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<SEC-DOCUMENT>0001104659-07-086366.txt : 20071130
<SEC-HEADER>0001104659-07-086366.hdr.sgml : 20071130
<ACCEPTANCE-DATETIME>20071130172525
ACCESSION NUMBER:		0001104659-07-086366
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20071126
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20071130
DATE AS OF CHANGE:		20071130

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-29661
		FILM NUMBER:		071278791

	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>8-K
<SEQUENCE>1
<FILENAME>a07-30450_18k.htm
<DESCRIPTION>8-K
<TEXT>
<html>

<head>





</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">

<div style="border:none;border-top:double windowtext 6.0pt;padding:0in 0in 0in 0in;">

<p style="border:none;margin:0in 0in 12.0pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED STATES</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">SECURITIES AND EXCHANGE
COMMISSION</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;">Washington, D.C. 20549</font></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM 8-K</font></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">CURRENT REPORT</font></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934</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;font-weight:normal;">Date of Report (Date of earliest event
reported): </font></b><font size="2" style="font-size:10.0pt;">November 26, 2007</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UTSTARCOM, INC.</font></b></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant
as specified in its charter)</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="95%" style="border-collapse:collapse;width:95.12%;">
 <tr>
  <td width="33%" valign="top" style="padding:0in .7pt 0in .7pt;width:33.32%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
  </td>
  <td width="33%" valign="top" style="padding:0in .7pt 0in .7pt;width:33.34%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">000-29661</font></b></p>
  </td>
  <td width="33%" valign="top" style="padding:0in .7pt 0in .7pt;width:33.34%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">52-1782500</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in .7pt 0in .7pt;width:33.32%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other
  jurisdiction<br>
  of incorporation)</font></p>
  </td>
  <td width="33%" valign="top" style="padding:0in .7pt 0in .7pt;width:33.34%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File Number)</font></p>
  </td>
  <td width="33%" valign="top" style="padding:0in .7pt 0in .7pt;width:33.34%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer</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;">Identification No.)</font></p>
  </td>
 </tr>
</table>

</div>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1275 Harbor Bay Parkway</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Alameda, California 94502</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;">(Address of principal executive offices)&#160;&#160;&#160; (Zip code)</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(510) 864-8800</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;">(Registrant&#146;s telephone number, including area code)</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">N/A</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;">(Former name or former address, if changed since last report.)</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 style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):</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="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&nbsp;Written communications pursuant to Rule 425 under
the Securities Act (17 CFR 230.425)</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="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&nbsp;Soliciting material pursuant to Rule 14a-12 under
the Exchange Act (17 CFR 240.14a-12)</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="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&nbsp;Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</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="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&nbsp;Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>

<div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">

<p style="border:none;margin:0in 0in 12.0pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<div style="margin:0in 0in 12.0pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<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 style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item&nbsp;5.02 Departure of Directors or Certain
Officers; Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.</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;">On November 26, 2007, and
November 30, 2007, the Compensation Committee of the Board of Directors (the &#147;Compensation
Committee&#148;) of UTStarcom, Inc. (the &#147;Company&#148;) took the following actions at
meetings duly held and noticed:</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;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">2007 Equity Awards for 2006 Performance</font></u></i></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;">As
previously disclosed in the Company&#146;s Current Report on Form 8-K filed with the
Securities and Exchange Commission (the &#147;SEC&#148;) on February 2, 2007, at a
meeting held February 1, 2007, the Compensation Committee determined that
certain of the Company&#146;s named executive officers (each an &#147;NEO&#148;) would be
eligible to receive the following performance-based equity awards:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><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="52%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:52.62%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Named Executive Officer</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:15.74%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="28%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:28.24%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Restricted Stock Award</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in .7pt 0in .7pt;width:52.62%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hong Liang Lu,
  Chief Executive Officer</font></p>
  </td>
  <td width="15%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:15.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in .7pt 0in .7pt;width:28.24%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">117,000</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in .7pt 0in .7pt;width:52.62%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francis P.
  Barton, EVP and Chief Financial Officer</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:15.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:28.24%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">46,000</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><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;">At the time the Compensation
Committee determined the NEOs&#146; eligibility for the awards set forth above, the
Company was not current in its periodic filings with the SEC and the Compensation
Committee thus delayed the approval of issuance of the shares until a later
time.&#160; At its meeting held November 26,
2007, the Compensation Committee approved the issuance of the shares to Messrs.
Lu and Barton as set forth above.</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;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Grant of 2007 Focal Award</font></u></i></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 Compensation Committee
approved the grant of shares of restricted stock and restricted stock units (&#147;RSUs&#148;)
under the Company&#146;s 2006 Equity Incentive Plan (the &#147;Plan&#148;) to certain NEOs effective
November 30, 2007, as follows:</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="19%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:19.86%;">
  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Named Executive Officer</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="36%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:36.48%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Equity Award</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="36%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:36.48%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Vesting Schedule</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in .7pt 0in .7pt;width:19.86%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hong Liang Lu</font></p>
  </td>
  <td width="2%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in .7pt 0in .7pt;width:36.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">133,543 shares of restricted stock</font></p>
  </td>
  <td width="2%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in .7pt 0in .7pt;width:36.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Four-year vesting as follows: 25% on 2/29/08; 25% on
  2/27/09; 25% on 2/26/10; and 25% on 2/28/11</font></p>
  </td>
  <td width="2%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in .7pt 0in .7pt;width:19.86%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">267,086 RSUs</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance based (as
  described below)</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:19.86%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:36.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40,000 shares of
  restricted stock</font></p>
  </td>
  <td width="2%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:36.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vests as to 100% of the
  shares on November 30, 2008</font></p>
  </td>
  <td width="2%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in .7pt 0in .7pt;width:19.86%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francis P. Barton</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">44,781 RSUs</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Four-year vesting as
  follows: 25% on 2/29/08; 25% on 2/27/09; 25% on 2/26/10; and 25% on 2/28/11</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:19.86%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:36.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">89,562 RSUs</font></p>
  </td>
  <td width="2%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:36.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance based (as
  described below)</font></p>
  </td>
  <td width="2%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in .7pt 0in .7pt;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</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;">The performance-based RSUs
will vest with respect to each NEO based on management performance objectives
established and tailored for each NEO by the Committee for the Company&#146;s 2007
fiscal year, including (i)&nbsp;achievement of corporate financial measures
such as bookings, gross margin, revenue, operating profit, cash flow, inventory
turns, contribution margin, cost reduction and cash collections,
(ii)&nbsp;achievement of corporate objectives relating to quality and
organization, and (iii)&nbsp;achievement by such NEO of additional
individualized performance objectives reviewed and approved by the Compensation
Committee. Performance will be measured against the established objectives and,
to the extent the established objectives have been achieved, the number of
performance-based RSUs &#160;earned by </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;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div>

<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 style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">each NEO shall be determined
by the Compensation Committee, in its sole discretion, provided that such NEO
remains a service provider (as defined in the Plan) of the Company on the date
of determination. The Compensation Committee&#146;s determination as to the extent
the established objectives have been achieved shall be made as soon as
administratively practicable following the end of the 2007 fiscal year. &#160;Following the determination of the number of
RSUs earned by each NEO, 50% of the earned RSUs shall vest on February 29, 2008
and 50% on February 27, 2009, provided that such NEO remains a service provider
of the Company (as defined in the Plan) on those dates.</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 style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each RSU represents a
contingent right to receive one share of the Company&#146;s common stock on the
vesting date.&#160; The grants were made as
part of the Company&#146;s annual focal awards process which was postponed from
February 2007 due to the Company not being current in its SEC filings at that
time.&#160; The awards were made subject to
the standard terms and conditions of the restricted stock and restricted stock unit
agreements under the Plan, as previously filed with the SEC.&#160; In the event an NEO&#146;s employment with the
Company terminates as a result of death or &#147;disability&#148; (as defined in the
Plan), the NEO&#146;s award will vest in full upon the date of termination.</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;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Amendment of Change of
Control Agreement with Chief Executive Officer</font></u></i></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 Compensation Committee approved
an Amended and Restated Change of Control/Involuntary Termination Severance
Agreement between the Company and Hong Liang Lu, the Company&#146;s Chief Executive
Officer (the &#147;Lu Change of Control Agreement&#148;), effective November 30, 2007.&#160; A copy of the Lu Change of Control Agreement
is attached hereto as Exhibit 10.1.&#160; The Lu
Change of Control Agreement amends Mr. Lu&#146;s previous Change of Control
Severance Agreement with the Company dated January 17, 2003, as previously
filed with the SEC.&#160; The Lu Change of
Control Agreement has a term of three (3) years from November 30, 2007.&#160; Following the expiration of the three-year
term, Mr. Lu and the Company may, but are not obligated to, enter into a new
agreement.&#160; If Mr. Lu&#146;s employment
continues following the expiration of the three-year term and the Company and
Mr. Lu do not enter into a new agreement, Mr. Lu&#146;s then current benefits
arrangements shall continue in accordance with the terms of the Lu Change of
Control Agreement until the parties agree otherwise.</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 Lu Change of Control
Agreement provides that if Mr.&nbsp;Lu&#146;s employment with the Company is terminated
as a result of an &#147;involuntarily termination&#148; by the Company, or terminated by
Mr. Lu for &#147;good reason&#148; (as both terms are defined in the Lu Change of Control
Agreement), at any time within 18 months after a change of control, he shall be
entitled to the following severance benefits:&#160;
(i)&nbsp;24 months of base salary as in effect as of the date of such
termination and 200% of his full annual performance target bonus for the year
in which termination occurs, less applicable withholding, payable in a lump sum
within 30 days of termination, (ii)&nbsp;all equity awards including, without
limitation, option grants, restricted stock and stock purchase rights, granted
to Mr.&nbsp;Lu prior to the change of control will become fully vested or
released from the Company&#146;s repurchase right (if any shares of stock purchased
by or granted to Mr. Lu prior to the change of control remain subject to that
repurchase right)&#160; and exercisable as of
the date of termination to the extent such equity awards are outstanding and
unexercisable or unreleased at the time of such termination,
(iii)&nbsp;Mr.&nbsp;Lu would be permitted to exercise such vested equity awards
for 12 months from the date of termination, and (iv)&nbsp;the Company will pay an
amount equal to 12 months of health insurance premiums for continuation
coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of
1985, as amended (&#147;COBRA&#148;), at
the same level of coverage in effect for Mr. Lu on the day preceding the date
of his termination of employment, payable in a lump sum within 30 days of the
date of termination.</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 Lu Change of Control
Agreement also provides that if Mr.&nbsp;Lu&#146;s employment with the Company is terminated
as a result of an &#147;involuntarily termination&#148; by the Company or terminated by
Mr. Lu for &#147;good reason&#148; (both as defined in the Lu Change of Control
Agreement) during the term of the Lu </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;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<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 style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Change of Control Agreement,
apart from a change of control, he shall be entitled to the following severance
benefits:&#160; (i)&nbsp;24 months of base
salary as in effect as of the date of such termination, and 100% of his full
annual performance target bonus for the year in which termination occurs, less
applicable withholding, payable in a lump sum within 30 days of termination (ii)&nbsp;all
equity awards, including without limitation option grants, restricted stock and
stock purchase rights, granted to Mr.&nbsp;Lu will become fully vested or
released from the Company&#146;s repurchase right (if any shares of stock purchased
by or granted to Mr. Lu remain subject to such repurchase right) and
exercisable to the extent such equity awards are outstanding and unexercisable or
unreleased at the time of such termination, (iii)&nbsp;Mr.&nbsp;Lu would be
permitted to exercise such vested equity awards for 12 months from the date of
termination, and (iv)&nbsp;the Company will pay an amount equal to 12 months of
health insurance premiums for continuation coverage pursuant to COBRA, at the same level of coverage
in effect for Mr. Lu on the day preceding the date of his termination of
employment, payable in a lump sum within 30 days of the date of termination.</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;">If Mr.&nbsp;Lu&#146;s employment by
the Company terminates for &#147;Cause&#148; (as defined in the Lu Change of Control
Agreement) or Mr. Lu terminates his employment for other than &#147;good reason&#148; (as
defined in the Lu Change of Control Agreement), Mr. Lu will not be entitled to
receive severance or other benefits under the Lu Change of Control Agreement,
except those benefits required to be provided by law.</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 addition, in the event of
Mr. Lu&#146;s death or &#147;disability&#148; (as defined in the applicable equity plans)
during Mr. Lu&#146;s employment with the Company, all of Mr. Lu&#146;s equity awards will
vest and, if applicable, become exercisable.</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;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Barton
Retention Agreement.</font></u></i></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 Compensation Committee
approved the terms of a retention plan, effective November 30, 2007, for
Francis P. Barton, the Company&#146;s Executive Vice President and Chief Financial
Officer (the &#147;Retention Agreement&#148;), as described below.&#160; The Compensation Committee approved the
Retention Agreement after taking into consideration:&#160; (i) Mr. Barton&#146;s performance during a
challenging year, including completing the Company&#146;s previously disclosed stock
option and historical sales contract investigations, bringing the Company
current in its SEC filings and improving the Company&#146;s Section 404 compliance
process; (ii) the critical nature of Mr. Barton&#146;s current and future role in
light of anticipated management transitions in fiscal year 2008; and (iii) increasing
competition in the market for experienced financial professionals.&#160; The Committee also determined that, while the
retention incentive described below could be awarded in equity and/or cash, the
Committee&#146;s intent was to grant equity to the extent possible under the terms
of the Plan in order to increase Mr. Barton&#146;s incentive as an owner and
shareholder to drive the Company toward profitability.&#160; A copy of the Retention Agreement is attached
hereto as Exhibit 10.2.</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 Retention Agreement
provides that the Company will provide a retention incentive to Mr. Barton with
a total value of $10,000,000 (the &#147;Retention Incentive&#148;), consisting of a
combination of restricted stock, RSUs, performance shares and performance units
(together, &#147;Equity&#148;) to be granted under the Plan and/or cash, in the sole
discretion of the Compensation Committee. Each installment of the Retention
Incentive will be awarded in a combination of Equity, in the Committee&#146;s sole
discretion, up to the annual maximum amounts permitted under the Plan after
taking into account Mr. Barton&#146;s focal awards for each particular year.&#160; The first installment was awarded effective
November 30, 2007 (see below), and the remaining installments are expected to
be awarded each January thereafter. Because of limits on the maximum amount of
Equity that can be granted to an individual in any calendar year under the
Plan, the Company expects that the Retention Incentive will be awarded over a
number of years, so that as much of the Retention Incentive can be awarded
under the Plan as possible. The first installment of the Retention Incentive
will vest as to $2,500,000 in value on November 30, 2007, and the remaining
installments will vest as to $2,500,000 in value on each November 30 thereafter
until the full $10,000,000 in value has vested.&#160;
For purposes of determining the vested value, the value of Equity to
vest will be based on the Fair Market Value (as defined in the Plan) of the
Company&#146;s common stock on the applicable date of grant.</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;">4</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<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 style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event Mr. Barton&#146;s
employment with the Company terminates in a manner that would trigger the
payment of severance benefits under his Amended and Restated Change of Control/Involuntary
Termination Severance Agreement dated August 23, 2006 as previously filed with
the SEC (the &#147;Barton Change of Control Agreement&#148;), or as a result of his death
or &#147;disability&#148; (as defined in the Plan), Mr. Barton would be entitled to a cash
payment equal to the amount of the Retention Incentive that had not been
granted in Equity as of the date of such termination of employment.&#160; The vesting of any Equity granted as part of
the Retention Incentive may also accelerate pursuant to the terms of the Barton
Change of Control Agreement.&#160; In
addition, if Mr. Barton&#146;s employment with the Company terminates as a result of
his death or &#147;disability&#148; (as defined in the Plan), any Equity granted pursuant
to the Retention Agreement will vest in full as of the date of termination.</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 Compensation Committee
approved the grant of the first installment of Equity pursuant to Mr. Barton&#146;s
Retention Incentive effective November 30, 2007, as follows:&#160; 254,000 shares of restricted stock, 165,657
RSUs, 300,000 performance shares and 689,655 performance units.&#160; The grants were made subject to the standard
terms and conditions of the applicable agreements under the Plan.&#160; The standard forms of restricted stock purchase
agreement and restricted stock unit agreement used in connection with the Plan
were previously filed with the SEC.&#160; The
standard forms of performance share and performance unit agreements are
attached hereto as Exhibits 10.3 and 10.4, respectively.</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;">On November 30, 2007 (the vesting
date of the first $2,500,000 in value of Mr. Barton&#146;s Retention Incentive), the
closing price of the Company&#146;s common stock as quoted on the Nasdaq Global
Select Market was $2.90 and therefore 689,655 performance units and 172,414
performance shares, with a value of approximately $2,500,000, vested on
November 30, 2007.&#160; The remaining
unvested performance shares, RSUs and shares of restricted stock granted in the
first installment of the Retention Incentive will vest on November 30, 2008, subject
to Mr. Barton continuing as a &#147;service provider&#148; (as defined in the Plan) through
such date.</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 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01 Financial Statements and
Exhibits.</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font></p>
  </td>
  <td width="599" valign="top" style="padding:0in 0in 0in 0in;width:449.3pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibits </font></p>
  </td>
 </tr>
</table>

<p style="margin:3.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following exhibits are
filed pursuant to Item&nbsp;5.02:</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="1" cellspacing="0" cellpadding="0" width="100%" style="border:none;border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="11%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:11.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:2.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:86.78%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:11.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:2.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended and Restated
  Change of Control/Involuntary Termination Severance Agreement between the
  Company and Hong Liang Lu, dated November 30, 2007</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:11.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:2.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Retention Agreement
  between the Company and Francis P. Barton dated November 30, 2007</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:11.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:2.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance Share
  Agreement for use pursuant to the 2006 Equity Incentive Plan</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:11.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.4</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:2.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance Unit Agreement
  for use pursuant to the 2006 Equity Incentive Plan</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>

<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;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</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;">&nbsp;</font></p>

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

<p style="margin:0in 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%;">
 <tr>
  <td width="52%" valign="top" style="padding:0in .7pt 0in .7pt;width:52.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.38%;">
  <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="52%" valign="top" style="padding:0in .7pt 0in .7pt;width:52.62%;">
  <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>
  </td>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0in .7pt 0in .7pt;width:39.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in .7pt 0in .7pt;width:52.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
  November 30, 2007</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="39%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:39.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  SUSAN MARSCH</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in .7pt 0in .7pt;width:52.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="39%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:39.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Susan
  Marsch</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in .7pt 0in .7pt;width:52.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0in .7pt 0in .7pt;width:39.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice
  President, General Counsel and Corporate Secretary</font></p>
  </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;">&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;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBITS</font></b></p>

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

<table border="1" cellspacing="0" cellpadding="0" width="100%" style="border:none;border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="11%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:11.1%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:2.62%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:86.28%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:11.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:2.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended and Restated
  Change of Control/Involuntary Termination Severance Agreement between the
  Company and Hong Liang Lu, dated November 30, 2007</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:11.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:2.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Retention Agreement
  between the Company and Francis P. Barton dated November 30, 2007</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:11.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:2.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance Share
  Agreement for use pursuant to the 2006 Equity Incentive Plan</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:11.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.4</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:2.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance Unit Agreement
  for use pursuant to the 2006 Equity Incentive Plan</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>

<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;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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

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

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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>a07-30450_1ex10d1.htm
<DESCRIPTION>EX-10.1
<TEXT>
<html>

<head>





</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">

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

<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.1</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:normal;">&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;">UTSTARCOM,
INC.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">&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;">AMENDED
AND RESTATED CHANGE OF CONTROL/INVOLUNTARY TERMINATION</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;">SEVERANCE
AGREEMENT</font></b></p>

<p style="margin:12.0pt 0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Change of
Control/Involuntary Termination Severance Agreement (the &#147;Agreement&#148;) is made
and entered into effective as of November 30, 2007 (the &#147;Effective Date&#148;), by
and between Hong Liang Lu (the &#147;Employee&#148;) and UTStarcom, Inc., a Delaware
corporation (the &#147;Company&#148;).&#160; Certain
capitalized terms used in this Agreement are defined in Section&nbsp;1 below.</font></p>

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

<p style="margin:0in 0in 12.0pt;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; </font><font size="2" style="font-size:10.0pt;">The Company and the Employee previously
entered into a Change of Control Severance Agreement dated January 17, 2003
which provided the Employee with severance benefits upon the Employee&#146;s
termination of employment under certain circumstances (the &#147;Original Agreement&#148;).</font></p>

<p style="margin:0in 0in 12.0pt;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; </font><font size="2" style="font-size:10.0pt;">The Board of Directors of the Company
(the &#147;Board&#148;) believes that it is in the best interests of the Company and its
shareholders to provide the Employee with enhanced financial security and
sufficient encouragement to remain with the Company and wishes to augment certain
terms of the Original Agreement, which is hereby amended and restated in its
entirety.</font></p>

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

<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In consideration of the mutual covenants herein contained and the
continued employment of Employee by the Company, the parties agree as follows:</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;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; </font><u><font size="2" style="font-size:10.0pt;">Definition of Terms</font></u><font size="2" style="font-size:10.0pt;">.&#160;
The following terms referred to in this Agreement shall have the
following meanings:</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Cause</font></u><font size="2" style="font-size:10.0pt;">.&#160; &#147;Cause&#148; shall
mean (i)&nbsp;any act of personal dishonesty taken by the Employee in
connection with his responsibilities as an employee which is intended to result
in substantial personal enrichment of the Employee, (ii)&nbsp;Employee&#146;s
conviction of a felony which the Board reasonably believes has had or will have
a material detrimental effect on the Company&#146;s reputation or business,
(iii)&nbsp;a willful act by the Employee which constitutes misconduct and is
injurious to the Company, and (iv)&nbsp;continued willful violations by the
Employee of the Employee&#146;s obligations to the Company after there has been
delivered to the Employee a written demand for performance from the Company
which describes the basis for the Company&#146;s belief that the Employee has not
substantially performed his duties.</font></h2>

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</div>
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<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Change of Control</font></u><font size="2" style="font-size:10.0pt;">.&#160; &#147;Change
of Control&#148; shall mean the occurrence of any of the following events:</font></h2>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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;">the approval by shareholders of the
Company of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than fifty percent (50%) of the total
voting power represented by the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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;">the approval by the shareholders of the
Company of a plan of complete liquidation of the Company or an agreement for
the sale or disposition by the Company of all or substantially all of the
Company&#146;s assets;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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; </font><font size="2" style="font-size:10.0pt;">any &#147;person&#148; (as such term is used in
Sections&nbsp;13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended) becoming the &#147;beneficial owner&#148; (as defined in Rule&nbsp;13d-3 under
said Act), directly or indirectly, of securities of the Company representing
50% or more of the total voting power represented by the Company&#146;s then
outstanding voting securities; or</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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; </font><font size="2" style="font-size:10.0pt;">a change in the composition of the Board, as a result
of which fewer than a majority of the directors are Incumbent Directors.&#160; &#147;Incumbent Directors&#148; shall mean directors
who either (A)&nbsp;are directors of the Company as of the date hereof, or
(B)&nbsp;are elected, or nominated for election, to the Board with the
affirmative votes of at least a majority of those directors whose election or
nomination was not in connection with any transactions described in
subsections&nbsp;(i), (ii), or (iii)&nbsp;or in connection with an actual or
threatened proxy contest relating to the election of directors of the Company.</font></h3>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Good Reason</font></u><font size="2" style="font-size:10.0pt;">.&#160; &#147;Good
Reason&#148; shall mean (i)&nbsp;without the Employee&#146;s express written consent, a
significant reduction of the Employee&#146;s duties, position or responsibilities
relative to the Employee&#146;s duties, position or responsibilities in effect
immediately prior to such reduction, or the removal of the Employee from such
position, duties and responsibilities, unless the Employee is provided with
comparable duties, position and responsibilities; provided, however, that a
reduction in duties, position or responsibilities solely by virtue of the
Company being acquired and made part of a larger entity shall not constitute a &#147;Good
Reason;&#148; (ii)&nbsp;without the Employee&#146;s express written consent, a
substantial reduction, without good business reasons, of the facilities and
perquisites (including office space and location) available to the Employee
immediately prior to such reduction; (iii)&nbsp;a reduction by the Company of
the Employee&#146;s base salary as in effect immediately prior to such reduction;
(iv)&nbsp;a material reduction by the Company in the kind or level of employee
benefits to which the Employee is entitled immediately prior to such reduction
with the result that the Employee&#146;s overall benefits package is significantly
reduced; (v)&nbsp;without the Employee&#146;s express written consent, the
relocation of the Employee to a facility or a location more than fifty
(50)&nbsp;miles from his current location; (vi)&nbsp;any purported termination
of the Employee by the Company which is not effected for Cause or for which the
grounds relied upon are not valid; or (vii)&nbsp;the failure of the Company to
obtain the assumption of this Agreement by any successors contemplated in
Section&nbsp;9 below.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Involuntary Termination</font></u><font size="2" style="font-size:10.0pt;">.&#160; &#147;Involuntary
Termination&#148; shall mean any termination (other than a termination for Cause) of
the Employee by the Company.</font></h2>

<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="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>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Termination Date</font></u><font size="2" style="font-size:10.0pt;">.&#160; &#147;Termination
Date&#148; shall mean the effective date of any notice of termination delivered by
one party to the other hereunder.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;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; </font><u><font size="2" style="font-size:10.0pt;">Term of Agreement</font></u><font size="2" style="font-size:10.0pt;">.&#160;
This Agreement will have a term of three (3)&nbsp;years commencing on
the Effective Date.&#160; Following the
expiration of the three-year term, the Employee and the Company may, but are
not obligated to, enter into a new agreement.&#160;
If Employee&#146;s employment continues following the expiration of the three-year
term, and the Company and Employee do not enter into a new agreement, Employee&#146;s
then current benefits arrangements shall continue in accordance with the terms
of this Agreement until the Parties agree otherwise.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;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; </font><u><font size="2" style="font-size:10.0pt;">At-Will Employment</font></u><font size="2" style="font-size:10.0pt;">.&#160;
The Company and the Employee acknowledge that subject to the provisions
of this Agreement, the Employee&#146;s employment is and shall continue to be
at-will, as defined under applicable law.&#160;
If the Employee&#146;s employment terminates for any reason, the Employee
shall not be entitled to any payments, benefits, damages, awards or
compensation other than as provided by this Agreement, or as may otherwise be
established under the Company&#146;s then existing employee benefit plans or
policies at the time of termination.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;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; </font><u><font size="2" style="font-size:10.0pt;">Severance Benefits</font></u><font size="2" style="font-size:10.0pt;">.</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Termination Following A Change of Control</font></u><font size="2" style="font-size:10.0pt;">.&#160;
If the Employee&#146;s employment with the Company terminates as a result of
a Good Reason or an Involuntary Termination at any time within eighteen
(18)&nbsp;months after a Change of Control, Employee shall be entitled to the
following severance benefits:</font></h2>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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;">twenty-four (24)&nbsp;months of Employee&#146;s
base salary as in effect as of the date of such termination, less applicable
withholding, payable in a lump sum within thirty (30)&nbsp;days of the
termination date;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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;">two hundred percent (200%) of Employee&#146;s
full annual performance target bonus for the year in which the termination
occurs, payable in a lump sum within thirty (30) days of the date of
termination;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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; </font><font size="2" style="font-size:10.0pt;">all equity awards, including without
limitation stock option grants, restricted stock and stock purchase rights,
granted by the Company to the Employee prior to the Change of Control shall
become fully vested or released from the Company&#146;s repurchase right (if any
shares of stock purchased by or granted to the Employee prior to the Change of
Control remain subject to such repurchase right) and exercisable as of the date
of the termination to the extent such equity awards are outstanding and
unexercisable or unreleased at the time of such termination.&#160; The Employee shall be permitted to exercise
his vested equity awards (including awards that vest as a result of the
Agreement) for twelve (12)&nbsp;months from the date of termination; and</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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; </font><font size="2" style="font-size:10.0pt;">an amount equal to twelve (12) months of health
insurance premiums for continuation coverage pursuant to the Consolidated
Omnibus Reconciliation Act of 1985 as amended (&#147;COBRA&#148;) at the same level of
health (i.e., medical, vision and dental) coverage and benefits as in effect
for the Employee on the day immediately preceding the day of the Employee&#146;s
termination of employment, payable in a lump sum within thirty (30) days of the
date of termination.</font></h3>

<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;">3</font></p>

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<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>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Termination Apart from a Change of
Control</font></u><font size="2" style="font-size:10.0pt;">.&#160; If the Employee&#146;s employment with the Company
terminates as a result of a Good Reason or an Involuntary Termination during
the term of this Agreement, then the Employee shall be entitled to the
following severance benefits:</font></h2>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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;">twenty-four (24)&nbsp;months of Employee&#146;s
base salary as in effect as of the date of such termination, less applicable
withholding, payable in a lump sum within thirty (30)&nbsp;days of the
termination;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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;">one hundred percent (100%) of Employee&#146;s
full annual performance target bonus for the year in which the termination
occurs, payable in a lump sum within thirty (30) days of the termination;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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; </font><font size="2" style="font-size:10.0pt;">all equity awards, including without
limitation stock option grants, restricted stock and stock purchase rights,
granted by the Company to the Employee shall become fully vested or released
from the Company&#146;s repurchase right (if any shares of stock purchased by or
granted to the Employee remain subject to such repurchase right) and
exercisable as of the date of the termination to the extent such equity awards
are outstanding and unexercisable or unreleased at the time of such
termination.&#160; The Employee shall be
permitted to exercise his vested equity awards (including awards that vest as a
result of the Agreement) for twelve (12)&nbsp;months from the date of
termination; and</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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; </font><font size="2" style="font-size:10.0pt;">an amount equal to twelve (12) months of health
insurance premiums for continuation coverage pursuant to COBRA at the same
level of health (i.e., medical, vision and dental) coverage and benefits as in
effect for the Employee on the day immediately preceding the day of the
Employee&#146;s termination of employment, payable in a lump sum within thirty (30)
days of the date of termination.</font></h3>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Termination Apart from a Change of
Control or Involuntary Termination</font></u><font size="2" style="font-size:10.0pt;">.&#160; For avoidance
of doubt, if the Employee&#146;s employment with the Company terminates as a result
of Cause, then the Employee shall not be entitled to receive severance or other
benefits hereunder, except those benefits required to be provided by law.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Accrued Wages and Vacation; Expenses</font></u><font size="2" style="font-size:10.0pt;">.&#160;
Without regard to the reason for, or the timing of, Employee&#146;s
termination of employment: (i)&nbsp;the Company shall pay the Employee any
unpaid base salary due for periods prior to the Termination Date; (ii)&nbsp;the
Company shall pay the Employee all of the Employee&#146;s accrued and unused
vacation through the Termination Date; and (iii)&nbsp;following submission of
proper expense reports by the Employee, the Company shall reimburse the
Employee for all expenses reasonably and necessarily incurred by the Employee
in connection with the business of the Company prior to the Termination
Date.&#160; These payments shall be made
promptly upon termination and within the period of time mandated by law.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;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; </font><u><font size="2" style="font-size:10.0pt;">Section&nbsp;409A</font></u><font size="2" style="font-size:10.0pt;">.&#160;
Notwithstanding anything to the contrary in this Agreement, if the
Company, reasonably determines that Section&nbsp;409A of the Code will result
in the imposition of additional tax to an earlier payment of any severance or
other benefits otherwise due to the Employee pursuant to Section 4 of this
Agreement or otherwise on or within the six (6)&nbsp;month period following the
Employee&#146;s termination, the severance benefits will accrue during such six</font></h1>

<p style="margin:0in 0in .0001pt;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;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;">4</font></p>

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<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>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(6)&nbsp;month
period and will become payable in a lump sum payment on the date six
(6)&nbsp;months and one (1)&nbsp;day following the Employee&#146;s date of
termination.&#160; All subsequent payments, if
any, will be payable as provided in this Agreement.&#160; In addition, notwithstanding anything to the
contrary in this Agreement, this Agreement will be deemed amended to the extent
necessary to avoid imposition of any additional tax or income recognition prior
to actual payment to the Employee under Code Section&nbsp;409A and any
temporary, proposed or final Treasury Regulations and guidance promulgated
thereunder and the parties agree to cooperate with each other and to take
reasonably necessary steps in this regard.&#160;
The Employee agrees to work with the Company in good faith to amend this
Agreement by December 31, 2008 to comply with the final Treasury Regulations
and any subsequent guidance promulgated under Code Section 409A.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;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; </font><u><font size="2" style="font-size:10.0pt;">Limitation on Payments</font></u><font size="2" style="font-size:10.0pt;">.&#160;
In the event that the severance and other benefits provided for in this
Agreement or otherwise payable to the Employee (i)&nbsp;constitute &#147;parachute
payments&#148; within the meaning of Section&nbsp;280G of the Code, and
(ii)&nbsp;would be subject to the excise tax imposed by Section&nbsp;4999 of
the Code (the &#147;Excise Tax&#148;), then Employee&#146;s benefits under this Agreement
shall be either</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><font size="2" style="font-size:10.0pt;">delivered in full, or</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><font size="2" style="font-size:10.0pt;">delivered as to such lesser extent which
would result in no portion of such benefits being subject to the Excise Tax,</font></h2>

<p style="margin:0in 0in 12.0pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">whichever of the foregoing amounts, taking into
account the applicable federal, state and local income taxes and the Excise
Tax, results in the receipt by Employee on an after-tax basis, of the greatest
amount of benefits, notwithstanding that all or some portion of such benefits
may be taxable under Section&nbsp;4999 of the Code.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless the Company and the Employee otherwise agree in
writing, any determination required under this Section&nbsp;shall be made in
writing by the Company&#146;s independent public accountants (the &#147;Accountants&#148;),
whose determination shall be conclusive and binding upon the Employee and the
Company for all purposes.&#160; For purposes
of making the calculations required by this Section, the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable, good faith interpretations concerning the application of
Section&nbsp;280G and 4999 of the Code.&#160;
The Company and the Employee shall furnish to the Accountants such
information and documents as the Accountants may reasonably request in order to
make a determination under this Section.&#160;
The Company shall bear all costs the Accountants may reasonably incur in
connection with any calculations contemplated by this Section.</font></p>

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

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

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<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>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Release and Non-Disparagement Agreement</font></u><font size="2" style="font-size:10.0pt;">.&#160;
As a condition to receiving severance or other benefits under this
Agreement, Employee will be required to sign a waiver and release of all claims
arising out of his Involuntary Termination or separation for Good Reason and an
agreement not to disparage the Company, its directors, or its executive
officers, in a form reasonably satisfactory to the Company.&#160; No severance benefits will be paid or
provided until the waiver and release agreement becomes effective.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Death or Disability</font></u><font size="2" style="font-size:10.0pt;">.&#160;
With respect to Employee&#146;s equity awards, in the event of Employee&#146;s
death or disability as such terms are defined in the applicable equity plans,
and Employee is still employed by the Company at the time of such death or
disability, then all of Employee&#146;s equity awards shall become fully vested and
exercisable.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Nonsolicitation</font></u><font size="2" style="font-size:10.0pt;">.&#160;
Employee agrees further that, for the period of his employment by the
Company and for one (1) year after the date of termination of his employment by
the Company, he will not, either directly or through others, solicit or attempt
to solicit any employee, independent contractor or consultant of the Company to
terminate his or her relationship with the Company in order to become an
employee, consultant or independent contractor to or for any other person or
entity.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Successors</font></u><font size="2" style="font-size:10.0pt;">.</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Company&#146;s Successors</font></u><font size="2" style="font-size:10.0pt;">.&#160;
Any successor to the Company (whether direct or indirect and whether by
purchase, lease, merger, consolidation, liquidation or otherwise) to all or
substantially all of the Company&#146;s business and/or assets shall assume the
Company&#146;s obligations under this Agreement and agree expressly to perform the
Company&#146;s obligations under this Agreement in the same manner and to the same
extent as the Company would be required to perform such obligations in the
absence of a succession.&#160; For all
purposes under this Agreement, the term &#147;Company&#148; shall include any successor
to the Company&#146;s business and/or assets which executes and delivers the
assumption agreement described in this subsection (a)&nbsp;or which becomes
bound by the terms of this Agreement by operation of law.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Employee&#146;s Successors</font></u><font size="2" style="font-size:10.0pt;">.&#160;
Without the written consent of the Company, Employee shall not assign or
transfer this Agreement or any right or obligation under this Agreement to any
other person or entity.&#160; Notwithstanding
the foregoing, the terms of this Agreement and all rights of Employee hereunder
shall inure to the benefit of, and be enforceable by, Employee&#146;s personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Notices</font></u><font size="2" style="font-size:10.0pt;">.</font></h1>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">General</font></u><font size="2" style="font-size:10.0pt;">.&#160; Notices and
all other communications contemplated by this Agreement shall be in writing and
shall be deemed to have been duly given when personally delivered or when
mailed by U.S. registered or certified mail, return receipt requested and
postage prepaid.&#160; In the case of the Employee,
mailed notices shall be addressed to him at the home address which he most
recently communicated to the Company in writing.&#160; In the case of the Company, mailed notices
shall be addressed to its corporate headquarters, and all notices shall be
directed to the attention of its Secretary.</font></h2>

<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;">6</font></p>

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<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>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Notice of Termination</font></u><font size="2" style="font-size:10.0pt;">.&#160;
Any termination by the Company for Cause or by the Employee as a result
of a voluntary resignation or an Involuntary Termination shall be communicated
by a notice of termination to the other party hereto given in accordance with
this Section.&#160; Such notice shall indicate
the specific termination provision in this Agreement relied upon, shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination under the provision so indicated, and shall specify the
Termination Date (which shall be not more than thirty (30)&nbsp;days after the
giving of such notice).&#160; The failure by
the Employee to include in the notice any fact or circumstance which contributes
to a showing of Involuntary Termination shall not waive any right of the
Employee hereunder or preclude the Employee from asserting such fact or
circumstance in enforcing his rights hereunder.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Arbitration</font></u><font size="2" style="font-size:10.0pt;">.</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><font size="2" style="font-size:10.0pt;">Any dispute or controversy arising out
of, relating to, or in connection with this Agreement, or the interpretation,
validity, construction, performance, breach, or termination thereof, shall be
settled by binding arbitration to be held in Santa Clara County, California, in
accordance with the National Rules for the Resolution of Employment Disputes
then in effect of the American Arbitration Association (the &#147;Rules&#148;).&#160; The arbitrator may grant injunctions or other
relief in such dispute or controversy.&#160;
The decision of the arbitrator shall be final, conclusive and binding on
the parties to the arbitration.&#160; Judgment
may be entered on the arbitrator&#146;s decision in any court having jurisdiction.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><font size="2" style="font-size:10.0pt;">The arbitrator(s) shall apply California
law to the merits of any dispute or claim, without reference to conflicts of
law rules.&#160; The arbitration proceedings
shall be governed by federal arbitration law and by the Rules, without
reference to state arbitration law.&#160;
Employee hereby consents to the personal jurisdiction of the state and
federal courts located in California for any action or proceeding arising from
or relating to this Agreement or relating to any arbitration in which the
parties are participants.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><font size="2" style="font-size:10.0pt;">Employee understands that nothing in this
Section&nbsp;modifies Employee&#146;s at-will employment status.&#160; Either Employee or the Company can terminate
the employment relationship at any time, with or without Cause.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><font size="2" style="font-size:10.0pt;">EMPLOYEE HAS READ AND UNDERSTANDS THIS
SECTION, WHICH DISCUSSES ARBITRATION.&#160;
EMPLOYEE UNDERSTANDS THAT SUBMITTING ANY CLAIMS ARISING OUT OF, RELATING
TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY,
CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING
ARBITRATION, CONSTITUTES A WAIVER OF EMPLOYEE&#146;S RIGHT TO A JURY TRIAL AND
RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE
EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, THE FOLLOWING
CLAIMS:</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.75in;"><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;">ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE
OF EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT
OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED;</font></h3>

<p style="margin:0in 0in .0001pt;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;">7</font></p>

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<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>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL
DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL
INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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;">ANY AND ALL CLAIMS FOR VIOLATION OF ANY
FEDERAL STATE OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, TITLE VII OF
THE CIVIL RIGHTS ACT OF 1964, THE CIVIL RIGHTS ACT OF 1991, THE AGE
DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT
OF 1990, THE FAIR LABOR STANDARDS ACT, THE CALIFORNIA FAIR EMPLOYMENT AND
HOUSING ACT, AND LABOR CODE SECTION 201, <i>et seq</i>;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.75in;"><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; </font><font size="2" style="font-size:10.0pt;">ANY AND ALL CLAIMS ARISING OUT OF ANY
OTHER LAWS AND REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.</font></h3>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Miscellaneous Provisions</font></u><font size="2" style="font-size:10.0pt;">.</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">No Duty to Mitigate</font></u><font size="2" style="font-size:10.0pt;">.&#160;
The Employee shall not be required to mitigate the amount of any payment
contemplated by this Agreement, nor shall any such payment be reduced by any
earnings that the Employee may receive from any other source.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Waiver</font></u><font size="2" style="font-size:10.0pt;">.&#160; No provision
of this Agreement may be modified, waived or discharged unless the
modification, waiver or discharge is agreed to in writing and signed by the Employee
and by an authorized officer of the Company (other than the Employee).&#160; No waiver by either party of any breach of,
or of compliance with, any condition or provision of this Agreement by the
other party shall be considered a waiver of any other condition or provision or
of the same condition or provision at another time.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Integration</font></u><font size="2" style="font-size:10.0pt;">.&#160;
This Agreement, together with any outstanding equity award agreements
referenced herein represent the entire agreement and understanding between the
parties as to the subject matter herein and supersede all prior or
contemporaneous agreements, whether written or oral, with respect to this
Agreement and any equity award agreements.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Choice of Law</font></u><font size="2" style="font-size:10.0pt;">.&#160;
The validity, interpretation, construction and performance of this
Agreement shall be governed by the internal substantive laws, but not the
conflicts of law rules, of the State of California.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Severability</font></u><font size="2" style="font-size:10.0pt;">.&#160;
The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the validity or enforceability of any other
provision hereof, which shall remain in full force and effect.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Employment Taxes</font></u><font size="2" style="font-size:10.0pt;">.&#160;
All payments made pursuant to this Agreement shall be subject to
withholding of applicable income and employment taxes.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">Counterparts</font></u><font size="2" style="font-size:10.0pt;">.&#160;
This Agreement may be executed in counterparts, each of which shall be
deemed an original, but all of which together will constitute one and the same
instrument.</font></h2>

<p style="margin:0in 0in .0001pt;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;">8</font></p>

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<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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><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; </font><u><font size="2" style="font-size:10.0pt;">No Representations</font></u><font size="2" style="font-size:10.0pt;">.&#160;
The Employee represents that he has had the opportunity to consult with
his attorneys and tax advisors, and has carefully read and understands the
scope, effect and potential tax consequences of the provisions of this
Agreement, including, but not limited to, the potential consequences of Section
409A of the Code.&#160; The Employee
represents that he is not relying on the Company for any tax advice.</font></h2>

<p style="margin:0in 0in .0001pt;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;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;">9</font></p>

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<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 style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, each of the parties has executed
this Agreement, in the case of the Company by its duly authorized officer, as
of the day and year first above written.</font></p>

<p style="margin:0in 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%;">
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMPANY:</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:43.44%;">
  <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="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:43.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="38%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/<font style="text-transform:uppercase;"> Susan Marsch</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:43.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="38%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VP
  and General Counsel</font></p>
  </td>
 </tr>
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:43.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:43.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMPLOYEE:</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:43.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ <font style="text-transform:uppercase;">Hong Liang Lu</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature</font></p>
  </td>
 </tr>
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:43.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:43.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:uppercase;">Hong Liang Lu</font></p>
  </td>
 </tr>
 <tr>
  <td width="56%" valign="top" style="padding:0in .7pt 0in .7pt;width:56.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:43.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Printed
  Name</font></p>
  </td>
 </tr>
</table>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURE PAGE TO CHANGE OF CONTROL/<br>
INVOLUNTARY TERMINATION SEVERANCE AGREEMENT</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;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>a07-30450_1ex10d2.htm
<DESCRIPTION>EX-10.2
<TEXT>
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<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;">Exhibit 10.2</font></b></p>

<p align="center" 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;font-weight:bold;">UTSTARCOM, INC.</font></b></p>

<p align="center" 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;font-weight:bold;">RETENTION 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 Retention Agreement (the &#147;<b>Agreement</b>&#148;) is
made November 30, 2007 (the &#147;<b>Effective Date</b>&#148;),
by and between Francis P. Barton (&#147;<b>Executive</b>&#148;)
and UTStarcom, Inc. (the &#147;<b>Company</b>&#148;).</font></p>

<p style="margin:12.0pt 0in .0001pt;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;">, Executive is employed as the Company&#146;s Executive
Vice President and Chief Financial Officer and serves on the Company&#146;s Board of
Directors (the &#147;<b>Board</b>&#148;);</font></p>

<p style="margin:12.0pt 0in .0001pt;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;">, Executive is a valued member of the Company&#146;s senior
management team and has played a critical role in completing the Company&#146;s
stock option investigation and assisting the Company to becoming current in its
filing requirements with the Securities and Exchange Commission; and</font></p>

<p style="margin:12.0pt 0in .0001pt;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;">, the Company wishes to provide an incentive to
Executive to (i) remain in the employ of the Company and (ii) increase the
value of the Company for the benefit of its stockholders.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW, THEREFORE</font></b><font size="2" style="font-size:10.0pt;">, in consideration of the mutual covenants herein
contained, and in consideration of Executive&#146;s continued employment with the
Company, the parties agree 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; That
the Company will provide Executive a retention incentive with a total value of
$10,000,000 (the &#147;<b>Retention Incentive</b>&#148;),
as determined herein.</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; That
the Retention Incentive will consist of a combination of restricted stock, restricted
stock units, performance shares and performance units (together, &#147;<b>Equity</b>&#148;) granted under the Company&#146;s 2006 Equity Incentive
Plan (the &#147;<b>Plan</b>&#148;) and/or cash, in the sole
discretion of the Compensation Committee of the Board (the &#147;<b>Committee</b>&#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;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; That
the value of the Equity granted to Executive as part of the Retention Incentive
will be determined based on the Fair Market Value (as defined in the Plan) of
the Company&#146;s common stock on the applicable date of grant.&#160; By way of example only, if the Company were
to grant Executive an award of 300,000 shares of restricted stock when the Fair
Market Value of the Company&#146;s common stock was $5.00 per share, that award
would be valued at $1,500,000 for purposes of determining the value awarded to
Executive under Section 1.</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;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; That
it is the desire of the parties hereto that the Retention Incentive consist of
Equity, though the Company retains the right (but not the obligation) to
provide the Retention Incentive solely or partially in cash.&#160; Because of the limits on the maximum amount
of Equity that can be granted to an individual in any calendar year, it is the
expectation of the parties that the Retention Incentive will be awarded over a
number of years, so that as much of the Retention Incentive can be awarded under
the Plan as possible.</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; That
the Committee will award the first installment of the Retention Incentive to
Executive in a combination of Equity in the Committee&#146;s sole discretion, up to
the annual maximum</font></h1>

<div style="margin:12.0pt 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<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 style="margin:12.0pt 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">amounts permitted under the Plan after taking into
account Executive&#146;s 2007 focal awards, subject to Executive&#146;s continued
employment with the Company through the date such awards are granted.</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;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; That
each January following the Effective Date, the remaining installments of the
Retention Incentive will be awarded to Executive in a combination of Equity
and/or cash, as determined by the Committee in its sole discretion, with the
expectation that the Retention Incentive will be granted in a combination of
Equity up to the maximum annual limits permitted under the Plan after taking
into account Executive&#146;s focal grant for the particular year, subject to
Executive&#146;s continued employment with the Company through each such date.</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; That
the first installment of the Retention Incentive will vest as to $2,500,000 in
value on the date the Equity award to be granted pursuant to Section 5 becomes
effective consistent with the Company&#146;s Equity Award and Grant Policy and
Procedures, and as to $2,500,000 in value on each November 30 thereafter,
subject to Executive&#146;s continued employment with the Company through each
vesting date.&#160; The Committee will
determine in its sole discretion the types of Equity and the amount of Equity
and, if applicable, cash that will be eligible to vest on each vesting
date.&#160; For these purposes, the value of
Equity to vest will be based on the Fair Market Value (as defined in the Plan)
of the Company&#146;s common stock on the applicable date of grant.</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; That
in the event Executive&#146;s employment is terminated in a manner that would
trigger the payment of severance benefits under the Change of
Control/Involuntary Termination Severance Agreement by and between Executive
and the Company (the &#147;<b>Severance Agreement</b>&#148;)
or Executive&#146;s employment with the Company is terminated as a result of his
death or Disability, then Executive shall be entitled to a cash payment equal
to the amount of the Retention Incentive that has not been granted in Equity as
of the date of such termination.&#160; The
receipt of any such payment that arises as a result of a termination of
Executive&#146;s employment with the Company that would trigger severance payments
under the Severance Agreement will be subject to the same terms and conditions
that apply to Executive&#146;s receipt of severance benefits under the Severance
Agreement.&#160; For the purposes of this
Agreement, &#147;<b>Disability</b>&#148; will have the same
meaning given to the term in the Plan.</font></h1>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By way of example only, if the Company terminated Executive&#146;s
employment with the Company without Cause (as defined in the Severance
Agreement) and as of the date of such termination had granted Executive Equity
with a value of $9,000,000 as determined under Section 3, then the Company
would make a lump sum cash payment to Executive equal to $1,000,000, subject to
the same terms and conditions that apply to Executive&#146;s receipt of severance
benefits under the Severance Agreement.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For avoidance of doubt, the vesting of any Equity granted pursuant to
the Retention Incentive may also accelerate pursuant to the provisions of the
Severance Agreement.&#160; In addition, if Executive&#146;s
employment with the Company is terminated as a result of his death or
Disability, the vesting of any Equity granted pursuant to the Retention
Incentive will become fully vested or released from the Company&#146;s repurchase
right as of the date of termination.</font></p>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">That notwithstanding anything to the
contrary in this Agreement, if Executive is a &#147;specified employee&#148; within the
meaning of Section 409A of the Code and any final regulations and</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>

<div style="margin:12.0pt 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<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>

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">guidance
promulgated thereunder (&#147;<b>Section 409A</b>&#148;)
at the time of Executive&#146;s termination, then only that portion of the severance
payable to Executive pursuant to this Agreement (other than due to death), if
any, and any other severance payments or separation benefits which may be
considered deferred compensation under Section 409A (together, the &#147;<b>Deferred Compensation Separation Benefits</b>&#148;),
which (when considered together) do not exceed the Section 409A Limit (as
defined below) may be made within the first six (6) months following Executive&#146;s
termination of employment in accordance with the payment schedule applicable to
each payment or benefit.<i>&#160; </i>Any portion of the Deferred
Compensation Separation Benefits in excess of the Section 409A Limit otherwise
due to Executive on or within the six (6) month period following Executive&#146;s
termination will accrue during such six (6) month period and will become
payable in a lump sum payment on the date six (6) months and one (1) day
following the date of Executive&#146;s termination of employment.&#160; All subsequent Deferred Compensation
Separation Benefits, if any, will be payable in accordance with the payment
schedule applicable to each payment or benefit.</font></h1>

<p style="margin:12.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For these purposes &#147;<b>Section 409A
Limit</b>&#148; will mean the lesser of two (2) times: (i)&nbsp;Executive&#146;s
annualized compensation based upon the annual rate of pay paid to Executive
during the Company&#146;s taxable year preceding the Company&#146;s taxable year of
Executive&#146;s termination of employment as determined under Treasury Regulation
1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with
respect thereto; or&nbsp;(ii) the maximum amount that may be taken into account
under a qualified plan pursuant to Section&nbsp;401(a)(17) of the Code for the
year in which Executive&#146;s employment is terminated.</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 foregoing provisions are intended to comply with the requirements
of Section 409A so that none of the severance payments and benefits to be
provided hereunder will be subject to the additional tax imposed under Section
409A, and any ambiguities herein will be interpreted to so comply.&#160; The Company and Executive agree to work
together in good faith to consider amendments to this Agreement and to take
such reasonable actions which are necessary, appropriate or desirable to avoid
imposition of any additional tax or income recognition prior to actual payment
to Executive under Section 409A.</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;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; That
all payments made pursuant to this Agreement will be subject to withholding of
applicable taxes.</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; That
this Agreement, together with the Plan, the equity award agreements evidencing
the Equity awards that will be granted pursuant to this Agreement and the
Severance Agreement, represent the entire agreement and understanding between
the parties as to the subject matter hereof and supersede all prior or
contemporaneous agreements, whether written or oral.&#160; No waiver, alteration or modification of any
of the provisions of this Agreement will be binding, unless in writing and
signed by duly authorized representatives of the parties hereto.</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; That
this Agreement will be governed by the laws of the State of California (with
the exception of its conflict of laws provisions).</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;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; That
this Agreement may be executed in counterparts, and each counterpart will have
the same force and effect as an original and will constitute an effective,
binding agreement on the part of each of the undersigned.&#160; Execution and delivery of this Agreement by
exchange of facsimile</font></h1>

<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;">3</font></p>

<div style="margin:12.0pt 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

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

<h1 style="font-weight:normal;margin:12.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">copies
bearing the facsimile signature of a party will constitute a valid and binding
execution and delivery of the Agreement by such party.&#160; Such facsimile copies will constitute
enforceable original documents.</font></h1>

<p style="margin:12.0pt 0in;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS WHEREOF</font></b><font size="2" style="font-size:10.0pt;">, this Agreement has been entered into as
of the date first set forth above.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.02%;">
 <tr>
  <td width="39%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:39.5%;">
  <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>
  <td width="22%" valign="top" style="padding:0in .7pt 0in .7pt;width:22.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXECUTIVE</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="39%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:39.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0in .7pt 0in .7pt;width:22.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <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>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="35%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:35.42%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ <font style="text-transform:uppercase;">Susan Marsch</font></font></p>
  </td>
  <td width="22%" valign="top" style="padding:0in .7pt 0in .7pt;width:22.3%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ <font style="text-transform:uppercase;">Francis P. Barton</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="39%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:39.5%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0in .7pt 0in .7pt;width:22.28%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francis P. Barton</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:6.78%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:32.72%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:uppercase;">Susan
  Marsch</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0in .7pt 0in .7pt;width:22.3%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="39%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:39.5%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0in .7pt 0in .7pt;width:22.3%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
  <td width="35%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:35.42%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VP and General Counsel</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0in .7pt 0in .7pt;width:22.3%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:30.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c/o Company</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="30" style="border:none;"></td>
  <td width="20" style="border:none;"></td>
  <td width="245" style="border:none;"></td>
  <td width="167" style="border:none;"></td>
  <td width="61" style="border:none;"></td>
  <td width="224" style="border:none;"></td>
 </tr>
</table>

<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;">4</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>a07-30450_1ex10d3.htm
<DESCRIPTION>EX-10.3
<TEXT>
<html>

<head>





</head>

<body lang="EN-US" style="text-justify-trim:punctuation">

<div style="font-family:Times New Roman;">

<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 10.3</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:6.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">2006
EQUITY INCENTIVE PLAN</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;">NOTICE
OF GRANT OF PERFORMANCE SHARES</font></b></p>

<p style="margin:.25in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless otherwise defined
herein, the terms defined in the 2006 Equity Incentive Plan (the &#147;Plan&#148;) will
have the same defined meanings in this Notice of Grant of Performance Shares
(the &#147;Notice of Grant&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="3" face="Times New Roman">&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:6.72%;"><a name="TableHead"></a>
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Participant:</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Address:</font></b></p>
  </td>
 </tr>
</table>

<p style="margin:12.0pt 0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You have been
granted the right to receive Performance Shares, subject to the terms and
conditions of the Plan, this Notice of Grant and the Performance Share Award
Agreement attached hereto as <u>Exhibit A</u> (the &#147;Award Agreement&#148;) as
follows:</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.02%;">
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Grant</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:27.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:40.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:49.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.08%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Target Number of
  Performance Shares</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.86%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[</font></p>
  </td>
  <td width="26%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:26.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0.375pt .7pt;width:21.78%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">]</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:40.8%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.86%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:49.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance Period</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">[</font></p>
  </td>
  <td width="26%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:26.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0.375pt .7pt;width:21.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">]</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:40.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:59.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.08%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance
  Matrix</font></p>
  </td>
  <td width="59%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:59.2%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  number of Performance Shares in which you may vest in accordance with the Vesting
  Schedule below will depend upon achievement <b>[Insert
  Description of Performance Goal(s)] </b>and will be determined in
  accordance with the Performance Matrix, attached hereto as Appendix B. <b>[Insert Performance Target(s)]</b>.</font></p>
  </td>
 </tr>
</table>

<p style="margin:12.0pt 0in .0001pt;text-autospace:none;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vesting
Schedule</font></u><font size="2" style="font-size:10.0pt;">:</font></p>

<p style="margin:9.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Performance Shares
will vest as follows: [<b>Insert Vesting Schedule</b>]</font></p>

<p style="margin:9.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event Participant
ceases to be a Service Provider for any or no reason before Participant vests
in the Performance Shares, the Performance Shares and Participant&#146;s right to
acquire any Shares hereunder will immediately terminate.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By
Participant&#146;s signature and the signature of the Company&#146;s representative
below, Participant and the Company agree that this Award of Performance Shares
is granted under and governed by the terms and conditions of the Plan and the
Award Agreement, both of which are made a part of this document.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="39%" valign="top" style="padding:0in .7pt 0in .7pt;width:39.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PARTICIPANT</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.38%;">
  <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="39%" valign="top" style="padding:0in .7pt 0in .7pt;width:39.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="39%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:39.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:47.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="39%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:39.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:47.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>
  </td>
 </tr>
 <tr>
  <td width="39%" valign="top" style="padding:0in .7pt 0in .7pt;width:39.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="39%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:39.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:47.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="39%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:39.5%;">
  <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="13%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:47.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title</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>

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<div style="font-family:Times New Roman;">

<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 12.0pt;text-align:center;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT A</font></u></b></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PERFORMANCE
SHARE AWARD AGREEMENT</font></b></p>

<p style="margin:12.0pt 0in;text-autospace:none;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>Grant</u>.&#160; The Company hereby grants to the Participant
named in the attached Notice of Grant</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">an Award of Performance Shares, subject to
all of the terms and conditions in this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement and the Plan, which is incorporated
herein by reference.&#160; Subject to Section
19(c) of the Plan, in the event of a conflict between the terms and conditions
of the Plan and the terms and conditions of this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement, the terms and
conditions of the Plan will prevail.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Company&#146;s
Obligation to Pay</u>.&#160; Each Performance
Share represents the right to receive a Share on the date it vests.&#160; Unless and until the Performance Shares will
have vested in the manner set forth in Section&nbsp;3, Participant will have no
right to payment of any such Performance Shares.&#160; Prior to actual payment of any vested
Performance Shares, such Performance Share will represent an unsecured
obligation of the Company, payable (if at all) only from the general assets of
the Company.&#160; Any Performance Shares that
vest in accordance with Sections 3 or 4 will be paid to Participant (or in the
event of Participant&#146;s death, to his or her estate) in whole Shares, subject to
Participant satisfying any applicable tax withholding obligations as set forth
in Section 7.&#160; Subject to the provisions
of Section 4, such vested Performance Shares shall be paid in Shares as soon as
practicable after vesting, but in each such case within the period ending no
later than the date that is two and one half (2&#189;) months from the end of the
Company&#146;s tax year that includes the vesting date.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Vesting
Schedule</u>.&#160; Except as provided in
Section 4, and subject to Section 5, the Performance Shares awarded by this
Award Agreement will vest in accordance with the vesting provisions set forth
in the Notice of Grant.&#160; Performance
Shares</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">scheduled to
vest on a certain date or upon the occurrence of a certain condition will not
vest in Participant in accordance with any of the provisions of this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement, unless
Participant will have been continuously a Service Provider from the Date of
Grant until the date such vesting occurs.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Administrator
Discretion</u>.&#160; The Administrator, in
its discretion, may accelerate the vesting of the balance, or some lesser
portion of the balance, of the unvested Performance Shares at any time, subject
to the terms of the Plan.&#160; If so
accelerated, such Performance Shares will be considered as having vested as of
the date specified by the Administrator.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding anything in the Plan or this Award
Agreement to the contrary, if the vesting of the balance, or some lesser
portion of the balance, of the Performance Shares is accelerated in connection
with Participant&#146;s termination as a Service Provider (provided that such
termination is a &#147;separation from service&#148; within the meaning of Section 409A,
as determined by the Company</font><font size="2" style="font-size:10.0pt;">)</font><font size="2" style="font-size:10.0pt;">,
other than due to death<b>,</b></font><font size="2" style="font-size:10.0pt;"> and if (x)
Participant is a &#147;specified employee&#148; within the meaning of Section 409A at the
time of such termination as a Service Provider and (y) the payment of such
accelerated Performance Shares will result in the imposition of additional tax
under Section 409A if paid to Participant on or within the six (6) month period
following Participant&#146;s termination as a Service Provider, then the payment of
such accelerated Performance Shares will not be made until the date six (6)
months and one (1) day following the date of Participant&#146;s termination as a
Service Provider, unless the Participant dies following his or her termination
as a Service Provider, in which case, the Performance Shares</font></p>

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<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">will be paid in Shares to the Participant&#146;s estate as soon as practicable
following his or her death.&#160; It is the
intent of this Award Agreement to comply with the requirements of Section 409A
so that none of the Performance Shares provided under this Award Agreement or
Shares issuable thereunder will be subject to the additional tax imposed under
Section 409A, and any ambiguities herein will be interpreted to so comply.&#160; For purposes of this Award Agreement, &#147;Section
409A&#148; means Section 409A of the Code, and any proposed, temporary or final
Treasury Regulations and Internal Revenue Service guidance thereunder, as each
may be amended from time to time.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Forfeiture
upon Termination of Status as a Service Provider</u>.&#160; Notwithstanding any contrary provision of
this Award Agreement, the balance of the Performance Shares that have not
vested as of the time of Participant&#146;s termination as a Service Provider for
any or no reason and Participant&#146;s right to acquire any Shares hereunder will
immediately terminate.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Death
of Participant</u>.&#160; Any</font><font size="2" style="font-size:10.0pt;"> distribution or delivery to be made to
Participant under </font><font size="2" style="font-size:10.0pt;">this Award Agreement will, if Participant is then
deceased, be made to Participant&#146;s designated beneficiary, or</font><font size="2" style="font-size:10.0pt;"> if no beneficiary survives Participant,
the administrator or executor of Participant&#146;s estate.&#160; Any such transferee must furnish the Company
with (a)&nbsp;written notice of his or her status as transferee, and
(b)&nbsp;evidence satisfactory to the Company to establish the validity of the
transfer and compliance with any laws or regulations pertaining to said
transfer.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Withholding
of Taxes</u>.&#160; Notwithstanding any
contrary provision of this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement, no certificate representing the
Shares will be issued to Participant, unless and until satisfactory
arrangements (as determined by the Administrator) will have been made by
Participant with respect to the payment of income, employment and other taxes
which the Company determines must be withheld with respect to such Shares.&#160; The Administrator, in its sole discretion and
pursuant to such procedures as it may specify from time to time, may permit
Participant to satisfy such tax withholding obligation, in whole or in part
(without limitation) by (a)&nbsp;paying cash, (b)&nbsp;electing to have the
Company withhold otherwise deliverable Shares having a Fair Market Value equal
to the minimum amount required to be withheld, (c)&nbsp;delivering to the
Company already vested and owned Shares having a Fair Market Value equal to the
amount required to be withheld, or (d)&nbsp;selling a sufficient number of such
Shares otherwise deliverable to Participant through such means as the Company
may determine in its sole discretion (whether through a broker or otherwise)
equal to the amount required to be withheld.</font><font size="2" style="font-size:10.0pt;">&#160; </font><font size="2" style="font-size:10.0pt;">To the extent
determined appropriate by the Company in its discretion, it shall have the
right (but not the obligation) to satisfy any tax withholding obligations by
reducing the number of Shares otherwise deliverable to Participant.&#160; If Participant fails to make satisfactory
arrangements for the payment of any required tax withholding obligations
hereunder at the time any applicable Performance Shares otherwise are scheduled
to vest pursuant to Sections 3 or 4, Participant will permanently forfeit such
Performance Shares and any right to receive Shares thereunder and the
Performance Shares will be returned to the Company at no cost to the Company.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Rights
as Stockholder</u>.&#160; Neither Participant
nor any person claiming under or through Participant will have any of the
rights or privileges of a stockholder of the Company in respect of any Shares
deliverable hereunder unless and until certificates representing such Shares
will have been issued, recorded on the records of the Company or its transfer
agents or registrars, and delivered to Participant.&#160; After such issuance, recordation and delivery,
Participant will have all the rights of a stockholder of the Company with
respect to voting such Shares and receipt of dividends and distributions on
such Shares.</font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 align="left" style="line-height:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-align:left;text-autospace:none;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Guarantee of Continued
Service</u>.&#160; PARTICIPANT ACKNOWLEDGES
AND AGREES THAT THE VESTING OF THE PERFORMANCE SHARES PURSUANT TO THE VESTING
SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL
OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT)
AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OF PERFORMANCE
SHARES OR ACQUIRING SHARES HEREUNDER.&#160;
PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AWARD AGREEMENT,
THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH
HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT
AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND
WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANT&#146;S RIGHT OR THE RIGHT OF THE
COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) TO
TERMINATE PARTICIPANT&#146;S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR
WITHOUT CAUSE.</font></b></h1>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Address for
Notices</font></u><font size="2" style="font-size:10.0pt;">.&#160; Any notice to be given to the
Company under the terms of this Award Agreement will be addressed to the
Company at UTStarcom, Inc., 1275 Harbor Bay Parkway, Suite 100, Alameda, CA
94502, or at such other address as the Company may hereafter designate in
writing.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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; <u>Grant
is Not Transferable</u>.&#160; Except to the
limited extent provided in Section&nbsp;6, this grant and the rights and
privileges conferred hereby will not be transferred, assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) and will not
be subject to sale under execution, attachment or similar process.&#160; Upon any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of this grant, or any right or privilege
conferred hereby, or upon any attempted sale under any execution, attachment or
similar process, this grant and the rights and privileges conferred hereby
immediately will become null and void.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Binding
Agreement</u>.&#160; Subject to the limitation
on the transferability of this grant contained herein, this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement will be binding
upon and inure to the benefit of the heirs, legatees, legal representatives,
successors and assigns of the parties hereto.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Additional
Conditions to Issuance of Stock</u>.&#160; If
at any time the Company will determine, in its discretion, that the listing,
registration or qualification of the Shares upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory authority is necessary or desirable as a condition to the issuance
of Shares to Participant (or his or her estate), such issuance will not occur
unless and until such listing, registration, qualification, consent or approval
will have been effected or obtained free of any conditions not acceptable to
the Company.&#160; Where the Company
determines that the delivery of the payment of any Shares will violate federal
securities laws or other applicable laws, the Company will defer delivery until
the earliest date at which the Company reasonably anticipates that the delivery
of Shares will no longer cause such violation.&#160;
The Company will make all reasonable efforts to meet the requirements of
any such state or federal law or securities exchange and to obtain any such
consent or approval of any such governmental authority.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Plan
Governs</u>.&#160; This Award Agreement is
subject to all terms and provisions of the Plan.&#160; In the event of a conflict between one or
more provisions of this Award Agreement</font></p>

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<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and one or more provisions of the Plan, the provisions of the Plan will
govern.&#160; Capitalized terms used and not
defined in this Award Agreement will have the meaning set forth in the Plan.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Administrator Authority</u>.&#160; The Administrator will have the power to
interpret the Plan and this Award Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent
therewith and to interpret or revoke any such rules (including, but not limited
to, the determination of whether or not any Performance Shares have
vested).&#160; All actions taken and all
interpretations and determinations made by the Administrator in good faith will
be final and binding upon Participant, the Company and all other interested
persons.&#160; No member of the Administrator
will be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan or this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Electronic
Delivery</u>.&#160; The Company may, in its
sole discretion, decide to deliver any documents related to Performance Shares
awarded under the Plan or future Performance Shares that may be awarded under
the Plan by electronic means or request Participant&#146;s consent to participate in
the Plan by electronic means.&#160; Participant
hereby consents to receive such documents by electronic delivery and agrees to
participate in the Plan through any on-line or electronic system established
and maintained by the Company or another third party designated by the Company.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Captions</u>.&#160; Captions provided herein are for convenience
only and are not to serve as a basis for interpretation or construction of this
Award Agreement.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Agreement
Severable</u>.&#160; In the event that any
provision in this Award</font><font size="2" style="font-size:10.0pt;">
</font><font size="2" style="font-size:10.0pt;">Agreement will be held invalid or unenforceable, such provision will be
severable from, and such invalidity or unenforceability will not be construed
to have any effect on, the remaining provisions of this Award Agreement.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Modifications
to the Agreement</u>.&#160; This Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement constitutes the
entire understanding of the parties on the subjects covered.&#160; Participant expressly warrants that he or she
is not accepting this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement in reliance on any promises, representations, or inducements
other than those contained herein.&#160;
Modifications to this Award Agreement or the Plan can be made only in an
express written contract executed by a duly authorized officer of the
Company.&#160; Notwithstanding anything to the
contrary in the Plan or this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement, the Company reserves the right to
revise this Award Agreement as it deems necessary or advisable, in its sole
discretion and without the consent of Participant, to comply with Section 409A
or to otherwise avoid imposition of any additional tax or income recognition
under Section 409A in connection to this Award of Performance Shares.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Amendment,
Suspension or Termination of the Plan</u>.&#160;
By accepting this Award, Participant expressly warrants that he or she
has received an Award of Performance Shares under the Plan, and has received,
read and understood a description of the Plan.&#160;
Participant understands that the Plan is discretionary in nature and may
be amended, suspended or terminated by the Company at any time.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing
Law</u>.&#160; This Award Agreement shall be
governed by the laws of the State of California, without giving effect to the
conflict of law principles thereof.&#160; For
purposes of litigating any dispute that arises under this Award of Performance
Shares or this Award Agreement, the parties hereby submit to and consent to the
jurisdiction of the State of California<b>,</b></font></p>

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<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and agree that such litigation shall be conducted in the courts of
Alameda County, California<b>,</b> or the
federal courts for the United States for the Northern District of California,
and no other courts, where this Award of Performance Shares is made and/or to
be performed.</font></p>

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<p style="margin:0in 0in 12.0pt;text-autospace:none;"><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-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">APPENDIX
B</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PERFORMANCE
MATRIX</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[INSERT PERFORMANCE MATRIX]</font></b></p>

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<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>a07-30450_1ex10d4.htm
<DESCRIPTION>EX-10.4
<TEXT>
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<head>





</head>

<body lang="EN-US" style="text-justify-trim:punctuation">

<div style="font-family:Times New Roman;">

<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 10.4</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:6.0pt 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">2006
EQUITY INCENTIVE PLAN</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;">NOTICE
OF GRANT OF PERFORMANCE UNITS</font></b></p>

<p style="margin:.25in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless otherwise defined
herein, the terms defined in the 2006 Equity Incentive Plan (the &#147;Plan&#148;) will
have the same defined meanings in this Notice of Grant of Performance Units
(the &#147;Notice of Grant&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="3" face="Times New Roman">&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:6.72%;"><a name="TableHead"></a>
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Participant:</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in .7pt;width:93.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Address:</font></b></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;">You have been granted the
right to receive Performance Units, subject to the terms and conditions of the
Plan, this Notice of Grant and the Performance Unit Award Agreement attached
hereto as <u>Exhibit A</u> (the &#147;Award Agreement&#148;) as follows:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="3" face="Times New Roman">&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:6.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" valign="top" style="padding:0in .7pt 0in .7pt;width:35.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Grant</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="33%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:33.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" valign="top" style="padding:0in .7pt 0in .7pt;width:35.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="33%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:33.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" valign="top" style="padding:0in .7pt 0in .7pt;width:35.92%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Target Number of
  Performance Units</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:32.22%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0.375pt .7pt;width:10.78%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">]</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" valign="top" style="padding:0in .7pt 0in .7pt;width:35.92%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.22%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.78%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" valign="top" style="padding:0in .7pt 0in .7pt;width:35.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance Period</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:32.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0.375pt .7pt;width:10.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">]</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" valign="top" style="padding:0in .7pt 0in .7pt;width:35.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:13.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:32.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.72%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" valign="top" style="padding:0in .7pt 0in .7pt;width:35.92%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance
  Matrix</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:50.72%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  number of Performance Units in which you may vest in accordance with the
  Vesting Schedule below will depend upon achievement <b>[Insert
  Description of Performance Goal(s)] </b>and will be determined in
  accordance with the Performance Matrix, attached hereto as Appendix B. <b>[Insert Performance Target(s)]</b>.</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="50" style="border:none;"></td>
  <td width="269" style="border:none;"></td>
  <td width="50" style="border:none;"></td>
  <td width="50" style="border:none;"></td>
  <td width="8" style="border:none;"></td>
  <td width="241" style="border:none;"></td>
  <td width="81" style="border:none;"></td>
 </tr>
</table>

<p style="margin:12.0pt 0in .0001pt;text-autospace:none;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vesting
Schedule</font></u><font size="2" style="font-size:10.0pt;">:</font></p>

<p style="margin:9.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Performance Units
will vest as follows: [<b>Insert Vesting Schedule</b>]</font></p>

<p style="margin:9.0pt 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event Participant
ceases to be a Service Provider for any or no reason before Participant vests
in the Performance Units, the Performance Units and Participant&#146;s right to
acquire any Units hereunder will immediately terminate.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By
Participant&#146;s signature and the signature of the Company&#146;s representative
below, Participant and the Company agree that this Award of Performance Units
is granted under and governed by the terms and conditions of the Plan and the
Award Agreement, both of which are made a part of this document.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PARTICIPANT</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:10.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.94%;">
  <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="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:10.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:10.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:50.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:10.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:10.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:10.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:50.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:38.2%;">
  <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="10%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:10.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title</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>

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<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 12.0pt;text-align:center;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT A</font></u></b></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PERFORMANCE
UNIT AWARD AGREEMENT</font></b></p>

<p style="margin:12.0pt 0in;text-autospace:none;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>Grant</u>.&#160; The Company hereby grants to the Participant
named in the attached Notice of Grant</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">an Award of Performance Units, subject to all
of the terms and conditions in this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement and the Plan, which is incorporated
herein by reference.&#160; Subject to Section
19(c) of the Plan, in the event of a conflict between the terms and conditions
of the Plan and the terms and conditions of this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement, the terms and
conditions of the Plan will prevail.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Company&#146;s
Obligation to Pay</u>.&#160; Each Performance
Unit represents the right to receive a Share on the date it vests.&#160; Unless and until the Performance Units will
have vested in the manner set forth in Section&nbsp;3, Participant will have no
right to payment of any such Performance Units.&#160;
Prior to actual payment of any vested Performance Units, such Performance
Unit will represent an unsecured obligation of the Company, payable (if at all)
only from the general assets of the Company.&#160;
Any Performance Units that vest in accordance with Sections 3 or 4 will
be paid to Participant (or in the event of Participant&#146;s death, to his or her
estate) in whole Units, subject to Participant satisfying any applicable tax
withholding obligations as set forth in Section 7.&#160; Subject to the provisions of Section 4, such
vested Performance Units shall be paid in Shares as soon as practicable after
vesting, but in each such case within the period ending no later than the date
that is two and one half (2&#189;) months from the end of the Company&#146;s tax year
that includes the vesting date.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Vesting
Schedule</u>.&#160; Except as provided in
Section 4, and subject to Section 5, the Performance Units awarded by this
Award Agreement will vest in accordance with the vesting provisions set forth
in the Notice of Grant.&#160; Performance
Units</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">scheduled to
vest on a certain date or upon the occurrence of a certain condition will not
vest in Participant in accordance with any of the provisions of this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement, unless
Participant will have been continuously a Service Provider from the Date of
Grant until the date such vesting occurs.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Administrator
Discretion</u>.&#160; The Administrator, in
its discretion, may accelerate the vesting of the balance, or some lesser
portion of the balance, of the unvested Performance Units at any time, subject
to the terms of the Plan.&#160; If so
accelerated, such Performance Units will be considered as having vested as of
the date specified by the Administrator.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding anything in the Plan or this Award
Agreement to the contrary, if the vesting of the balance, or some lesser
portion of the balance, of the Performance Units is accelerated in connection
with Participant&#146;s termination as a Service Provider (provided that such
termination is a &#147;separation from service&#148; within the meaning of Section 409A,
as determined by the Company</font><font size="2" style="font-size:10.0pt;">)</font><font size="2" style="font-size:10.0pt;">,
other than due to death<b>,</b></font><font size="2" style="font-size:10.0pt;"> and if (x) Participant
is a &#147;specified employee&#148; within the meaning of Section 409A at the time of
such termination as a Service Provider and (y) the payment of such accelerated
Performance Units will result in the imposition of additional tax under Section
409A if paid to Participant on or within the six (6) month period following
Participant&#146;s termination as a Service Provider, then the payment of such
accelerated Performance Units will not be made until the date six (6) months
and one (1) day following the date of Participant&#146;s termination as a Service
Provider, unless the Participant dies following his or her termination as a
Service Provider, in which case, the Performance Units will be paid in Units to
the Participant&#146;s estate as soon as practicable following his or her
death.&#160; It is the intent</font></p>

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<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of this Award Agreement to comply with the requirements of Section 409A
so that none of the Performance Units provided under this Award Agreement or
Units issuable thereunder will be subject to the additional tax imposed under
Section 409A, and any ambiguities herein will be interpreted to so comply.&#160; For purposes of this Award Agreement, &#147;Section
409A&#148; means Section 409A of the Code, and any proposed, temporary or final
Treasury Regulations and Internal Revenue Service guidance thereunder, as each
may be amended from time to time.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Forfeiture
upon Termination of Status as a Service Provider</u>.&#160; Notwithstanding any contrary provision of
this Award Agreement, the balance of the Performance Units that have not vested
as of the time of Participant&#146;s termination as a Service Provider for any or no
reason and Participant&#146;s right to acquire any Units hereunder will immediately
terminate.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Death
of Participant</u>.&#160; Any</font><font size="2" style="font-size:10.0pt;"> distribution or delivery to be made to
Participant under </font><font size="2" style="font-size:10.0pt;">this Award Agreement will, if Participant is then
deceased, be made to Participant&#146;s designated beneficiary, or</font><font size="2" style="font-size:10.0pt;"> if no beneficiary survives Participant,
the administrator or executor of Participant&#146;s estate.&#160; Any such transferee must furnish the Company
with (a)&nbsp;written notice of his or her status as transferee, and
(b)&nbsp;evidence satisfactory to the Company to establish the validity of the
transfer and compliance with any laws or regulations pertaining to said
transfer.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Withholding
of Taxes</u>.&#160; Notwithstanding any contrary
provision of this Award</font><font size="2" style="font-size:10.0pt;">
</font><font size="2" style="font-size:10.0pt;">Agreement, no certificate representing the Units will be issued to
Participant, unless and until satisfactory arrangements (as determined by the
Administrator) will have been made by Participant with respect to the payment of
income, employment and other taxes which the Company determines must be
withheld with respect to such Units.&#160; The
Administrator, in its sole discretion and pursuant to such procedures as it may
specify from time to time, may permit Participant to satisfy such tax
withholding obligation, in whole or in part (without limitation) by
(a)&nbsp;paying cash, (b)&nbsp;electing to have the Company withhold otherwise
deliverable Units having a Fair Market Value equal to the minimum amount
required to be withheld, (c)&nbsp;delivering to the Company already vested and
owned Units having a Fair Market Value equal to the amount required to be
withheld, or (d)&nbsp;selling a sufficient number of such Units otherwise
deliverable to Participant through such means as the Company may determine in
its sole discretion (whether through a broker or otherwise) equal to the amount
required to be withheld.</font><font size="2" style="font-size:10.0pt;">&#160; </font><font size="2" style="font-size:10.0pt;">To the extent determined
appropriate by the Company in its discretion, it shall have the right (but not
the obligation) to satisfy any tax withholding obligations by reducing the
number of Units otherwise deliverable to Participant.&#160; If Participant fails to make satisfactory
arrangements for the payment of any required tax withholding obligations
hereunder at the time any applicable Performance Units otherwise are scheduled
to vest pursuant to Sections 3 or 4, Participant will permanently forfeit such
Performance Units and any right to receive Units thereunder and the Performance
Units will be returned to the Company at no cost to the Company.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Rights
as Stockholder</u>.&#160; Neither Participant
nor any person claiming under or through Participant will have any of the
rights or privileges of a stockholder of the Company in respect of any Units
deliverable hereunder unless and until certificates representing such Units
will have been issued, recorded on the records of the Company or its transfer
agents or registrars, and delivered to Participant.&#160; After such issuance, recordation and
delivery, Participant will have all the rights of a stockholder of the Company
with respect to voting such Units and receipt of dividends and distributions on
such Units.</font></p>

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<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 align="left" style="line-height:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-align:left;text-autospace:none;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Guarantee of Continued
Service</u>.&#160; PARTICIPANT ACKNOWLEDGES
AND AGREES THAT THE VESTING OF THE PERFORMANCE UNITS PURSUANT TO THE VESTING
SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL
OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT)
AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OF PERFORMANCE
UNITS OR ACQUIRING UNITS HEREUNDER.&#160;
PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AWARD AGREEMENT,
THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH
HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT
AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND
WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANT&#146;S RIGHT OR THE RIGHT OF THE
COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) TO
TERMINATE PARTICIPANT&#146;S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR
WITHOUT CAUSE.</font></b></h1>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Address for
Notices</font></u><font size="2" style="font-size:10.0pt;">.&#160; Any notice to be given to the
Company under the terms of this Award Agreement will be addressed to the
Company at UTStarcom, Inc., 1275 Harbor Bay Parkway, Suite 100, Alameda, CA
94502, or at such other address as the Company may hereafter designate in
writing.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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; <u>Grant
is Not Transferable</u>.&#160; Except to the
limited extent provided in Section&nbsp;6, this grant and the rights and
privileges conferred hereby will not be transferred, assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) and will not
be subject to sale under execution, attachment or similar process.&#160; Upon any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of this grant, or any right or privilege
conferred hereby, or upon any attempted sale under any execution, attachment or
similar process, this grant and the rights and privileges conferred hereby
immediately will become null and void.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;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>Binding
Agreement</u>.&#160; Subject to the limitation
on the transferability of this grant contained herein, this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement will be binding
upon and inure to the benefit of the heirs, legatees, legal representatives,
successors and assigns of the parties hereto.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Additional
Conditions to Issuance of Stock</u>.&#160; If
at any time the Company will determine, in its discretion, that the listing,
registration or qualification of the Units upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory authority is necessary or desirable as a condition to the issuance
of Units to Participant (or his or her estate), such issuance will not occur
unless and until such listing, registration, qualification, consent or approval
will have been effected or obtained free of any conditions not acceptable to
the Company.&#160; Where the Company
determines that the delivery of the payment of any Units will violate federal
securities laws or other applicable laws, the Company will defer delivery until
the earliest date at which the Company reasonably anticipates that the delivery
of Units will no longer cause such violation.&#160;
The Company will make all reasonable efforts to meet the requirements of
any such state or federal law or securities exchange and to obtain any such consent
or approval of any such governmental authority.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Plan
Governs</u>.&#160; This Award Agreement is
subject to all terms and provisions of the Plan.&#160; In the event of a conflict between one or
more provisions of this Award Agreement and one or more provisions of the Plan,
the provisions of the Plan will govern.&#160;
Capitalized terms used and not defined in this Award Agreement will have
the meaning set forth in the Plan.</font></p>

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<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Administrator Authority</u>.&#160; The Administrator will have the power to
interpret the Plan and this Award Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent
therewith and to interpret or revoke any such rules (including, but not limited
to, the determination of whether or not any Performance Units have
vested).&#160; All actions taken and all
interpretations and determinations made by the Administrator in good faith will
be final and binding upon Participant, the Company and all other interested
persons.&#160; No member of the Administrator
will be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan or this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Electronic
Delivery</u>.&#160; The Company may, in its
sole discretion, decide to deliver any documents related to Performance Units
awarded under the Plan or future Performance Units that may be awarded under
the Plan by electronic means or request Participant&#146;s consent to participate in
the Plan by electronic means.&#160;
Participant hereby consents to receive such documents by electronic
delivery and agrees to participate in the Plan through any on-line or
electronic system established and maintained by the Company or another third
party designated by the Company.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Captions</u>.&#160; Captions provided herein are for convenience
only and are not to serve as a basis for interpretation or construction of this
Award Agreement.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Agreement
Severable</u>.&#160; In the event that any
provision in this Award</font><font size="2" style="font-size:10.0pt;">
</font><font size="2" style="font-size:10.0pt;">Agreement will be held invalid or unenforceable, such provision will be
severable from, and such invalidity or unenforceability will not be construed
to have any effect on, the remaining provisions of this Award Agreement.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Modifications
to the Agreement</u>.&#160; This Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement constitutes the
entire understanding of the parties on the subjects covered.&#160; Participant expressly warrants that he or she
is not accepting this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement in reliance on any promises, representations, or inducements
other than those contained herein.&#160;
Modifications to this Award Agreement or the Plan can be made only in an
express written contract executed by a duly authorized officer of the
Company.&#160; Notwithstanding anything to the
contrary in the Plan or this Award</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">Agreement, the Company reserves the right to
revise this Award Agreement as it deems necessary or advisable, in its sole
discretion and without the consent of Participant, to comply with Section 409A
or to otherwise avoid imposition of any additional tax or income recognition
under Section 409A in connection to this Award of Performance Units.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Amendment,
Suspension or Termination of the Plan</u>.&#160;
By accepting this Award, Participant expressly warrants that he or she
has received an Award of Performance Units under the Plan, and has received,
read and understood a description of the Plan.&#160;
Participant understands that the Plan is discretionary in nature and may
be amended, suspended or terminated by the Company at any time.</font></p>

<p style="margin:0in 0in 12.0pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing
Law</u>.&#160; This Award Agreement shall be
governed by the laws of the State of California, without giving effect to the conflict
of law principles thereof.&#160; For purposes
of litigating any dispute that arises under this Award of Performance Units or
this Award Agreement, the parties hereby submit to and consent to the
jurisdiction of the State of California<b>,</b> and agree
that such litigation shall be conducted in the courts of Alameda County,
California<b>,</b> or the federal courts for the United
States for the Northern District of California, and no other courts, where this
Award of Performance Units is made and/or to be performed.</font></p>

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<p style="margin:0in 0in .0001pt;text-autospace:none;"><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-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">APPENDIX
B</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PERFORMANCE
MATRIX</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><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-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[INSERT
PERFORMANCE MATRIX]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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