-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 A5aStim7O0L4bLvZjAp6eawFDnH3UvcGxqcaL63Aqu83j/GdO4FZoXCtRDa5D4Xj
 /LyaNT6j8hWaNcmaqkrx3Q==

<SEC-DOCUMENT>0001104659-09-041817.txt : 20090702
<SEC-HEADER>0001104659-09-041817.hdr.sgml : 20090702
<ACCEPTANCE-DATETIME>20090702172959
ACCESSION NUMBER:		0001104659-09-041817
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20090630
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090702
DATE AS OF CHANGE:		20090702

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:		09928539

	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>a09-17563_18k.htm
<DESCRIPTION>8-K
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

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

<div style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 3.0pt;padding:1.0pt 0in 1.0pt 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

</div>

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

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM&nbsp;8-K</font></b></p>

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

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

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">Pursuant to Section&nbsp;13
or 15(d)&nbsp;of the Securities Exchange Act of 1934</font></b></p>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Date of Report (Date of earliest event reported): </font></b><font size="2" style="font-size:10.0pt;">June&nbsp;30,
2009</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</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;">UTSTARCOM, INC.</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;">(Exact name of registrant as specified in its charter)</font></p>

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

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <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="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <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="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <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="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <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 of <br>
  incorporation)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <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="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <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
  Identification No.)</font></p>
  </td>
 </tr>
</table>

</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;">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;"><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;">(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;"><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;">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&nbsp;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;">&#160;
Written communications pursuant to Rule&nbsp;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;">&#160; Soliciting
material pursuant to Rule&nbsp;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;">&#160; Pre-commencement
communications pursuant to Rule&nbsp;14d-2(b)&nbsp;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;">&#160; Pre-commencement
communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17
CFR 240.13e-4(c))</font></p>

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

<div style="border-bottom:solid windowtext 3.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 1.0pt 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

</div>

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

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

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105568\09-17563-1\task3617145\17563-1-ba.htm',USER='105568',CD='Jul  3 02:05 2009' -->


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


<div>

<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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 1.01&#160; Entry into a Material Definitive Agreement.</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On June&nbsp;30, 2009,
UTStarcom,&nbsp;Inc. (the &#147;Company&#148;) entered into a Settlement Agreement&nbsp;&amp;
Release (the &#147;Settlement Agreement&#148;) by and among the Company, Personal
Communications Devices Holdings, LLC (&#147;PCD Holdings LLC&#148;) and Personal
Communications Devices, LLC, a wholly-owned subsidiary of PCD Holdings LLC (&#147;PCD
LLC&#148;) relating to the merger agreement (the &#147;Merger Agreement&#148;) by and among
the Company, UTStarcom Personal Communications LLC, a wholly-owned subsidiary
of the Company, PCD Holdings LLC and PCD LLC dated as of June&nbsp;30, 2008 and
the supplier agreement between the Company and PCD LLC dated July&nbsp;1, 2008
(the &#147;Supplier Agreement&#148;).</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;">Under the Settlement
Agreement, PCD Holding LLC and PCD LLC have agreed to release certain potential
claims or actions against the Company and the Company has agreed to release
certain potential claims or actions against PCD LLC and PCD Holdings LLC
arising under the Merger Agreement and the Supplier Agreement.</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;">In consideration of the
release and settlement in the Settlement Agreement, the Company has agreed to
pay the lesser of (i)&nbsp;approximately $11.1 million and (ii)&nbsp;the amount
of certain PCD LLC customers&#146; warranty claims arising from the products
specified in the Settlement Agreement in two equal installments on or before July&nbsp;15,
2009 and August&nbsp;15, 2009 in order to satisfy potential liabilities arising
from warranty claims by such customers.&#160;&#160;
PCD LLC has agreed to pay to the Company approximately $10.4 million in
payments that were withheld by PCD LLC under the Supplier Agreement (the &#147;Withheld
Amount&#148;) which amount takes into account a separate agreement contained in the
Settlement Agreement for the Company to accept return of certain products to
the Company, which offset the gross amount of withheld payments (approximately
$11.7 million).&#160; PCD LLC also has agreed
to sell the Company&#146;s remaining inventory of products specified in the
Settlement Agreement to carriers as long as certain conditions specified in the
Settlement Agreement are met.</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;">In addition, the Company has
waived its right under the Merger Agreement to receive any additional
consideration payable as part of an earn-out provision in the Merger Agreement
and to purchase any additional equity interests in PCD Holdings LLC.&#160; Also, under the Settlement Agreement, PCD
Holdings LLC or its designee will have an option to repurchase the Company&#146;s
current equity position in PCD Holdings LLC within 90 days of the date of the
Settlement Agreement at its original investment cost of $1.6 million.&#160; The Company, PCD Holdings LLC and PCD LLC
also agreed to instruct the escrow agent holding $10 million pursuant to the
Merger Agreement to release such funds to the Company.</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;">The foregoing description of
the terms of the Settlement Agreement does not purport to be complete and is
qualified in its entirety by reference to the Settlement Agreement.&#160; The Settlement Agreement is attached as Exhibit&nbsp;10.1
to this Current Report on Form&nbsp;8-K and is incorporated herein by
reference.</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;">On July&nbsp;1, 2009, the
Company issued a press release announcing that it had entered into the
Settlement Agreement.&#160; The full text of
the press release is furnished as Exhibit&nbsp;99.1 to this Current Report on Form&nbsp;8-K
and is incorporated herein by reference.</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>
<!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\105568\09-17563-1\task3617145\17563-1-ba.htm',USER='105568',CD='Jul  3 02:05 2009' -->


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


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

<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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01&#160; Financial
Statements and Exhibits.</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;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Exhibits</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;">10.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Settlement
Agreement and Release dated as of June&nbsp;30, 2009</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;">99.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Press Release
dated July&nbsp;1, 2009</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;">3</font></p>

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

</div>
<!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\105568\09-17563-1\task3617145\17563-1-ba.htm',USER='105568',CD='Jul  3 02:05 2009' -->


<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 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>

<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="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.84%;">
  <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="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.84%;">
  <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="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.84%;">
  <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="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
  July&nbsp;2, 2009</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="40%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:40.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  Viraj Patel</font></p>
  </td>
 </tr>
 <tr>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="40%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:40.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Viraj
  Patel</font></p>
  </td>
 </tr>
 <tr>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0in 0in 0in 0in;width:40.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interim Chief Financial Officer, Vice</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President, Corporate Controller,</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and Chief Accounting Officer</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;">4</font></p>

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

</div>
<!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\105568\09-17563-1\task3617145\17563-1-ba.htm',USER='105568',CD='Jul  3 02:05 2009' -->


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


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

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Settlement Agreement
and Release dated as of June&nbsp;30, 2009</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Press Release
dated July&nbsp;1, 2009</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>
<!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\105568\09-17563-1\task3617145\17563-1-ba.htm',USER='105568',CD='Jul  3 02:05 2009' -->


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>a09-17563_1ex10d1.htm
<DESCRIPTION>EX-10.1
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

<div>

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
Settlement Agreement&nbsp;&amp; Release (&#147;<u>Agreement</u>&#148;) is made as of
11:59&nbsp;p.m. EST on June&nbsp;30, 2009 (the &#147;<u>Effective Date</u>&#148;), by and
among UTStarcom,&nbsp;Inc., a Delaware corporation (&#147;<u>UTS Inc.</u>&#148;),
Personal Communications Devices, LLC, a Delaware limited liability company (&#147;<u>PCD
LLC</u>&#148;), and Personal Communications Devices Holdings, LLC, a Delaware
limited liability company (&#147;<u>PCD Holdings LLC</u>&#148;) (each of the foregoing, a
&#147;<u>Party</u>,&#148; and collectively, the &#147;<u>Parties</u>&#148;).</font></p>

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

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
UTStarcom Personal Communications LLC, a Delaware limited liability company,
UTS Inc., PCD LLC, and PCD Holdings LLC are parties to that certain Merger
Agreement dated June&nbsp;30, 2008 (the &#147;<u>Merger Agreement</u>&#148;).&#160; Capitalized terms not defined herein shall
have the meanings ascribed to them in the Merger Agreement;</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
in connection with the Merger Agreement, PCD LLC and UTS Inc. entered into a
Supplier Agreement dated July&nbsp;1, 2008 (the &#147;<u>Supplier Agreement</u>&#148;);</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
pursuant to the Supplier Agreement, UTS Inc. has sold and delivered certain
Products (as defined therein) to PCD LLC;</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
there is a dispute between PCD LLC and UTS Inc. regarding certain units of the
Products (the Subject Units, defined 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="Times New Roman" style="font-size:10.0pt;">WHEREAS,
PCD LLC had delivered certain of the Subject Units to PCD LLC&#146;s customer
AT&amp;T;</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
PCD LLC has withheld certain payments (the Withheld Amount, defined below),
under the Supplier Agreement;</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
Section&nbsp;1.7 of the Merger Agreement requires PCD Holdings LLC to pay to
UTS Inc. in accordance with the provisions thereof, additional consideration
(the &#147;<u>Earnout Payment</u>&#148;) based upon the Audited EBITDA for the period
commencing January&nbsp;1, 2008 and ending on December&nbsp;31, 2010;</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
Section&nbsp;5.17 of the Merger Agreement required PCD Holdings LLC to offer
UTS Inc. the opportunity to purchase, at the Closing, Class&nbsp;A Units of PCD
Holdings LLC for an aggregate purchase price of $1,600,000, subject to the
terms and conditions of the Buyer LLC Agreement and any related investment documents
(the &#147;<u>Equity Investment Provision</u>&#148;);</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
Pursuant to the Equity Investment Provision, at the Closing, UTS Inc. purchased
2,199,214 Class&nbsp;A Units of PCD Holdings LLC for an aggregate purchase
price of $1,600,000 (the &#147;<u>Purchased Class&nbsp;A Units</u>&#148;), which
Purchased Class&nbsp;A Units are uncertificated;</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
UTS Inc. is willing to relinquish any and all of its rights to receive the
Earnout Payments and its other rights provided for under Section&nbsp;1.7 of
the Merger Agreement;</font></p>

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

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

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jmathew\09-17563-1\task3616949\17563-1-kg-01.htm',USER='105205',CD='Jul  3 00:12 2009' -->


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


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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
UTS Inc. is willing to relinquish any and all of its rights to purchase any
equity interest in PCD Holdings, LLC pursuant to the Merger Agreement and
agreements entered into in connection with the Merger Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
UTS Inc. desires to sell to PCD Holdings LLC, at PCD Holdings LLC&#146;s option, and
PCD Holdings LLC desires to have the option to repurchase from UTS Inc., the
Purchased Class&nbsp;A Units for an aggregate purchase price of $1,600,000; and</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
the Parties desire to settle all claims PCD LLC and/or PCD Holdings LLC may
have against UTS Inc. relating to Subject Units, and all claims UTS Inc. may
have against PCD LLC and/or PCD Holdings LLC for the Withheld Amount, the
Earnout Payment, to purchase an equity interest in PCD Holdings LLC or
otherwise relating to the Subject Units, all pursuant to the terms and
conditions set forth in this Agreement.</font></p>

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

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW,
THEREFORE, in consideration of the respective covenants, representations,
warranties and agreements set forth herein and for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties
hereby agree 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>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Definitions</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;">1.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>AT&amp;T</u>&#148; means the
entity referred to as AT&amp;T Mobility LLC and/or any of its affiliates which
have received Subject Units.</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;">1.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>AT&amp;T Claim</u>&#148; has
the meaning provided in Section&nbsp;4 (Payment of AT&amp;T Claim).</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;">1.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Governmental Authority</u>&#148;
means any government or political subdivision, whether federal, state, local or
foreign, or any agency or instrumentality of any such government or political
subdivision, or any federal, state, local or foreign court or arbitrator.</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;">1.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Inventory Products</u>&#148;
has the meaning provided in Section&nbsp;7 (Order of Remaining Inventory
Products).</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;">1.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Law</u>&#148; means any law,
statute, code, ordinance, regulation or rule&nbsp;of any Governmental
Authority.</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;">1.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Products</u>&#148; means
Products as defined under the Supplier Agreement.</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;">1.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Released Matters</u>&#148;
means the UTS Released Matters and the PCD Released Matters.</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;">1.8</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Released Parties</u>&#148;
means the UTS Released Parties and the PCD Released Parties.</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;">1.9</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Releasing Parties</u>&#148;
means the UTS Releasing Parties and the PCD Releasing Parties.</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;">1.10</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Repurchase Closing Date</u>&#148;
shall have the meaning set forth in Section&nbsp;11.</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;">1.11</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Repurchase Notice</u>&#148;
shall have the meaning set forth in Section&nbsp;11.</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;">1.12</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Repurchase Period</u>&#148;
shall have the meaning set forth in Section&nbsp;11.</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;">1.13</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Subject Units</u>&#148; means
those units of the Products identified in <u>Exhibit&nbsp;A</u>.</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;">1.14</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Transfer</u>&#148; shall have
the meaning set forth in Section&nbsp;11.</font></h2>

<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>
<!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\jmathew\09-17563-1\task3616949\17563-1-kg-01.htm',USER='105205',CD='Jul  3 00:12 2009' -->


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


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

<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 .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.15</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;<u>Withheld Amount</u>&#148; has
the meaning provided in Section&nbsp;5 (Payment of Amounts under the Supplier
Agreement).</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;">&nbsp;</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;">2.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Release of Certain PCD
Claims</font></u><font size="2" style="font-size:10.0pt;">.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</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;">2.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">By this Agreement, PCD LLC
and PCD Holdings LLC, each on behalf of itself, and its present and former
directors, officers, employees, attorneys, agents, customers, subsidiaries,
licensees, representatives, and its respective successors, affiliates and
assigns (&#147;<u>PCD Releasing Parties</u>&#148;), hereby fully and unconditionally
release and forever discharge UTS Inc., and its present and former directors,
officers, employees, attorneys, agents, representatives, and its respective
successors, affiliates and assigns (&#147;<u>UTS Released Parties</u>&#148;) from and
against any and all indemnity obligations, claims, contentions, debts,
liabilities, demands, promises, agreements, costs, expenses (including but not
limited to attorneys&#146; fees), damages, suits, legal proceedings, mediations,
arbitrations, losses, judgments, settlements, actions or causes of action, or
the like (collectively &#147;<u>Actions</u>&#148;) of whatever kind or nature, whether
now known or unknown, and whether based on contract, breach of warranty,
indemnity, tort, statutory or other legal or equitable theory of recovery,
which the PCD Releasing Parties have, had, or may ever claim to have against
the UTS Released Parties, which relate to, arise from, or are connected to any
activity described, based on, arising out of, or in connection with the
following (the following, the &#147;<u>PCD Released Matters</u>&#148;):</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;">&nbsp;</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any breach of any
representation or warranty (except as set forth below) (i)&nbsp;in the Supplier
Agreement that relates to or arises from a Subject Unit, or (ii)&nbsp;in the
Merger Agreement that, pursuant to Section&nbsp;9.1(b)&nbsp;of the Merger
Agreement, has an Expiration Date of the first anniversary of the Closing Date;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any right or obligation
arising under, including any right to indemnification, or breach of an
indemnification obligation in the Supplier Agreement that relates to or arises
from a Subject Unit (except as set forth below);</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any other right or
obligation included in or arising under the Supplier Agreement that relates to
or arises from a Subject Unit, or that arises from or is related to any other
Action AT&amp;T may assert with respect to the Subject Units (except as set
forth below); and</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any other Action arising
from or related to a Subject Unit (except as set forth below).</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding the
foregoing, this Agreement and the release terms set forth above shall not
include and shall have no effect on any of the continuing indemnity or other
obligations of UTS,&nbsp;Inc. under the Supplier Agreement for any and all
Products supplied to PCD LLC pursuant thereto that would otherwise be covered
under the terms thereof, with the specific and sole exception of the Subject
Units.&#160; As to the Subject Units, UTS Inc.
shall retain the continuing obligations set forth only in Section&nbsp;22
(Indemnification by Supplier) relating to any and all actions or claims that
any product supplied by UTS Inc. infringes any United States or foreign patent,
copyright or intellectual property right and Section&nbsp;32(J)&nbsp;relating
to obligations that survive termination.&#160;
Except as expressly set forth above, this Agreement and the release
terms set forth above shall not include and shall have </font></h3>

<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>
<!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\jmathew\09-17563-1\task3616949\17563-1-kg-01.htm',USER='105205',CD='Jul  3 00:12 2009' -->


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


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

<h3 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">no effect on any of the
continuing indemnity or other obligations of UTS Inc. under the Merger
Agreement and shall not include and shall not effect or cause the release of
any Excluded Claims.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<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;">2.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In connection with the
above, PCD LLC and PCD Holdings LLC each acknowledges that it is aware that,
after executing this Agreement, they or their attorneys or agents may discover
claims or facts in addition to or different from those which they now know or
believe to exist with respect to the subject matter of this Agreement or the
PCD Released Matters, but that it is PCD LLC&#146;s and PCD Holdings LLC&#146;s intention
to fully, finally and forever settle and release all of the PCD Released
Matters, and to finally and forever settle and release any other Actions, known
or unknown, suspected or unsuspected, which now exist, may exist, or heretofore
may have existed against the UTS Released Parties relating to the PCD Released
Matters.&#160; In furtherance of this
intention, the release herein given shall be and remain in effect as a full and
complete release of the PCD Released Matters notwithstanding the discovery or
existence of any such additional or different claim(s)&nbsp;or fact(s)&nbsp;the
PCD Releasing Parties may assert with respect to the PCD Released Matters.&#160; In connection with the foregoing, the PCD
Releasing Parties hereby waive all rights under Section&nbsp;1542 of Civil Code
of California, which the PCD Releasing Parties acknowledge to have read and
understood and which provides as follows:</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;">&nbsp;</font></h2>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
PCD Releasing Parties also hereby waive all rights that they may have under or
pursuant to any other statute, legal decision or common law principal of
similar, comparable or equivalent effect as &#167;1542 of the California Civil Code.</font></p>

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

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Release of All UTS Inc.
Claims</font></u><font size="2" style="font-size:10.0pt;">.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</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;">3.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">By this Agreement, UTS Inc.,
on behalf of itself, and its present and former directors, officers, employees,
attorneys, agents, customers, subsidiaries, licensees, representatives, and its
respective successors affiliates and assigns (&#147;<u>UTS Releasing Parties</u>&#148;),
hereby fully and unconditionally releases and forever discharges PCD LLC and
PCD Holdings LLC, and their present and former directors, officers, members,
managers, employees, attorneys, agents, representatives, and their respective
successors affiliates and assigns (&#147;<u>PCD Released Parties</u>&#148;) from and
against any and all Actions (as defined above) of whatever kind or nature,
whether now known or unknown, and whether based on contract, breach of
warranty, indemnity, tort, statutory or other legal, equitable theory of
recovery, which the UTS Releasing Parties have, had, or may ever claim to have
against the PCD Released Parties, which relate to, arise from, or are connected
to any activity described, based on, arising out of, or in connection with the
following (the following, the &#147;<u>UTS Released Matters</u>&#148;):</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;">&nbsp;</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any breach of any
representation or warranty (i)&nbsp;in the Supplier Agreement that relates to
or arises from a Subject Unit, or (ii)&nbsp;in the Merger Agreement that, </font></h3>

<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>
<!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\jmathew\09-17563-1\task3616949\17563-1-kg-01.htm',USER='105205',CD='Jul  3 00:12 2009' -->


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


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

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">pursuant
to Section&nbsp;9.1(b)&nbsp;of the Merger Agreement, has an Expiration Date of
the first anniversary of the Closing Date;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any right or obligation
arising under, including any right to indemnification, or breach of an
indemnification obligation in the Supplier Agreement that relates to or arises
from a Subject Unit;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any other right or
obligation included in or arising under the Supplier Agreement that relates to
or arises from a Subject Unit, or that arises from or is related to any other
Action AT&amp;T may assert with respect to the Subject Units;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any other Action arising
from or related to a Subject Unit;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any right to receive the
Earnout Payment or otherwise arising under Section&nbsp;1.7 of the Merger
Agreement;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any and all rights to
purchase any equity interest in PCD Holdings, LLC pursuant to the Merger
Agreement or agreements entered into in connection with the Merger Agreement;
and</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the Withheld Amount.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<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;">3.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In connection with the
above, UTS Inc. acknowledges that it is aware that, after executing this
Agreement, it or its attorneys or agents may discover claims or facts in
addition to or different from those which they now know or believe to exist
with respect to the subject matter of this Agreement or the UTS Released
Matters, but that it is UTS Inc.&#146;s intention to fully, finally and forever
settle and release all of the UTS Released Matters, and to finally and forever
settle and release any other Actions, known or unknown, suspected or
unsuspected, which now exist, may exist, or heretofore may have existed against
the PCD Released Parties relating to the UTS Released Matters.&#160; In furtherance of this intention, the release
herein given shall be and remain in effect as a full and complete release of the
UTS Released Matters, notwithstanding the discovery or existence of any such
additional or different claim(s)&nbsp;or fact(s)&nbsp;UTS Releasing Parties may
assert with respect to the UTS Released Matters.&#160; In connection with the foregoing, the UTS
Releasing Parties hereby waive all rights under Section&nbsp;1542 of Civil Code
of California, which the UTS Releasing Parties acknowledge to have read and
understood and which provides as follows:</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;">&nbsp;</font></h2>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
UTS Releasing Parties also hereby waive all rights that they may have under or
pursuant to any other statute, legal decision or common law principal of
similar, comparable or equivalent effect as &#167;1542 of the California Civil Code.</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>
<!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\jmathew\09-17563-1\task3616949\17563-1-kg-01.htm',USER='105205',CD='Jul  3 00:12 2009' -->


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


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

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

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Payment of AT&amp;T Claim</font></u><font size="2" style="font-size:10.0pt;">.&#160; In consideration of the release and
settlement in this Agreement and PCD LLC&#146;s conditional orders of Inventory
Products pursuant to Section&nbsp;7 (Order of Remaining Inventory Products), on
or before July&nbsp;15, 2009 and August&nbsp;15, 2009, UTS Inc. shall pay by
wire transfer in immediately available funds to an account specified by PCD
LLC, in two (2)&nbsp;equal installments, the lesser of the following (the &#147;<u>AT&amp;T
Claim</u>&#148;):&#160; (a)&nbsp;Eleven Million
Ninety-Six Thousand Forty-Five U.S. Dollars ($11,096,045.00) and (b)&nbsp;the
amount of AT&amp;T&#146;s warranty claim arising from the Subject Units.&#160; The obligation to pay the AT&amp;T Claim
shall be contingent upon UTS Inc. receiving proof of PCD LLC&#146;s payment to
AT&amp;T.&#160; PCD LLC represents that PCD
LLC has used commercially reasonable efforts to minimize the AT&amp;T Claim.</font></h1>

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

<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:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Payment of Amounts under the
Supplier Agreement</font></u><font size="2" style="font-size:10.0pt;">. In consideration of the release and settlement in
this Agreement, PCD LLC shall pay, upon the Effective Date by wire transfer in
immediately available funds to an account specified by UTS Inc., Ten Million
Four Hundred Nine Thousand Seven Hundred Fifty-Eight and no/100 U.S. Dollars
($10,409,758) (the &#147;<u>Withheld Amount</u>&#148;), which is calculated by reducing
the gross amount of Eleven Million Six Hundred Seventy-Three Thousand One
Hundred Ninety and no/100 U.S. Dollars ($11,673,190.00) by the following
figures: (1)&nbsp;Eight Hundred Fourteen Thousand One Hundred Sixty-Seven U.S.
Dollars ($814,167) for 4,449 returned Subject Units at $183.00 and (2)&nbsp;Four
Hundred Forty-Nine Thousand Two Hundred Sixty-Five U.S. Dollars ($449,265) for
2,455 returned Subject Units at $183.00.&#160;
The Withheld Amount is not payable or creditable against any other
obligation now or in the future of PCD LLC or PCD Holdings LLC other than such
previously adjusted invoiced amounts.&#160;
For avoidance of doubt, the Withheld Amount shall not be creditable
against the order for the Inventory Products (defined below).&#160; The Withheld Amount does not constitute all
amounts owed by PCD LLC to UTS Inc. under outstanding invoices and other
arrangements, however, payment of the Withheld Amount shall constitute payment
in respect of the outstanding invoices constituting the Withheld Amount.</font></h1>

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

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Return of Subject Units</font></u><font size="2" style="font-size:10.0pt;">.&#160; PCD LLC has returned 4,449 units of the
Subject Units to UTS Inc., and PCD LLC shall return the remaining 2,455 units
of the Subject Units not yet returned to UTS Inc. and identified by PCD LLC as
defective promptly following the Effective Date.&#160; UTS Inc. shall accept the return of all such
Subject Units at a cost of $183.00 (and PCD LLC acknowledges and agrees that
UTS Inc., through the calculation of the Withheld Amount pursuant to Section&nbsp;5
above, has provided PCD LLC the appropriate credit/payment for all such returns
of Subject Units), refurbish said Subject Units and PCD LLC shall repurchase said
refurbished Subject Units at a cost of $120.00.&#160;
Other than as expressly set forth in this Section&nbsp;6 (Return of
Subject Units), the repurchase of refurbished Subject Units is subject to the
terms and conditions of the Supplier Agreement.</font></h1>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS
Inc. agrees to accept for return under the terms and conditions of the Supplier
Agreement any defective returns of refurbished Subject Units after repurchase
and Inventory Products after purchase pursuant to this Agreement.</font></p>

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

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Order of Remaining Inventory
Products</font></u><font size="2" style="font-size:10.0pt;">.&#160; PCD LLC
hereby agrees to order UTS Inc.&#146;s remaining inventory of Products specified in <u>Exhibit&nbsp;B</u>
(&#147;<u>Inventory Products</u>&#148;), for a negotiated </font></h1>

<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>
<!-- SEQ.=1,FOLIO='6',FILE='C:\JMS\jmathew\09-17563-1\task3616949\17563-1-kg-01.htm',USER='105205',CD='Jul  3 00:12 2009' -->


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


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

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

<h1 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">commercially
reasonable price, subject to fulfillment of each of the following conditions
consistent with past practice:&#160; (1)&nbsp;the
Inventory Products receive carrier approval; (2)&nbsp;UTS Inc. provides all
reasonable and necessary engineering and other support to secure carrier
approval; (3)&nbsp;UTS Inc. agrees to provide service parts and support going
forward for all Inventory Products; and (4)&nbsp;the Inventory Products meet
all quality control requirements.&#160; The
order for Inventory Products shall be made only after fulfillment of and
agreement to the foregoing conditions and only in the same amount in and after
PCD receives a purchase order(s)&nbsp;from the carrier.&#160; PCD LLC shall use commercially reasonable
good faith efforts to obtain purchase order(s)&nbsp;from one or more carriers
relating to the Inventory Products.&#160; PCD
LLC shall pay in full for the Inventory Products pursuant to the terms of, and
on the date for payment set forth in the Supplier Agreement.&#160; Notwithstanding anything to the contrary
herein or in the Supplier Agreement, such order is non-cancelable.&#160; Other than as expressly set forth in this Section&nbsp;7
(Order of Remaining Inventory Products), the order for the Inventory Products
is subject to the terms and conditions of the Supplier Agreement.&#160; PCD LLC shall provide a written purchase
order for such order of Inventory Products promptly following its receipt of a
purchase order from a carrier.</font></h1>

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

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Warranty Against Assignment</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Parties, on behalf of their successors
and assigns, hereby warrant and covenant that they have not transferred or
assigned and prior to the Effective Date of this Agreement, and will not
transfer or assign to any third party (except under Section&nbsp;18
(Assignment)), any Actions or rights to bring Actions that they have or may
have against any of the Released Parties or Releasing Parties, arising out of,
or in connection with anything whatsoever relating to the Released Matters.</font></h1>

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

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Waiver of Earnout Payments</font></u><font size="2" style="font-size:10.0pt;">.&#160; By this Agreement, UTS Inc., on behalf of
itself and the UTS Releasing Parties, hereby waives all of its rights contained
in Sections 1.7 of the Merger Agreement including, without limitation, the
right to receive the Earnout Payment, and acknowledges and agrees that it and
they shall not have any further rights thereunder or with respect thereto.</font></h1>

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

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Waiver of Equity Purchase
Rights.</font></u><font size="2" style="font-size:10.0pt;">&#160; By this Agreement, UTS Inc., on
behalf of itself and the UTS Releasing Parties, hereby waives all of its rights
to purchase any equity interest in PCD Holdings, LLC pursuant to the Merger
Agreement or agreements entered into in connection with the Merger Agreement,
and acknowledges and agrees that it shall not have any further rights with
respect thereto.</font></h1>

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

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Option to Repurchase the
Purchased Class&nbsp;A Units</font></u><font size="2" style="font-size:10.0pt;">.</font></h1>

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

<h1 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:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">At any time during the
period beginning on the Effective Date and ending at 11:59pm PDT on the ninetieth
(90th) day thereafter (the &#147;<u>Repurchase Period</u>&#148;), PCD Holdings LLC or its
designee may by delivery of a written notice to UTS Inc. in accordance with Section&nbsp;11.5
of the Merger Agreement (the &#147;<u>Repurchase Notice</u>&#148;), at its option,
repurchase from UTS Inc., and UTS Inc. will, at the request of PCD Holdings LLC
or its designee, sell, convey, transfer, assign and deliver to PCD Holdings LLC
or its designee, all right, title and interest in and to the Purchased Class&nbsp;A
Units free and clear of any liens, claims, pledges, security interests, equity
interests or encumbrances (other than those imposed under applicable securities
laws and as set forth in </font></h1>

<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>

</div>
<!-- SEQ.=1,FOLIO='7',FILE='C:\JMS\jmathew\09-17563-1\task3616949\17563-1-kg-01.htm',USER='105205',CD='Jul  3 00:12 2009' -->


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


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

<h1 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></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">agreements with PCD Holdings
LLC), for an aggregate repurchase price of One Million Six Hundred Thousand and
no/100 ($1,600,000.00).</font></h1>

<h1 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></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The closing of the
repurchase of the Purchased Class&nbsp;A Units (the &#147;<u>Repurchase Closing Date</u>&#148;)
shall be held not earlier than five (5)&nbsp;days nor later than thirty (30)
days after delivery of the Repurchase Notice.&#160;
Upon delivery by PCD Holdings LLC or its designee of the repurchase
price for the Purchased Class&nbsp;A Units, UTS Inc. shall deliver to PCD
Holdings LLC or its designee an executed Assignment Separate from Certificate
in the form attached hereto as <u>Exhibit&nbsp;C</u>, and all of the Purchased Class&nbsp;A
Units shall be deemed to be transferred to the PCD Holdings LLC or its
designee.</font></h1>

<h1 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></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">UTS Inc. may not sell,
assign, pledge, encumber or otherwise transfer (&#147;<u>Transfer</u>&#148;) during the
Repurchase Period and/or subsequent to receiving a Repurchase Notice, any
interest in any of the Purchased Class&nbsp;A Units, either voluntarily or
involuntarily or by operation of law or otherwise.</font></h1>

<h1 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></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event of any Transfer
of Purchased Class&nbsp;A Units in breach of this Agreement, commencing
immediately upon the date of such attempted Transfer (a)&nbsp;such Transfer
shall be void and of no effect, (b)&nbsp;no dividend of any kind or any
distribution pursuant to any liquidation, redemption or otherwise shall be paid
by PCD Holdings LLC to the purported transferee in respect of the Purchased Class&nbsp;A
Units (all such rights to payment to UTS Inc. and/or the purported transferee
being deemed waived), (c)&nbsp;the voting rights of the Purchased Class&nbsp;A
Units, if any, shall be suspended during the continuation of any such breach,
and (d)&nbsp;neither UTS Inc. nor the purported transferee shall be entitled to
exercise any rights with respect to such Purchased Class&nbsp;A Units until
such Transfer in breach of this Agreement has been rescinded.</font></h1>

<h1 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></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">UTS Inc. acknowledges that
in the event that UTS Inc. fails to execute or cause to be executed all such
agreements and documents as may be necessary under this Agreement, or otherwise
to enable all of the Purchased Class&nbsp;A Units to be transferred in accordance
with this Agreement, the Chief Executive Officer and each other officer of PCD
Holdings LLC or the designee of PCD Holdings LLC may execute and deliver all
such agreements and documents exclusively as may be necessary to permit such
transfer to be completed exclusively as provided in this Agreement and
reflected on the books of PCD Holdings LLC (and for such purposes UTS Inc.
irrevocably constitutes and appoints the Chief Executive Officer and each other
officer of PCD Holdings LLC or its designee as the true and lawful attorney for
UTS Inc. with full power of substitution in the name of and on behalf of UTS
Inc., with no restriction or limitation in that regard).&#160; This power of attorney is coupled with an interest
and is therefore irrevocable. This power of attorney shall not be revoked or
terminated by any act or thing.</font></h1>

<h1 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></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Upon any share split,
reverse share split, recombination of shares or other similar reorganization of
the capital structure of PCD Holdings LLC, the repurchase price otherwise payable
to UTS Inc. upon the repurchase of the Purchased Class&nbsp;A Units hereunder
shall be proportionally adjusted to reflect such reorganization.</font></h1>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

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

</div>
<!-- SEQ.=1,FOLIO='8',FILE='C:\JMS\jmathew\09-17563-1\task3616949\17563-1-kg-01.htm',USER='105205',CD='Jul  3 00:12 2009' -->



<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Release
of Escrow</u>.&#160; The Parties shall,
concurrent with the execution of this Agreement, execute and deliver to
JPMorgan Chase Bank, National Association (the &#147;<u>Escrow Agent</u>&#148;), written
instructions to release to UTS Inc. the sum of Ten Million and no/100 Dollars
($10,000,000), together with earned interest on such amount, from the Indemnity
Escrow Account, pursuant that certain Escrow Agreement entered into among the
Escrow Agent, UTS Inc. and PCD Holdings LLC dated as of July&nbsp;1, 2008.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Representations
and Warranties</u>.</h1>

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

<h1 style="font-size:10.0pt;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:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
of the Parties hereby represents, as of the date hereof and as of the
Repurchase Closing Date, to the other Parties hereto that (i)&nbsp;it has duly
executed and delivered this Agreement (including any Exhibits hereto), (ii)&nbsp;all
required consents or approvals for such execution and delivery have been
obtained, and (iii)&nbsp;it has all requisite corporate or similar applicable
right, power, legal capacity and authority to enter into and perform this
Agreement (including any Exhibits hereto), as applicable.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>UTS
Inc. hereby represents and warrants to PCD Holdings LLC, as of the date hereof
and as of the Repurchase Closing Date, that (i)&nbsp;UTS Inc. is the sole
beneficial and record holder of the Purchased Class&nbsp;A Units and (ii)&nbsp;UTS
Inc. has good and marketable title to the Purchased Class&nbsp;A Units, free of
any liens, claims, pledges, security interests, equity interests or other
encumbrances, other than those imposed under applicable securities laws and as
set forth in agreements with PCD Holdings LLC.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
representations and warranties contained in Sections 13(a)&nbsp;and (b)&nbsp;shall
be true and correct as of the Repurchase Closing Date, and each Party shall
deliver a certificate, dated as of the Repurchase Closing Date, to such effect.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Compromise
of Disputed Claims</u>.&#160; This Agreement
is a compromise of disputed claims and does not in any way constitute an
admission by any Party of any liability or responsibility, past, present or
future, for the Released Matters.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Entire
Agreement; Modification</u>.&#160; This
Agreement, together with the Supplier Agreement and the Merger Agreement,
contains the entire agreement between the Parties relating to the subject
matter contained herein.&#160; All prior or
contemporaneous agreements, written or oral, between the Parties regarding the
subject matter hereof are superseded by this Agreement (except those agreements
memorialized in the Supplier Agreement and the Merger Agreement).&#160; This Agreement may not be modified except by
written document signed by an authorized representative of each Party.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Force
Majeure</u>.&#160; No Party will be liable for
any failure to perform any obligation under this Agreement (other than
obligations to make payments), or for delay in such performance, to the extent
such failure to perform or delay is caused by fire, storm, earthquake,
explosion, war, acts of a public enemy, labor disputes, acts of God and acts of
any government or any agency thereof, or any similar event beyond its
reasonable control that makes such performance commercially impractical.&#160; </h1>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

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

</div>
<!-- SEQ.=1,FOLIO='9',FILE='C:\JMS\105627\09-17563-1\task3617155\17563-1-kg-03.htm',USER='105627',CD='Jul  3 02:14 2009' -->


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


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

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

<h1 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any suspension
of performance by reason of this clause will be limited to the period during
which the cause of suspension exists.</font></h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Waiver</u>.&#160; No term of this Agreement shall be considered
waived and no breach excused by any Party unless made in writing.&#160; No consent, waiver, or excuse by any Party,
express or implied, shall constitute a subsequent consent, waiver or excuse.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Assignment</u>.&#160; This Agreement shall inure to the benefit of and
shall be binding upon the respective successors and assigns, if any, of the
Parties in its entirety. This Agreement may not be assigned by any Party
without the prior written consent of the other Parties; <i>provided,
however</i>, that this Agreement shall be automatically assigned in
connection with a merger, reorganization, change of control, or sale of all or
substantially all of the assets of a Party except that nothing in this section
shall be construed to permit any assignment which would be unauthorized or void
pursuant to any other part of this Agreement.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Nondisclosure
Obligation</u>.&#160; The Parties will, and
will cause each of their Affiliates and representatives to, maintain the
confidentiality of this Agreement and will not, and will cause each of their
Affiliates not to, issue or cause the publication of any press release or other
public announcement with respect to this Agreement or the transactions
contemplated hereby without the prior written consent of the other Parties
hereto; <i>provided, however</i>, that a party may,
without the prior consent of the other parties hereto, issue or cause
publication of any such press release or public announcement to the extent that
such party reasonably determines, after consultation with outside legal
counsel, such action to be required by Law or by the rules&nbsp;of any
applicable self-regulatory organization, in which event such party will use its
commercially reasonable efforts to allow the other parties hereto reasonable
time to comment on such press release or public announcement in advance of its
issuance.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Governing
Law and Dispute Resolution</u>.&#160; Any
controversy or claim arising out of or relating to this Agreement, or the
breach thereof, shall be governed, construed and interpreted in accordance with
the internal laws of the State of New York without application of conflict of
laws principles.&#160; This Agreement shall
not be governed by the United Nations Convention on the International Sale of
Goods.&#160; All disputes, claims, or
controversies arising out of or relating to this Agreement or any other
document delivered pursuant hereto, the transactions contemplated hereby, or
the negotiation, validity or performance hereof that are not resolved by mutual
agreement shall be resolved in accordance with the procedures set forth in Section&nbsp;11.6
(Dispute Resolution) of the Merger Agreement.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Severability</u>.&#160; If any provision of this Agreement is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Headings</u>.&#160; The headings of the sections of this
Agreement are for reference only and do not control the interpretation of any
term or condition of this Agreement.</h1>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

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

</div>
<!-- SEQ.=1,FOLIO='10',FILE='C:\JMS\105627\09-17563-1\task3617155\17563-1-kg-03.htm',USER='105627',CD='Jul  3 02:14 2009' -->


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


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

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Representation
by Counsel</u>.&#160; Each of the Parties
hereto acknowledges that they have been represented by independent counsel of
their choice throughout all negotiations that preceded the&#160; Agreement, and this Agreement has been
executed with the consent and on the advice of such independent legal counsel.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Implementation
of Settlement</u>.&#160; The Parties hereby
agree to use their best efforts and good faith in carrying out all of the terms
of this Agreement. Each of the Parties hereby agrees and authorizes its
respective counsel to execute any additional documents and take any similar
procedural actions which reasonably may be required in order to consummate this
Agreement or otherwise to fulfill the intent of the Parties hereunder.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Authority
to Execute Agreement</u>.&#160; The Parties
hereto warrant and guarantee that each person whose signature appears hereon
has been duly authorized and has full authority to execute this Agreement on
behalf of the person, persons or entity for whom such signature is indicated.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Signatories&#146;
Understanding</u>.&#160; By executing this
Agreement, the Parties affirm that they are competent, that they have been
represented by counsel, or had the opportunity to be represented by counsel,
and that they understand and accept the nature, terms and scope of this
Agreement.</h1>

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

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Counterpart
Signature; Facsimile Delivery</u>.&#160; This
Agreement may be executed in two or more counterparts and delivered by
facsimile, all of which shall be considered one and the same agreement and
shall become effective when two or more counterparts have been signed by each
of the parties and delivered to the other parties, it being understood that all
parties need not sign the same counterpart.</h1>

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

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[SIGNATURE PAGE FOLLOWS]</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

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

</div>
<!-- SEQ.=1,FOLIO='11',FILE='C:\JMS\105627\09-17563-1\task3617155\17563-1-kg-03.htm',USER='105627',CD='Jul  3 02:14 2009' -->


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


<div>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the Parties hereto have duly executed this
Agreement by their respective duly authorized officers.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" 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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTSTARCOM, INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Viraj Patel</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Viraj Patel</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interim CFO, Corporate Controller, Vice President and Chief
  Accounting Officer</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&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;">12</font></p>

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

</div>
<!-- SEQ.=1,FOLIO='12',FILE='C:\JMS\105627\09-17563-1\task3617155\17563-1-kg-03.htm',USER='105627',CD='Jul  3 02:14 2009' -->


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


<div>

<p style="margin:0in 0in .0001pt 3.0in;"><font size="2" 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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PERSONAL COMMUNICATIONS DEVICES HOLDINGS, LLC</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Jonathan C. Stearns</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jonathan C. Stearns</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Managing Member</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PERSONAL COMMUNICATIONS DEVICES, LLC</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: PERSONAL COMMUNICATIONS DEVICES HOLDINGS, its sole Member</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Jonathan C. Stearns</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jonathan C. Stearns</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Managing Member</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&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;">13</font></p>

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

</div>
<!-- SEQ.=1,FOLIO='13',FILE='C:\JMS\105627\09-17563-1\task3617155\17563-1-kg-03.htm',USER='105627',CD='Jul  3 02:14 2009' -->


<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">&nbsp;</font></p>

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

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All units of GTX 75 handset Products provided
under the Supplier Agreement and returned to UTS Inc. prior to the Effective
Date or pursuant to the terms of this Agreement.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&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;">14</font></p>

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

</div>
<!-- SEQ.=1,FOLIO='14',FILE='C:\JMS\105627\09-17563-1\task3617155\17563-1-kg-03.htm',USER='105627',CD='Jul  3 02:14 2009' -->


<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">&nbsp;</font></p>

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

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">One Hundred Sixty Seven Thousand and no/100
(167,000) units of GTX75 Products</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&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;">15</font></p>

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

</div>
<!-- SEQ.=1,FOLIO='15',FILE='C:\JMS\105627\09-17563-1\task3617155\17563-1-kg-03.htm',USER='105627',CD='Jul  3 02:14 2009' -->


<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">&nbsp;</font></p>

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

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

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FOR VALUE RECEIVED, UTStarcom,&nbsp;Inc., a Delaware corporation,
hereby sells, assigns and transfers to Personal Communications Devices
Holdings, LLC, a Delaware limited liability company (the &#147;<b>Company</b>&#148;),
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Class&nbsp;A Units of the Company standing in its name on the books of the
Company and does hereby irrevocably constitute and appoint
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
as attorney-in-fact, with full power of substitution, to transfer said units on
the books of the Company.</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Assignment Separate From Certificate was executed in conjunction
with the terms of the Settlement Agreement and Release between the above
assignor, the Company and Personal Communications Devices, LLC, a Delaware
limited liability company, dated as of June&nbsp;30, 2009.</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated:&#160;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2009</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.74%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <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%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:43.74%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.74%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <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%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:43.74%;">
  <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="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in -.5in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.26%;">
  <p style="margin:0in -.5in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in -.5in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

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

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

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105627\09-17563-1\task3617155\17563-1-kg-03.htm',USER='105627',CD='Jul  3 02:14 2009' -->


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>a09-17563_1ex99d1.htm
<DESCRIPTION>EX-99.1
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

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

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;99.1</font></b></p>

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

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman"><img width="223" height="63" src="g175631mmi001.jpg"></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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTStarcom</font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;"> Announces Settlement Agreement with PCD, LLC</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="line-height:10.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Agreement
Waives Terms of the July&nbsp;2008 Merger 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>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ALAMEDA, Calif., July&nbsp;1, 2009 - UTStarcom,&nbsp;Inc.
</font><font size="2" style="font-size:10.0pt;">(Nasdaq: UTSI)
today announced that it has entered into a settlement agreement with Personal
Communications Devices, LLC (&#147;PCD&#148;) to satisfy
potential liabilities relating to certain inventory delivered to PCD pursuant to the Supplier Agreement and the July&nbsp;2008
Merger Agreement and to waive certain rights of the company relating to the July&nbsp;2008
Merger Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under
the settlement agreement the company waives its right to benefit from a
three-year earn out provision and its right to make future investments in PCD, which were part of the July&nbsp;2008 Merger
Agreement.&#160; Also, under the settlement
agreement, the company has granted to Personal Communications Devices Holdings,
LLC (&#147;PCD Holdings&#148;), the parent company of PCD, an option to repurchase its current equity position in
PCD Holdings at its original investment cost of $1.6
million.&#160; As anticipated, the $10 million
held in escrow since the July&nbsp;2008 merger will be released to the company
in July&nbsp;2009.</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, as part of the settlement, UTStarcom will
pay PCD $11.1 million to satisfy potential
liabilities relating to certain inventory delivered to PCD.&#160; PCD has agreed to
continue to sell the company&#146;s remaining inventory.</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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Forward-Looking
Statements</font></b></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
release includes forward-looking statements, including the statements relating
to resolution of problems with certain inventory delivered to PCD and the Company&#146;s sale of its remaining inventory.
These statements are forward-looking in nature and subject to risks and
uncertainties that may cause actual results to differ materially, including but
not limited to the risks that the company may have additional issues with
inventory and the Company may be unable to sell remaining inventory to PCD if PCD is unable to find
carriers willing to purchase the inventory, and other risks identified in the
company&#146;s latest Annual Report on Form&nbsp;10-K, Quarterly Reports on Form&nbsp;10-Q
and Current Reports on Form&nbsp;8-K, as filed with the Securities and Exchange
Commission.&#160; </font><font size="2" style="font-size:10.0pt;">All forward-looking statements included in this release are based upon
information</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;">UTStarcom</font><font size="2" style="font-size:10.0pt;"> Inc.</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;">1275 Harbor Bay Parkway</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;">Alameda, CA&#160;
94502</font></p>

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

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

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105735\09-17563-1\task3616938\17563-1-mm.htm',USER='105735',CD='Jul  3 00:05 2009' -->


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


<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 style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">available</font><font size="2" style="font-size:10.0pt;"> to the Company as of the date of this press release, which may change, and
we assume no obligation to update any such forward-looking statement.</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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">About UTStarcom,&nbsp;Inc.</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;">UTStarcom</font><font size="2" style="font-size:10.0pt;"> is a global
leader in IP-based, end-to-end networking solutions and international service
and support. The company sells its solutions to operators in both emerging and
established telecommunications markets around the world. UTStarcom
enables its customers to rapidly deploy revenue-generating access services
using their existing infrastructure, while providing a migration path to
cost-efficient, end-to-end IP networks. The company was founded in 1991 and is
headquartered in Alameda, California.&#160;
For more information about UTStarcom, visit
the company&#146;s Web site at http://www.utstar.com.</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;"># # #</font></p>

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

<h2 style="font-style:italic;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">Company Contacts</font></i></b></h2>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Director,
Investor Relations</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(510) 769-2807</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">barry.hutton@utstar.com</font></p>

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

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

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105735\09-17563-1\task3616938\17563-1-mm.htm',USER='105735',CD='Jul  3 00:05 2009' -->


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>g175631mmi001.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 g175631mmi001.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``H'!P@'!@H("`@+"@H+#A@0#@T-
M#AT5%A$8(Q\E)"(?(B$F*S<O)BDT*2$B,$$Q-#D[/CX^)2Y$24,\2#<]/CO_
MVP!#`0H+"PX-#AP0$!P[*"(H.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[
M.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SO_P``1"``_`-\#`2(``A$!`Q$!_\0`
M'P```04!`0$!`0$```````````$"`P0%!@<("0H+_\0`M1```@$#`P($`P4%
M!`0```%]`0(#``01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T?`D,V)R@@D*
M%A<8&1HE)B<H*2HT-38W.#DZ0T1%1D=(24I35%565UA96F-D969G:&EJ<W1U
M=G=X>7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&
MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$!
M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$"
M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF
M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$
MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4
MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#V:JU[?P6,
M>Z4Y8_=0=32:A?)I]JTS\GHJ^IKG;<_;)6N[MBZYZ?WCZ#VJXQOJRDBV;G5=
M5RT4BV5L.LG3]>]4IE\.VQS?74]_(.N2S#].*L7;O<KASA!]U!PJ_A6#?P@9
MK:*OY%)&K!KOA"%P%C-M_M>4R_J*Z33[VRO8-]C=I<(.ZR;L?7O7D=\F,UC"
M\NM-NA<V5Q)!,O1T.#_]>KE13V8W$^@**XSP3X[C\0?\2^_"Q:B@R".%F`ZD
M>A]179UR2BXNS,VK!1112$%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!
M1110`4444`<+XCU8W.JO;AOW=NVQ1[]_UI]E<&4QQ(,_PJ/4UQLNH&:\>5CR
M[EC^)S6UH=YNU2T7/691^M=O+:)M;0ZBZ6:V0&:,H&X&>]8-_."#S70>,Y_(
MM[4YZNW\A7#W-WN!YI4U=7".NI+J.C:G':FZ>S=82`=^1CG@=_<5F77@SQ(Y
M.W293_P)?\:]$\32F/P"91U6*%A^:UP4_P`3O$:9VR6O_?C_`.O3C.<E="NV
M9D/@WQ?:7<5U;:5/'-"X='#KD$?C7MNF3W%UIMO-=V[6UP\8,L3?P-W'YUB:
MWKE[8>`#K4#1B[%M%)EERN6VYX_$UP&D?$_Q'=:O:6]P]J8I)D1PL.#@D`\Y
MK%\U17(=V>R45PFK^.M93Q1<:%H.BQWTMLH+EY,$\`D@>@R*;_PDWQ!_Z$^'
M_O\`?_7K`D[VBN%M?&?B;4-%:XL_##&^BN!'+#)N52A!.X$X[C%9FJ_$/Q=H
MD22ZGX:M[5)#M1GD/)Z]C0!Z;17GT?BSQ]+&LD?A")D<!E(EZ@_C5_Q9XWN=
M#NK+3=/LX[K4;A/,DB=CB-<9[=^#^`H`[*BL/PEXDA\4:''?HJQS`[)X@<['
M']#U%9/CGQI>^%KJQ@L[*&Y-T&_UC$8((`QCZT`=E17!?\))\0O^A0@_[_\`
M_P!>G:!X\U6[\5KX?UK1TLIW!QL<DJ=NX9]B*`.[HKS[4/B#K4GB:[T70M#C
MO6M6*MOD(9L<$]L#)I7\5^/XT9V\'Q!5&2?-Z#\Z`/0**XK0?B$-4\+:GJ]Q
M8B.73AEXXWR'R,C!/3TK,T_QYXRU>U^UZ=X6AGMRQ4.LIZCJ.2*`/2**\]E\
M6^/8(7FE\(Q+'&I9F,O0#DGK5W2_'LNI^"=0UQ;*..YL<AHBY*,<`@YZ]Z`.
MUHKE/!'CB'Q7!)%-&EM?P\M"K9#+V9<_D:Z+4+^VTNPFOKR4100KN=C_`)ZT
M`6:*X3PQX^OO$]SJ<<-C#"MK"98<EF9QG@$#OCTK;U#6-7L[68PZ<MQ*D<;*
M0&"9)^8'J>`1C'OTQ0!Y!?[K+4I[=N##*R'\#BM+P]>YUVP4GK<(/_'A5[XG
M:#)I^K'5(AF"];)Q_"X`S^?7\ZXB*[>)U=&*LI!#`\@UW1ES1-4[H]L\<Z?J
M&H6]FMA;/.R.Q<*1P,#UKB9?#/B1@<:5-^:_XU!#\5/$4<2HQM92!C<\1R?K
M@U)_PM;Q#_SSLO\`OT?\:B//%60E=';>,@]O\.)4E&UTAA5@>QW+D5XG-(2#
M70:[XTUKQ%;"UO98E@#!C'$FT,1TSWKGV3(JH)Q5F"T/8_$__)(C_P!>4'\T
MKRCPC:M>^*M.A49S<(3]`<G^5:6H>.]8OO#YT.9+;[*8DBRL9#87&.<^PK?^
M$>@M-J,VL2I^[MU*1DCJYZ_D/YUFO=B[BV1KZKX2U6Y\7WFK^&O$%G!/*,2Q
MELO'T!!P#QD"E_X1OXD_]#3;?K_\15K5/A?;7NL7.I6FL7E@]TY>1(L8R>3S
MP<9YQ5?_`(55+_T->I_G_P#7KF(+7PU\0ZKK,6I6NJW`N)+*5567:`2#D$''
M7D5G?&C_`)!&F_\`7=__`$&NI\)^$;7PG;3QP7$MQ+<.&DEDP"<=!@?4_G3?
M&'A&+Q=:6]O+>26H@<N"B!LY&.]`%I]5M]%\)1ZC=-B*"U1B.[':,`>Y/%>2
M^'?&OV;Q7+JVJ6,$[7)<M.5)DBX.`IZ8Z#ITKTSQ'X._X2+3;'3I-3EM[6U`
MW(D8/FD#`)/;C/YUO6]C:VEM%;PP(D42!$4+T`X%`'C'A/QJ--\6FYDM+>QL
M;YMD\4"E43)X?D]03S[$UM_%\L=3T0Q8+D/LST)W+BNV\4^$K+Q3IJVDS?9W
MC</',B`E?4?0BLG4/AV-3M-*@NM9G=M,4JDGE#,BY!`//8#%`&%KOB;XB>'+
M=+G4;6P$+G;YD4>]5/H>>*=X/T;6==\5P^,+^ZLGBVG_`(]WSD[-H7';&><U
MZ5<6\-W;R6]Q$LL,BE71QD,*Y/2/`'_"/ZP][I&LW%O!(V6M&0.C+Z'G\CUH
M`YWPC_R5_6O^V_\`Z&*]1D94C9W.%4$M]*XG5_AC;:CK5QJEMJ]W8R7+%G6(
M#J>N#P>?2JI^%,A!!\5ZD0>Q_P#UT`7O$&M:+K/@36VT:XBF6*'$GEH5P2>.
MH%'PH_Y$F/\`Z^)/YU<T;P%IND^'KW1_.FG2_!$TC8#=,#&.F*PX_A*(%V0>
M)M0BCSD*@P/T-`';:W_R`=0_Z]9/_037E/A/_DE?B7Z_^RK70M\*9&4JWBK4
MB",$'D']:VK'P)9:=X3O-`@NI<7F3)<,`6R<=!TZ"@#A8O#UW:^#]'\7Z%E+
M^TC)N%4?ZQ`S<X[X'!'<?2M&&]O?BIJ=M;M"]IHMD%DN@#_K9/[H/\O09/I7
MH&@Z.FA:';:4LQG2W4KO90"V23T_&K&GZ;9:5;&WL+:.WB+%RD8P,DY)H`\Z
M^&\:0^.O$442!(T+*JCH`)"`*]/KF]`\'1:#KNHZJE[),U^23&R`!,MNX/>N
MDH`HZSI%MKFES:?=KF.4<,.J'L1[BO`O$?AV^\.:D]K=QG'6.0#Y9%]1_AVK
MZ+JEJND6&M6;6FH6ZS1'IGJI]0>QK2$^4:=CYK5ZE5Z]#UOX17<;M)H]REQ'
MVBF.UQ^/0_I7%7_AS5-,E,=U;^6P_P!M3_(UT*2>Q=RL'%,>4=JO:?X:U;5)
M!':6_F$_]-%'\S7;:'\(KAW676KI8D'6&$[F/_`N@_6AR2W"YQOASPW?>)M2
M6VMD(0',LI'RQKZG_"O>])TNVT73(=/M$VQ0KC/=CW)]S2Z9I5CH]FMI86Z0
M1+V7J3ZD]S5RN:<^8ANX4445`@HHHH`****`"BBB@`HHHH`****`"BBB@`HH
- -HH`****`"BBB@#__V3\_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
