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<SEC-DOCUMENT>0001104659-10-003576.txt : 20100128
<SEC-HEADER>0001104659-10-003576.hdr.sgml : 20100128
<ACCEPTANCE-DATETIME>20100128140624
ACCESSION NUMBER:		0001104659-10-003576
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20100123
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100128
DATE AS OF CHANGE:		20100128

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:		10553278

	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>a10-2550_18k.htm
<DESCRIPTION>8-K
<TEXT>

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<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>

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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="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;font-weight:normal;">&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;font-weight:normal;">&nbsp;</font></b></p>

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

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

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

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Date of Report (Date of earliest event reported): </font></b><font size="2" style="font-size:10.0pt;">January&nbsp;23,
2010</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;font-weight:normal;">&nbsp;</font></b></p>

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

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

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

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">000-29661</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">52-1782500</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other
  jurisdiction of <br>
  incorporation)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File
  Number)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer
  Identification No.)</font></p>
  </td>
 </tr>
</table>

</div>

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

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Alameda, California 94502</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices) (Zip code)</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(510) 864-8800</font></b></p>

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

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

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former address, if changed since last
report.)</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box below if the Form&nbsp;8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (see General Instruction A.2. below):</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160; Written
communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR
230.425)</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160; Soliciting
material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR
240.14a-12)</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160; Pre-commencement
communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17
CFR 240.14d-2(b))</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160; Pre-commencement
communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17
CFR 240.13e-4(c))</font></p>

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

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

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

</div>

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

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

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On January&nbsp;23, 2010,
UTStarcom,&nbsp;Inc. through its wholly owned subsidiary, UTStarcom Telecom
Co., Ltd. (the &#147;Company&#148;) signed a Manufacturing Agreement effective as of December&nbsp;31,
2009 (the &#147;Manufacturing Agreement&#148;) by and among the Company and Sanmina-SCI
Corporation (&#147;Sanmina&#148;).</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the Manufacturing
Agreement, Sanmina will provide full electronics manufacturing services,
including manufacturing, assembly and support, for the Company&#146;s broadband,
IPTV and NGN solutions products (&#147;Products&#148;) currently manufactured by the
Company in its Hangzhou, China facility.&#160;
Sanmina will also provide new product introduction support, material
sourcing and procurement, printed circuit board assembly, system integration
and testing, final pack-out and delivery of Products under the Manufacturing
Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sanmina agrees that the
prices it charges the Company under the Manufacturing Agreement will not be
higher than prices it charges to other customers for similar products for the
same period of time with similar trade volumes, terms and conditions.&#160; There is no minimum amount of Products that
the Company must purchase under the Manufacturing Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon the commencement of the
Manufacturing Agreement, Sanmina will purchase 60 days worth of components the
Company has in its current inventory for the manufacture of Products, and
Sanmina will continue to purchase components from the Company on a weekly basis
until the Company&#146;s inventory of components for Products is depleted.</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 Manufacturing
Agreement, the Company will provide a four month rolling forecast to Sanmina,
and the Company is obligated to purchase one month of the four month rolling
forecast.&#160; For the remaining three months
of the then-current four month rolling forecast, the Company must pay for any
components on the Company&#146;s bill of materials ordered by Sanmina, which are not
passive components and are non-cancellable.&#160;
The Company may also be obligated to buy back excess inventory and
obsolete inventory.</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 initial term of the
Manufacturing Agreement is one year with automatic renewals of one year terms
unless notice is provided 90 days prior to the end of the then-current
term.&#160; The Manufacturing Agreement may be
terminated for cause and either party may terminate the Manufacturing Agreement
for convenience with prior notice of six months.&#160; Upon termination or expiration of the
Manufacturing Agreement, Sanmina must continue to provide maintenance support
and after-sales repair service to the Company at Sanmina&#146;s then-prevailing
rates for a minimum of two years from the termination or expiration.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing description of
the terms of the Manufacturing Agreement does not purport to be complete and is
qualified in its entirety by reference to the Manufacturing Agreement.&#160; The Manufacturing Agreement is attached as Exhibit&nbsp;10.1
to this Current Report on Form&nbsp;8-K and is incorporated herein by
reference.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On January&nbsp;27, 2010,
the Company issued a press release announcing that it had entered into the
Manufacturing Agreement.&#160; The full text
of the press release is furnished as Exhibit&nbsp;99.1 to this Current Report
on Form&nbsp;8-K and is incorporated herein by reference.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2<a name="PB_2_070904_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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01&#160; Financial
Statements and Exhibits.</font></b></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exhibits</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Manufacturing
Agreement signed as of January&nbsp;23, 2010</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Press Release
dated January&nbsp;27, 2010</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_070914_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;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTSTARCOM, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
  January&nbsp;28, 2010</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:44.0%;">
  <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:6.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:44.0%;">
  <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:6.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President, Corporate Controller and Chief Accounting Officer</font></p>
  </td>
 </tr>
</table>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4<a name="PB_4_071052_5796"></a></font></p>

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

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

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

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

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Manufacturing
Agreement signed as of January&nbsp;23, 2010</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Press Release
dated January&nbsp;27, 2010</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_071058_2897"></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 10.1</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="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTSTARCOM MANUFACTURING AGREEMENT</font></b></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Manufacturing Agreement, including the
attached Exhibits (the &#147;<b>Agreement</b>&#148;), is
entered into as of&#160; <u>12/31/2009</u>&#160; (the &#147;<b>Effective Date</b>&#148;)
by and between UTStarcom </font><font size="2" style="font-size:10.0pt;">Telecom Co., Ltd </font><font size="2" style="font-size:10.0pt;">&#160;(&#147;<b>UTS</b>&#148;), a
company organized under the laws of the People&#146;s Republic of China, on behalf
of itself and its affiliates, having its principal place of business at 368
Liuhe Road, Hi-Tech Industrial Development Zone (Binjiang), Hangzhou 310053, P.
R. China and Sanmina-SCI Corporation,
a company organized under the laws of the state of Delaware, USA, on behalf of
itself and its subsidiaries and affiliates (collectively, &#147;<b>EMS</b>&#148;,
having its principal place of business at 2700 North First Street, San Jose,
California 95134, each a &#147;Party&#148; and, collectively, the &#147;Parties&#148;.</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In consideration of the mutual promises set forth
herein, the Parties hereby agree as follows:</font></p>

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

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Scope
of Contract</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt 21.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS agrees to manufacture, assemble, support
and provide complete Products for sale to UTS in accordance with the terms and
conditions hereof.&#160; This Manufacturing
Agreement applies to all products and services related to Products sold, or
provided by EMS to UTS.</font></p>

<p style="margin:0in 0in .0001pt 21.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 21.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any additional terms and conditions for
specific Products and services shall be set forth in an Addendum to this
contract.&#160; The Addendum has to be signed
by both Parties to be in force and once so signed is incorporated into this
Agreement.</font></p>

<p style="margin:0in 0in .0001pt 21.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Term
of Contract</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless terminated earlier in accordance with the
provisions of this Agreement, this Agreement shall have a term of one (1)&nbsp;year
commencing on the Effective Date.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement shall automatically renew for
additional successive one (1)&nbsp;year periods, unless written notice of
non-renewal is received by the other Party no later than ninety (90) days prior
to the expiration of the then-current term.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Place
of Performance of Services</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall only manufacture each Product at the
applicable Approved Manufacturing and Product development location(s)&nbsp;for
that Product.&#160; Each location approval from
UTS shall specify not only plant location, but also Product family(ies),
building location, line location, and the stage to which the Product is
released for manufacture (i.e. prototype versus mass production).</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS will not change location of the facilities,
building location or line location for the manufacture and assembly of the
Products without UTS&#146; prior written consent.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless otherwise explicitly agreed, UTS shall in no
event be obliged to pay any &#147;learning costs&#148;, or any other costs, referable to
or resulting from EMS&#146; establishment of new manufacturing facilities, work with
new products/services etc., such as, but not limited to employee training
programs, </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;">UTStarcom Confidential</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_122438_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 .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">installations of equipment, erection of buildings,
preparation of production facilities and obtaining of necessary approvals,
licenses and permits.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall ensure that all of UTS&#146; property (which
shall include but not be limited to all Products) shall be kept distinct and
separate from EMS&#146; or other third parties&#146; property and shall be clearly
identified as UTS&#146; property.&#160; EMS shall
ensure that none of UTS&#146; property is seized by any third party, whether
pursuant to an order of court or otherwise, while in EMS&#146; possession.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Product
Definition</font></h1>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS agrees to manufacture each of the Products in
accordance with this Agreement, the applicable Specifications, and related
supporting documents, and any other instructions provided in writing by UTS.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During and upon the completion of the manufacturing
of each Product, EMS will submit such Product to the mutually agreed testing
procedures, in this Agreement or as agreed to in writing by UTS and EMS from
time to time.&#160; At UTS&#146; discretion, UTS shall
provide training in the testing procedures set forth herein to certain
personnel designated in writing by EMS.&#160;
EMS shall perform final testing of all Products at the designated EMS
manufacturing facility.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Purchase Order</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of this Agreement, UTS shall
provide EMS with a Purchase Order that instructs EMS of Products to be
manufactured and shipped by EMS.&#160; Except
as specifically requested, UTS shall, no later than the last week of each
month, submit Purchase Orders for Products to be delivered during the
subsequent month to EMS in writing, by fax, email or via Electronic Data
Interchange (&#147;<b>EDI</b>&#148;).&#160;&#160; Each Purchase Order shall include:</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Identification
of Products ordered by UTS Part&nbsp;Number;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Quantity
to be purchased;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Price
of Products ordered;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Requested
delivery dates and location;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Shipping
and invoicing instructions; and</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<p style="margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Purchase
Order Number.</font></p>

<p style="margin:0in 0in .0001pt 85.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 22.5pt;text-indent:13.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(a)</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Review of Purchase Order.&#160;
</font></b><font size="2" style="font-size:10.0pt;">EMS shall at all times use its commercially
reasonable efforts to verify whether a Purchase Order is complete and accurate.&#160; In the event EMS has reason to believe that
the Purchase Order or Forecast is in any respect erroneous or for other reasons
must be adjusted, EMS shall immediately notify UTS. </font><font size="2" style="font-size:10.0pt;">All Purchase Orders that are
within the Forecasted lead times, shall be acknowledged by EMS within two (2)&nbsp;business
days of receipt.&#160;&#160; If EMS does not
acknowledge or reject a Purchase Order within the two day period, the Parties
shall confirm that the Purchase Order was received by EMS. If a Purchase Order
is rejected by EMS, </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_122532_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 style="margin:0in 0in .0001pt 22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall provide clear reasons for such rejection.&#160; </font><font size="2" style="font-size:10.0pt;">EMS
shall provide UTS with Purchase Order status reports within one (1) business
day of UTS&#146; request for such report.</font></p>

<p style="margin:0in 0in .0001pt 22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .25in;text-indent:.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(b)</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Order Cancellation.&#160;
</font></b><font size="2" style="font-size:10.0pt;">UTS</font><font size="2" style="font-size:10.0pt;"> may cancel all or any portion of a Purchase Order upon five (5)&nbsp;business
days<b>  </b>written notice to EMS without
liability other than: a) as specified in Section&nbsp;6 &#147;</font><font size="2" style="font-size:10.0pt;">Manufacturing Capacity and
Demand Changes&#148;</font><font size="2" style="font-size:10.0pt;"> and Section&nbsp;11
&#147;Inventory Management and Responsibility&#148;, and; b) all Products, semi-finished Products
that have been manufactured by EMS according to Purchase Order and agreed
production quantity.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Manufacturing Capacity and Demand Changes</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of this Agreement, UTS will
provide EMS with a limited-binding, good faith four (4)&nbsp;month forecast (&#147;<b>Forecast</b>&#148;) reflecting the total volume of Products that UTS
anticipates ordering from EMS during the forecasted period, detailed by device,
package and/or module type or product variant as agreed between the Parties.</font><font size="2" style="font-size:10.0pt;">&#160; Such Forecast shall be binding for
Non-passive Components, and non-binding for Passive Components.&#160; </font><font size="2" style="font-size:10.0pt;">The
Forecast shall be updated at least weekly and shall be used by EMS to plan for
production capacity and Components needed to support UTS&#146; anticipated orders.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Initial Forecast</font></u><font size="2" style="font-size:10.0pt;">.&#160; Upon the execution of this Agreement, UTS
shall provide EMS with (i)&nbsp;a thirty (30) day firm Purchase Order and (ii)&nbsp;a
Forecast for Product requirements (in monthly buckets) for an additional three (3)&nbsp;months
(&#147;<b>Forecast</b>&#148;).&#160; All Purchase Orders shall be binding, except
as otherwise stated in this Agreement, and may be rescheduled only as set forth
herein or cancelled upon payment of (1)&nbsp;the purchase price of the Product
(if the cancellation is made within 30 days of the scheduled delivery date) or (2)&nbsp;the
amounts set forth in Section&nbsp;(c)&nbsp;below (if cancellation is made
outside of such 30-day period).&#160;&#160; EMS
shall make purchase commitments (including purchase commitments for Long
Lead-time Components) to its Component suppliers (&#147;<b>Vendors</b>&#148;)
based upon the Purchase Order and Forecast, and UTS shall be responsible for
all such Non-passive Components purchased in support of UTS&#146; then-current
Forecast.&#160; For all other purposes,
however, the Forecast shall be non-binding.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Subsequent Forecasts</font></u><font size="2" style="font-size:10.0pt;">.&#160; On the first business day of each calendar
month after the initial Order and Forecast, the first Forecast month shall
automatically become part of the Purchase Order, a new Forecast month shall be
added, and a new firm Purchase Order issued, so that a rolling Forecast of
ninety (90) days is always maintained.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Customer Component Liability</font></u><font size="2" style="font-size:10.0pt;">.&#160; UTS acknowledges that it shall be financially
liable for all Non-passive Components ordered and non-cancellable in accordance
with this Section, unless otherwise agreed.&#160;
Specifically, UTS&#146; Component liability shall be equal to EMS&#146; Delivered
Cost of all Non-passive Components ordered in support of any Purchase Order or
Forecast, including any excess Non-passive Components resulting from any minimum
buy quantities, tape and reel quantities, and multiples of packaging quantities
required by the Vendor less the actual cost (per the bill of materials) of
those Non-passive Components which are returnable to Vendor (less any
cancellation or restocking charges).&#160; At
UTS&#146; request, EMS shall use commercially reasonable efforts to minimize UTS&#146;
Component Liability by attempting to return Components to the Vendor; provided,
however, that EMS shall not be obligated to attempt to return to Vendor
Components which are, in the aggregate, worth less than $1,000.</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_122620_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 .25in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Supplier
Managed Inventory Program</font></u><font size="2" style="font-size:10.0pt;">.&#160; UTS
acknowledges that the concept of &#147;purchase commitments to a&nbsp;Vendor&#148; as
used&nbsp;in this Agreement includes not only EMS purchase orders issued to
Vendors, but also forecasts (which are based on UTS&#146; Forecasts) provided to
Vendors in accordance with EMS&#146; Supplier Managed Inventory Program (&#147;<b>SMI Program</b>&#148;). &#160;Should
UTS agree to implement the SMI Program, EMS provides Vendors with forecasts of
anticipated Component requirements, and the Vendor is obligated to supply EMS
with all forecasted Components, but EMS does not issue Vendor a purchase order
until the Component is actually required by EMS for production.&nbsp; However,
under the SMI Program, EMS is obligated to either consume a sufficient level of
the forecasted Components or&nbsp;pay the Vendor for a certain level of unused
Components. &#160;For the purpose of this
Agreement, UTS&#146; Component Liability [pursuant to Section&nbsp;(c)&nbsp;above]
shall include the cost of any required Vendor payments under the SMI Program as
well as any Components actually ordered from the Vendors based on UTS&#146;
Forecast.</font></p>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Supply Chain Flexibility Targets</font></b></h2>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall make best efforts to purchase Components
in accordance with the Forecast, EMS shall commit the manufacturing capacity
flexibility set forth below, as well as provide reasonable required Components
to meet UTS Purchase Order demand fluctuations.</font></h2>

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

<table border="0" cellspacing="0" cellpadding="0" width="86%" style="border-collapse:collapse;margin-left:.25in;width:86.66%;">
 <tr>
  <td width="59%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:59.62%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Number of Weeks Until Delivery Date</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p align="center" style="margin:0in 0in .0001pt;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="36%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:36.34%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Percent Increase or Decrease
  from<br>
  Forecasted Quantity</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.14%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="59%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:59.62%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Less than or equal to 2
  weeks</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:36.34%;">
  <p style="margin:0in 0in .0001pt .6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">+/- 0%</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="59%" valign="bottom" style="padding:0in 0in 0in 0in;width:59.62%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">More than 2 weeks but
  less than or equal to 4 weeks</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="bottom" style="padding:0in 0in 0in 0in;width:36.34%;">
  <p style="margin:0in 0in .0001pt .6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">+/- 20%</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="59%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:59.62%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">More than 4 weeks but
  less than or equal to 8 weeks</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:36.34%;">
  <p style="margin:0in 0in .0001pt .6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">+/- 30%</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="59%" valign="bottom" style="padding:0in 0in 0in 0in;width:59.62%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">More than 8 weeks but
  less than or equal to 12 weeks</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="bottom" style="padding:0in 0in 0in 0in;width:36.34%;">
  <p style="margin:0in 0in .0001pt .6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">+/- 50%</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="59%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:59.62%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">More than 12 weeks</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:36.34%;">
  <p style="margin:0in 0in .0001pt .6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">+/- 100%</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

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

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS
acknowledges that, in order to sustain ongoing flexibility beyond the normal,
EMS will need to procure additional inventory.</font></p>

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

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
at any time unexpected Purchase Orders result in a depletion of the established
inventory level (&#147;Excess Demand Requirement(s)&#148;), UTS and EMS will meet to
address EMS&#146; commercially reasonable efforts recovery plan and mutually
agreeable solutions to resolve supply chain constraints preventing EMS from
meeting UTS&#146; Excess Demand Requirement(s). Upon UTS&#146; advanced written approval,
UTS will be responsible for premium freight charges required to meeting UTS&#146;
Excess Demand Requirement(s).</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_123105_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>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Product Delivery and Acceptance</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All
Products shall be packaged and shipped in the manner specified in Section&nbsp;4
herein. Without limiting the foregoing, EMS shall comply with bar code labeling
specifications provided by UTS from time to time.</font></h2>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Title and Risk of Loss.</font></b><font size="2" style="font-size:10.0pt;">&#160;&#160; Except as agreed otherwise in
writing, all Products sold to UTS are delivered DDU within China (INCOTERMS
2000), and for Products sold outside China, the Parties shall separately agree
in writing to the appropriate shipping term(s).&#160;
For Products delivered DDU, title and interest to Products and risk of
loss will pass to UTS upon delivery to UTS&#146; designated receiving point per UTS&#146;
written instructions.&#160; </font><font size="2" style="font-size:10.0pt;">UTS shall be
the exporter and importer of record for all shipments of Products outside of
China.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">All
Products specified in a Purchase Order are to be shipped complete.&#160; EMS shall use its commercially reasonable
efforts to meet any delivery date (&#147;<b>Delivery Date</b>&#148;)
specified in the Purchase Order or otherwise mutually agreed between the
Parties.&#160; A delivery is considered on
time if the actual delivery to UTS&#146; designated receiving point is made during
the Delivery Window.&#160; The Delivery Window
is defined as three (3)&nbsp;days early and zero (0) days late.&#160; Delivery shall be deemed to have occurred
upon delivery of Products at the designated receiving point.&#160; In any event, EMS shall promptly notify UTS
of any anticipated inability to meet the Delivery Dates requested in a given
Purchase Order.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="color:black;margin:0in 0in .0001pt .25in;text-indent:3.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(c)</font><font size="1" color="black" style="color:windowtext;font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">Acceptance of the Product shall occur no later than fifteen
(15) days after receipt of Product and shall be based solely on whether the
Product passes a mutually agreeable acceptance test procedure or inspection
designed to demonstrate compliance with the Specifications.&#160; Product cannot be rejected based on criteria
that were unknown to EMS or based on test procedures that EMC has not approved
or does not conduct.&#160; Notwithstanding
anything to the contrary, Product shall be deemed accepted if not rejected
within this fifteen-day period.&#160; Once a
Product is accepted, all Product returns shall be handled in accordance with Section&nbsp;18
&#147;Warranty&#148;.&#160; Prior to returning any
rejected Product, UTS shall obtain a Return Material Authorization (&#147;<b>RMA</b>&#148;) number from EMS, and shall return such Product in
accordance with EMS&#146; instructions; UTS shall specify the reason for such
rejection in all RMA&#146;s.&#160; In the event a
Product is rejected, EMS shall have a reasonable opportunity to cure any defect
which led to such rejection.</font></p>

<p style="color:black;margin:0in 0in .0001pt .25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event a shipment does not meet the Delivery Date, EMS shall, upon
UTS&#146; request, arrange for premium transportation. EMS shall bear the expense of
any difference in freight costs for such premium transportation if the delay in
shipment is caused by EMS.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">UTS
shall measure EMS&#146; on-time delivery performance against commitments.&#160; UTS and EMS shall monitor lead-time and cycle
times and mutually agree to improvement programs to maintain best of industry
performance.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">EMS shall accommodate a pull-in request to
expedite the ship date, if reasonably able to do so.&#160; Any additional expedition charge resulting
from rescheduled deliveries must be approved by UTS in writing prior to being
incurred.&#160; Rescheduling later delivery of
Products from the date of original commitment date up to thirty (30) days shall
be made at no charge to UTS.</font></h3>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5<a name="PB_5_123316_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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If
UTS incurs any Customer related penalty charges or expedition costs resulting
from EMS not meeting their committed delivery dates and the delay is caused by
EMS, EMS shall pay as liquidated damages (and not as a penalty) to UTS at the
per diem rate of 0.1% of the value of the delayed shipment from the date that
is one (1)&nbsp;week from the </font><font size="2" style="font-size:10.0pt;">committed delivery</font><font size="2" style="font-size:10.0pt;"> date</font><font size="2" style="font-size:10.0pt;">.&#160; The</font><font size="2" style="font-size:10.0pt;"> total liquidated damages
for any such delayed delivery shall be </font><font size="2" style="font-size:10.0pt;">a</font><font size="2" style="font-size:10.0pt;"> maximum of 4%</font><font size="2" style="font-size:10.0pt;">.&#160; </font><font size="2" style="font-size:10.0pt;">The foregoing represents
UTS&#146; sole remedy in the event EMS fails to timely deliver Product.<b>&#160; </b></font><font size="2" style="font-size:10.0pt;">UTS shall use its best efforts to communicate with EMS on late delivery
liquidated damage clause UTS agreed with UTS&#146; customer(s)&nbsp;before the Purchase
Order is submitted to EMS. &#160;In the case
where a Component Vendor is the cause for the delay, the Parties shall work
together to pursue costs and damages from the Component Vendor.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In
the event of an Allocation Situation, EMS shall use its commercially reasonable
efforts to fulfill accepted Purchase Order(s)&nbsp;in their entirety, and in
any event, in accordance with EMS&#146; allocation plan, which shall be equal or more
favorable to UTS than that provided to any other EMS customers in the plant
where the Products are being manufactured<b>. </b>EMS shall
immediately notify UTS if it has reason to believe that EMS&#146; output of the
Product will not be sufficient to meet all of accepted requirements for any
period.&#160; In its notice, EMS shall inform
UTS of the percentage of Products ordered it commits to deliver to UTS during
the Allocation Situation and the expected length of the Allocation Situation.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Product
Price</font></h1>

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

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Product prices to UTS shall be based on the
accepted quoted prices set forth in the Product quotation set forth in Exhibit&nbsp;A
which may be amended from time to time upon mutual agreement in writing and
incorporated herein by reference. Prices shall be based on EMS supplying all
Components except Consigned Materials supplied by UTS in accordance with the
terms of this Agreement.&#160; <i>&#160;</i></font><font size="2" style="font-size:10.0pt;">Price review </font><font size="2" style="font-size:10.0pt;">shall</font><font size="2" style="font-size:10.0pt;"> be conducted with UTS on </font><font size="2" style="font-size:10.0pt;">a </font><font size="2" style="font-size:10.0pt;">weekly basis.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS
</font><font size="2" style="font-size:10.0pt;">shall</font><font size="2" style="font-size:10.0pt;"> submit </font><font size="2" style="font-size:10.0pt;">a </font><font size="2" style="font-size:10.0pt;">monthly inventory reconciliation with proposed inventory buy up/down to
UTS for approval.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS
</font><font size="2" style="font-size:10.0pt;">shall</font><font size="2" style="font-size:10.0pt;"> submit </font><font size="2" style="font-size:10.0pt;">a </font><font size="2" style="font-size:10.0pt;">monthly price variance report to UTS for approval.&#160;&#160; EMS shall not purchase Components which the
Parties have received notice of price increase(s)&nbsp;without the prior
written approval of UTS.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="color:black;margin:0in 0in .0001pt .25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Prices (a)&nbsp;are in RMB<i>,</i> (b)&nbsp;include EMS&#146; standard packaging, (c)&nbsp;exclude
the items set forth in Section&nbsp;8.1 below, and (d)&nbsp;are based on (i)&nbsp;the
configuration set forth in the specifications provided to EMS on which EMS&#146;
quotation was based (the &#147;<b>Specifications</b>&#148;)
and (ii)&nbsp;the projected volumes, minimum run rates and other assumptions
set forth in EMS&#146; quotation</font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160;&#160; The Parties shall account for any changes above or below 3% in the exchange
rate between the currency in which the pricing is calculated and the currency
in which EMS pays for the Components. </font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">On the first business day of the third month of any
calendar quarter prior to the quarter of application, the Parties shall
establish the exchange rates (&#147;<b>Contract Rates</b>&#148;)
to&nbsp;be applied to the following quarter&#146;s costs (for those costs
denominated in currencies different from the currency in which the Price is
denominated).&#160; The source of the Contract
Rates will be the spot rates published by the <i>Wall Street
Journal</i> or the <i>Financial Times of London </i>(UTS&#146;
option) reflecting the previous day&#146;s closing rates.</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_123342_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="color:black;margin:0in 0in .0001pt .25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">8.1</font><font size="1" color="black" style="color:windowtext;font-size:8.5pt;">&#160;&#160; </font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">Exclusions
from Price.&#160; Prices specifically exclude (a)&nbsp;export
licensing of the Product and payment of broker&#146;s fees, duties, tariffs and
other similar charges; (b)&nbsp;taxes or charges (other than those based on net
income of EMS) imposed by any taxing authority upon the manufacture, sale,
shipment, storage, &#147;value add&#148; or use of the Product; and (c)&nbsp;setup,
tooling, or non-recurring engineering activities (collectively &#147;<b>NRE Charges</b>&#148;).</font></p>

<p style="color:black;margin:0in 0in .0001pt .25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt 42.0pt;text-indent:-24.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">8.2</font><font size="1" color="black" style="color:windowtext;font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">Other Price Adjustments:</font></p>

<p style="color:black;margin:0in 0in .0001pt 42.0pt;text-indent:-24.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .25in;text-indent:1.0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(a)</font><font size="1" color="black" style="color:windowtext;font-size:8.5pt;">&#160;&#160; </font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">UTS acknowledges that the Prices quoted are based on the
Forecasted volumes provided by UTS to EMS.&#160;
In the event UTS fails to purchase Product in sufficient volumes
consistent with the quoted prices, EMS reserves the right update its future
monthly quotes to reflect decreased volumes.</font></p>

<p style="color:black;margin:0in 0in .0001pt .25in;text-indent:1.0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .25in;text-indent:1.0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(b)</font><font size="1" color="black" style="color:windowtext;font-size:8.5pt;">&#160;&#160; </font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">UTS acknowledges that the Prices are based on the
Specifications and the assumptions set forth in EMS&#146; quotation.&#160; In the event EMS experiences an increase in
cost as a result of changes in the pricing assumptions or the Specifications,
EMS shall be entitled to re-quote the Product to account for such changes.</font></p>

<p style="color:black;margin:0in 0in .0001pt .25in;text-indent:1.0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Price
Premium Exclusion<b>.&#160; </b>UTS
shall not pay any price premiums or other additional charges for production
effort or services, including price premiums associated with production effort
and services carried out during times other than the usual working hours on
Business Days, unless agreed by the Parties upfront in writing. Where a premium
is required, EMS shall not proceed without prior written authorization from UTS
in respect of the applicability and amount of any such premium.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Payment
Terms</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall invoice UTS with each delivery of Products.
All invoices submitted from EMS shall be reviewed. Prior to UTS making payment
of an invoice, EMS shall provide UTS with the official receipt approved by the
applicable tax authorities for the amount of the invoice after settlement.&#160; <i>&#160;&#160;</i>UTS shall make payment within
forty five (45) days after date of invoice.</font></p>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Invoices shall contain, at a minimum, UTS&#146; or
Customer&#146;s invoice-to and ship-to addresses as specified in the corresponding
Purchase Order, the Purchase Order number, UTS part number, quantity and
shipment date and unit price.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font></b><font size="1" style="font-size:8.5pt;">&#160; </font><font size="2" style="font-size:10.0pt;">Cost
Reviews/Cost Reduction Targets/Cost Sharing</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall use its commercially reasonable efforts
to formulate and implement cost reduction programs agreed to in writing,
including both Component cost reductions and transformation cost reductions.
EMS shall commit its commercially reasonable efforts to achieve average
quarterly BOM cost reduction target of 3% for EMS sourced materials.&#160; The annual plan to achieve a 12% cost
reduction target shall be jointly developed at the beginning of the year.&#160; Cost reduction review shall be conducted on a
quarterly basis. Without limiting the foregoing, EMS agrees to institute any
cost reduction proposals reasonably suggested by UTS, and to reduce the
purchase price of the Products to UTS by an amount equal to the per-unit
savings realized there from.&#160; Appropriate
management and/or technical representatives of each of EMS and UTS shall
discuss these cost reductions proposals weekly as requested by UTS.</font></h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7<a name="PB_7_123411_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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS approved Product quotation may be changed to
reflect (i)&nbsp;changes to the costs of the Components, and (ii)&nbsp;changes
in the transformation costs due to manufacturing process improvements or
Engineering Change Orders identified subject to UTS approval</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Party shall be responsible for actively taking
steps required of that Party to reduce the cost of the Components for the
Products, as agreed upon by the Parties during the periodic price reviews.&#160; UTS shall notify EMS of price changes for
Components that UTS has negotiated with its Component supplier(s), and may
revise its instructions by written notice to EMS regarding quantities and sources
of supply from time to time as permitted herein.&#160; EMS shall pass through one hundred percent
(100%) of such cost-savings negotiated by UTS to UTS, by reducing the cost of
units of the Product by the amount of the applicable cost savings when the cost
reduction becomes effective.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After any price adjustment, and unless agreed that
the new prices shall have retroactive effect, the new prices shall be
applicable for all Purchase Orders issued after the effective date of the
relevant price change.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, each Party shall be responsible for
actively taking steps required of that Party to reduce the costs of
acquisition, transformation costs and SG&amp;A (Administration) costs.&#160; Targets for the reduction of these costs shall
be agreed on a quarterly basis. Savings in the cost of acquisition realized by
UTS or reduction in transformation costs due to process improvements or ECO
implementation by UTS shall be passed through to UTS 100% </font><font size="2" style="font-size:10.0pt;">after EMS has
recovered all UTS-approved implementation costs</font><font size="2" style="font-size:10.0pt;">.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall warrant to UTS that its prices for similar
goods and services as offered to UTS hereunder are no higher than prices
offered to any other customers for similar products based on similar trade
volumes and similar terms and conditions during the same period of time.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If more favorable prices, terms or conditions than
the prices, terms or conditions set out herein are granted to any customers of
EMS under similar trade terms during the same period of time for similar goods
and service, EMS shall advise UTS in writing within fifteen (15) days thereof and
the prices, terms and conditions, as applicable, of this Agreement shall be
deemed to be amended accordingly to reflect such more favorable prices and/or
terms and conditions. EMS shall advise UTS in writing within fifteen (15) days
thereof and the prices, as applicable, of this Agreement shall be deemed to be
amended accordingly to reflect such more favorable prices.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font></b><font size="1" style="font-size:8.5pt;">&#160; </font><font size="2" style="font-size:10.0pt;">Inventory
Management and Responsibility</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS is responsible for making available sufficient
Inventory to meet the Forecast, Supply Chain Flexibility Targets and on-time
Delivery requirements as defined in this Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS is responsible for setting Inventory targets in
line with the Forecast and Supply Chain Flexibility Targets.&#160; These targets shall be reviewed with UTS
during the monthly and quarterly review meetings.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon UTS&#146; request, EMS shall order and make
available qualified materials prior to the initial production run for research
and development and new product introduction purposes.</font></h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8<a name="PB_8_124810_7608"></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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall also procure Long Lead-Time Inventory and
Minimum Order Inventory, as reasonably required for the fulfillment of future
Purchase Orders as approved by UTS in writing.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS may assist EMS in securing certain Inventory
for a Product. &#160;Such assistance may
include the identification of the Supplier, negotiation of supply agreements
and frame contracts with the chosen supplier.&#160;
In this case, all relevant details of such agreements shall be shared by
UTS with EMS.&#160; The responsibility of EMS shall
be to execute the day-to-day purchasing of the Inventory, under the terms of
the supply agreement and frame contract, to fulfill EMS&#146; role in obtaining
adequate on hand Inventory to ensure on-time Delivery of Purchase Orders.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS shall work with EMS to review and set inventory
targets for Long Lead-Time Inventory based on Forecast, Supply Chain
Flexibility Targets, known Purchase Orders and the Component lead-time.&#160; These targets shall be reviewed and agreed
monthly between UTS and the EMS.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS is responsible for making reasonable efforts to
reduce Component purchasing lead-times and manufacturing lead-times.&#160; UTS and EMS will review such lead-times on a
regular basis.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="color:black;margin:0in 0in .0001pt .25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">UTS shall provide EMS with
an AVL (Approved Vendor List) to be used by EMS for the purchase of
Inventory.&#160; EMS may recommend in writing
new suppliers for addition to the AVL and UTS shall provide timely review and
consideration of such recommendations.&#160;
If approved, UTS shall add the proposed supplier to the AVL and notify
EMS in writing of such addition, such UTS approval not to be unreasonably
withheld or delayed.&#160; UTS reserves the
right, at its sole discretion, to direct EMS to purchase designated Components
from AVL suppliers in accordance with an order distribution formula provided by
UTS.</font></p>

<p style="color:black;margin:0in 0in .0001pt .25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.1&#160; Purchase of UTS-Owned
Materials and Components and Open Purchase Order Transfer to EMS.</font></b></h1>

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

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">In addition to the
foregoing provisions, the Parties shall abide by the provisions set out in Exhibit&nbsp;B
with respect to purchase by EMS of UTS-owned Components and transfer of open
purchase orders for Components issued by UTS to Component suppliers.</font></b></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Excess and Obsolete Material</font></b></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">A.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font></b><b>Downward Variances</b></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
this section, Downward Variance represents the deficient amount of the Purchase
Order quantity from the Forecasted quantity.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS&#146;
sole liability to EMS and the sole remedy available to EMS with respect to
Excess Inventory and Obsolete Inventory is set forth in this Section.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.&#160; Excess Inventory</font></b></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For
the purposes of this Section, <b>Excess Inventory</b>
shall mean those Non-Passive Components in inventory consistent with UTS&#146;
Forecast, purchased at lead-times reasonably prevailing at the time of
Components.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9<a name="PB_9_124834_8146"></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 .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS
shall inform EMS with at least one (1)&nbsp;month prior written notice before
the intended EOL of any Product under this Agreement. EMS shall provide UTS
with the EOL Excess Inventory Report within fourteen (14) days.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS
shall be liable for Excess Inventory and Long Lead-Time Inventory purchased
with UTS&#146; written approval, that is held in inventory over one hundred and
eighty (180) days from the date when such inventory is purchased by EMS due to
UTS&#146; Downward Variance. UTS shall provide EMS with a list of Non-Passive
Components agreed in advance by both Parties.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Parties shall manage <b>Excess Inventory</b>
as follows:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EMS shall
prepare and provide UTS with monthly reports documenting any Downward Variances
in Forecasts.</p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Parties
shall jointly review EMS&#146; monthly reports, as set forth above, to determine
UTS&#146; liability for Excess Inventory.</p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 76.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EMS shall use
commercially reasonable efforts to mitigate the disposition or rescheduling of
Excess Inventory for a minimum of one month commencing from the date when the
inventory is identified&nbsp;&amp; recognized by UTS as excess inventory.</p>

<p style="margin:0in 0in .0001pt 76.5pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 76.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>At UTS&#146;
discretion, one of the following options or any combination of following
options to dispose the Excess Inventory UTS shall be taken.</p>

<p style="margin:0in 0in .0001pt 76.5pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 134.7pt;text-indent:-23.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font>Buy-Back.&nbsp;
UTS shall buy-back Excess Inventory from EMS pursuant to this Agreement. Such
buy-back shall be at the last approved BOM cost after making price reduction as
agreed by the Parties.&#160; UTS shall make
payment for buy-back under the same payment terms provided to UTS from the
issuance of official receipt for the corresponding amount.&#160; Before procuring any additional quantities
from Component suppliers, EMS shall re-purchase any such Excess Inventory from
UTS until depleted.</p>

<p style="margin:0in 0in .0001pt 134.7pt;text-indent:-26.7pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 135.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>EMS shall hold the
Excess Inventory if there is
demand in the following one (1)&nbsp;month on a one-time basis.</p>

<p style="margin:0in 0in .0001pt 135.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>UTS shall inform EMS with at least one (1)&nbsp;month
prior written notice before the intended end of life (&#147;EOL&#148;) of any Product
under this Agreement. EMS shall provide UTS with the EOL Excess Inventory
Report within fourteen (14) days.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Obsolete
Inventory</b></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this
Section, &#147;<b>Obsolete Inventory&#148;</b> shall mean those
Non-Passive Components in inventory or non-cancellable consistent with UTS&#146;
Forecast, purchased at lead-times reasonably prevailing at the time of order, and
Long Lead-Time Inventory purchased with UTS&#146; written approval, that do not
appear on the current UTS&#146; BOM, or which appear on the</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10<a name="PB_10_125225_7091"></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 .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">current UTS&#146; BOM but cannot be used to manufacture
Products for UTS or EMS&#146; other customers in the same plant due to engineering
changes, Product cancellations, purchase order cancellation, or program
cancellations by UTS.</font></p>

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

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.&#160; UTS shall
provide EMS with written notification of any engineering change, Product
cancellation, Purchase Order cancellation or program cancellation.&nbsp; Within
five (5)&nbsp;business days of such written notice, EMS shall send UTS
waterfall analysis, evidencing UTS&#146; maximum exposure of Obsolete
Inventory.&nbsp; Upon receipt of such notification, EMS shall use commercially
reasonable efforts to dispose of Obsolete Inventory resulting from such changes
or cancellation within a thirty (30) day period, unless mutually agreed
otherwise by the Parties.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.&#160; UTS shall
either purchase such Obsolete Inventory, at the latest approved&nbsp;BOM price,
or shall direct EMS to dispose of such Obsolete Inventory, as mutually
agreed.&nbsp; Purchase by UTS is subject to EMS&#146; commercially best efforts to
dispose of such Obsolete Inventory during the thirty day period from the day
when such Inventory becomes Obsolete.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.&#160; EMS&#146;
failure to provide timely report to UTS, shall result in EMS&#146; responsibility
for all costs associated with such Obsolete Inventory.&#160; The Parties shall consider the accepted
report as final and accepted by the Parties.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:3.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EMS&#146;
Reporting Obligations</font></b></p>

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

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall provide UTS, no less frequently than
monthly, written reports for the purpose of reviewing Excess Inventory and
Obsolete Inventory levels.&#160; UTS has the
right to review such written reports.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">B.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Upward Variances</font></b></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In this section, Upward Variance represents the
excess amount of the Forecasted quantity.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall use commercially reasonable efforts to
accommodate Upward Variances outside the flexibility target with no expedite
charges, overtime costs payable by UTS.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall use reasonable commercial efforts to accommodate any upside
schedule changes beyond the firm Purchase Order periods.</font></p>

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

<p style="margin:0in 0in .0001pt .25in;text-indent:.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Process
for Downward and Upward Variance Resolution</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 49.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">a.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Downward Variances</font></b></p>

<p style="margin:0in 0in .0001pt 49.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Inventory Liability for Downward Variance.
EMS shall provide written notice to UTS to initiate a claim for a Downward
Variance, such notice to be provided within thirty (30) days of each month&#146;s
end for any Downward Variance occurring within such month.&nbsp; UTS shall have
five (5)&nbsp;business days from the date of receipt of the notice to review
EMS&#146;s </font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11<a name="PB_11_130116_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 .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">documentation and to respond to EMS with any
questions or requests for additional information.&nbsp;EMS shall then have five
(5)&nbsp;business days to respond to UTS&#146; questions and requests for additional
information.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Failure of EMS to timely (one full quarter)
provide the requisite notices and documentation shall preclude EMS from
receiving any compensation from UTS for inventory liability or conversion cost
liability for the applicable Downward Variance.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">b.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Upward
Variances</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Within
five (5)&nbsp;business days after receipt of UTS&#146; Forecast, EMS shall notify
UTS in writing of EMS&#146; inability to meet any Upward Variances.&nbsp; Within two
(2)&nbsp;business days of such notification, EMS shall schedule a meeting with
UTS to discuss alternative solutions for meeting UTS&#146; Product schedule.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font></b><font size="1" style="font-size:8.5pt;">&#160; </font><font size="2" style="font-size:10.0pt;">New
Product Introduction</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">New Product Inclusion (&#147;NPI&#148;)</font></b><font size="2" style="font-size:10.0pt;"> UTS shall notify EMS if it wishes to add new product(s)&nbsp;or
services to this Agreement and EMS shall provide quotes for such products.&#160; UTS and EMS shall then proceed to establish
pricing and delivery schedules for each such new product(s)&nbsp;or
services.&#160; Upon agreement of these items,
such product(s)&nbsp;and services shall be considered Products under this
Agreement, and shall be purchased and sold or provided under the terms and
conditions of this Agreement.&#160; In
addition, if EMS implements any improved technology (e.g., without limitation,
improved manufacturing processes or improved or additional cores), EMS shall
promptly so advise UTS and, at UTS&#146; request, discuss with UTS the possibility
and advantages of using such improved technology in the manufacture of
Products.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For each new Product,</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">UTS
shall provide at least one (1)&nbsp;week NPI run advance notice and EMS shall
ensure line and resource availability.&#160; T</font><font size="2" style="font-size:10.0pt;">he
manufacturing lead time </font><font size="2" style="font-size:10.0pt;">shall</font><font size="2" style="font-size:10.0pt;"> be less than
one (1)&nbsp;week</font><font size="2" style="font-size:10.0pt;">.&#160; UTS shall only pay Component cost and
transportation charges for a maximum of three (3)&nbsp;NPI runs. The NPI charge
model for additional NPI runs shall be determined subsequently</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">and the mass production of such new Product
shall continue to stay with EMS.&#160; All
other costs associated with NPI run shall be paid by EMS. &#160;UTS shall provide custom parts which are not
on the current BOM, while EMS shall supply the rest of the Components at agreed
BOM cost.&#160; EMS shall purchase the NPI
Components after receiving Purchase Order or other authorization from UTS.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For each pilot run and NPI production run EMS may
be required to support and provide the following items, to include, but not be
limited to: mass manufacturing process development, product manufacturing
quality plan development, test and system integration, reliability evaluation,
manufacturing yield analysis, design for manufacturability review, process
capability analysis, Component supply and inventory management, supplier
management, ECO management and implementation, quality management, yield
improvement, cost reduction, distribution, RMA and repair service.</font></h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12<a name="PB_12_130158_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>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font></b><font size="1" style="font-size:8.5pt;">&#160; </font><font size="2" style="font-size:10.0pt;">Non-Recurring
Engineering Costs</font></h1>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All Non-Recurring Engineering Costs, as identified
during New Product Introduction or ongoing engineering support activities will
be agreed by UTS and EMS before any purchase order is generated.&#160; All Non-Recurring Engineering charges such
as, but not limited to, tooling, fixtures, jigs, testing or assembly apparatus,
shall be identified and specified by both UTS and EMS to meet operational
requirements.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All Non-Recurring Engineering Costs agreed between
UTS and EMS shall, unless otherwise agreed by the Parties, be subjected to the
provision of three independent quotes from reputable suppliers.&#160; UTS will have the final choice of quotes
and/or supplier accepted.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS responsibilities related to physical inventory,
custody and maintenance of UTS paid fixtures, fittings, jigs and test equipment
is detailed in Section&nbsp;19.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font></b><font size="1" style="font-size:8.5pt;">&#160; </font><font size="2" style="font-size:10.0pt;">Engineering
Change Orders</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall not make any changes to any manufacturing
source, production process, or the controlled process parameters or sources or
types or grade classifications of Components which would affect the form, fit
or function, design, performance, or appearance of such Product without first
obtaining UTS&#146; prior written approval. EMS is obligated to identify any cost
changes resulting from an Engineering Change Order for agreement with UTS (to
be provided in writing) prior to implementation.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any Specification or other identification (including,
without limitation, any Engineering Change Order&#160; that details a change in the Specification
and/or design of a Product) provided by UTS to EMS shall be deemed accepted by
EMS unless receipt of it is not acknowledged by EMS in writing within five (5)&nbsp;business
days of receipt by EMS.&#160; For clarity,
such acknowledgement does not involve a cost analysis by EMS.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS</font><font size="2" style="font-size:10.0pt;">  </font><font size="2" style="font-size:10.0pt;">shall</font><font size="2" style="font-size:10.0pt;"> provide free
of charge ECO implementation on software and small batch of hardware
upgrades.&#160; EMS may charge UTS a
reasonable cost if </font><font size="2" style="font-size:10.0pt;">substantial</font><font size="2" style="font-size:10.0pt;"> rework is
required.&#160; UTS </font><font size="2" style="font-size:10.0pt;">shall</font><font size="2" style="font-size:10.0pt;"> be responsible for related obsolete and additional
components </font><font size="2" style="font-size:10.0pt;">as</font><font size="2" style="font-size:10.0pt;"> required.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt 13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All engineering changes resulting from EMS warranty
defects shall be implemented at the sole expense of EMS, unless the defect or
nonconformity results from UTS&#146; provision of defective Specifications</font><font size="2" style="font-size:10.0pt;">.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt 13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.</font></b><font size="1" style="font-size:8.5pt;">&#160; </font><font size="2" style="font-size:10.0pt;">Intellectual
Property Rights</font></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.1.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Ownership of Industrial Design and Tooling</font></b></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If UTS provides UTS Industrial Design and/or UTS
Tooling to EMS, UTS shall solely own all right, title, and interest in and to
the UTS Industrial Design and UTS tooling for the Product and all Intellectual
Property related thereto.&#160; As between the
Parties, EMS shall solely own all right, title, and interest in and to the EMS Industrial
Design and EMS Tooling for the Product and all Intellectual Property related
thereto.&#160; Each party agrees to use its
good faith efforts to </font></h3>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13<a name="PB_13_130234_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>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">take all action as may be necessary, proper, or
advisable to evidence, record and perfect the above allocation of ownership,
without demanding any further consideration therefore.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.2.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Ownership of Other Intellectual Property</font></b></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as expressly set forth in subsection 15.1
above, each party shall retain sole ownership of Intellectual Property created,
developed or conceived solely by such party, whether prior to or during the
term of this Agreement. Except as expressly set forth in this Agreement, any
Intellectual Property developed jointly by personnel of both Parties in
connection with the Products or this Agreement shall be jointly owned, without
a duty of accounting or obligation to obtain the consent of the other party to
license or exploit such Intellectual Property by reason of such joint
ownership. The Parties will discuss in good faith the prosecution of such joint
inventions, including the allocation of costs and/or right to obtain the
ownership interest of the other party.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.3.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Limitation</font></b></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding anything to the contrary in the
Agreement, in no event shall EMS or UTS use any Confidential Information of the
other Party to manufacture any Product for any third party.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.4.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">License of Industrial Design and Tooling</font></b></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If UTS provides UTS Industrial Design and/or UTS
Tooling to EMS, UTS hereby grants to EMS the non-exclusive, non-transferable,
non-sublicenseable right to use the UTS Industrial Design and UTS tooling
solely to perform EMS&#146;s obligations under this Agreement on behalf of UTS. &#160;EMS acknowledges that UTS hereby reserves all
rights except those expressly granted herein, and that no right or license will
arise by implication, estoppels or otherwise by operation of law.&#160; EMS shall not reverse engineer, disassemble
or decompile any prototypes, software or other tangible objects provided by UTS
unless expressly authorized to do so in writing by UTS.&#160; EMS hereby grants to UTS the non-exclusive,
non-transferable, non-sublicensable right under EMS&#146;s Intellectual Property to
use the EMS Industrial Design and EMS Tooling solely to enable UTS to exercise
UTS&#146; rights under this Agreement.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.5.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Trademark License</font></b></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTS hereby grants to EMS a non-exclusive,
non-transferable, non-sublicenseable, worldwide license to use the UTS
Trademarks only as reasonably necessary to fulfill its obligations under this
Agreement.&#160; EMS shall comply with any and
all reasonable and customary guidelines provided by UTS in writing concerning
the use of the UTS Trademarks.&#160; EMS
acknowledges and agrees that its use of the UTS Trademarks is limited to the
use licensed in this Agreement and that EMS has not acquired, and will not
acquire, any ownership or other rights therein.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.</font></b><font size="1" style="font-size:8.5pt;">&#160; </font><font size="2" style="font-size:10.0pt;">Quality Requirements</font></h1>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following provisions as well as the provisions
contained in Exhibit&nbsp;C as agreed by the Parties, Quality Assurance
Agreement<b>, </b>shall govern quality issues arising out of this Agreement.</font></h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14<a name="PB_14_130408_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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Stop Build/Stop Ship</font></b><font size="2" style="font-size:10.0pt;"> UTS may issue stop build/stop ship notices from time to time to prevent
Products with possible quality issues from being manufactured or entering UTS&#146;
customer base. To accommodate this action, EMS must have in place a fully
documented Stop Build/Stop Ship processes to remove and isolate UTS&#146; Product
from EMS&#146; assembly and final shipping area such that the affected Products will
not be manufactured or shipped to UTS.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Epidemic Failure Costs</font></b><font size="2" style="font-size:10.0pt;">&#160; <i>&#160;</i>EMS will be responsible for all
costs and damages incurred by UTS (or its subcontractors) in rectifying any
Epidemic Failure, including without limitation, all costs incurred in removing,
re-soldering, testing and reworking the Products and the Components in which
they are incorporated.&#160; EMS shall be
responsible for the documented direct costs of the Epidemic Failure up to a
maximum of $2 million per Epidemic Failure event, excluding the costs of
repaired or replaced Products, which would be covered pursuant to the warranty
remedy. The remedy stated for this Epidemic Failure shall be the sole and
exclusive remedy.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Epidemic Failure Procedure</font></b><font size="2" style="font-size:10.0pt;"> In the event of any Epidemic Failure, EMS and UTS shall cooperate to
implement the following procedure:</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The
discovering party shall notify the other party upon discovery of the
Epidemic&#160; Failure;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Within
two (2)&nbsp;business days after discovery of or receipt of notice of discovery
of the Epidemic Failure, EMS will give an initial response indicating its
preliminary plan for diagnosing the problem;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">EMS
and UTS shall jointly exert all commercially best efforts to diagnose the
problem and plan a work-around or more permanent solution;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">EMS
shall use commercially best efforts to complete all necessary analyses to
define cause and establish responsibilities, and provide a final written report
within ten (10)&nbsp;business days of notification of the Epidemic Failure;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">EMS
shall apply its engineering change order procedure in appropriate circumstances
for hardware problems originating in the manufacturing process;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">EMS
shall prepare and consult with UTS regarding an appropriate recovery plan as
well as an appropriate work-around, as an interim solution, if one is needed;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">EMS
and UTS shall mutually agree on a recovery plan, provided that UTS shall be
entitled to require EMS to recall or perform field replacement of all defective
Products as well as all Products which may be susceptible to the same failure
mode as required; and</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 76.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In
the event of an Epidemic Failure, UTS may, at its option, place on hold all
open orders for the specific Product, or substantially similar Products, until
EMS has submitted the completed 8-D Report and the Parties have agreed on the
specific recovery plan to be implemented, or else UTS may cancel all open
orders without any liability to EMS.</font></h3>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15<a name="PB_15_130427_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>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.</font></b><font size="1" style="font-size:8.5pt;">&#160; </font><font size="2" style="font-size:10.0pt;">General
Representations and Warranties</font></h1>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.1.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Warranty of Title</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS represents and warrants to UTS that (i)&nbsp;UTS
shall acquire good and clear title to the Products (except the Consigned
Materials incorporated therein, if any, title to which is already with UTS),
free and clear of all Encumbrances; (ii)&nbsp;all Components and services
provided hereunder including, without limitation, the Products, are either
owned or properly licensed by EMS or are in the public domain and the use
thereof by UTS, its representatives, distributors, dealers, end users, and
other direct and indirect customers will not, to the best knowledge of EMS,
infringe any proprietary rights of any third party; (iii)&nbsp;EMS has the full
power to enter into this Agreement, to carry out its obligations under this
Agreement and to grant the rights and licenses granted to UTS in this Agreement.
EMS represents and warrants that it has not granted to any third party any
rights which conflict or interfere with or supersede the rights granted to UTS
hereunder; and (iv)&nbsp;EMS&#146;s compliance with the terms and conditions of this
Agreement will not violate any applicable laws, regulations or ordinances or
any third party agreements.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">17.2&#160;
Materials Warranty&#160; </font></b><font size="2" style="font-size:10.0pt;">EMS warrants that all Products purchased from or repaired by EMS shall
consist of new Components (not used (except in the case of &#147;hot swap&#148; Products,
recycled or of such age as to impair its usefulness or safety, except as may be
approved in advance and in writing by UTS).</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">17.3&#160; Guarantee of Materials Supply.</font></b><font size="2" style="font-size:10.0pt;">&#160; </font><font size="2" style="font-size:10.0pt;">The Parties
shall work together to notify each other in the case that any Component supplier
provides notice that a Product Component is going to be discontinued.&#160; Any last time buys of such Components shall
be mutually agreed by the Parties as to purchases of such Components.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">18.&#160; Warranty</font></b></h3>

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

<p style="color:black;margin:0in 0in .0001pt .5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">18.1&#160;&#160; EMS warrants that the Products manufactured by
EMS and delivered and sold to UTS under the terms of this Agreement will be
free from defects in EMS workmanship and will conform to the quality standards
issued by UTS to EMS prior to production and agreed to by both Parties (the
&#147;Quality Standards&#148;)<u>,</u> for a period of eighteen (18) months after the
date of shipment by EMS (&#147;Warranty Period&#148;).&#160;
</font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">Products shall be successfully
complete any mutually agreed Product acceptance test.&#160; EMS shall, at its option and at its expense
(and as UTS&#146; sole and exclusive remedy for breach of EMS&#146; workmanship
warranty), repair, replace or issue a credit for Product found defective during
the warranty period.</font></p>

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

<p style="color:black;margin:0in 0in .0001pt .5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">18.2&#160;&#160; In
addition, EMS&#160; will pass on to UTS all
Vendors&#146; (and manufacturers&#146;) Component warranties to the extent that they are
transferable, as well as manage and enforce such Component warranties, but will
not independently warrant Components.&#160;
All warranty obligations will cease upon the earlier of the expiration
of the warranty period set forth above or the return (at UTS&#146; request) of any
test equipment or test fixtures.&#160; ALL
CLAIMS FOR BREACH OF WARRANTY MUST BE RECEIVED BY EMS NO LATER THAN THIRTY (30)
DAYS AFTER THE EXPIRATION OF THE WARRANTY PERIOD.</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;">16<a name="PB_16_130502_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="color:black;margin:0in 0in .0001pt .5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">18.3&#160;&#160;&#160; Return and Replace Procedure.&#160; </font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">EMS shall
concur in advance on all Products to be returned for repair or rework.&#160; UTS shall obtain a RMA number from EMS prior
to return shipment.&#160; All returns shall
state the specific reason for such return, and will be processed in accordance
with EMS&#146; RMA process.&#160; EMS shall pay all transportation costs for valid
returns of the Products to EMS and for the shipment of the repaired or
replacement Products to UTS, and shall bear all risk of loss or damage to such
Products while in transit; UTS shall pay these charges, plus a handling charge,
for invalid or &#147;no defect found&#148; returns.&#160; Any
repaired or replaced Product shall be warranted as set forth in this Section&nbsp;for
a period equal to the greater of (i)&nbsp;the balance of the applicable
warranty period relating to such Product or (ii)&nbsp;sixty (60) days after it
is received by UTS.</font></p>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.4&#160;
Warranty Exclusions.&#160; The above
warranties will not apply to </font><font size="2" style="font-size:10.0pt;">Products that have defects or failures
resulting from (a)&nbsp;UTS&#146; design of Products including, but not limited to,
design functionality failures, specification inadequacies; (b)&nbsp;accident,
disaster, neglect, abuse, misuse, improper handling, testing, storage or
installation including improper handling in accordance with static sensitive
electronic device handling requirements; (c)&nbsp;non-EMS authorized
alterations, modifications or repairs by UTS or third parties; or (d)&nbsp;defective
UTS-provided test equipment or test software.&#160;
UTS bears all design responsibility for the Product.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:3.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">18.5&#160;&#160; THE SOLE REMEDY UNDER THIS WARRANTY SHALL BE
THE REPAIR, REPLACEMENT OR CREDIT FOR DEFECTS AS STATED ABOVE.&#160; THIS WARRANTY IS THE SOLE WARRANTY GIVEN BY
EMS AND IS IN LIEU OF ANY OTHER WARRANTIES EITHER EXPRESS OR IMPLIED.&#160; EMS DOES NOT MAKE ANY WARRANTIES REGARDING
MERCHANTIBILITY, NONINFRINGEMENT, COMPLIANCE WITH RESTRICTION ON THE USE OF
CERTAIN HAZARDOUS SUBSTANCES (&#147;ROHS&#148;) (OR SIMILAR LEGISLATION), OR FITNESS FOR
A PARTICULAR PURPOSE, AND SPECIFICALLY DISCLAIMS ANY SUCH WARRANTY, EXPRESS OR
IMPLIED.</font></p>

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

<p style="color:black;margin:0in 0in .0001pt;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">19. Indemnification.</font></b></p>

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

<p style="color:black;margin:0in 0in .0001pt 39.0pt;text-indent:-21.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">19.1</font><font size="1" color="black" style="color:windowtext;font-size:8.5pt;">&#160; </font><u><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">EMS Indemnification</font></u><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; EMS shall indemnify, defend, and hold UTS and
UTS&#146; Affiliates, shareholders, directors, officers, employees, contractors,
agents and other representatives (the &#147;<b>UTS-Indemnified Parties</b>&#148;)
harmless from all third party demands, claims, actions, causes of action,
proceedings, suits, assessments, losses, damages, liabilities, settlements,
judgments, fines, penalties, interest, costs and expenses (including fees and
disbursements of counsel) of every kind (each a &#147;Claim,&#148; and, collectively
&#147;Claims&#148;) (i)&nbsp;based upon personal injury or death or injury to property
(other than damage to the Product itself, which is handled in accordance with Section&nbsp;
18 &#147;Warranty&#148;) to the extent any of the foregoing is caused by the negligent or
willful acts or omissions of EMS or its officers, employees, subcontractors or
agents, and/or (ii)&nbsp;arising from or
relating to any actual or alleged infringement or misappropriation of any
patent, trademark, mask work, copyright, trade secret, or any actual or alleged
violation of any other intellectual property rights arising from or in
connection with EMS&#146; manufacturing processes.</font></p>

<p style="color:black;margin:0in 0in .0001pt 39.0pt;text-indent:-21.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt 39.0pt;text-indent:-21.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">19.2</font><font size="1" color="black" style="color:windowtext;font-size:8.5pt;">&#160; </font><u><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">UTS&#146; Indemnification</font></u><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; UTS shall indemnify, defend, and hold EMS and
EMS&#146; Affiliates, shareholders, directors, officers, employees, contractors,
agents and other representatives (the &#147;EMS-Indemnified Parties&#148;) harmless from
all third party Claims (i)&nbsp;based upon personal </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;">17<a name="PB_17_130525_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="color:black;margin:0in 0in .0001pt 38.9pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">injury or death or injury to
property to the extent any of the foregoing is caused by a defective Product,
by the negligent or willful acts or omissions of UTS or its officers,
employees, subcontractors or agents, and/or (ii)&nbsp;arising from or relating to any actual or alleged infringement or
misappropriation of any patent, trademark, mask work, copyright, trade secret
or any actual or alleged violation of any other intellectual property rights
arising from or in connection with the Products, except to the extent that
infringement occurs as a result of use by UTS of EMS&#146; manufacturing processes.</font></p>

<p style="color:black;margin:0in 0in .0001pt 39.0pt;text-indent:-21.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt 39.0pt;text-indent:-21.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">19.3</font><font size="1" color="black" style="color:windowtext;font-size:8.5pt;">&#160; </font><u><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">Procedure</font></u><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">. A Party
entitled to indemnification pursuant to this Section&nbsp;(the &#147;<b>Indemnitee</b>&#148;) shall promptly notify the other Party (the &#147;<b>Indemnitor</b>&#148;) in writing of any Claims covered by this
indemnity.&#160; Promptly after receipt of
such notice, the Indemnitor shall assume the defense of such Claim with counsel
reasonably satisfactory to the Indemnitee. If the Indemnitor fails, within a
reasonable time after receipt of such notice, to assume the defense with
counsel reasonably satisfactory to the Indemnitee or, if in the reasonable
judgment of the Indemnitee, a direct or indirect conflict of interest exists
between the Parties with respect to the Claim, the Indemnitee shall have the
right to undertake the defense, compromise and settlement of such Claim for the
account and at the expense of the Indemnitor. Notwithstanding the foregoing, if
the Indemnitee in its sole judgment so elects, the Indemnitee may also
participate in the defense of such action by employing counsel at its expense,
without waiving the Indemnitor&#146;s obligation to indemnify and defend. The
Indemnitor shall not compromise any Claim (or portions thereof) or consent to
the entry of any judgment without an unconditional release of all liability of
the Indemnitee as to each claimant or plaintiff.</font></p>

<p style="color:black;margin:0in 0in .0001pt 39.0pt;text-indent:-21.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;
Insurance</font></b></h1>

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

<p style="color:black;margin:0in 0in .0001pt;text-indent:42.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">EMS agrees to maintain during the
term of this Agreement&#160; (a)&nbsp;workers&#146;
compensation insurance as prescribed by the law of the state in which EMS&#146;
services are performed</font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">  </font><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">(b)&nbsp;commercial
general liability insurance, including blanket contractual liability and broad
form property damage, with limits of at least $1,000,000 combined single limit
for personal injury and property damage for each occurrence; and (c)&nbsp;commercial
general liability insurance endorsed to include products and liability and
completed operations coverage in the amount of $1,000,000 for each
occurrence.&#160; EMS shall furnish to UTS
upon request certificates or evidence of the foregoing insurance indicating the
amount and nature of such coverage and the expiration date of each policy.&#160; Each Party agrees that it, its insurers(s)&nbsp;and
anyone claiming by, through, under or in its behalf shall have no claim, right
of action or right of subrogation against the other Party and the other Party&#146;s
affiliates, directors, officers, employees and customers based on any loss or
liability insured against under the insurance required by this Agreement.</font></p>

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

<h1 style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.&#160; Consigned Equipment and Consigned Fixed Asset</font></b></h1>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Assembly and Test Equipment and Fixtures.</font></b><font size="2" style="font-size:10.0pt;">&#160; At its option, UTS may agree to
purchase and provide to EMS certain assembly equipment, test equipment,
handlers, and fixtures required for assembly and final testing of Component,
PCB, and finished Products. Ownership, maintenance and accountability for all
such equipment are defined below.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall use Consigned Equipment provided by UTS
to EMS exclusively for the manufacture of Products for UTS under this
Agreement.&#160; Consigned Equipment list may
be amended from time to time by UTS in writing.</font></h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18<a name="PB_18_130605_7608"></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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Shipping, Receipt, Title and Risk of Loss</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">UTS
shall ship or have shipped the Consigned Equipment to EMS&#146; premises.&#160; UTS shall bear the cost of shipping and risk
of loss of or damage to the Consigned Equipment during shipping. UTS may
utilize the most economical means of transportation for all shipments.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">At
the time of shipment of the Consigned Equipment to EMS, UTS agrees to provide
EMS with packing slips (&#147;<b>Packing Slips</b>&#148;)
that show quantity and stock keeping unit (SKU) numbers describing the complete
shipment.&#160; Upon receipt of Consigned
Equipment, EMS shall inspect the Consigned Equipment to verify whether EMS has
received the number of boxes indicated on UTS&#146; Packing Slips and whether there
is any visible damage to the boxes or equipment.&#160; Any discrepancies or visible damage
discovered shall be reported to UTS upon EMS&#146; inspection. In the case of
discrepancies, the Parties will promptly confer with one another to resolve the
discrepancy.&#160; If no such notice is
received, the shipment shall be deemed complete as specified on UTS&#146; Packing
Slip.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Title
to the Consigned Equipment shall remain with UTS.&#160; EMS shall bear risk of loss of or damage to
the Consigned Equipment after delivery of said Consigned Equipment to EMS at EMS&#146;
site until such Consigned Equipment is delivered back to UTS.&#160; While risk of loss of Consigned Equipment is
with EMS, EMS shall insure the Consigned Equipment for losses or damages at
UTS&#146; then-current equipment cost unless a comparable equivalent replacement
unit of equipment can be found by EMS.&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">&#160;&#160;</font></i><font size="2" style="font-size:10.0pt;">For
claims arising out of or related to loss or damage to the Consigned Equipment
at EMS&#146; facility, EMS&#146; various insurance policies shall be the primary
insurance.&#160; All Consigned Equipment will
be promptly returned to UTS at UTS&#146; costs and risk, in good condition, ordinary
wear and tear excepted, upon prior reasonable notice and request of the
designated UTS representative.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">While
consigned to EMS the maintenance (including preventative maintenance), calibration<i>  </i>and upkeep (maintenance fit for purpose) will be the
responsibility, and at the cost, of the EMS. If calibration and maintenance
must be performed by a 3rd party and approved by UTS, UTS shall be responsible
for the charges through NRE. EMS warrants that the maintenance (including
preventative maintenance) calibration and upkeep (maintenance fit for purpose)
shall be undertaken to the guideline issued by the Consigned Equipment
manufacturer.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">UTS
warrants that the Consigned Equipment shall be in good condition to be used for
the manufacture of the Products in accordance with this Agreement.&#160; In the event any part of the Consigned
Equipment is found to be defective, UTS shall thereafter, at its sole discretion,
procure and replace such part(s)&nbsp;of the Consigned Equipment for EMS to
enable EMS to manufacture the Products ordered by UTS under this Agreement.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">EMS
shall conduct inventory audits and physical counts of Consigned Equipment in
the same manner and in accordance with its policies pertaining to its own
equipment </font></h3>

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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;">19<a name="PB_19_130654_8146"></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>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">inventory; provided, however, that each SKU number
of the Consigned Equipment shall be physically counted and reported to UTS at
least once every twelve (12)&nbsp;months.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 1.25in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">EMS
shall permit UTS employees reasonable access to specified areas within EMS&#146;s
premises where the Consigned Equipment is located and specific manufacturing
areas applicable to UTS Purchase Orders during normal business hours, provided
however, that such access shall be subject to prior reasonable notice to and
approval from EMS and shall be escorted by an employee of EMS.&#160; In addition, UTS reserves the right to
perform audits of all Consigned Equipment during normal business hours, upon
prior reasonable notification to EMS. All such audits by UTS shall be conducted
at its own costs and UTS shall at all times ensure that such audits do not
interfere, disrupt, nor hamper the business operations of EMS.&#160; Notwithstanding the foregoing, UTS may in the
course of such audits request EMS to suspend or halt the manufacturing of
Products, and EMS shall use reasonable efforts to comply with such requests,
provided however, that in the event of such suspension or halt in production,
UTS shall not hold EMS liable for any delay in the production or shipment
schedule.</font></h3>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Return of Consigned Equipment</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If EMS terminates this Agreement, EMS shall return
all Consigned Equipment in EMS&#146; possession to UTS and at EMS&#146; expense within 5
business days, and EMS shall bear risk of loss of or damage to Consigned
Equipment during return shipment. UTS can request the return of any and all Consigned
Equipment at any time. EMS shall return all Consigned Equipment in EMS&#146;
possession to UTS at UTS&#146; direction at UTS&#146; expense within 5 business days
after receipt of such request from UTS, and UTS shall bear risk of loss of or
damage to Consigned Equipment during return shipment.</font><font size="2" style="font-size:10.0pt;">&#160;&#160; EMS&#146; production and warranty obligations
which require the utilization of the returned UTS Consigned Equipment will cease
upon EMS&#146; fulfillment of the return obligations hereunder.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Security Interest.</font></b><font size="2" style="font-size:10.0pt;">&#160; EMS shall not allow any Encumbrances to be
placed on any Consigned Equipment.&#160; EMS
shall give UTS immediate written notice should any third party attempt to place
or place any Encumbrance on the Consigned Equipment.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">22.&#160;
Subcontractors/Assignments</font></b></h1>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS agrees that no portion of the assembly of the
Products will be subcontracted to third parties without UTS&#146; prior written
consent. Any permitted subcontractor approved in writing by UTS (&#147;<b>Subcontractor</b>&#148;) that EMS may use to assist EMS shall be
obligated to comply with the terms of this Agreement and EMS shall remain
responsible for such Subcontractors&#146; performance.&#160; UTS&#146; consent to EMS&#146; use of any Subcontractor
shall not be deemed a waiver of any UTS rights hereunder nor relieve EMS of any
of its obligations pursuant to this Agreement.&#160;
EMS shall enter into a written agreement with each approved
Subcontractor which includes terms and conditions no less protective of UTS&#146;
proprietary and intellectual property rights than those set forth in this
Agreement prior to EMS permitting any such Subcontractor to perform any
obligation hereunder.&#160; EMS shall be
solely responsible for the payment of all amounts payable to, and the
performance of all of EMS&#146; obligations for, all such Subcontractors.&#160; Immediately upon request of UTS, EMS shall </font></h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20<a name="PB_20_130758_7091"></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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">commence such proceedings as necessary (i.e.
termination notice, request to cure default) to terminate any Subcontractor
that, in UTS&#146; sole opinion, does not perform to the standards set forth by UTS
in this Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Assignment</font></b> This Agreement
shall be binding on the Parties hereto and their permitted successors and
assignees; provided, however, that neither party shall assign or transfer, in
whole or part, whether by operation of law or otherwise, other than to an
Affiliate of such party, this Agreement or any of its rights or obligations
arising hereunder without the prior written consent of the other party which
shall not be unreasonably withheld or delayed.&#160;
Any purported assignment without such consent shall be null and
void.&#160; Notwithstanding the foregoing, the
parties and their assigned Affiliates shall have the right to assign all of its
rights and obligations in the case of merger, consolidation or sale of assets
involving substantially all its assets or substantially all the assets of a
particular Product line or business line in which a Product line is included,
to the merged entity or acquirer of such assets.&#160; This
Agreement may be assigned in whole or in part by either Party to any Affiliate
of such Party provided that such assigning Party remains secondarily liable
under this Agreement.&#160; Notwithstanding
the foregoing, either&nbsp;Party may assign its right to payment&nbsp;to a
third party without the need for&nbsp;consent&nbsp;from the other Party.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.&#160;
Force Majeure and Business Interruptions</font></b></h1>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">23.1&#160; Force
Majeure</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&nbsp;</font>Neither party
shall be considered in default of performance of its obligations under this
Agreement to the extent that performance of such obligations is delayed by
force majeure such as fire, flood, earthquake or other acts of God, war,
terrorism, riot, or any other cause beyond the reasonable control of the
claiming Party and in the absence of the claiming Party&#146;s negligence or
omissions.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&nbsp;</font><u>Notice of Force Majeure Event.</u>&#160; Neither Party shall be
responsible for any failure to perform due to a force majeure event provided
that such Party gives notice to the other Party of the force majeure event as
soon as reasonably practicable, but not later than five (5)&nbsp;days after the
date on which such Party knew or should reasonably have known of the commencement
of the force majeure event, specifying the nature and particulars thereof and
the expected duration thereof.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&nbsp;<u>Termination
of Force Majeure Event.</u>&#160; The Party
claiming a force majeure event shall use reasonable efforts to mitigate the
effect of any such event and to cooperate to develop and implement a plan of
remedial and reasonable alternative measure to remove the event; provided,
however, that neither Party shall be required under this provision to settle
any strike or other labor dispute on terms it considers to be unfavorable to
it.&#160; Upon the cessation of the force
majeure event, the Party affected thereby shall immediately notify the other
Party of such fact, and use its best efforts to resume normal performance of
its obligations under the Agreement as soon as possible.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&nbsp;
<u>Limitations.</u>&#160; Notwithstanding that
a force majeure event otherwise exists, the provisions of this Section&nbsp;shall
not excuse (i)&nbsp;any obligation of either Party, including the obligation to
pay money in a timely manner for Product actually delivered or other
liabilities actually incurred,</font></h2>

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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;">21<a name="PB_21_134237_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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">that
arose before the occurrence of the force majeure event causing the suspension
of performance; or (ii)&nbsp;any late delivery of Product, equipment,
materials, supplies, tools, or other items caused solely by negligent acts or
omissions on the part of such Party.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in .0001pt .5in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&nbsp;<u>Termination
for Convenience.</u>&#160; In the event a
force majeure event continues for a cumulative period of sixty (60) days or more
from the date of such Party&#146;s notification to the other Party then the other
Party at its option may extend the corresponding delivery period for the length
of the delay, or terminate this Agreement or cancel the Purchase Order for
convenience in accordance with Section&nbsp;25.2 herein.</font></p>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">23.2&#160;
Disaster Recovery Plan</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS represents and warrants that it currently has
business continuity and disaster recovery plans (together, &#147;<b>Recovery Plans</b>&#148;) in place and that it will maintain and
update such Recovery Plans as necessary or appropriate so that it will be able
to perform its obligations under this Agreement during the term.&#160; EMS shall provide the Recovery Plans to UTS
for review and approval.&#160; Any breach of
this provision by EMS shall be deemed a material breach of this Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.&#160;
Dispute Resolution Governing Law and Jurisdiction</font></b></h1>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">24.1&#160;
Dispute Resolution</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any controversy or claim arises relating to this
Agreement, the Parties will first attempt in good faith to negotiate a solution
to their differences, including progressively escalating any controversy or
claim through senior levels of management.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If negotiation does not result in a resolution
within sixty (60) days of the date when one party first notifies the other of
the controversy or claim, either party may submit the dispute to Hong Kong
International Economic&nbsp;&amp; Trade Arbitration Commission (CIETAC) for
arbitration in accordance with the CIETAC arbitration rules.&#160; Both Parties shall share the cost of
arbitration equally.&#160; The location of the
arbitration shall be conducted in Hong Kong.</font></p>

<p style="margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">24.2&#160;
Governing Law</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement, including all matters of
construction, validity, and performance, shall be governed by and construed and
enforced in accordance with the laws of Hong Kong, without regard to its conflict
of law rules.&#160; </font>The provisions of the United Nations
Conventions on Contracts for the International Sale of Goods shall not apply to
this Agreement.&#160; The prevailing Party
shall be entitled to recover its costs and reasonable attorney&#146;s fees from the
non-prevailing Party in any action brought to enforce this Agreement.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">25.&#160; Termination</font></b></h2>

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

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">25.1</font></b>&#160; This
Agreement may be terminated by a Party for cause immediately by written notice
upon the occurrence of any of the following events:</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.15in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If the other Party
ceases to do business, or otherwise terminates its business operations;</h3>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22<a name="PB_22_134303_5335"></a></font></p>

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

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

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 67.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If the other Party
breaches any material provision of this Agreement and fails to cure such
material breach within thirty (30) days after receipt of written notice
describing the material breach;</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 67.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 67.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If the other Party
is adjudicated bankrupt, or is the subject of any proceeding relating to its
liquidation or insolvency which is not dismissed within sixty (60) days of
filing, or if any assignment for the benefit of creditors is made.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 67.5pt;text-indent:-20.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In addition to
termination in accordance with the above provision, either Party may terminate
this Agreement by giving six (6)&nbsp;months&#146; advance notice in writing to the
other Party without incurring any liabilities other than that specifically
provided in this Agreement. The Parties shall work together to reduce UTS&#146;
exposure for Component and work in process liability.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .25in;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">25.3</font></b><font color="black" style="color:windowtext;">&#160; </font><u><font color="black" style="color:windowtext;">Consequences of Termination</font></u><font color="black" style="color:windowtext;">.</font></p>

<p style="color:black;margin:0in 0in .0001pt .25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .55in;text-indent:1.0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">a.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination for Reasons other than EMS&#146; Breach</u>.&#160; In the event this Agreement is terminated for
any reason other than an uncured material breach by EMS (including but not
limited to a force majeure or termination for convenience), UTS shall pay EMS,
termination charges equal to (1)&nbsp;the contract price for all finished
Product under valid Purchase Orders existing at the time of termination; (2)&nbsp;all
work in shall be finished out into finished Product; and (3)&nbsp;UTS&#146;
Component liability pursuant to Section&nbsp;6 above.</font></p>

<p style="color:black;margin:0in 0in .0001pt .55in;text-indent:1.0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .55in;text-indent:1.0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">b.</font><font color="black" style="color:windowtext;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Termination Resulting from EMS&#146;
Breach</font></u><font color="black"><font style="color:windowtext;">.&#160; </font>In the event
UTS terminates this Agreement hereunder as a result of an uncured material
breach by EMS, UTS shall pay EMS, termination charges equal to the following: (1)&nbsp;the
contract price for all finished Product existing at the time of termination; (2)&nbsp;EMS&#146;
cost (including labor, Components) for all work in process; and (3)&nbsp;UTS&#146;
Component liability pursuant to this Agreement; provided, however, that for the
purposes of this subsection only, UTS&#146; Component liability shall be calculated
based on the quoted cost of Components as stated on the BOM rather than the
delivered cost (e.g., exclusive of any markup); provided, however, that in the
event UTS terminates the Agreement as a result of EMS&#146; failure to timely
deliver and provided that, as a result of EMS&#146; failure to timely deliver, the
UTS customer cancelled its order and UTS has not been able to generate any
other customer order to consume the Components used (or which would have been
used) to manufacture that cancelled customer order, then UTS shall not be
responsible for the Components which were consumed or would have been consumed
in the late-delivered order(s).&nbsp; For example, in the event EMS had on hand
$1,000,000 worth of Components for which UTS were responsible for under the
Agreement, but $400,000 of such Components would have been consumed by a UTS
customer who cancelled its order as a result of EMS&#146; late delivery, and UTS has
not been able to generate any additional customer order(s)&nbsp;to consume the
$400,000 worth of Components, then UTS shall only be liable for $600,000 worth
of Components.</font></p>

<p style="color:black;margin:0in 0in .0001pt .55in;text-indent:1.0in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">25.4&#160; Support after Termination.</font></b>&#160; No termination of this Agreement by
expiration or otherwise shall affect any obligation accrued prior to such
termination and such obligation shall be fulfilled in accordance with the
applicable provisions herein.&#160; The
provisions of this Agreement relating to warranty, repair, product liability,
intellectual property, confidential information, indemnification, limitation of
liability, shall survive termination or expiration of this Agreement.&#160; In the event of any termination or expiration
of this Agreement, EMS and UTS agree to cooperate in good faith to minimize the
negative impact of any such termination or expiration.&#160; In the event of any termination</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23<a name="PB_23_134422_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 .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or expiration of this Agreement, EMS shall continue
to provide maintenance support, after-sales repair service to UTS at EMS&#146;
prevailing rates for services on similar products.&#160; The support shall be provided a minimum of
two (2)&nbsp;years after termination or expiration. UTS will take back
consigned test equipment once termination of this agreement, if the above
maintenance support is necessary, test equipment will be consigned to EMS. UTS
shall bear the expense of such transportation and related set up cost.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">26.&#160; Limitation of Liability.&#160; </font></b><font color="black"><font style="color:windowtext;">&#160;&#160;&#160;</font>&#160;</font><font color="black" style="color:windowtext;">IN NO EVENT SHALL EITHER
PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL,
PUNITIVE OR SPECIAL DAMAGES, OR ANY DAMAGES WHATSOEVER RESULTING FROM LOSS OF
USE, DATA OR PROFITS, EVEN IF SUCH OTHER PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.&#160; FOR THE
PURPOSE OF THIS SECTION, BOTH LOST PROFITS AND DAMAGES RESULTING FROM VALUE
ADDED TO THE PRODUCT BY UTS SHALL BE CONSIDERED CONSEQUENTIAL DAMAGES.&#160; IN NO EVENT WILL EMS BE LIABLE FOR COSTS OF
PROCUREMENT OF SUBSTITUTE PRODUCT BY UTS.&#160;
IN NO EVENT SHALL EITHER PARTY&#146;S LIABILITY FOR ALL CLAIMS ARISING OUT OF
OR RELATING TO THIS AGREEMENT EXCEED THE GREATER OF EITHER (1)&nbsp;$4,000,000
OR (2)&nbsp;10% OF THE TRAILING TWELVE (12) MONTHS REVENUE FOR PRODUCT SUPPLIED
HEREUNDER.&#160; THESE LIMITATIONS SHALL APPLY
NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.&#160; Notwithstanding the foregoing, the provisions
of this Section&nbsp;shall not apply to limit (i)&nbsp;UTS&#146; obligation for
termination payments in accordance with Section&nbsp;25.3 (ii)&nbsp;a Party&#146;s
obligation to indemnify the other Party.&#160;
THE LIMITATIONS SET FORTH IN THIS SECTION&nbsp;SHALL APPLY WHERE THE
DAMAGES ARISE OUT OF OR RELATE TO THIS AGREEMENT.</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;">24<a name="PB_24_134532_2897"></a></font></p>

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

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">27.&#160; Notices</font></b></h2>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any notices required for or permitted by this
Agreement are effective as follows: (i)&nbsp;immediately when delivered by
personal delivery to the individuals identified below, (ii)&nbsp;upon written
verification of receipt when delivered by overnight courier, or (iii)&nbsp;upon
verification of receipt when delivered by certified or registered mail, return
receipt requested.&#160; All notices must be
in writing, sent via one of the methods indicated in this Section, and sent to
the addresses set forth below or to such other address that the receiving party
may have provided in writing for the purpose of notice in accordance with this
Section:</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTS</font></b>:</p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <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="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom Telecom Co. Ltd</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <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="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <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:6.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="40%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:40.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" valign="top" style="padding:0in 0in 0in 0in;width:34.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <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="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <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:6.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="40%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:40.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" valign="top" style="padding:0in 0in 0in 0in;width:34.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <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="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">368 Liuhe Road</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <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="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi-Tech Industrial Development Zone (Binjiang)</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <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="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hangzhou 310053, P. R. China</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <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="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With a copy to:&nbsp;
  Vice President of supply Chain and General Counsel and a copy to
  legalnotice@utstar.com</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <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="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EMS:</font></b></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="93%" style="border-collapse:collapse;margin-left:.5in;width:93.34%;">
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
  to SANMINA-SCI:</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with
  a copy to:</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <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="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SANMINA-SCI Corporation</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SANMINA-SCI Corporation</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <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="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2700
  N. First Street</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2700
  N. First Street</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <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="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">San Jose, California 95134</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">San Jose, California&nbsp; 95134</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <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="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Att&#146;n:&nbsp; <u>EVP, Sales</u></font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Att&#146;n:&nbsp; <u>Vice President&nbsp;&amp; Corporate
  Counsel</u></font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Phone:&nbsp; (408) 964-3600</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phone:&nbsp; (408) 964-3600</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <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="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:
  (408) 964-3636</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in 0in 0in 0in;width:53.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:
  (408) 964-3636</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

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

<h1 style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">28.&#160;
General</font></b></h1>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.1&#160;
Compliance with Laws</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Party shall comply with all applicable laws,
regulations, and rules&nbsp;of any governmental authority having jurisdiction
and shall obtain all necessary permits, licenses, and consents of </font></h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25<a name="PB_25_135123_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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">governmental authorities necessary for the
manufacture, sale, export, import, or other performance contemplated by this
Agreement.&#160; EMS hereby represents and
warrants that no consent, approval or authorization of or designation,
declaration, or filing with any governmental authority is required in
connection with the valid execution, delivery and performance of this
Agreement.&#160; EMS shall be responsible for
providing regulatory agencies and standards organizations with proof of
compliance for applicable Parts and Components associated with the Product. EMS
shall mark the Products, and as applicable the Parts and Components, with
regulatory, safety and standards organizations marks which signify compliance
with the requirements of those organizations.&#160;
EMS will obtain the prior approval of the relevant agencies or
organizations prior to implementing any change that may affect the compliance
status of any Product previously approved.&#160;
Upon request by UTS, EMS shall provide a report indicating appropriate
approvals obtained.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall comply with the legal requirements and
standards of its industry as applicable under the national law of the countries
in which EMS is operating. This includes, but is not limited to, the laws and
regulations governing the following: environmental, health, safety, labor,
employment, child labor, intellectual property, discrimination and human
rights.&#160; EMS must not use forced
labor.&#160; EMS shall ensure the compliance
of its Products with specific legal requirements applicable to the countries
into which Products are being sold as provided by UTS in writing to EMS.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall comply with the </font>United States Foreign Corrupt Practices Act,
which prohibits the offering, giving or promising to offer or give, directly or
indirectly, money or anything of value to any official of a government,
political party or instrumentality thereof in order to assist EMS or UTS in
obtaining or retaining business.&#160; EMS
shall not act in any fashion or take any action, in the performance of its
obligations under this Agreement, which violates, or would render UTS liable
for a violation of, either the United States Foreign Corrupt Practices Act or
any similar statute or regulation in any jurisdiction in which EMS does
business.&#160; EMS&#146; violation of this
provision shall be deemed a material breach of this Agreement, entitling UTS
terminate this Agreement immediately by written notice to EMS.&#160; EMS agrees to defend, indemnify and hold UTS
harmless from all liabilities, claims, losses and damages arising from EMS&#146;s
breach of this obligation.</p>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.2&#160; Taxes</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each party shall be solely responsible for
reporting to the appropriate tax authority the income it may derive from performance
of this Agreement and making payment of any applicable taxes, including but not
limited to business tax, value-added tax and income tax imposed thereon.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall timely make and file all related reports
and timely pay the related taxes and/or levies required by law.<b>  </b>EMS shall indemnify and hold UTS harmless for any such
taxes, levies, penalties and/or interest imposed on UTS that arise out of EMS&#146;s
failure to timely and properly comply with such requirements.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event of any audit of either Party by any
tax authority in respect of sales/use, property, inventory, business and
occupation, excise, or similar taxes that arises from the performance of either
Party under this Agreement, either Party will cooperate to provide the audited
party with </font></h3>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26<a name="PB_26_135148_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>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">relevant information, documentation, and data that
is reasonably necessary and sufficient for the audited Party to fully respond
to the conduct of the audit.&#160; The audited
Party shall have the sole right and authority to direct its response to the
audit, including the pursuit of negotiations with the tax authority and the
completion of settlement agreements, offers in compromise, or their
equivalents.&#160; Should both Parties become
a party to the audit, the audited Party for purposes of this provision shall be
deemed the Party with the ultimate responsibility to pay any liability for tax
arising out of the audit and under the laws of the taxing jurisdiction.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.3&#160;
Records; Audit Rights</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall keep complete, true, and accurate books
of accounts and records for the purpose of verifying EMS&#146;s compliance with the
terms of this Agreement.&#160; Such books and
records shall be kept for at least five (5)&nbsp;years following the end of the
calendar quarter to which they pertain.&#160; </font>UTS shall reserve the right to perform audits relating to UTS Purchase Orders
during normal business hours with
reasonable notification to EMS. Any audit conducted under this section shall not
unduly disrupt EMS&#146; conduct of its business operations and all information
accessed in connection with any such audit shall be deemed to be the
Confidential Information of EMS.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.4&#160;
Independent Contractors</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMS shall perform its obligations hereunder as an
independent contractor and shall be solely responsible for its own financial
obligations.&#160; Nothing contained herein
shall be construed to imply a joint venture or principal and agent relationship
between the Parties, and neither party shall have any right, power or authority
to create any obligation, express or implied, on behalf of the other in
connection with the performance hereunder.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.5&#160;
Modification</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No alteration, amendment, waiver, cancellation, or
any other change in any term or condition of this Agreement shall be valid or
binding on either party unless the same shall have been mutually assented to in
writing by both Parties.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.6&#160; Waiver</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The waiver of any term, condition or provision of
this Agreement must be in writing and signed by an authorized representative of
the waiving party.&#160; Any such waiver will
not be construed as a waiver of any other term, condition or provision, nor a
waiver of any subsequent breach of the same term, condition or provision.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt 40.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The failure of either Party to enforce at any time
any of the provisions of this Agreement, or the failure to require at any time
performance by the other Party of any of the provisions of this Agreement,
shall in no way be construed to be a present or future waiver of such
provisions, nor in any way affect the right of either Party to enforce each and
every such provision thereafter.</font></h3>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27<a name="PB_27_135207_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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.7&#160;
Severability</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any term, condition, or provision of this
Agreement, or portion thereof, is found to be invalid, unlawful, or
unenforceable to any extent, the Parties shall endeavor in good faith to agree
to such amendments that will preserve, as far as possible, the intentions
expressed in this Agreement.&#160; Such
invalid term, condition or provision will be severed from the remaining terms,
conditions and provisions, which will continue to be valid and enforceable to
the fullest extent permitted by law.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.8&#160; No
Third Party Beneficiaries</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless otherwise expressly provided, no provisions
of this Agreement are intended or shall be construed to confer upon or give to
any person or entity other than UTS, EMS, and Designated Third Parties any
rights, remedies or other benefits under or by reason of this Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.9&#160;
Interpretation</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless the context clearly indicates otherwise, in
this Agreement, the terms set out in Exhibit&nbsp;E Definitions shall have the
meaning assigned to them therein.&#160; This
Agreement represents the negotiated agreement of the Parties, with the advice
and assistance of counsel, and shall not be construed against either party as
the drafter thereof.&#160; This Agreement is
written in English and the controlling language of the Agreement shall be
English.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.10&#160;
Entire Agreement</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement and the exhibits attached hereto,
represent and constitute the entire agreement between the Parties and supersedes
all prior agreements between the Parties, whether written or oral.&#160; The Non-Disclosure Agreement executed by the
Parties is attached as Exhibit&nbsp;F and shall be incorporated into this
Agreement.&#160; The provisions of the
Non-Disclosure Agreement shall survive the termination of this Agreement. This
Agreement may only be amended in writing signed by duly authorized
representatives of both Parties.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.11 Order of Precedence</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 .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All
quotations, Orders, acknowledgments and invoices issued pursuant to this Agreement
are issued for convenience of the Parties only and shall be subject to the
provisions of this Agreement and the Exhibits hereto.&#160; When interpreting this Agreement, precedence
shall be given to the respective parts in the following descending order: (a)&nbsp;this
Agreement; (b)&nbsp;Schedules and Exhibits to this Agreement; and (c)&nbsp;if
Orders are used to release product, those portions of the Order that are not
pre-printed and which are accepted by EMS. The Parties acknowledge that (y)&nbsp;the
preprinted provisions on the reverse side of any such quotation, Order,
acknowledgment or invoice and (z)&nbsp;all terms other than the specific terms
set forth in Section&nbsp;5(i)-(vi)&nbsp;shall be deemed deleted and of no
effect whatsoever.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28<a name="PB_28_135233_7608"></a></font></p>

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

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

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.12</font></b>&#160;&#160; <b>Counterparts</b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement may be executed in one or more
counterparts, each of which will be deemed an original, and all of which
together shall constitute one and the same instrument.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;text-indent:.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">28.13&#160; Non-Exclusivity</font></b></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .25in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as may be otherwise expressly specified
otherwise in writing, this Agreement does not grant EMS the exclusive right to
sell Products to UTS.&#160; UTS shall have the
right to use other contract manufacturers to manufacture the Products.&#160; Nothing in this Agreement will be construed or
deemed to prevent or otherwise inhibit UTS&#146; ability or right to manufacture the
Products, whether at UTS&#146; facility or at an alternate or additional third party
facility(ies) of UTS&#146; choice.&#160; Further,
nothing in this Agreement will be construed or deemed to (a)&nbsp;require UTS
to order any minimum number of units of the Products to be manufactured by EMS,
or (b)&nbsp;prevent or otherwise inhibit UTS&#146; ability or right to design,
develop, manufacture, have manufactured, market, use, sell, and or distribute
any follow-on Products or derivatives of the Products.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS
WHEREOF, each of the Parties has caused this Agreement to be executed as of the
date first written above by its duly authorized representatives.</font></p>

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

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

<table border="0" cellspacing="0" cellpadding="0" width="97%" style="border-collapse:collapse;margin-left:12.0pt;width:97.78%;">
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom Telecom Co., Ltd</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sanmina-SCI Corporation</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.54%;">
  <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="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.54%;">
  <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="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature:</font></p>
  </td>
  <td width="38%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:38.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Peter Blackmore</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature:</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:37.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Edmund Yuen</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.54%;">
  <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="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Authorized representative)</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Authorized representative)</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.54%;">
  <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="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Printed Name:</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Printed Name: Edmund Yuen</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.54%;">
  <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="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: 1/23/2010</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.54%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font> 12/31/2009</p>
  </td>
 </tr>
 <tr height="0">
  <td width="68" style="border:none;"></td>
  <td width="280" style="border:none;"></td>
  <td width="43" style="border:none;"></td>
  <td width="66" style="border:none;"></td>
  <td width="274" style="border:none;"></td>
 </tr>
</table>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29<a name="PB_29_135445_8146"></a></font></p>

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<div>

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

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LIST
OF EXHIBITS</font></h2>

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

<p style="margin:0in 0in .0001pt .4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;A&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Product Quotation List</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 .4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;B&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Implementation</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 .4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;C&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Quality Assurance Agreement</font></p>

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

<p style="margin:0in 0in .0001pt .4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;D&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Consigned Equipment List</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 .4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;E&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Definitions</font></p>

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

<p style="margin:0in 0in .0001pt .4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;F&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Non-Disclosure Agreement</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;">30<a name="PB_30_135600_7091"></a></font></p>

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<div>

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

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;A:&#160; Product Quotation List</font></b></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">As submitted and received
separately by the Parties.</font></b></h1>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31<a name="PB_31_140941_4141"></a></font></p>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:39.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;B: </font></b><b><u style="font-weight:bold;">Implementation
Section</u></b></p>

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

<h1 style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Inventory/Open Purchase Order transfer to EMS</h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt 14.2pt;text-indent:.8pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Purchase
of UTS-Owned Materials and Components</font></b></p>

<p style="margin:0in 0in .0001pt 14.2pt;text-indent:.8pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 51.0pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>UTS-Owned
Components.&#160; Upon notification of a UTS
business award, UTS shall provide EMS with a list of all UTS-owned Components
and Components required to manufacture the Products, as indicated in a BOM to
be set forth in the applicable Product Definition.&#160; EMS shall purchase sixty (60) days of
Components from UTS at the approved
quoted BOM cost provided that UTS to provide corresponding sixty (60) days of
Product Purchase Orders. UTS warrants that all Components shall be free from
defects, shall be in working condition, and strictly conform to the
Specifications and the agreed quality and fit for the requirements of Forecast.
For any Components that do not conform with the above warranty in this Section,
or such Components become Excess Inventory as set forth Section&nbsp;12 of this
Agreement, EMS shall be entitled to immediately return such Components to UTS
for full refund of EMS&#146; purchase price.</p>

<p style="margin:0in 0in .0001pt 51.0pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 51.0pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>On a weekly basis
after, and prior to EMS placing any purchase orders for additional Components
from suppliers on the AVL, EMS shall purchase any remaining UTS-owned
Components, at mutually agreed prices, in weekly increments, until UTS-owned
Components have been depleted.&#160; UTS shall
notify EMS in writing of any UTS-owned Components available for purchase by EMS
and required to manufacture the Products.&#160;
EMS shall utilize such purchased Components in the manufacture of
Products prior to utilizing Components in EMS&#146; inventory.</p>

<p style="margin:0in 0in .0001pt 51.0pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 51.0pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If EMS fails to
buy UTS-owned Components under Sections (i)&nbsp;or (ii)&nbsp;above, UTS shall
immediately sell to EMS such remaining UTS-owned Components for those
incorrectly purchased Components by part number that are within the current
Forecasted demand, on a part-by-part basis, at the then-current BOM price,
unless otherwise mutually agreed by the Parties in writing.&#160; Such sales shall be excluded from the Excess
Inventory claims and the buy-back claims, respectively.</p>

<p style="margin:0in 0in .0001pt 51.0pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 51.1pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Quality
Issues.&#160; Should EMS discover Component
quality issues during an initial, two (2)&nbsp;month inspection period, EMS and
UTS shall work corrective actions with any Component suppliers to resolve such
quality issues. Should corrective action require the defective Components to be
returned to UTS or the applicable supplier, UTS shall reimburse EMS the current
purchase price of such Components, plus inbound transportation costs.</p>

<p style="margin:0in 0in .0001pt 51.1pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 51.0pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Payment term shall
be the same term as provided to UTS.&#160;
Payments shall be made in RMB.&#160;
Sales of Components shall be made pursuant to the agreed form of the
purchase order. EMS shall be entitled to deduct, withhold, or offset any amount
due to the relevant usage of Components under the list of buy-sell business
model from any payment which UTS needs to pay to EMS (&#147;Back-to-Back Payment&#148;).</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;">32<a name="PB_32_141001_8627"></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="font-size:10.0pt;margin:0in 0in .0001pt 51.1pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All UTS-owned
Components sold to EMS shall be accompanied by a packing list, which shall
include UTS&#146; part number, manufacturer name, manufacturer part number, revision
number (if applicable), date code (if applicable) and quantity.&#160; EMS shall review the packing list against
such Components, and identify any discrepancies between the packing list and
such Components, within ten (10)&nbsp;business days of EMS&#146; receipt.&#160; The Parties shall work together to resolve
any such discrepancies. However, if discrepancies are subsequently discovered
that could not have been discovered by EMS within such ten (10)&nbsp;business
days using reasonable diligence, UTS and EMS agree to work together to
equitably resolve the issues.</p>

<p style="margin:0in 0in .0001pt 51.1pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 51.1pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EMS shall be
responsible for all inbound freight charges for UTS-owned Components shipped by
UTS or a Component supplier to EMS. Title and risk of loss for such Components
shall transfer to EMS Ex Works UTS facility Hangzhou (Incoterms 2000)</p>

<p style="margin:0in 0in .0001pt 51.1pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 51.1pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>UTS shall package
all Components in accordance with accepted industry standards.&#160; Within 10 days of receipt, EMS must perform
Inbound Quality Control: (A)&nbsp;to identify and resolve any discrepancies
between the pre-packing list and the materials and Components prior to shipment
and (B)&nbsp;to ensure compliance with packaging requirements in accordance
with this Agreement.&#160; If discrepancies
are subsequently discovered that could not have been discovered by EMS within
such ten business (10)&nbsp;days using reasonable diligence, UTS and EMS agree
to work together to equitably resolve the issues.</p>

<p style="margin:0in 0in .0001pt 51.1pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 51.1pt;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Open Purchase
Orders from Components Suppliers.&#160; UTS
will transfer all open purchase orders for Components to be transferred to the
EMS on award of the business.&#160; UTS
expects the EMS to re-negotiate all open purchase orders to achieve the lower
of EMS or UTS purchase price. In case EMS has to cancel such purchase orders
due to Forecast changes, UTS shall be liable for such PO and for negotiation
with the original supplier and handle the cancellation of such purchase orders<b>.</b></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33<a name="PB_33_141020_7906"></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-indent:39.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;C:&#160; Quality Assurance 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>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 1.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">As agreed by the Parties in writing. </font></b></h1>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34<a name="PB_34_141030_3736"></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>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exhibit&nbsp;D:&#160;
Listing of Consigned Equipment</font></b></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 1.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 16.4pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Refer
to actual List of Consigned Equipment according to Products to be manufactured
by EMS.</font></b></h1>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35<a name="PB_35_141039_9621"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt 16.4pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">2.&#160;&#160;&#160;&#160; Exhibit&nbsp;E:&#160;
Definitions Used</font></b></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt 16.4pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Affiliate</b>&#148; shall mean, with respect to any Party, any other
party directly or indirectly controlling, controlled by, or under common
control with such Party.&#160; For purposes of
this definition, &#147;control&#148; when used with respect to any party, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such party, whether through the ownership of at
least fifty percent (50%) of voting securities, by contract or otherwise; the
terms &#147;controlling&#148; and &#147;controlled&#148; have meanings correlative to the
foregoing. An entity will cease to be an Affiliate if such control relationship
no longer exists.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Allocation Situation</b>&#148; shall mean a production capacity
shortage or Component shortage caused by an event specified in Section&nbsp;23.1
(Force Majeure) or insufficient EMS manufacturing capacity or insufficient
available Components which affects several EMS customers and which shortage
causes EMS to allocate manufacturing capacity supply among EMS customers or any
other reason that will affect the supply of any Product.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>&#147;Approved
Manufacturing and Product Development Location&#148;</b> shall mean
manufacturing location(s)&nbsp;approved by UTS in writing from time to time for
the manufacture of Products under this Agreement.</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>AVL</b>&#148; shall mean a list of approved suppliers provided by UTS
to EMS.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Business Day</b>&#148; shall mean any day that EMS is open for normal
business as detailed in the EMS annual calendar or any subsequent updates.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Catastrophic Failure</b>&#148; will be deemed to have occurred if EMS
and UTS both determines that a Product does, or is likely to either (i)&nbsp;cause
a potential safety hazard to users of such Product or (ii)&nbsp;otherwise
present a risk that EMS or UTS could face liability arising out of the use of
such Product. In the event of an Epidemic or Catastrophic Failure, the Parties
shall cooperate to implement the procedure set forth in Section&nbsp;17.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b>Components</b>&#148; shall mean all raw materials, parts, and
components incorporated into the Products.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Consigned Equipment</b>&#148; shall mean certain software, tools and
equipment that may be consigned by UTS to EMS in connection with this
Agreement.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Consigned Components</b>&#148; shall mean certain Components that may
be consigned by UTS to EMS under this Agreement.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .6in;text-indent:-.35in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>&#147;Customer&#148;</b> shall mean
customer of UTS who will be purchasing, distributing, selling or using the
Products.</p>

<p style="margin:0in 0in .0001pt 53.25pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>&#147;Delivery&#148;
</b>shall
mean EMS&#146; delivery of the Products to UTS as stipulated in Section&nbsp;8.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Delivery Date</b>&#148; means the date on which EMS is to affect
Delivery of the Products pursuant to the Purchase Order issued by UTS and
accepted by EMS pursuant to this Agreement.</h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36<a name="PB_36_141111_8715"></a></font></p>

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

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

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Delivery Window</b>&#148; shall mean the period of time extending
from three (3)&nbsp;business days in advance of the Delivery Date and ending on
the Delivery Date.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Designated Third Party</b>&#148; shall mean any third party that: (i)&nbsp;is
solely engaged in distribution, order fulfillment or customer management
activities on behalf of UTS; and (ii)&nbsp;UTS notifies EMS in writing is
authorized to purchase particular Products from EMS.&#160; UTS shall be responsible for the performance
of such third parties pursuant to the terms of this Agreement. &#147;<b>EMS Industrial Design</b>&#148; means any and all of the following,
excluding, in all cases, the UTS Industrial Design:&#160; (a)&nbsp;all design files provided by EMS for
the Products and any other information disclosed by EMS to UTS that relate to
the design or manufacture of the Products; and (b)&nbsp;modifications,
derivatives, improvements and enhancements of any of the foregoing developed by
or for EMS.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>EMS Tooling</b>&#148; means generally available fixtures and tools
which are not specially adapted or configured for the UTS Industrial Design,
but excluding the UTS Tooling.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Engineering
Change Order</b>&#148; shall mean request in
writing issued by UTS to EMS to make changes to any manufacturing source, production
process, or the controlled process parameters or sources or types or grade
classifications of materials.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Encumbrances</b>&#148; shall mean any security interest, lien, tax
lien, or other encumbrance.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Epidemic Failure</b>&#148; shall mean an EMS warranty defect in the
Product based on the same root cause failure (i.e. batch related failure)
occurring in a minimum of 3% of units, or another commercially reasonable
number of units agreed by the parties depending on the type of Product, of
Product shipped within the same production lot of Products under this Agreement.</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Intellectual Property</b>&#148; means any or all of the following and
all rights in, arising out of, or associated
therewith:&#160; (i)&nbsp;all United States
and foreign patents and utility models and applications therefore and all
reissues, reexaminations, registrations, confirmations, renewals, extensions,
provisions, supplementary protection certificates, divisions, continuations,
and continuations-in-part thereof (&#147;<b>Patents</b>&#148;); (ii)&nbsp;all
trademarks, trade names, and trade dress (&#147;<b>Trademarks</b>&#148;); (iii)&nbsp;all
copyrights, copyright registrations, and applications therefore and other
rights corresponding thereto throughout the world; (iv)&nbsp;all trade secrets;
(v)&nbsp;all industrial designs and any registrations and applications
therefore throughout the world; and (vi)&nbsp;any similar, corresponding, or
equivalent rights to any of the foregoing anywhere in the world.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Inventory</b>&#148; shall mean any and all procured materials,
Components and custom Components that are listed on the bill of materials
included with the Specifications that EMS is authorized to procure directly
from UTS-owned or an AVL and incorporate into the Products..</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Long Lead-Time Component</b>s&#148; shall mean any Component with a
lead-time greater than one hundred twenty (120) calendar days.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Long Lead Time Inventory</b>&#148; shall mean Inventory used in the
manufacture of Products that require a longer time to procure than the time
from the date of Purchase Order to production start time.</h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37<a name="PB_37_141132_563"></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>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Minimum Order Inventory</b>&#148; shall mean Inventory that is
procurable only in minimum quantities that exceed the quantities required for
UTS Purchase Orders.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Obsolete Inventory</b>&#148; shall mean those Custom Components in
inventory consistent with UTS&#146; Forecast, purchased at lead-times reasonably
prevailing at the time of order, and Long Lead-Time Inventory purchased with
UTS&#146; written approval, that do not appear on the current UTS&#146; BOM, or which
appear on the current UTS&#146; BOM but cannot be used to manufacture products for
UTS or EMS&#146; other customers due to engineering changes, product cancellations,
purchase order cancellation, or program cancellations by UTS.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Passive</b>&#148; and &#147;<b>Non-passive&#148; Components</b>&#160; <b>Passive </b><b>Components</b> are Components that do not amplify or switch
signals, such as capacitors, resistors, transformers, inductors, etc.&#160; <b>Non-passive Components</b>
are Components on any UTS BOM that are not Passive Components. PCB, Backplane,
Cable assembly and Enclosure are custom built products and are not defined as <b>Passive</b> components in this agreement.</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Products</b>&#148; shall mean all products sold, licensed or provided
by EMS to UTS under this agreement, including hardware, licensed software,
supplies, accessories and other commodities related to any of the foregoing.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>&#147;Purchase
Order&#148; </b>shall mean an official document, signed by an
authorized employee of UTS (or a Customer), which is used to place Product
orders with EMS.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>&#147;Quarter</b>&#148; shall mean UTS&#146;
fiscal quarter, unless otherwise specified as &#147;calendar quarter.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Specifications</b>&#148; shall mean the Product specifications
(including, without limitation, designs, drawings, blueprints, models, data,
techniques, know-how, etc) provided by UTS to EMS in writing, upon which the
EMS Product pricing is based.&#160; The
Specifications may be amended from time to time by UTS upon written notice to
EMS.&#160; Throughout the term of this
Agreement, all Specifications shall be deemed to include the requirement that
each Product complies with all relevant industry product standard
specifications, host devices, and operating systems.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>UTS Industrial Design</b>&#148; means any and all of the
following:&#160; (a)&nbsp;all design files
provided by UTS for the Products and any other information disclosed by UTS to
EMS, either directly or indirectly, in writing, by inspection of tangible
objects (including without limitation documents, drawings, prototypes, samples,
and tooling) that relate to the design or manufacture of the Products; (b)&nbsp;modifications,
derivatives, improvements, and enhancements of any of the foregoing developed
by or for UTS; and (c)&nbsp;the industrial design, appearance, housing,
external configuration, user interfaces, and other features of the Products
based in whole or in part on any of the foregoing and all specifications and
manufacturing documentation related thereto.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>UTS Tooling</b>&#148; means all: (a)&nbsp;Specific Processes; and (b)&nbsp;fixtures,
tooling, and processes used to manufacture the Products based on all or any
part of the UTS Industrial Design, including without limitation production
software, moldings and other tools used in connection with such manufacture
and/or paid for by UTS, whether developed or provided by UTS, EMS, or </h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38<a name="PB_38_141151_9497"></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>

<h2 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">otherwise; provided, however, that &#147;UTS Tooling&#148;
does not include generally available fixtures and tools that are not specially
adapted or configured for the UTS Industrial Design.</font></h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39<a name="PB_39_141207_3641"></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>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;F:&#160; Non-Disclosure Agreement</font></b></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt;text-indent:40.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[Attached
signed NDA]</font></b></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40<a name="PB_40_141217_5250"></a></font></p>

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<SEQUENCE>3
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<DESCRIPTION>EX-99.1
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<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;99.1</font></b></p>

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

<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman"><img width="217" height="63" src="g25501mmi001.gif"></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 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;">UTSTARCOM
ANNOUNCES PLAN TO OUTSOURCE MANUFACTURING OPERATIONS</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 align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Sanmina-SCI to Handle Full Electronics Manufacturing
Services for UTStarcom&#146;s Broadband, IPTV and NGN Solutions Portfolios</font></i></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;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ALAMEDA, Calif., Jan.&nbsp;27,
2010 &#151; UTStarcom,&nbsp;Inc. </font><font size="2" style="font-size:10.0pt;">(Nasdaq: UTSI) today announced that it has selected San Jose-based
Sanmina-SCI Corporation (Nasdaq: SANM) as its new outsourced electronics
manufacturing service provider (EMS), a move that aligns with UTStarcom&#146;s
announced restructuring initiatives and expands the company&#146;s cost savings
efforts.</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;">Under the terms of the agreement, Sanmina-SCI will
provide full electronics manufacturing services for UTStarcom&#146;s system products
currently being built in UTStarcom&#146;s Hangzhou facility. These services include
new product introduction (NPI) support, material sourcing and procurement,
printed circuit board assembly, system integration and testing, final pack-out
and delivery. Increasing UTStarcom&#146;s ability to manage demand swings, the
flexible cost structure of this outsourcing agreement matches UTStarcom&#146;s
volume of orders and allows for a faster cash flow cycle and lower working
capital usage.</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;">&#147;As we referenced in our June&nbsp;and November&nbsp;2009
public conference calls, UTStarcom is taking steps to change its operational
approach,&#148; said Zheng Min, UTStarcom&#146;s vice president of global supply chain. &#147;This
new relationship with Sanmina-SCI will allow UTStarcom to continue delivering
quality products while taking advantage of improved manufacturing efficiencies.&#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;">Outsourcing UTStarcom&#146;s manufacturing capabilities not
only improves the company&#146;s asset utilization, but it broadens the supply chain
for increased velocity and coverage.</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;">&#147;We are very pleased that UTStarcom has selected
Sanmina-SCI as their electronics manufacturing services provider. We look
forward to utilizing our vertically integrated suite of services including NPI,
material procurement, manufacturing, system integration, and direct order
fulfillment to bring value to</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 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 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>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;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;">our relationship.&#160;
This strategic relationship allows us to grow in the networking market
in the East China region,&#148; said PK Chan, executive vice president of
Sanmina-SCI Greater China Operations.</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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">About Sanmina-SCI</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sanmina-SCI Corporation is a leading electronics
contract manufacturer serving the fastest growing segments of the global
Electronics Manufacturing Services (EMS) market. Recognized as a technology
leader, Sanmina-SCI provides end-to-end manufacturing solutions, delivering superior
quality and support to OEMs primarily in the communications, defense and
aerospace, industrial and medical instrumentation, multimedia, enterprise
computing and storage, renewable energy and automotive technology sectors.
Sanmina-SCI has facilities strategically located in key regions throughout the
world. More information regarding the company is available at
http://www.sanmina-sci.com.</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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">About UTStarcom,&nbsp;Inc.</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This press release contains forward-looking statements
regarding UTStarcom&#146;s future strategy, including statements regarding the
company&#146;s plan to outsource manufacturing.&#160;
These statements are forward-looking in nature and subject to risks and
uncertainties that may cause actual results to differ materially. Factors that
could cause actual results to differ materially from those contained in our
forward-looking statements include:&#160;
risks associated with delays in product development, manufacturing or
customer acceptance and implementation of new products and technologies.&#160; Please also refer to UTStarcom&#146;s periodic
reports that are filed from time to time with the Securities and Exchange </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>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;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;">commission, including our latest Annual Report on Form&nbsp;10-K,
Quarterly Reports on Form&nbsp;10-Q and Current Reports on Form&nbsp;8-K.&#160; UTStarcom assumes no obligation to, and does
not currently intend to, update these forward-looking statements.</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;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Company Contacts</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;">For Media Inquiries:</font></p>

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">702.644.2465</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">sara.zavala@edelman.com</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;">For Investor Inquiries:</font></p>

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">415.445.3236</font></p>

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

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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