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<SEC-DOCUMENT>0001104659-09-071511.txt : 20091224
<SEC-HEADER>0001104659-09-071511.hdr.sgml : 20091224
<ACCEPTANCE-DATETIME>20091224171419
ACCESSION NUMBER:		0001104659-09-071511
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20091218
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Material Impairments
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20091224
DATE AS OF CHANGE:		20091224

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:		091260495

	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>a09-36936_18k.htm
<DESCRIPTION>8-K
<TEXT>

<html>

<head>





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<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="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;">December&nbsp;18,
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>
  <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;"><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>
  <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;"><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>
  <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<br>
  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;(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;">&nbsp;&nbsp;&nbsp;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;">&nbsp;&nbsp;&nbsp;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;">&nbsp;&nbsp;&nbsp;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;">&nbsp;&nbsp;&nbsp;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\105692\09-36936-1\task3851906\36936-1-ba.htm',USER='105692',CD='Dec 24 15:52 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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 1.01 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 December <font style="color:blue;"><font color="black" style="color:windowtext;">19, 2009 in
China (which for purposes of this filing was December 18, 2009),</font></font>
UTStarcom, Inc. (the &#147;Company&#148;) entered into a Property Transfer and Leaseback
Agreement (the &#147;Agreement&#148;) to <font style="color:blue;"><font color="black" style="color:windowtext;">transfer</font></font> its facility in Hangzhou, China for RMB
950 million (approximately US $140 million) to <font style="color:blue;"><font color="black" style="color:windowtext;">Zhejiang</font></font>
Zhongnan <font style="color:blue;"><font color="black" style="color:windowtext;">Construction </font></font>Group
<font style="color:blue;"><font color="black" style="color:windowtext;">Co., Ltd.</font></font>
(the &#147;Buyer&#148;). The transaction is subject to customary closing conditions and
is expected to close before the end of first quarter of 2010.</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 terms of the Agreement, the Company will transfer its manufacturing
operations, research and development and administrative offices facility as
well as certain other assets related to the property for a total purchase price
of RMB 950 million (approximately US $140 million).&#160; Of the purchase price, RMB 50 million
(approximately US $7.3 million) will be withheld by Buyer and Buyer has agreed
to pay all transaction-related taxes.&#160;
Within three business days of signing, Buyer is obligated to pay the
Company a deposit of RMB 50 million (approximately US $7.3 million) which may
be retained by the Company under certain conditions.&#160; Within three business days of delivery to the
Buyer of specified documentation regarding the property, the Buyer will pay the
Company an additional RMB 45 million (approximately US $6.6 million).&#160; Within 20 business days of the delivery of
the specified documentation and payment of the RMB 45 million (approximately US
$6.6 million) the parties will submit the title transfer documentation (the
parties will work together to transfer the title). The Buyer will pay to the
Company an additional RMB 760 million (approximately US $111 million) upon
formal submittal of the title application.&#160;
The remaining purchase price (minus the RMB 50 million (approximately US
$7.3 million) transaction-related tax withholding) will be paid within three
business days of the final transfer and inspection of the property.</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
Company will lease back 70,000 sqm gross floor area (&#147;GFA&#148;) aboveground and
12,000 sqm GFA belowground of the </font><font size="2" style="font-size:10.0pt;">property</font><font size="2" style="font-size:10.0pt;"> for a period of 6 years at
a rate of RMB 2.5, 3.0 and 3.2 (approximately US $0.37, $0.44, $0.47,
respectively) per sqm per day for years 1-2, 3-4 and 5-6, respectively, of the
leaseback period for the aboveground space; and for RMB 25 (approximately US
$3.66)&#160; per sqm per month for the
underground space for the full leaseback period.</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
Company may terminate the Agreement for any reason prior to the transfer of the
title to the </font><font size="2" style="font-size:10.0pt;">property</font><font size="2" style="font-size:10.0pt;"> upon repayment
of all amounts paid to the Company by the Buyer and payment by the Company to
the Buyer of an additional RMB 50 million (approximately US $7.3 million).</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
original Agreement is in Chinese.&#160; An
English translation is attached as Exhibit&nbsp;2.1 to this Current Report on Form&nbsp;8-K
and 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
December&nbsp;21, 2009, the Company issued a press release announcing that it
had entered into the 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 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
2.06 Material Impairment</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;">In
connection with the transaction, the management of the Company also determined
on December 18, 2009 that the Company will be required to record a material
non-cash impairment charge related to the facility in its fourth quarter and
2009 financial results. As of the time of this filing, due to the accounting
complexity associated with the transfer and leaseback transaction, the Company
is unable in good faith to make a determination of an estimate or range of
estimates of such material charge.</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;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company is still evaluating the accounting treatment of the transaction.&#160; Although it would not impact the amount of
cash proceeds to be received, the transaction may not qualify as a sale for
accounting purposes which would require the Company to reflect the transaction
as financing and recognize the cash proceeds as debt and retain the Hangzhou
facility as an asset on its books until the end of the leaseback period.&#160; </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;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company will file an amended report on Form 8-K under this Item 2.06 within
four business days after it makes a determination of the accounting treatment
of the transaction and an estimate or range of estimates of the impairment
charge.</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;">Item 9.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#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;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exhibits</font></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.08%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;Number</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="85%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:85.26%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:12.08%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:85.26%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Property Transfer and Leaseback Agreement, dated as of December&nbsp;19,
  2009, by and between UTStarcom Telecom Co., Ltd. and Zhejiang Zhongnan
  Construction Group Co., Ltd. (translation from Chinese)</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.08%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0in 0in 0in 0in;width:85.26%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release dated December&nbsp;21, 2009</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;">2<a name="PB_2_124737_5335"></a></font></p>

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

<p align="center" style="margin:0in 0in .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="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="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.08%;">
  <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="padding:0in 0in 0in 0in;width:43.92%;">
  <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="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.08%;">
  <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="padding:0in 0in 0in 0in;width:43.92%;">
  <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;">Date:
  December 24, 2009</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.08%;">
  <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:43.92%;">
  <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:6.08%;">
  <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;padding:0in 0in 0in 0in;width:43.92%;">
  <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:6.08%;">
  <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:43.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice
  President, Corporate Controller<br>
  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;">3<a name="PB_3_125645_5796"></a></font></p>

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<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><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT INDEX</font></u></b></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;Number</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.34%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="85%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:85.0%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:12.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.34%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:85.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Property Transfer and Leaseback Agreement, dated as of December&nbsp;19,
  2009, by and between UTStarcom Telecom Co., Ltd. and Zhejiang Zhongnan
  Construction Group Co., Ltd. (translation from Chinese)</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.66%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.34%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0in 0in 0in 0in;width:85.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release dated December&nbsp;21, 2009</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<a name="PB_4_130036_2897"></a></font></p>

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

<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;2.1</font></b></p>

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

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Seller: UTStarcom Telecom Co.,
Ltd (hereinafter, &#147;Party A&#148;)</font></p>

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

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

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

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Buyer: Zhejiang Zhongnan
Construction Group Co., Ltd. (hereinafter, &#147;Party B&#148;)</font></p>

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

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

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

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party
A and Party B, after discussions and negotiations, herby mutually agree to
enter into this agreement (the &#147;Agreement&#148;) in respect of Party B&#146;s purchase
from Party A the real estate property, affiliated facilities, affiliated
equipment and other auxiliary facilities and structures (hereinafter, the
&#147;Property&#148;) located at 368 Liuhe Road, Binjiang District, Hangzhou, Zhejiang
Province, People&#146;s Republic of China, pursuant to the provisions of <i>The People&#146;s Republic of China Contract Law </i>,
<i>The People&#146;s Republic of China Real Estate
Administration Law</i> and <i>The
People&#146;s Republic of China Property Law</i>.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Part&nbsp;I Agreement on the Property Transfer</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;1.&#160; General Information of the Transferred
Property</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:24.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1. Location of the
Property: 368 Liuhe Road, Binjiang
District, Hangzhou, Zhejiang Province, People&#146;s Republic of China</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:24.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. Total Gross Floor Area
(&#147;GFA&#148;): 240,645.35 sqm as listed in two Real Estate Certificates, Hang Fang
Quan Zheng Gao Xin Zi No.&nbsp;06004395 with a size of 119,889.45 sqm and Hang
Fang Quan Zheng Gao Xin Zi No.&nbsp;06004396 with a size of 120,755.9 sqm with
details as set forth in the Real Estate Certificates issued by the Real Estate
Administration Bureau.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. Total land utilization
area: 200,028 sqm as listed in two Land Title Certificates, <i>Hang Bin Guo Yong (</i></font><i><font size="2" style="font-size:10.0pt;font-style:italic;">2007) Zi No.&nbsp;00264</font></i><font size="2" style="font-size:10.0pt;">
with a size 77,518 sqm and </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">Hang
Bin Guo Yong (2007) Zi No.&nbsp;00265 </font></i><font size="2" style="font-size:10.0pt;">with a size of 122,510 sqm with details as set forth in </font><font size="2" style="font-size:10.0pt;">the Land
Title Certificates issued by the Land Resource Bureau.</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;">1<a name="PB_1_125614_7056"></a></font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4. Affiliated facilities, affiliated equipment and auxiliary facilities: refer to the handover
check list.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5. Other buildings and fixtures: refer
to the handover checklist.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6. Current operating condition of the whole Property: refer to the handover checklist.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;2.&#160;
Total Transaction Price</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total Transaction Price of the Property: RMB 950,000,000 (Nine hundred
and fifty million RMB, including transaction-related taxes and fees payable by
both parties) (hereinafter, the &#147;Total Transaction Price&#148;). The
transaction-related taxes and fees include all the transaction-related taxes
and fees relating to the transaction hereof, which is legally payable by both
parties, including but not limited to business tax, deed tax, transaction management
fee, registration fee, service charge, notarization fee, stamp duty etc.
(hereinafter, the &#147;Total Transaction-related Taxes and Fees&#148;).</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;3. Allocation of the Property Transaction
Taxes</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1. The Total Transaction-related Taxes and Fees shall be the sole
responsibility of Party B provided that Party A shall pay Party B a lump sum
amount of RMB 50,000,000 (Fifty million RMB), to be deducted from the Total
Transaction Price. If the actual Total Transaction-related Taxes and Fees
exceed this amount, Party B shall be responsible for any extra amount. If the
actual Total Transaction-related Taxes and Fees are less than this amount,
Party B shall keep any amount left. Party B agrees and covenants that Party A&#146;s
actual net proceed received shall not be less than RMB 900,000,000 (Nine
hundred million RMB) ( hereinafter, the &#147;Net Transaction Price&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:24.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:24.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. Related to the preceding provision, Party B shall make sure the
Total Transaction-related Taxes and Fees legally and completely paid and
provide all the vouchers and invoices and other original proof documents to
Party A related to the taxes and fees payable by Party A. Meanwhile, should
Party A at any time be investigated or prosecuted by the government for the
incomplete payment of such taxes and fees, Party B shall be responsible for any
related damaged and expenses incurred and shall hold Party A harmless from and
against any loss.</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<a name="PB_2_125715_5335"></a></font></p>

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<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;page-break-after:avoid;text-autospace:none;text-indent:20.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;4.&#160;
Payment Method</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party A and Party B agree to make the payments in installments as
follows:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.Within 3 business days from the signing of this Agreement, Party B
shall pay a deposit in the amount of RMB 50,000,000 (Fifty million RMB) to
Party A.&#160; After the payment of the
deposit, should Party B refuse or delay to perform any obligations under this
Agreement for over 20 business days, Party A has the right to keep all such
deposit from Party B except if the performance of this Agreement is affected by
the government, Force Majeure or changed circumstances.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A receipt of the deposit will be issued from Party A to Party B upon
Party B&#146;s payment of the deposit.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. All the documentations of the Property in the possession of Party A,
including but not limited to, government approval documents (if any), drawings,
original engineering and construction documentations (including technical
materials, material inspection reports, security reports, construction logs, all materials evidencing construction
completion including the
construction information of the construction units etc.), itemized
sub-inspection reports (foundation inspection and acceptance, hidden works
inspection and acceptance, annex main body inspection and acceptance etc.),
construction supervision contract and related documents, construction contracts
and construction cost auditing reports, external wall designs and construction
contracts, other design, construction, decoration, material purchasing related
contracts and vouchers, handbooks,
warranties and invoices of affiliated
facilities, affiliated equipment and other auxiliary facilities and structures,
shall be handed over to Party 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;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After confirmation by Party B, all the above documentations will be
handed over from Party A to Party B through the handover team agreed upon by
both parties.&#160; Within 3 business days
after the completion date of the handover, Party B will pay another RMB
45,000,000 (Forty-five million RMB) to Party A and by then Party B will have
paid 10% of the Total Transaction Price, equivalent to RMB 95,000,000
(Ninety-five million RMB), to Party A.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The handover team referred to above is a temporary handover team
consisted of </font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3<a name="PB_3_125742_5796"></a></font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">financial, legal and
other related personnel jointly assigned by both parties.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">An effective receipt evidencing the receipt of the corresponding amount
of the Transaction Price will be issued from Party A to Party B upon the
payment of RMB 45,000,000 (Forty-five million RMB).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. Within 20 business days from the completion date of the 10% payment
as state in the preceding clause, the parties shall work together to apply to
transfer the Property&#146;s title to Party B. Upon the formal submission of the
title transfer application, Party B shall pay 80% of the Total Transaction
Price in the amount of RMB 760,000,000 (Seven hundred and sixty million RMB) to
Party A.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4. The remaining 10% of the Total Transaction Price, after deducting
the Total Transaction-related Taxes and Fees in the amount of RMB 50,000,000
(Fifty million RMB), shall be paid within 3 business days from the confirmation
of the handover, inspection and acceptance of all of the Property.&#160; The Total Transaction Price shall by then
have been paid in full and Party A shall issue an effective receipt reflecting
the Total Transaction Price received to Party B.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5. For Party A to avoid the transaction risk, Party B will issue a bank
guarantee for the 80% installment and the remaining 10% installment as
respectively stated in Clauses 3 and 4 of this Article&nbsp;within 3 business
days after the first 10% installment is paid. This bank guarantee shall
expressly provide that (i)&nbsp;the corresponding guaranteed amount in the bank
account will be frozen for the purpose of guaranteeing the performance of this
Agreement, and shall not be unfrozen unless expressly agreed to by Party A in
writing; and (ii)&nbsp;the bank shall guarantee that the guaranteed amount will
be paid to Party A pursuant to Clauses 3 and 4 of this Article.&#160; All terms in the guarantee letter (including
but not limited to the terms, conditions and schedule for unfreezing the guaranteed
funds in the account) shall be expressly agreed to by Party A in writing.&#160; If Party B fails to provide a bank guarantee
letter pursuant to this Clause, Party A shall have the right to refuse to apply
for the transfer of the Property&#146;s title.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6. Party A&#146;s bank account for receiving payments :</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4<a name="PB_4_125809_2897"></a></font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Account
Name : <u>UTStarcom Telecom Co. Ltd.</u></font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bank
Name : <u>Bank of China Zhengjiang Branch</u></font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Account
Number : </font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;5.&#160; Party A&#146;s Representations and Warranties</font></b></p>

<p style="margin:0in 0in .0001pt 21.0pt;text-autospace:none;text-indent:1.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1. Party A has the
legal authority to sell the Property.&#160; If
there are discrepancies regarding the Property&#146;s area and amount, then the
Transaction Price shall be based on the actual area and amount as stated in the
Real Estate Certificates.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. As of the signing date of the Agreement, Party A has not sold or
transferred the Property to any third party, nor has it agreed to sell or
transfer the Property to any third party.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. Party A has not
mortgaged or pledged the Property to any third party, nor has it agreed to
offer such mortgage or pledge to any third party.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4. Before the handover
of the Property, Party A shall use commercially reasonable efforts to keep the
Property (including affiliated facilities,
affiliated equipment and other auxiliary facilities and structures) in
the current condition.&#160; Any cost incurred
herein shall be assumed by Party A.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5. Party B shall not be
responsible for any Party A&#146;s legal liabilities and obligations solely due to
the purchase of the Property, regardless of whether these obligations have been
incurred, will be incurred or may be incurred. Party B is expressly not
responsible for the following obligations of Party A:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 29.5pt;text-autospace:none;text-indent:-.1in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font><font size="2" style="font-size:10.0pt;">&nbsp;</font><font size="2" style="font-size:10.0pt;">Any construction fee,
material fee and service fee associated with the Property including the cost of
design, construction, supervision, renovation, installation and purchase,
material and labor cost etc. that Party A still has not paid;</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;text-indent:-12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 29.5pt;text-autospace:none;text-indent:-.1in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2)</font><font size="2" style="font-size:10.0pt;">&nbsp;</font><font size="2" style="font-size:10.0pt;">Any unpaid
payment related to wages, social insurances and benefits of the Party A&#146;s
employees;</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;text-indent:-12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 29.5pt;text-autospace:none;text-indent:-.1in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3)&nbsp;Any payment related to government fees or taxes that that Party
A still has not paid, but excluding the Total Transaction-related Taxes and
Fees;</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<a name="PB_5_130705_3020"></a></font></p>

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

<p style="margin:0in 0in .0001pt 29.5pt;text-autospace:none;text-indent:-.1in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4)&nbsp;Any payment related to property management fee, electricity, water
and other fees related to the Property that Party A still has not paid;</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;text-indent:-12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 29.5pt;text-autospace:none;text-indent:-.1in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5)&nbsp;Any penalty from the governmental administrative department and
other related departments incurred prior to the handover of the Property; and</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;text-indent:-12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 29.5pt;text-autospace:none;text-indent:-.1in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6)&nbsp;Any other fees closely related to the Property before the
handover of the Property.</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;text-indent:-12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.3pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;6.&#160;
Other Agreements</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1. In the event there is any inconsistency between this Agreement as
signed by both parties and the formal contract provided by the Real Estate
Administration Bureau and Land Resource Bureau and signed by both parties, this
Agreement shall prevail.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. In case there are some issues stated in the formal contract while
not covered in this Agreement, the formal contact shall prevail.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. After the signing of this Agreement, Party B has the right to form
an operation company (hereinafter, the &#147;Project Company&#148;) to assume all the
rights and obligations of Party B under this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Real Estate Certificates and other documentation related to the
title transfer shall be transferred directly to the Project Company by Party A
and Party B.&#160; But if due to the reasons
caused by the government registration department or Party B or the Project
Company, it is impossible for the Real Estate Certificates to be transferred to
the Project Company, Party B will decide which company to hold the Real Estate
Certificates. Under such circumstances, Party A shall provide cooperation and
assistance, but all extra taxes and expenses incurred in connection therewith
shall be borne by Party B.&#160; Neither party
shall have a claim against the other party for any damages for breach under
this provision.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In order to ensure the timely payment collection for Party A, the
deadline for the 80% payment as stated in Clause 3 of Article&nbsp;4 shall be
no later than 30 business days after the initial 10% payment, and the deadline
for the 10% payment as stated in Clause 4 of Article&nbsp;4 shall be no later
than 45 business days after the initial 10% </font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6<a name="PB_6_130741_7748"></a></font></p>

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection herewith, Party B agrees to assume joint liabilities with
the Project Company in performing all its obligations and undertakings under
this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;7.&#160;
Property Delivery Deadline</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If neither party is in breach of this Agreement, both Party A and Party
B agree to use commercially reasonable efforts to officially transfer the title
of the Property by March&nbsp;15, 2010.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Part&nbsp;II Agreement on Property Leaseback</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.45pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;8.&#160;
Leaseback Area and Term</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.6pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1. The leaseback area is 70,000 sqm GFA aboveground and 12,000 sqm GFA
underground of the Property (hereinafter, the &#147;Leaseback Space&#148;). The leaseback
term is 6 years (hereinafter, the &#147;Leaseback Term&#148;) starting from the earlier
of (i)&nbsp;the completion date of the Property handover; or (ii)&nbsp;March&nbsp;15,
2010.&#160; If the Property ownership transfer
is not completed by March&nbsp;15, 2010, the Leaseback Term shall start on the
date the Property ownership title transfer is completed.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:23.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. Both parties agree that regardless of any contrary terms in this
Agreement and no matter whether the title transfer is completed, upon the
signing of the Agreement, Party A has the right to leaseback and use the
Leaseback Space with consideration pursuant to the leaseback agreement hereof.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:23.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.45pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;9.&#160;
Rent and Payment Schedule</font></b></p>

<p style="margin:0in 0in .0001pt 19.6pt;text-autospace:none;text-indent:4.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="2" style="font-size:10.0pt;">The rent during the
Leaseback Term shall be paid in three phases and each phase includes two years:
the payment due date for the initial phase shall be within 3 business days
after the Property title is transferred.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:23.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .55in;text-autospace:none;text-indent:-18.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Phase 1
rent: year one and year two, for the 70,000 sqm GFA aboveground of the
Leaseback Space, the rent is RMB 2.5 per sqm per day (based on 365 days per
year). For the 12,000 sqm GFA underground of the Leaseback Space, the rent is
RMB 25 per sqm per month.</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The property management fee is RMB 6.5 per sqm per month and the
air-conditioning fee is RMB 4 per sqm per month.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7<a name="PB_7_130903_141"></a></font></p>

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

<p style="margin:0in 0in .0001pt .55in;text-autospace:none;text-indent:-18.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Phase 2
rent: year three and year four, 70,000 sqm GFA aboveground of the Leaseback
Space, the rent is RMB 3 per sqm per day (based on 365 days per year). On the
12,000sqm GFA underground of the Leaseback Space, the rent is RMB 25per sqm per
month.</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The property management fee is RMB 6.5 per sqm per month and the
air-conditioning fee is RMB 4 per sqm per month.</font></p>

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

<p style="margin:0in 0in .0001pt .55in;text-autospace:none;text-indent:-18.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Phase 3
rent: year five and year six, 70,000 sqm GFA aboveground of the Leaseback
Space, the rent is RMB 3.2 per sqm per day (based on 365 days per year). On the
12,000sqm GFA underground of the Leaseback Space, the rent is RMB 25 per sqm
per month.</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The property management fee is RMB 6.5 per sqm per month and the
air-conditioning fee is RMB 4 per sqm per month.</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to the other terms under this Agreement, the rent, property
management fee, air-conditioning fee of the Leaseback Space (82,000 sqm in
total including aboveground and underground space) will be calculated and paid
according to the above terms.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. Payment Schedule</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:17.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .55in;text-autospace:none;text-indent:-18.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Except as
otherwise provided in Item (2)&nbsp;of this Section&nbsp;2 below, all rents
shall be paid biannually by Party A to Party B within 20 days prior to each
lease commencement date and using the Property and Party B shall issues a legal
and valid receipt for the rent paid within 3 business days after receiving the
rent and/or any other payment made by Party A.</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .55in;text-autospace:none;text-indent:-18.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The rent
for the first 6 months of the Leaseback Term shall be paid in full within 3
days after the title of the Property has been transferred from Party A to Party
B.</font></p>

<p style="margin:0in 0in .0001pt 39.0pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. During the Leaseback Term, should Party A terminate leasing back the
Property, Party A should notify Party B 6 months in advance and obtain Party
B&#146;s consent.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8<a name="PB_8_131131_7608"></a></font></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Should Party A need to review the leaseback after
the Leaseback Term expires, Party A shall notify Party B 6 months prior to such
expiration and both parties shall sign a new lease agreement. Party A has a
right of first refusal under the same conditions compared with the other
proposed lessees.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 21.0pt;text-align:left;text-autospace:none;text-indent:9.0pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;10.&#160;
Other Agreements o</font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">n the
Property Leaseback</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.05pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1. Provided that Party B is not in breach of any
terms of this Agreement, when Party A pays the initial payment for leasing the
Leaseback Space, it shall pay a deposit in the amount of RMB 30,000,000 (Thirty
million RMB) to secure the performance obligations (hereinafter, the &#147;Leaseback
Deposit&#148;) to Party B. Party B should return the Leaseback Deposit free of
interest within 3 business days upon expiration of the Leaseback Term if
Part&nbsp;A has lease the Leaseback Space during the Leaseback Term in
according with the terms of this Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.05pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.05pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. During the Leaseback Term, Party A has the right
to decide at any time to sublease the Leaseback Space in whole or in part;
provided that the sublease agreements shall be provided to Party B for record
keeping.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.05pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. During the phase 1 of the Leaseback Term, or the
first two years of the Leaseback Term, if the originally leased parking space
is not sufficient and Party A needs additional parking space, Party A will pay
RMB 300 per month per parking space for underground parking or RMB 100 per
parking space per month for aboveground parking. The terms for phase 2 and 3 of
the Leaseback Term shall be discussed separately.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4. If Party A terminates the Leaseback Agreement
during the 6-year Leaseback Term, Party B has the right to keep the total
Leaseback Deposit of RMB 30,000,000 (Thirty million RMB).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, Party A shall pay additional
compensation to Party B in the amount of 6-month rent, calculated based on the
rent of for the applicable phase under the Agreement (hereinafter, the
&#147;Additional Compensation&#148;).&#160; Should Party
A refuse to lease part of the Leaseback Space during the Leaseback Term, Party
B will deduct the corresponding portion of the Leaseback Deposit based on the
proportion of the un-leased space versus the leased space. Party A shall also
pay the respective portion</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9<a name="PB_9_131011_7056"></a></font></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of the Additional Compensation based on the proportion of un-leased
space versus the leased space.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the Leaseback Term, if Party A reduces the
Leaseback Space, Party A shall discuss with Party B about the specific
leaseback locations.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5. During 6-year Leaseback Term, should Party B
refuse to perform the obligations of the leaseback agreement, Party B shall
compensate Party A in the same amount as provided in the preceding Clause
except if Party A&#146;s fault causes Party B unable to perform the leaseback
obligations.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:29.05pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6. Party A has the right to continue using the
current large neon lights billboard of the Property after the transaction is
completed. If Party A chooses to continue using such billboard, Party A shall
pay RMB 3,000,000 (Three million RMB) per annum for such use as advertisement
fee and Party A shall be responsible for the maintenance of the signboard and
Party B shall provide assistance. Party A shall pay the corresponding
advertisement fee along with the leaseback rent due at the time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:29.05pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:29.05pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If Party A decides not to use the billboard after
the transaction is completed, it shall provide notify Party B before the
commencement of the Leaseback Term.&#160; If
Party A chooses to continue using the billboard at the commencement of the
Leaseback Term, but decides to discontinue such use at any time after the
Leaseback Term started, it shall provide Party B with a 6-month prior notice.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:29.05pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 6.0pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7. Handover of Employees of Party A, Property
Management Company and Existing Tenants:</font></p>

<p align="left" style="margin:0in 0in .0001pt 6.0pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 39.0pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font><font size="2" style="font-size:10.0pt;">)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party A shall maintain part of the current team
members from the departments of facilities, security, IT and administration
until March&nbsp;30, 2010 and Party A shall be responsible for their
salaries.&#160; Party A shall be responsible
for the termination or cancellation of the employment agreements (as the case
may be) with those team members and the related expenses.&#160; Party B has the right to recruit those team
members after the termination and cancellation of the employment agreements by
Party A.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10<a name="PB_10_131253_5335"></a></font></p>

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

<p align="left" style="margin:0in 0in .0001pt 39.0pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Party A shall be responsible for maintaining
the current contracted property management company and the corresponding
expenses prior to March&nbsp;30, 2010.&#160;
After the Property handover, Party B shall use best efforts to continue
using the existing property management company.&#160;
If termination of property management company is unavoidable after the
handover, Party A is solely responsible for the termination and cancellation of
the contract and any expenses that may be incurred as a result of such change.</font></p>

<p align="left" style="margin:0in 0in .0001pt 39.0pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 39.0pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">After the completion of the title transfer and
within 3 business days after all the Net Transaction Price is paid, Party A
shall transfer the existing tenants and potential tenants that Party has been
in touch with to Party B.&#160; Party B shall
use best efforts to ensure a smooth transition. &#160;However, if changes are really necessary,
Party A shall be responsible for all the terminations or cancellations of the
existing leases (as the case may be) at its sole expense.</font></p>

<p align="left" style="margin:0in 0in .0001pt 39.0pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:30.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8. If Party B still
owes Party A any money related to the Total Transaction Price or any other fee
payable when the Leaseback Deposit, rent and/or other payments are due for
Party A, Party A has the right to deduct the corresponding outstanding amount
from the leaseback-related payments or any other fee payable to Party B.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:30.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:30.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9. After the signing of
this Agreement, Party B has the right to form a new Project Company which will
assume its rights and obligations agreed under this Agreement provide that
Party B agrees to be jointly responsible with Project Company for the
responsibilities and obligations of Party B under this Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:30.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:30.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Real Estate
Certificates and other documentation related to the title transfer will be
transferred directly to the Project Company. But if due to the reasons caused
by the governmental registration department or Party B or the Project Company,
it is impossible to transfer the Real Estate Certificates to the Project
Company, Party B will decide which company to hold the Real Estate
Certificates. Under such circumstances, Party A shall provide cooperation and
assistance, but all extra taxes and expenses incurred in connection therewith
shall be borne by Party B. Under such</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11<a name="PB_11_131324_5796"></a></font></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">circumstance, neither party
shall have a claim against the other party for any liability for breach under
this provision.&#160; In connection herewith,
Party B agrees to assume joint liabilities with the Project Company in
performing all its obligations and undertakings under this Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:30.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:30.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10. Party A shall make
sure to observe the related local laws, regulations and government policies
during the Leaseback Term and be subject to the unified management of the
Property by Party B.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Part&nbsp;III
Leasing Contract and Party A&#146;s Additional Leasing Arrangement</font></b></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;11.
Leasing Contract</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If Party B deems that
an additional leasing contract is necessary based on this Agreement, both
parties shall negotiate and sign a supplemental leasing contract. The leasing
terms in the supplemental leasing contract shall prevail over the terms of this
Agreement.&#160; If no supplemental leasing
contract is signed, the terms of this Agreement shall govern.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;12.
Additional Leasing Arrangement</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After the signing of
this Agreement, if Party A needs to expand the Leasebakc Space, the parties
shall sign another leasing agreement which shall become part of this Agreement.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Part&nbsp;IV
Confidentiality</font></b></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;13.
Confidentiality</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:28.1pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.Both parties shall be
legally required to keep all the business secrets of both parties, their
controlling and participating shareholders </font><font size="2" style="font-size:10.0pt;">and
related parties, that they come into contact with or get to know of d</font><font size="2" style="font-size:10.0pt;">uring </font><font size="2" style="font-size:10.0pt;">the
signing and performance</font><font size="2" style="font-size:10.0pt;"> of
this Agreement (the &#147;Confidential Information&#148;).&#160; The fee for keeping confidentiality has been
included in the transaction related fees in this Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:25.7pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:28.1pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. Each party has the
obligation to keep confidential of any confidential items stipulated in the
laws, regulations and governmental policies of the People&#146;s Republic of China.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12<a name="PB_12_131559_2897"></a></font></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:28.1pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. The term for the
confidentiality obligations starts from the signing of this Agreement to 5
years after the expiration of the Leaseback Term.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:28.1pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4. The Confidential
Information does not include the following:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 38.9pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any information that has already been published
or available to the public in other forms when being disclosed by the
disclosing party;</font></p>

<p align="left" style="margin:0in 0in .0001pt 39.0pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 38.9pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Information that is released by a third party
to the receiving party provided that such disclosure does not infringing upon
any right of, or breach the confidentiality obligation against, the disclosing
party and without any additional restrictions on its use and disclosure, and
information that is released by a third party who breaches the confidentiality
obligations or infringes upon the rights of the disclosing party but is received
by the receiving party who neither knows nor has reasons to know such breach or
infringement, then the information is not Confidential Information before the
receiving party knowing such breach or infringement.</font></p>

<p align="left" style="margin:0in 0in .0001pt 39.0pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 38.9pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Information in the possession of the receiving
party through legal and proper channels or independent collection, research and
development without utilization of any disclosing party&#146;s Confidential
Information.</font></p>

<p align="left" style="margin:0in 0in .0001pt 39.0pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 38.9pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Information already in the possession of the
receiving party when the information is disclosed, provided that the receiving
party provides evidence demonstrating legal possession of such information and
notifies the disclosing party in writing;</font></p>

<p align="left" style="margin:0in 0in .0001pt 39.0pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 38.9pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Information that is agreed in writing by the
disclosing party to be disclosed or published by the receiving party; or</font></p>

<p align="left" style="margin:0in 0in .0001pt 39.0pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 38.9pt;text-align:left;text-autospace:none;text-indent:-.25in;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Information that must be disclosed as legally
mandated by the competent courts, arbitration institutions, government
authorities and/or stock exchanges.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13<a name="PB_13_131722_3020"></a></font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Part&nbsp;V. Force Majeure and Situation Changes</font></b></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;14.
Force Majeure and Situation Changes</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.75pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If either Party is
prevented from performing any of its obligations under this Agreement during
the term of the Agreement by an event of Force Majeure and situation changes,
then it shall be released or reduced of its liabilities according to the
current laws, regulations and judicial interpretations of the People&#146;s Republic
of China.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Part&nbsp;VI.&#160; Liabilities for Breach</font></b></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:21.0pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;15.
Party A&#146;s Liability for Breach</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:21.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:21.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1. Should (i)&nbsp;there
be a flaw in licenses or contracts and other necessary legal documents of the
Property or (ii)&nbsp;there be other legal disputes regarding the Property, and
as a result of aforementioned item (i)&nbsp;or item (ii), the Property
ownership title cannot be transferred from Party A to Party B, Party A shall,
in addition to returning the Total Transactions Price in full, also pay Party B
in the amount of 5% of the Total Transaction Price as penalty.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:21.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:21.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. Should Party A fail
to pay Party B the corresponding amount on time as stipulated in this
Agreement, Party A shall pay Party B a penalty that is equivalent to 0.05% of
the outstanding amount per day. The penalty shall continue accruing and being
calculated until the entire delayed amount is fully paid.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:21.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:21.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. Should party A
breach the agreement and the penalty payable by Party A pursuant to this
Agreement still cannot fully cover the loss of Party B due to such breach,
Party A shall fully indemnify Party B for its total and actual loss.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:21.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.0pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;16.
Party B&#146;s Liability for Breach</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1. Should Party B fail
to pay any portion of the Total Transaction Price of the Property under this
Agreement or commit any other material breach of this Agreement, Party B shall
pay a penalty equivalent to 5% of the outstanding payment. In addition, Party A
has the right not to perform its corresponding obligations under the Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. Should Party B fail
to pay Party A the corresponding amount on time as stipulated in this
Agreement, Party B shall pay Party A a penalty equivalent to 0.05% of the total
outstanding amount per day. The penalty shall continue accruing and being
calculated until the entire delayed amount is fully paid.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14<a name="PB_14_131813_7748"></a></font></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. Should party B
breach the agreement and the penalty payable by Party B pursuant to this
Agreement still cannot fully cover the loss of Party A from such breach, Party
B shall fully indemnify Party A for its total and actual loss.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4. In addition, should
Party B breach the leaseback agreement, Party A is entitled to request Party B
to specifically perform the obligations of leaseback as stipulated in this
Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.0pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;17.
Jurisdiction of Dispute Resolution and Governing Law</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.35pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1. With respect to any
and all disputes arising from or related to this Agreement, both parties shall
first try to resolve such disputes by friendly negotiations and discussions. If
the disputes are not resolved after 60 days since either party receives the
notice that requests a negotiation, either party can submit the dispute to China
International Economic and Trade Arbitration Commission for arbitration
according to the arbitration rules&nbsp;then in effect. The arbitration
location shall be Beijing. The result of the arbitration shall be final and
binding on both parties.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.35pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. This Agreement
should be governed by the laws and regulations of the People&#146;s Republic of
China.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Part&nbsp;VII.&#160; Effective Date, Termination and Others</font></b></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.0pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;18.
Effectiveness of the Contract</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:27.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement shall be made in four
originals and shall come into effect from the date on which both parties sign
and stamp the corporate chops on this Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:24.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;19.
Early Termination by Party A</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Should Party A request
to terminate this Agreement without cause before the completion of the transfer
of the Property, this Agreement will terminate when Party A pays back the money
Party B has paid within 20 days after the request for termination.&#160; In addition, Party A shall pay a sum of RMB
50,000,000 (fifty million RMB) to Party B as complete compensation.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;20.
Language.</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is
written in Chinese.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15<a name="PB_15_132344_141"></a></font></p>

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;21.
Signing Location</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is being
signed in Hangzhou, Zhejiang Province, People&#146;s Republic of China.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;22.
Wavier</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The failure by either
party to exercise its rights, power and privileges shall not be deemed as
wavier of such rights, power and privileges. Any partial exercise of rights,
power and privileges shall not affect the exercise of other rights, power and
privileges.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;23&#160; Former Agreements</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement should
replace any former or simultaneous relevant oral or written agreements,
memorandums and communications made by the parties. There are no other
expressed or implied obligations or promises regarding the subject matter of
this agreement except otherwise provided herein.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Article&nbsp;24. Others</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:23.9pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The contacts and documents
related to this Agreement are parts of this Agreement.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[THE REMAINDER OF THE PAGE INTENTIONALLY LEFT
BLANK]</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16<a name="PB_16_132409_7608"></a></font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In witness whereof, both parties sign this
Agreement on the following date.</font></p>

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

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party A: UTStarcom Telecom Co., Ltd (Corporate
Seal)</font></p>

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

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authorized Representative (Signature)</font></p>

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

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Party B: Zhejiang Zhongnan Construction Group Co.,
Ltd (Corporate Seal)</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authorized Representative (Signature)</font></p>

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

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

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
December 19, 2010</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signing Location: Hangzhou, Zhejiang Province,
People&#146;s Republic of China</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17<a name="PB_17_132533_8146"></a></font></p>

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<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
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>

<h3 style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom Reaches
Agreement to Sell Building in Hangzhou, China</font></b></h3>

<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;">ALAMEDA, Calif., Dec 21,
2009 /PRNewswire-FirstCall via COMTEX News Network/ &#151; UTStarcom,&nbsp;Inc.
(Nasdaq: UTSI) today announced the signing of a definitive agreement to sell
its facility in Hangzhou, China for RMB 950 million (approximately US $140
million) to the Zhongnan Group of Companies. The transaction is subject to
customary closing conditions and is expected to close before the end of first
quarter of 2010. Net of taxes, the payment to UTStarcom will be RMB 900 million
(approximately US $132 million).</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;">(Logo:
http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO)</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 terms of the
agreement, UTStarcom will sell its 2.6 million square foot manufacturing
operations, research and development and administrative offices facility as
well as certain other assets related to the property for a total purchase price
of RMB 950 million (approximately US $140 million). Zhongnan Group of Companies
will pay UTStarcom a deposit of RMB 50 million (approximately US $7.3 million),
three days after signing. UTStarcom will continue to maintain its presence in
Hangzhou by leasing back a portion of the building to maintain its current
operations.</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;">&#147;In June&nbsp;of this
year we committed to explore opportunities to monetize our underutilized
facility in Hangzhou, China,&#148; said Peter Blackmore, chief executive officer and
president of UTStarcom. &#147;We are very pleased to be able to deliver on this
commitment as it will significantly improve our financial profile and position
UTStarcom for growth in 2010 and beyond.&#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;">UTStarcom expects to
record an impairment charge in its fourth quarter 2009 financial statements as
a result of the agreement to sell the asset.</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;">Jones Lang LaSalle acted
as a real estate advisor to the Company.</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;"><em><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">About
UTStarcom,&nbsp;Inc.</font></i></b></em></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 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. 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 style="margin:0in 0in .0001pt;"><em><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Forward
Looking Statements</font></i></b></em></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 relating to, among other things, the company&#146;s
anticipated completion of the sale, the timing of the closing, expected
proceeds, ability to sublease retained space, asset impairment charges,
liquidity and cost structure. Forward-looking statements are generally
indicated by such words as &#147;will,&#148; &#147;expects,&#148; &#147;estimates,&#148; &#147;goals,&#148; &#147;plans&#148; or
similar words. These statements are forward-looking in nature and subject to
risks and uncertainties that may cause actual results to differ materially.
These risks include satisfaction of closing conditions, due diligence, changes
in currency conversion rates, adequate capital resources of the buyer,
accounting determinations as well as risk factors identified in its 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. All forward-looking statements included in this release are based
upon information available to the Company as of the date of this 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;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SOURCE UTStarcom,&nbsp;Inc.</font></p>

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

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