Mitsubishi Electric Corporation acting through its Mobile Communication Business Division, a Japanese corporation with offices at 8-1-1 Tsukaguchi-honmachi, Amagasaki, Hyogo 661-8661, Japan (hereinafter referred to as 'Mitsubishi'). WHEREAS, Mitsubishi has engaged in the development, manufacture, and sale of PHS (Personal Handyphone System) handsets and owns technical information which is essential to or helpful in the development and manufacture of PHS handset. WHEREAS, UTStarcom desires to obtain from Mitsubishi such technical information and technical assistance together with licenses defined herein in order to develop, manufacture and sell PHS handset for itself, and WHEREAS, Mitsubishi is willing to supply UTStarcom with such technical information, technical assistance and to grant a license on terms and conditions herein. NOW, THEREFORE, in consideration of the premises and of the mutual covenants and conditions herein contained, the Parties mutually agree as follows: 1. DEFINITION As used in this Agreement, the following terms shall have the meanings set forth below: (a) AGREEMENT. 'Agreement' shall mean this Technical License And Assistance Agreement including all Exhibit(s) thereto. (b) LICENSED TECHNOLOGY. 'Licensed Technology' shall mean the technical information and data except a third party technology, owned and disclosed by Mitsubishi under the 'UTSTARCOM, Inc., MUTUAL NON-DISCLOSURE AGREEMENT [KS99-012A]' concluded on March 2, 1999 and 'UTSTARCOM, Inc. AMENDMENT AGREEMENT TO MUTUAL NON-DISCLOSURE AGREEMENT [KS99-089B]' concluded on August 23, 1999 between the Parties, as specifically set forth in the Exhibit A as Technical Document. STRICTLY CONFIDENTIAL UTSVER8.DOC 2/19 (c) PARTY/PARTIES. 'Party' shall mean either UTStarcom or Mitsubishi. 'Parties' shall mean both UTStarcom and Mitsubishi. (d) SUBSIDIARY. 'Subsidiary' shall mean any entity, a majority of whose voting shares or securities are owned or controlled, directly or indirectly by a Party, provided that any such entity shall be deemed to be Subsidiary only so long as such majority control exists. (e) NET. 'Net' shall mean in this Agreement a net price actually received by Mitsubishi after deducting any and all taxes, duties and penalties from the gross amount including any and all taxes, duties and penalties paid by UTStarcom. 2. GRANT OF LICENSE 2.1 GRANT OF LICENSE (1) Subject to the terms and conditions of this Agreement, Mitsubishi hereby grants to UTStarcom a [*] license to use the Licensed Technology for the term of this Agreement for the purpose of (i) evaluation and development of UTStarcom's PHS handset and (ii) feasibility study for the business of UTStarcom's PHS handset within the territory of the [*]. This Agreement does not cover any license to use the Licensed Technology for any purpose including, but not limited to making or selling UTStarcom's PHS handset, other than stated above, however, each Party agrees to negotiate and determine additional license and its conditions separately upon discussion between the Parties by the [*]. (2) UTStarcom may sub-license the Licensed Technology granted hereunder to its Subsidiaries on condition that UTStarcom shall put the Subsidiaries the same obligations of UTStarcom under this Agreement with written agreement, and shall assume whole responsibility to Mitsubishi for the actions or omissions of said Subsidiaries. (3) With Mitsubishi's prior written approval, UTStarcom may have the Licensed Technology and Confidential Information used to a third party [*] as its subcontractors for the development and manufacture of UTStarcom's PHS handset, provided that UTStarcom shall put such third party the same obligations of UTStarcom under this Agreement with written agreement, and shall be fully responsibility to Mitsubishi for the actions or omissions of the obligations by such third party. STRICTLY CONFIDENTIAL UTSVER8.DOC 3/19 [*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 2.2 LIMITATION OF LICENSE UTStarcom shall not use trademarks, trade names, logos or other identifying labels of Mitsubishi or Mitsubishi's customers in any form or manner without prior written approval of Mitsubishi. 3. SUPPLY OF TECHNICAL DOCUMENT & TECHNICAL ASSISTANCE 3.1 TECHNICAL DOCUMENT Mitsubishi shall furnish one (1) copy of the technical document and programs for Mitsubishi's PHS handset identified in Exhibit A in the language originally written (hereinafter referred to as 'Technical Document') to UTStarcom at the following address within thirty (30) days after the Effective Date: Hong Liang Lu, President & C.E.O. UTStarcom, Inc., 1275 Harbor Bay Parkway, Suite 100 Alameda, California 94502, USA 3.2 TECHNICAL ASSISTANCE At UTStarcom's request, Mitsubishi will provide UTStarcom additional technical information or data or training and technical services as set forth in Exhibit B [*] [*] to assist UTStarcom to develop its PHS handset, with charge (hereinafter referred to as 'Technical Assistance'). 4. PAYMENT 4.1 PAYMENT In consideration of the license granted herein. Technical Document, Technical Assistance and Tooling for TL-PH2, UTStarcom agrees to make a nonrefundable payment to Mitsubishi as follows: (i) License Fee: Net [*], which amount is payable within [*] after the Effective Date of this Agreement. (ii) Technical Document Fee: [*], which amount is payable within [*] after UTStarcom's receipt of all items identified in Exhibit A. STRICTLY CONFIDENTIAL UTSVER8.DOC 4/19 [*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. (iii) Technical Assistance Fee: A price due for each item of Technical Assistance based on the hourly rate identified in Exhibit B, which amount is payable within [*] after UTStarcom's receipt of invoice issued by Mitsubishi on quarterly basis. (iv) Tooling Fee for TL-PH2 1. Net price due for each item of Tooling for TL-PH2 described in Exhibit B (3) A, which amount is payable within [*] after Mitsubishi's delivery of each item to UTStarcom. UTStarcom shall make a written request to Mitsubishi to sell the said item within [*] after the Effective Date of this Agreement. 2. Net price due for each item of Tooling for TL-PH2 described in Exhibit B (3) B, which amount is payable within [*] after a written request of UTStarcom to Mitsubishi to use the said item. UTStarcom shall make such a request to Mitsubishi within [*] after the Effective Date of this Agreement. 4.2 MITSUBISHI'S BANK ACCOUNT UTStarcom shall make all payments due under this Agreement in Japanese Yen by wire transfer to Mitsubishi at the following address: Bank name: The Bank of Tokyo-Mitsubishi, Ltd., Head Office, Tokyo Bank address: 7-1, Marunouchi 2-Chome, Tokyo 100-8310, Japan Account name: Mitsubishi Electric Corporation Account No: [*] 4.3 TAXES Each party shall bear any and all taxes, duties and penalties imposed in its own country on any payment made under this Agreement. UTStarcom is entitled to withhold the applicable American withholding taxes from the gross amount including any and all taxes, duties and penalties paid by UTStarcom under this Agreement and pay them to the competent tax authorities in USA. In the event that UTStarcom withholds the taxes from such gross amount, UTStarcom shall promptly send to Mitsubishi official tax receipts issued by said authorities sufficient enable Mitsubishi to support a claim for tax credit in respect to such withholding taxes paid by UTStarcom. STRICTLY CONFIDENTIAL UTSVER8.DOC 5/19 [*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 4.4 OTHER COSTS AND EXPENSES (1) UTStarcom shall bear any costs and expenses in relation to traveling, transportation, shipping, freight, insurance, packing, living, lodging, meals, communication, office space, equipment and so on, incurred under this Agreement. (2) UTStarcom shall bear any costs and expenses incurred by Mitsubishi in relation to the Technical Assistance or any other assistance provided by Mitsubishi in addition to the same stated hereunder at the rate of [*]. 5. TREATMENT OF PROPRIETARY RIGHTS UTStarcom agrees that Mitsubishi shall retain all rights including patent rights, design rights, copyrights and any other intellectual property right, title and interest to the Licensed Technology and Confidential Information. If a patent, design, or any other intellectual property are acquired by UTStarcom based on any Licensed Technology or Confidential Information supplied from Mitsubishi under this Agreement, UTStarcom shall consult with Mitsubishi with respect to the manner of application, the scope of intellectual property rights to be acquired, who is going to be the owner thereof and other details necessary for application. 6. DISCLAIMER OF WARRANTY AND LIABILITY (1) ANY LICENCED TECHNOLOGY, CONFIDENTIAL INFORMATION LICENSED BY MITSUBISHI HEREUNDER IS PROVIDED ON 'AS IS' BASIS. MITSUBISHI DISCLAIMS ANY WARRANTY, STATUTORY, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTY OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, TITLE, ARISING FROM USE OF ANY LICENSED TECHNOLOGY OR CONFIDENTIAL INFORMATION PROVIDED HEREUNDER. MITSUBISHI ALSO MAKES NO WARRANTY THAT THE LICENSED TECHNOLOGY OR CONFIDENTIAL INFORMATION IS UNINTERRUPTED, SUFFICIENT, ACCURATE OR ERROR-FREE TO ENABLE UTSTARCOM TO DEVELOP UTSTARCOM'S PHS HANDSET. TO THE EXTENT PERMITTED BY APPLICABLE LAW, UNDER NO EVENT AND UNDER NO LEGAL THEORY OF LIABILITY, INCLUDING, BUT NOT LIMITED TO, TORT, BREACH OF CONTRACT, PRODUCT LIABILITY, INDEMNIFICATION, PERSONAL INJURY OR OTHERWISE, SHALL MITSUBISHI BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES ARISING FROM USE OF THE LICENSED TECHNOLOGY OR THE CONFIDENTIAL INFORMATION EVEN IF MITSUBISHI HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR STRICTLY CONFIDENTIAL UTSVER8.DOC 6/19 [*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. LOSSES. (2) Notwithstanding the forgoing, if a technical problem of the Licensed Technology is found, the Parties will confer in order to find a mutually agreeable solution of the problem. (3) UTStarcom shall indemnify and hold Mitsubishi harmless of any claims, damages or other liability in any way in connection with UTStarcom's use of the Licensed Technology licensed hereunder. 7. CONFIDENTIALITY 7.1 CONFIDENTIALITY Each Party agrees to hold any information or data disclosed by the other Party under this Agreement in strict confidence provided that such information is clearly marked as 'Confidential' or 'Proprietary', and, if disclosed orally or visually, summarized in written format within thirty (30) days of such disclosure (hereinafter referred to as 'Confidential Information'). Each Party shall take reasonable steps to safeguard the other Party's Confidential Information, using at a minimum the same degree of care as is used for its own confidential information, and shall not disclose such Confidential Information to any third party other than as expressly permitted by this Agreement. All information disclosed by Mitsubishi to UTStarcom as 'Confidential Information' under the 'UTSTARCOM, Inc. MUTUAL NON-DISCLOSURE AGREEMENT' [KS99-012A] concluded on March 2, 1999, and 'UTSTARCOM, Inc. AMENDMENT AGREEMENT TO MUTUAL NON-DISCLOSURE AGREEMENT [KS99-089B]' concluded on August 23, 1999 between the Parties shall also be treated as Confidential Information under this Agreement and shall be subject to provisions herein. (1) The obligations of this Article shall not apply to any information which: 1. is already in the public domain or becomes available to the public through no breach of this Agreement by the receiving Party; 2. was in the receiving party's possession prior to receipt from the disclosing Party as proven by its written records; 3. is received by the receiving Party independently from a third party free to disclose such information; 4. is subsequently independently developed by the receiving Party as proven by its written records; or 5. is disclosed when such disclosure is compelled pursuant to legal, judicial, or administrative proceeding, or otherwise required by law, subject to the receiving Party giving all STRICTLY CONFIDENTIAL UTSVER8.DOC 7/19 reasonable prior notice to the disclosing Party to allow the disclosing Party to seek protective or other court orders. (2) Each Party shall not during and after the term of the Agreement use the other Party's Confidential Information for any purpose whatsoever other than that agreed in this Agreement. 7.2 MEDIA RELEASES Each Party shall not make any press release, advertisement or public statement concerning the existence of this Agreement or its contents without the express written consent of the other Party. 8. TERM The term of this Agreement shall commence on the Effective Date and will continue until the end of March 31, 2000 or the date upon which this Agreement is terminated in accordance with Article 9, whichever comes earlier. 9. TERMINATION 9.1 TERMINATION FOR CAUSE In the event that either Party hereto defaults in the performance of any or its duties or obligations hereunder, which default shall not be cured within thirty (30) days after written notice from the non-defaulting Party specifying the default, then the non-defaulting Party, by giving written notice thereof to the defaulting Party, terminate this Agreement as of a date specified in such notice of termination. The defaulting party shall indemnify the non-defaulting Party for the losses and damages sustained by such termination. 9.2 TERMINATION FOR INSOLVENCY Either Party may terminate this Agreement without giving prior notice in the event of one or more of the followings: 1. a Party enters into voluntary or involuntary bankruptcy or insolvency, or cease to make payments to its creditors; 2. a Party liquidates its business or makes or causes to be made an assignment of its assets or business, either in whole or in part, for the benefit of its creditors; 3. a receiver or trustee is appointed to take over, or administer, or conduct all or a substantial part of the business or property of a Party; 4. a substantial change in the ownership or control of one Party without the prior written STRICTLY CONFIDENTIAL UTSVER8.DOC 8/19 consent of the other Party; and 5. dissolution or liquidation of a Party's assets. If one Party is involved in any of the events enumerated in paragraphs 1. through 5. above, such Party shall notify the other Party immediately, by cable or facsimile, of the occurrence of such event. 9.3 RIGHTS UPON TERMINATION If this Agreement is terminated for any reason, all licenses granted to UTStarcom hereunder shall be terminated, and UTStarcom shall immediately return Mitsubishi all items delivered by Mitsubishi hereunder and all copies thereof. 9.4 SURVIVAL The provisions of Articles 4, 5, 6, 7, 9, 10 and 11 hereof shall survive any termination of this Agreement. 10. SETTLEMENT OF DISPUTES 10.1 ARBITRATION Any and all disputes, controversies, or differences which may arise between the Parties, out of or in relation to or in connection with this Agreement, or for the breach thereof, and which cannot be settled amicably, shall be finally settled by arbitration pursuant to the Rules of Conciliation and Arbitration of the International Chamber of Commerce. The arbitration shall be held in Tokyo, Japan. All arbitration proceedings shall be conducted in Japanese language. 10.2 ATTORNEY'S FEES If either Party employs attorneys to enforce any rights arising out of or relating to this Article 10, the prevailing Party in such disputes shall be entitled, in addition to its other rights hereunder, to recover reasonable fees of attorneys, accountants and other professionals including costs and fees on appeal. 11. MISCELLANEOUS 11.1 NOTICE Any required notice or other communication hereunder shall be given in writing and shall be deemed effective when actually received at the address of each Party or such address as each Party may substitute by written notice to the other in manner contemplated herein. In regard to technical issues, however, electronic transmissions such as e-mail, facsimile and telephone are also available and acceptable. STRICTLY CONFIDENTIAL UTSVER8.DOC 9/19 11.2 ASSIGNMENT This Agreement and any right and obligation hereunder shall not be assigned or transferred to any third party in whole or in part by either Party without the prior written consent of the other Party which consent shall not be unreasonably withheld, provided that either Party may assign this Agreement or any right or obligation hereunder with prior written notice to the other Party if the Party transfers them by operation of law, including, but not limited to, consolidation or merger, levy, execution of legal process, bankruptcy, insolvency. If this Agreement or any right or obligation hereunder would otherwise pass through such assignment or transfer by operation of law from the Party to any third party without prior written consent of the other Party, then such other Party may, in addition to any other remedies it might have, forthwith terminate this Agreement by written notice of such termination to the assignment Party. 11.3 GOVERNING LAW This Agreement shall be governed in all respects, including issues of validity, interpretation, performance, proceedings and enforcement, by the laws of Japan. 11.4 LANGUAGE The working language to be used for all aspects of activities related to this Agreement including all forms of documentation and other communication exchanged between the Parties, shall be a Japanese language. 11.5 SEVERABILITY In the event that any provisions of this Agreement is held by a court of competent jurisdiction to be legally ineffective or unenforceable, such provision shall be reformed only to the extent necessary to make it enforceable and the validity of the remaining provisions shall not be affected. 11.6 WAIVER The waiver by either Party of a breach of or a default under any provision of this Agreement by the other Party shall not be construed as a waiver of any subsequent breach of the same or any other provision of this Agreement, nor shall any delay or omission on the part of either Party to exercise or avail itself of any right or remedy that it has or may have hereunder, operate as a waiver of any right or remedy by such Party. STRICTLY CONFIDENTIAL UTSVER8.DOC 10/19 11.7 INTEGRATION This Agreement contains the full understanding of the Parties with respect to the subject matter hereof and supersedes all prior understandings and writings relating thereto. No waiver, consent, modification, amendment or change of the terms of this Agreement and its Exhibit(s) shall be binding unless in writing and signed by Mitsubishi and UTStarcom. 11.8 HEADING The article headings throughout this Agreement are for reference purpose only and the words contained therein shall not construed as substantial part of this Agreement and shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction or meaning of the provisions of this Agreement. 11.9 COMPLIANCE OF LAWS (1) The Parties agree that it shall perform its obligations under this Agreement in accordance with all applicable laws, rules and regulations now or hereinafter in effect. (2) UTStarcom shall at its own risk and expense obtain all export licenses necessary for fulfillment of its obligations under this Agreement. 11.10 FORCE MAJEURE Each Party shall not be responsible to the other Party for any delay or failure to deliver the items described hereunder arising from causes beyond its reasonable control, such as force majeure, strikes, labor disputes, lockouts, civil commotion, war (declared or undeclared), riot, severe weather, lightning, heavy snow, floods, Acts of God, governmental rules, laws, sanctions, requisition, mobilization, embargoes, fires, explosions, restriction in the use of power or any other cause whatsoever beyond its reasonable control whether or not similar to any of the contingencies specifically enumerated. In no event shall each Party be liable to the other Party for direct, indirect, consequential or special damages arising from its delay or failure in delivery as a result of any such case. STRICTLY CONFIDENTIAL UTSVER8.DOC 11/19 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective duly authorized representatives as of the Effective Date. All copies of this Agreement, signed by both Parties, shall be deemed originals. MITSUBISHI UTSTARCOM By: /s/Kunio Nakatsuka By: /s/Hong Liang Lu --------------------------------- --------------------------------- Name: Kunio Nakatsuka Name: Hong Liang Lu ------------------------------- ------------------------------- Title: Manager Title: PRESIDENT ------------------------------ ------------------------------ Date: Nov 2, 1999 Date: Nov 2, 1999 ------------------------------- ----------------------------- STRICTLY CONFIDENTIAL UTSVER8.DOC 12/19 EXHIBIT A TECHNICAL DOCUMENT 1. TECHNICAL DOCUMENT LIST FOR MITSUBISHI PHS HANDSET ---------------------------------------------------------------------------------------------- Technical Document Media Delivery time ---------------------------------------------------------------------------------------------- 1. Manufacturing Engineering Related Items: - - ---------------------------------------------------------------------------------------------- (1) Equipment list for manufacturing. Paper Undecided (2) Equipment placement and shopfloor layout. Paper Undecided (3) Working Instructions for All Processes of PCB ASSY. Paper Undecided (4) Working Instructions for All Processes of BODY. Paper Undecided (5) Critical Process Control Points of PCB ASSY. Paper Undecided (6) Critical Process Control Points of BODY. Paper Undecided (7) General Critical Process Control Points. Paper Undecided (8) Schematic & Principles of PHS handset. Paper Undecided (9) Trouble Shooting Guide for PHS handset. Paper Undecided (10) Gerber Files of PCBs. Diskette Undecided or CD ---------------------------------------------------------------------------------------------- 2. Quality Assurance Related: - - ---------------------------------------------------------------------------------------------- (1) Quality Data in the latest 3 months. Paper Undecided (2) Incoming Inspection Procedures and Criteria. Paper Undecided (3) Final QA Acceptance Procedures and Criteria. Paper Undecided (4) Field Failure Data in the latest one year. Paper Undecided ---------------------------------------------------------------------------------------------- 3. R&D Engineering Related: - - ---------------------------------------------------------------------------------------------- (1) Schematic/Drawings/Principle. Paper Undecided (2) Equipment List for R&D Engineering. Paper Done (3) Associated Development Tools List. Paper Undecided (4) Product Description/User Manual. Paper Undecided ---------------------------------------------------------------------------------------------- 4. Training and Technical support Items: - - ---------------------------------------------------------------------------------------------- (1) Training and Technical support plan for Paper Undecided UTStacom's manufacturing. (2) Training on PHS handset operation principle Paper Undecided for all UTStarcom's engineers. ---------------------------------------------------------------------------------------------- 5. CAD S/W TOOL: - - ---------------------------------------------------------------------------------------------- (1) Mold design CAD use 'MEL CAD' s/w tool. Diskette Undecided or CD (2) PCB pattern CAD use 'CR-3000' of ZUKEN. Diskette Undecided or CD ---------------------------------------------------------------------------------------------- 6. Materials Sourcing/Purchasing Related: - - ---------------------------------------------------------------------------------------------- (1) Major Suppliers List and Contact Information. Diskette Done or CD (2) BOM price. Paper Done ---------------------------------------------------------------------------------------------- STRICTLY CONFIDENTIAL UTSVER8.DOC 13/19 2. PROGRAM LIST FOR MITSUBISHI PHS HANDSET ---------------------------------------------------------------------------------------------- Program List Media Delivery time ---------------------------------------------------------------------------------------------- 1. Manufacturing Engineering Related Items: - - ---------------------------------------------------------------------------------------------- (1) Source code of all test programs of manufacturing. Diskette Undecided or CD ---------------------------------------------------------------------------------------------- 2. R&D Engineering Related: - - ---------------------------------------------------------------------------------------------- (1) S/W, Firmware Source Code Diskette Done or CD ---------------------------------------------------------------------------------------------- STRICTLY CONFIDENTIAL UTSVER8.DOC 14/19 EXHIBIT B TECHNICAL ASSISTANCE (1) TECHNICAL TRAINING FOR DEVELOPING SOFTWARE Mitsubishi will provide the technical training listed below to support UTStarcom to develop software for UTStarcom's PHS handset at UTStarcom's expense. - Basically Mitsubishi will not develop new software of PHS handset anymore. - UTStarcom shall develop the software if some change is required for UTStarcom's market at its expense. ----------------------------------------------------------------------------------------------------------------- Item Duration UTStarcom's Mitsubishi's Location Hourly Rate Trainee Trainer M:Office of designated Mitsubishi's by personnel Mitsubishi U:Office prepared by UTStarcom ----------------------------------------------------------------------------------------------------------------- 1. Lecture on the system of [*] [*] [*] M the PHS handset ------------------------------------------------------------------------------------------------ 2. Lecture on the H/W of [*] [*] [*] M the Licensed Technology ------------------------------------------------------------------------------------------------ 3. Lecture on the S/W of [*] [*] [*] M [*] the Licensed Technology ------------------------------------------------------------------------------------------------ 4. Preparation for Item 5. [*] [*] U ------------------------------------------------------------------------------------------------ 5. Demonstration of the [*] [*] [*] U S/W of the Licensed Technology ------------------------------------------------------------------------------------------------ 6. Q&A about contents of [*] [*] [*] M or U the Lecture and Demonstration ----------------------------------------------------------------------------------------------------------------- STRICTLY CONFIDENTIAL UTSVER8.DOC 15/19 [*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. (2) SUPPORT FOR TEST AND QUALITY ASSURANCE Mitsubishi will support to train UTStarcom's engineers by Mitsubishi's QA concept using the available data specified in ExhibitA necessary to develop UTStarcom's PHS handset at UTStarcom's expense. ----------------------------------------------------------------------------------------------------------------- Item Duration UTStarcom's Mitsubishi's Location Hourly Rate Trainee Trainer M:Office of designated Mitsubishi's by personnel Mitsubishi U:Office Prepared by UTStarcom ----------------------------------------------------------------------------------------------------------------- 1. Lecture on a method of test [*] [*] [*] M and quality assurance ----------------------------------------------------------------------------------------------- [*] 2. Demonstration on a method [*] [*] [*] M of test and quality assurance ----------------------------------------------------------------------------------------------------------------- STRICTLY CONFIDENTIAL UTSVER8.DOC 16/19 [*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. (3) TOOLING FOR TL-PH2 Mitsubishi will offer the Toolings for TL-PH2 listed below to UTStarcom, provided that UTStarcom shall follow the conditions for using each Tooling as determined separately by mutual discussion between the Parties. A. TRANSFERABLE ITEMS OF TOOLING FOR TL-PH2 -------------------------------------------------------------------------------------- NO. Mold No. Parts Name Amount [*] Model -------------------------------------------------------------------------------------- 1 83016816 310Q049 CASE-F-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 1.1 83016817 311A447 FLIP-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 1.2 83016819 440C499 CLEAR-LAMP-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 1.3 83016822 440D284 PANEL-LCD-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 1.4 83016986 370C157 PLATE-F-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 2 83016815 310Q048 CASE-R-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 3 83016820 440C500 PANEL-FLIP-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 3.1 83016821 440C501 PANEL-FLIP-CL-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 5 83016952 501B003 SWITCH-RUBBER-L-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 6 83017023 533B039 PRINT-BOARD*PH2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 6.1 83016863 686C024 TERMINAL-CH 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 6.3 83016948 261C361 HOLDER-MIC-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 13 83016818 320A183 COVER-BAT-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 15 83016950 369C119 CAP-CONNECTOR-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 16 83016899 924C032 CHARGE*ASSY-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 20 83016924 260B546 HOLDER*SOUND-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 99 83016949 311B086 CASE-F-2-SUB 1 [*] TL-PH2 -------------------------------------------------------------------------------------- Note) *1. UTStarcom does not have the right to request Mitsubishi to sell each Tooling for TL-PH2 itemized above after [*] from the Effective Date of this Agreement. [*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. STRICTLY CONFIDENTIAL UTSVER8.DOC 17/19 B. NON-TRANSFERABLE ITEMS OF TOOLING FOR TL-PH2 -------------------------------------------------------------------------------------- 4 83016953 501A011 SWITCH-RUBBER-F-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 6.2 83017084 260A145 HOLDER-REC/LCD-2(BAKKL-RAITO) 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 7 83016987 535D003 KEY-SHEET-L-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 9 83016898 719C157 ANTENNA-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 9.1 83016988 719C158 ANTENNA-PH2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 10.1 83016989 719C160 TERMINAL-ANT-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- 10.2 83016990 719C162 HOLDER-ANT-2 1 [*] TL-PH2 -------------------------------------------------------------------------------------- Note) *1. UTStarcom does not have the right to request Mitsubishi to use each Tooling for TL-PH2 itemized after [*] from the Effective Date of this Agreement. *2. UTStarcom agrees that each Tooling for TL-PH2 itemized above is used only at a place designated by Mitsubishi and is prohibited from transferring from the said place to somewhere. [*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. STRICTLY CONFIDENTIAL UTSVER8.DOC 18/19 Note) *1. UTStarcom shall prepare an appropriate office near Mitsubishi's offices at its expense, where Mitsubishi will be able to support to train UTStarcom's engineers sufficiently. *2. The hourly rate listed in this Exhibit B may be revised during the term of this Agreement, based on a standard rate applicable to Mitsubishi's dispatched personnel for the Technical Assistance. *3. All Technical Assistance shall be performed in Japan. *4. UTStarcom shall prepare at its expense all equipment other than those furnished by Mitsubishi hereunder such as work-station, personal computer and compiler and so on necessary for Mitsubishi to be able to provide UTStarcom with Technical Assistance. Mitsubishi will support to facilitate such preparation at UTStarcom's expense. *5. UTStarcom shall arrange a sufficient number of qualified interpreters for the Technical Assistance at UTStarcom's expense, if necessary. *6. UTStarcom's engineers shall be observe and comply with all applicable laws, regulations, Mitsubishi's internal rules, regulations and orders taken from Mitsubishi. *7. UTStarcom shall dispatch its engineers to Mitsubishi whose ability is at least beyond the level designated by Mitsubishi to become reasonably acquainted with the Licensed Technology. STRICTLY CONFIDENTIAL UTSVER8.DOC 19/19 TYPE: EX-10.15 SEQUENCE: 3 DESCRIPTION: EXHIBIT 10.15 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. MEMORANDUM OF UNDERSTANDING JOINT PRODUCT DEVELOPMENT AND MARKETING This Memorandum of Understanding ('this MOU') is entered into this 2nd day of September 1999 ('Effective Date'), by and between UTStarcom, Inc., a corporation having its principal place of business at 1275 Harbor Bay Parkway, Suit 100 Alameda, California 94502, U.S.A. ('Developer'), and Matsushita Communication Industrial Co., Ltd., a corporation having its principal place of business at 4-3-1, Tsunashima-higashi, Kohoku-ku, Yokohama, 223-8639, Japan, acting through its Communication Systems Division ('Co-developer'). WITNESSETH: WHEREAS, Co-developer desires to have Developer provide engineering expertise in connection with the joint development of a product which combines the functionality of a PBX and a LAN, referred to as an Internet Protocol Telephony Switch ('IPTS'), which is developed based on the High Level Requirement for IPTS ('HLR') provided by Co-developer to Developer, and which Co-developer intends to consider for commercial marketing; and WHEREAS, Co-developer is also considering a licensing arrangement under certain intellectual property rights of Developer in connection with the IPTS; and WHEREAS, Developer desires to provide its engineering expertise, and to grant a license under its intellectual property rights to Co-developer; and WHEREAS, Co-developer desires to provide its proprietary information with respect to specifications and market information for its own PBX products; and WHEREAS, the parties have entered into a mutual Confidential Disclosure Agreement dated July 5, 1999 ('Confidential Agreement') to exchange the confidential information owned by each party; NOW, THEREFORE, Co-developer and Developer hereby express their intention to agree as follows: 1. SERVICES AND PRODUCT DEVELOPMENT; INTELLECTUAL PROPERTY RIGHTS; CONFIDENTIALITY a. ENGINEERING SERVICES. In consideration of the fees agreed to in Section 2[a] of this MOU, Developer will use its best efforts to provide to Co-developer its engineering services related to development of the IPTS described in Exhibit A of this MOU, which is incorporated into this MOU by reference. Developer's engineering services shall be provided to Co-developer pursuant to Exhibit B (Schedule of Deliverables), Exhibit C (Preliminary Release Schedule) and Exhibit D (MCI Business Regulations: Regulations on New Product Development, Rec.#RT-0402 Version 5), which are also incorporated into this MOU by reference. Developer's representative[s] shall confer with Co-developer as requested to discuss and report on the progress of the development work described in Exhibits B, C and D. b. INTELLECTUAL PROPERTY RIGHTS. Co-developer agrees that Developer retains full and exclusive rights and ownership in any and all letters patent, inventions, software, firmware, algorithms, know-how, trademarks, copyrights and trade secrets described in Exhibit E of this MOU, any Confidential Information (as defined in the Confidential Agreement), and any other proprietary rights which Developer currently possesses (and which are described in Exhibit E hereto), develops independently in the course of providing engineering services pursuant to this MOU, or is otherwise entitled to by law. In the event any improvement, enhancement, addition or other modification to the IPTS is invented, created or perceived jointly by the parties during the term of this MOU ('Joint Property'), such Joint Property shall be jointly owned by the parties hereto. Any application for protection of Joint Property, and any associated costs for such protection, shall be mutually agreed upon by the parties in the form of a separate written agreement in advance of attempt to protect the Joint Property. The parties hereto may use Joint Property for any purpose without the consent of the other party and without any compensation or accounting to the other party. c. CONFIDENTIALITY. The Confidential Agreement is incorporated herein as Exhibit F, and shall continue in full force and effect with respect to the subject matter of this MOU during the term of this MOU, notwithstanding any provision of the Confidential Agreement to the contrary. 2. FEES a. NON-RECURRING ENGINEERING FEES - AMOUNTS AND DATES. Co-developer will pay Developer fees upon the events and the deliveries defined in Exhibit B of this MOU, and in the amounts set forth below: EVENTS AND DELIVERIES PAYMENT --------------------- ------- Co-developer and Developer execute this MOU Developer delivers Preliminary Product Proposal defined in Exhibit B to Co-developer - by September 2,1999 [*] Developer delivers Design Specification defined in Exhibit B to Co-developer - by October 15, 1999 [*] Developer delivers Release 0.5 System defined in Exhibit B to Co-developer - by December 17, 1999 [*] 3. FUTURE EXECUTION OF FORMAL CONTRACT If the parties mutually agree that the development of the IPTS is both technically feasible and commercially practicable, the parties may execute a formal contract for the commercial development of the IPTS, which would be executed by the parties contingent upon the completion of the functional specification by no later than January 31,1999. The formal contract provisions would address (but not be limited to) the following items: product deliverables; product development schedule; payment terms; licensing of intellectual property rights; exclusive or non-exclusive marketing and distribution rights. The parties understand and agree that (a) Section 3 hereof is intended solely as an expression of the parties' potential intent to enter into a future agreement under the conditions and as to the subject matter set forth in this Section 3; and (b) such future agreement, if any, shall be reduced to a written contract between the parties by no later than January 31, 2000. Notwithstanding the foregoing, neither party is obligated by virtue of this Section 3 to enter into or negotiate towards any agreement whatsoever. 4. TERM, TERMINATION AND SURVIVAL a. TERM. This MOU shall be effective as of the Effective Date, and shall be remain in force until January 31, 2000. b. TERMINATION. Either party may terminate this MOU at any time by giving the other party 60 days prior written notice. [*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. c. SURVIVAL. The Section 1 and this 4[c] will survive any expiration or termination of this MOU 5. EXPORT ADMINISTRATION Each party will comply with any applicable export laws, regulations or other restrains of any countries, including but not limited to the U.S.A. and Japan. 6. GOVERNING LAW The validity, construction and performance of this MOU shall be governed by substantive laws of State of New York. 7. INTEGRATION This MOU sets forth the entire agreement and understanding between the parties and supersedes all prior agreements, proposals, communications and discussions between the parties, whether written or oral, relating to the subject matter hereof. 8. DISPUTE RESOLUTION The parties will attempt to settle amicably any dispute that arises in connection with this MOU. If such dispute cannot so settled within 60 days of its occurrence, either party may avail itself of any applicable remedies. IN WITNESS WHEREOF, the parties have, by their duly authorized representatives to the parties, executed this MOU on the date first above written. AGREED: DEVELOPER: CO-DEVELOPER: /s/ Hong Liang Lu /s/ Y. Katsura ------------------------ ------------------------- Signature Signature HONG LIANG YASUO KATSURA ------------------------ ------------------------- Name Name PRESIDENT DIRECTOR ------------------------ ------------------------- Title Title Exhibit A: IPTS Preliminary Product Proposal Exhibit B: Schedule of Deliverables Exhibit C: Preliminary Release Schedule Exhibit D: MCI Business Regulations on New Product Exhibit E: List of Developer's IPR related to the IPTS Exhibit F: Confidential Disclosure Agreement Exhibits A-E [*] [*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. EXHIBIT F Confidential Agreement (MUTUAL CONFIDENTIAL DISCLOSURE AGREEMENT) MUTUAL CONFIDENTIAL DISCLOSURE AGREEMENT This Agreement made and entered into by and between UTStarcom, Inc., a corporation having its principal place of business at 1275 Harbor Bay Parkway, Suite 100 Alameda, California 94502, U.S.A., (hereinafter called 'UTS'), and Panasonic Telecommunication Systems Company, Division of Matsushita Electric Corporation of America, a Delaware, USA corporation, having a place of business at Two Panasonic Way, Secaucus, New Jersey 07094, U.S.A, (hereinafter called 'PTSC'), and Panasonic Information and Networking Technologies Laboratory, Laboratory of Panasonic Technologies, Inc., a Delaware, USA corporation, having a place of business at Two Research Way, Princeton, New Jersey 08540, U.S.A., (hereinafter called 'PINTL'), and Matsushita Communication Industrial Corporation of U.S.A., a US corporation having its place of business at 776 Highway 74 South Peachtree City, Georgia 30269, U.S.A, acting through its Systems Department (hereinafter called 'MCUSA'), and Matsushita Communication Industrial Co., Ltd., a Japanese corporation, having its place of business at 4-3-1, Tsunashima-higashi, Kohoku-ku, Yokohama, 223-8639, Japan, acting through its Communication Systems Division (hereinafter called 'MCI'). WITNESSETH 1. Any term listed in Attachment 1, as used herein, shall have the meaning set forth therein. In addition, PTSC, PINTL, MCUSA and MCI shall be referred to collectively herein as the 'Matsushita Parties'. 2. This Agreement shall be applicable to Information disclosed by any Of the Matsushita parties to UTS or by UTS to any of the Matsushita parties party during the Disclosure Period. 3. In order to be treated in accordance with the terms and conditions of this Agreement, (a) the Information shall be disclosed in tangible form conspicuously labeled by the disclosing party as 'Confidential' or 'Proprietary', or (b) if the Information is disclosed orally, through demonstration or in other intangible form, the disclosing party must specifically designate it as 'Confidential' or 'Proprietary' at the time of such disclosure and confirm it in writing conspicuously labeled as 'Confidential' or 'Proprietary' to be received by the receiving party within thirty (30) days following such disclosure. Any Information received or transmitted electronically shall be deemed disclosed in tangible form. 4. During the Confidentiality Period, each receiving party agrees to extend the following treatment ('Confidential Treatment') to the Information of each disclosing party: (a) to use the same reasonable care in keeping confidential the Information of the disclosing party as it uses for its own confidential information of a similar nature (such reasonable care herein referred to as 'Protective Efforts'), and (b) to use the Information only for the Purpose, except as the disclosing party may otherwise agree in writing. A receiving party shall not be liable for inadvertent disclosure of the Information of a disclosing party, provided it has made Protective Efforts and, upon discovery of any such inadvertent disclosure of the Information of the disclosing party, the receiving party promptly advises the disclosing party of the inadvertent disclosure and endeavors to prevent any further inadvertent disclosure. The receiving party shall not be liable for unauthorized disclosure or use by persons who are or have been its employees unless the receiving party fails to make Protective Efforts. 5. Confidential Treatment shall not be extended to Information of a disclosing party that: (a) was in the public domain at the time it was disclosed or becomes part of the public domain after disclosure, including, without limitation, disclosure in a U.S. or foreign patent or printed publication, or inherent disclosure through the unrestricted use, lease, sale or other disposal of products embodying the same; or (b) was known to the receiving party at the time of its disclosure or becomes known to it 2 from a party other than disclosing party who has the apparent right to transfer or disclose such Information; or (c) is independently developed by the receiving party without reliance on the Information of the disclosing party; or (d) is disclosed by the disclosing party to a third party without restrictions on such third party's rights to disclose or use the same; or (e) is approved for release upon the disclosing party's prior written consent; or (f) is disclosed by the receiving party pursuant to judicial order, requirement of a governmental agency or by operation of law, provided that the receiving party informs the disclosing party within thirty (30) days after receiving notice of its obligation to make such disclosure, and takes reasonable steps to limit the scope of such disclosure; or (g) is disclosed by the disclosing party to the receiving party after written notification by the receiving party that it will not accept any further Information in confidence. 6. This Agreement shall not be construed to bind or impose obligations upon any divisions and/or business units of MCI, Matsushita Electric Corporation of America, MCUSA or Panasonic Technologies, Inc., or their parent companies, subsidiaries and/or affiliated companies other than the above-mentioned divisions, except for any of such divisions and/or business units as receive disclosure of the Information. 7. Each disclosing party understands that each receiving party may currently or in the future be developing internally, or receiving from other parties, information that may be similar to Information of the disclosing party. Accordingly, neither this Agreement nor receipt of Information hereunder shall limit a receiving party's development and marketing of concepts, techniques, products or systems similar to or competing with the Information of the disclosing party, nor will this Agreement or receipt of Information hereunder prevent a receiving party from undertaking similar efforts or discussion with any third parties. Nothing in this paragraph shall be construed to diminish in any way the obligations of the parties set forth in paragraph 4 hereof. 8. It is understood that the receipt of Information under this Agreement shall not create any obligation in any way limiting or restricting the dispatching, assignment and/or 3 reassignment of employees of the receiving party. 9. Nothing contained in this Agreement shall be construed as (a) obliging or entitling any party to furnish to or receive from any other party any goods or services that may be referenced herein; or (b) an agreement or commitment by any party to enter into further business relationships including, but not limited to, development, purchasing or licensing; or (c) granting or conferring expressly, implicitly, or otherwise, any rights by license or otherwise for any invention, discovery or improvement made, conceived, or acquired prior to or after the date of this Agreement; or (d) granting any license, express or implied, in the Information to any receiving party other than to use the Information in the manner and to the extent authorized by this Agreement. 10. Each party will act as an independent contractor and not as an agent or employee of any other party, and no party will have the authority to bind any other party. This Agreement will not create a joint venture, partnership or other business relationship or entity of any kind, or an obligation or commitment to form such relationship or entity. 11. Export Control (a) The respective disclosing party shall be responsible for obtaining any export license required under applicable laws or regulations with respect to the export to MCI of any Information of such disclosing party. MCI will provide such disclosing party with reasonably necessary cooperation for obtaining such export license. (b) In the event that a Japanese governmental authorization is required for the disclosure of MCI's Information under this Agreement, MCI will not disclose such Information until MCI obtains such authorization. 12. This Agreement shall be governed by and construed in accordance with the laws of Japan irrespective of its conflict-of-laws rules. 13. This Agreement represents the entire understanding among the parties with respect to the Information, and no waiver, alteration, or modification of any of the provisions hereof 4 shall be binding on the parties unless made in writing and signed by the duly authorized representatives of the parties. This Agreement and its rights and obligations may not be assigned or transferred by any party without the prior written consent of the other parties. This Agreement shall be binding on the parties, their successors and assigns. IN WITNESS WHEREOF, the parties have, by their duly authorized representatives, executed this Agreement as of the date shown below. MCI: UTS: Matsushita Communication Industrial UTStarcom, Inc. Co., Ltd., acting through its Communication System Division BY: BY: -------------------------------- ------------------------- NAME: NAME: ------------------------------ ----------------------- TITLE: TITLE: ----------------------------- ---------------------- DATE: DATE: ------------------------------ ----------------------- PTSC: PINTL: Panasonic Telecommunication Systems Panasonic Information and Company, Division of Matsushita Electric Networking Technologies Corporation of America Laboratory, Laboratory of Panasonic Technologies, Inc. BY: BY: -------------------------------- ------------------------- NAME: NAME: ------------------------------ ----------------------- TITLE: TITLE: ----------------------------- ---------------------- DATE: DATE: ------------------------------ ----------------------- MCUSA: 5 Matsushita Communication Industrial Corporation of America acting through its Systems Department BY: BY: -------------------------------- ------------------------- NAME: NAME: ------------------------------ ----------------------- TITLE: TITLE: ----------------------------- ---------------------- DATE: DATE: ------------------------------ ----------------------- 6 Attachment 1 Definitions 1. 'Information', to the extent disclosed by UTS, means information regarding UTS's capability to participate in the development of a next-generation PBX system, disclosed in accordance with Article 3. 'Information', to the extent disclosed by any of the Matsushita Parties, means information regarding the marketing and functional requirements for a PBX system and any business plan, forecasts, customer information or similar information relating to PBX systems. 2. 'Purpose' means the evaluation of UTS's capability to participate in the development of a next-generation PBX system. 3. 'Disclosure Period' means July 5, 1999 through October 4, 1999. 4. 'Confidentiality Period' means a period of three years following the end of the Disclosure Period, during which the parties treat the Information in accordance with the terms and conditions of this Agreement. 7
Technical License and Assistance Agreement - UTStarcom Inc. and Mitsubishi Electric Corp.
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