Document:

EXHIBIT 10.13

UTSTARCOM, INC.

EXECUTIVE INVOLUNTARY TERMINATION SEVERANCE PAY PLAN

1.             Introduction.  The
purpose of this UTStarcom, Inc. Executive Involuntary Termination Severance Pay
Plan (the “Plan”) is to provide assurances of specified severance benefits to
eligible employees of the Company whose employment is subject to being
involuntarily terminated (other than for Cause, death or Disability).  The Plan is intended to (a) assure that
the Company will have continued dedication and objectivity of its employees,
and (b) provide the Company’s employees with an incentive to continue
their employment and to motivate its employees to maximize the value of the
Company for the benefit of its stockholders. 
This Plan is an “employee welfare benefit plan,” as defined in
Section 3(1) of the Employee Retirement Income Security Act of 1974, as
amended.  This document constitutes both
the written instrument under which the Plan is maintained and the required
summary plan description for the Plan.

2.             Important Terms.  To
help you understand how this Plan works, it is important to know the following
terms:

2.1           “Administrator”
means the Company, acting through its Vice President of Human Resources or any
person to whom the Administrator has delegated any authority or responsibility
pursuant to Section 8, but only to the extent of such delegation.

2.2           “Base
Pay” means a Covered Employee’s regular straight-time salary as in
effect during the last regularly scheduled payroll period immediately preceding
the date on which the Severance Benefit becomes payable.  Base Pay does not include payments for
overtime, shift premium, incentive compensation, incentive payments, bonuses,
commissions or other compensation.

2.3           “Board”
means the Board of Directors of the Company.

2.4           “Cause”
means (a) any act of personal dishonesty taken by the Covered Employee in
connection with his or her responsibilities as an employee which is intended to
result in substantial personal enrichment of the Covered Employee, (b) a
Covered Employee’s conviction of a felony which the Board reasonably believes
has had or will have a material detrimental effect on the Company’s reputation
or business, (c) a willful act by the Covered Employee which constitutes
misconduct and is injurious to the Company, and (d) continued willful
violations by the Covered Employee of the Covered Employee’s obligations to the
Company after there has been delivered to the Covered Employee a written demand
for performance from the Company which describes the basis for the Company’s
belief that the Covered Employee has not substantially performed his or her
duties.

2.5           “Change
in Control” shall mean the occurrence of any of the following
events:

(a)           Any “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or
more of the total voting power represented by the Company’s then outstanding
voting securities; or

(b)           The consummation of the sale or
disposition by the Company of all or substantially all of the Company’s assets;
or

(c)           The consummation of a merger or
consolidation of the Company, with any other corporation, other than a merger
or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or its parent) at least fifty percent (50%) of the total
voting power represented by the voting securities of the Company, or such
surviving entity or its parent outstanding immediately after such merger or
consolidation; or

(d)           A change in the composition of the
Board, as a result of which fewer than a majority of the Directors are
Incumbent Directors.  “Incumbent
Directors” means Directors who either (A) are Directors as of the
effective date of the Plan (pursuant to Section 22), or (B) are
elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of those Directors whose election or nomination was not in
connection with any transaction described in subsections (i), (ii) or (iii) or
in connection with an actual or threatened proxy contest relating to the
election of Directors.

2.6           “Company”
means UTStarcom, Inc., a Delaware corporation, and any successor by merger,
acquisition, consolidation or otherwise that assumes the obligations of the
Company under the Plan.

2.7           “Covered
Employee” means an employee of the Company who is identified on
Exhibit A to this Plan or who is designated by the Administrator in
writing from time to time as a Covered Employee.

2.8           “Director”
means a member of the Company’s Board of Directors.

2.9           “Disability”
means that the Covered Employee has been unable to perform his or her Company
duties as the result of his or her incapacity due to physical or mental
illness, and such inability, at least twenty-six (26) weeks after its
commencement or one hundred eighty (180) days in any consecutive twelve
(12) month period, is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Covered Employee
or the Covered Employee’s legal representative (such agreement as to acceptability
not to be unreasonably withheld). 
Termination resulting from Disability may only be effected after at
least thirty (30) days’ written notice by the Company of its intention to
terminate the Covered Employee’s employment. 
In the event that the Covered Employee resumes the performance of
substantially all of his or her duties hereunder before the termination of his
or her employment becomes effective, the notice of intent to terminate will
automatically be deemed to have been revoked.

 2
 

2.10         “Effective
Date” means June 20, 2006.

2.11         “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

2.12         “Good
Reason” means (a) without the Covered Employee’s express
written consent, a significant reduction of the Covered Employee’s duties, position
or responsibilities relative to the Covered Employee’s duties, position or
responsibilities in effect immediately prior to such reduction, or the removal
of the Covered Employee from such position, duties and responsibilities, unless
the Covered Employee is provided with comparable duties, position and
responsibilities; provided, however, that a reduction in duties, position or
responsibilities solely by virtue of the Company being acquired and made part
of a larger entity shall not constitute a “Good Reason”; (b) without the
Covered Employee’s express written consent, a substantial reduction, without
good business reasons, of the facilities and perquisites (including office
space and location) available to the Covered Employee immediately prior to such
reduction; (c) a reduction by the Company of the Covered Employee’s base
salary as in effect immediately prior to such reduction; (d) a material
reduction by the Company in the kind or level of employee benefits to which the
Covered Employee is entitled immediately prior to such reduction with the
result that the Covered Employee’s overall benefits package is significantly
reduced; or (e) without the Covered Employee’s express written consent,
the relocation of the Covered Employee to a facility or location more than
fifty (50) miles from his or her current location.

2.13         “Involuntary
Termination” means a termination of employment of a Covered Employee
under the circumstances described in Section 4.1.

2.14         “Option”
means a right granted pursuant to the Company’s stock option plan(s) to
purchase common stock of the Company pursuant to the terms and conditions of
such plan(s).

2.15         “Plan”
means the UTStarcom, Inc. Involuntary Termination Severance Pay Plan, as set
forth in this document, and as hereafter amended from time to time.

2.16         “Severance
Benefit” means the compensation and other benefits the Covered
Employee will be provided pursuant to Section 4.

2.17         “Severance
Date” means the date on which a Covered Employee experiences an
Involuntary Termination.

3.             Eligibility for Severance Benefit.  An individual is eligible for the Severance
Benefit under the Plan, in the amount set forth in Section 4, only if he or she is a Covered Employee on
the date he or she experiences an Involuntary Termination and executes, and
does not revoke, a release in favor of the Company as required by
Section 4.3.

4.             Severance Benefit.

4.1           Involuntary
Termination.  If the Company
(or any parent or subsidiary of the Company) terminates a Covered Employee’s
employment for other than Cause, death or 

 3
 

Disability, or the Covered Employee
terminates his or her employment with the Company for Good Reason, then,
subject to the Covered Employee’s compliance with Section 4.3, the Covered
Employee shall receive the following Severance Benefit from the Company:

4.1.1        Severance
Benefit.  Each Covered
Employee shall be entitled to receive a lump sum cash payment equal to
(a) one (1) year of Base Pay and (b) one hundred percent (100%) of
his or her target bonus for the year of the Involuntary Termination, payable
within thirty (30) days following the Involuntary Termination.

4.1.2        Continued
Benefits.  The Company shall
pay the premiums for the continued coverage of each Covered Employee (and any
eligible dependents) under the Company’s medical, dental and vision plans at
the same level of coverage in effect on the Severance Date until the earlier of
(a) twelve (12) months (provided the Covered Employee validly elects to
continue coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”)),
or (b) the date upon which the Covered Employee and the Covered Employee’s
eligible dependents become covered under similar plans.

4.1.3        Accelerated
Vesting of Equity Awards. 
Each Covered Employee shall fully vest in and, if applicable, have the
right to exercise, all of his or her outstanding and unvested equity
compensation awards.  The period over
which each Covered Employee shall be permitted to exercise his or her vested
equity awards (including awards that vest as a result of the Plan) shall be as
follows: (a) with respect to equity compensation awards outstanding as of
the Effective Date, or if later, the date a Covered Employee becomes a
participant in the Plan, such awards shall remain exercisable until the latest
of (i) the fifteenth (15th) day of the third month following the date
at which any such equity award would have otherwise terminated,
(ii) December 31 of the year during which any such equity award would
have otherwise terminated, or (iii) such longer period of time (not to
exceed twelve (12) months from the date of termination) that would be
permissible under Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) and any temporary, proposed or final Treasury Regulations
and guidance promulgated thereunder so that the extension of the
post-termination exercise period would not be considered a modification (as
determined under Section 409A of the Code) of such equity awards; and
(b) with respect to equity awards granted to the Covered Employee after the
Effective Date, or if later, the date a Covered Employee becomes a participant
in the Plan, such awards shall remain exercisable for twelve (12) months
from the date of termination.

4.2           Parachute
Payments.  In the event that
the severance and other benefits provided for in this Plan or otherwise payable
or provided to the Covered Employee (i) constitute “parachute payments”
within the meaning of Section 280G of the Code and (ii) but for this
Section 4.2, would be subject to the excise tax imposed by
Section 4999 of the Code (the “Excise Tax”), then the Employee’s severance
benefits hereunder Section 4 shall be either

(a)           delivered in full, or

(b)           delivered as to such lesser extent
which would result in no portion of such severance benefits being subject to
the Excise Tax,

 4
 

whichever of the foregoing amounts, taking
into account the applicable federal, state and local income taxes and the
Excise Tax, results in the receipt by the Covered Employee on an after-tax
basis of the greatest amount of severance benefits, notwithstanding that all or
some portion of such severance benefits may be taxable under Section 4999
of the Code.  Unless the Company and the
Covered Employee otherwise agree in writing, any determination required under
this Section 4.2 shall be made in writing in good faith by the accounting
firm serving as the Company’s independent public accountants immediately prior
to the Change of Control (the “Accountants”). 
In the event of a reduction in benefits hereunder, the Covered Employee
shall be given the choice of which benefits to reduce.  For purposes of making the calculations
required by this Section 4,2, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code. 
The Company and the Covered Employee shall furnish to the Accountants
such information and documents as the Accountants may reasonably request in order
to make a determination under this Section. 
The Company shall bear all costs the Accountants may reasonably incur in
connection with any calculations contemplated by this Section 4.2.

4.3           Release
and Non-Disparagement Agreement. 
As a condition to receiving Severance Benefits under this Plan, each
Covered Employee will be required to sign a waiver and release of all claims
arising out of his or her Involuntary Termination and employment with the
Company and its subsidiaries and affiliates and an agreement not to disparage
the Company, its directors, or its executive officers, in a form reasonably
satisfactory to the Company.  No
Severance Benefits will be paid or provided until the waiver and release
agreement becomes effective.

4.4           Vacation
Days.  Any unused vacation pay
accrued as of a Covered Employee’s date of Involuntary Termination will be paid
at the time the Covered Employee receives his or her Severance Benefit.  No Covered Employee may use any accrued but
unused vacation pay to extend his or her Involuntary Termination date.

5.             Termination of Benefits. 
Benefits under this Plan shall terminate immediately for a Covered
Employee if such Covered Employee, at any time, violates any proprietary
information or confidentiality obligation to the Company or the terms of any
applicable noncompetition agreement with the Company.

6.             Non-Duplication of Benefits. 
Notwithstanding any other provision in the Plan to the contrary, the
Severance Benefits provided hereunder shall be in lieu of any other severance
and/or retention plan benefits and the Severance Benefits provided hereunder
shall be reduced by any severance paid or provided to a Covered Employee under
any other plan or arrangement.

7.             Withholding.  The
Company will withhold from any Severance Benefit all federal, state, local and
other taxes required to be withheld therefrom and any other required payroll
deductions.

8.             Administration.  The
Company is the administrator of the Plan (within the meaning of
section 3(16)(A) of ERISA).  The
Plan will be administered and interpreted by the Administrator (in his or her
sole discretion).  The Administrator is
the “named fiduciary” of the Plan for purposes of ERISA and will be subject to
the fiduciary standards of ERISA when acting in such capacity.  

 5
 

Any decision made
or other action taken by the Administrator with respect to the Plan, and any
interpretation by the Administrator of any term or condition of the Plan, or
any related document, will be conclusive and binding on all persons and be
given the maximum possible deference allowed by law.  The Administrator has the authority to act
for the Company (in a non-fiduciary capacity) as to any matter pertaining to
the Plan; provided, however, that this authority does not
apply with respect to (a) the Company’s power to amend or terminate the
Plan or (b) any action that could reasonably be expected to increase
significantly the cost of the Plan is subject to the prior approval of the
senior officer of the Company.  The
Administrator may delegate in writing to any other person all or any portion of
his or her authority or responsibility with respect to the Plan.

9.             Eligibility to Participate. 
The Administrator will not be excluded from participating in the Plan if
otherwise eligible, but he or she is not entitled to act or pass upon any
matters pertaining specifically to his or her own benefit or eligibility under
the Plan.  The senior officer of
UTStarcom, Inc. will act upon any matters pertaining specifically to the
benefit or eligibility of the Administrator under the Plan.

10.           Amendment or Termination. 
The Company reserves the right to amend, modify or terminate the Plan at
any time, without advance notice to any Covered Employee; provided, however,
that, commencing on the date of a Change in Control, no amendment or
termination of the Plan shall reduce the Severance Benefit payable to any
Covered Employee (unless the affected Covered Employee consents to such
amendment or termination).  Any action of
the Company in amending or terminating the Plan will be taken in a
non-fiduciary capacity.

11.           Code Section 409A.

11.1         Amendment.  Notwithstanding anything in this Plan to the
contrary, the Company reserves the authority to amend the Plan as it deems
necessary or desirable, and without the consent of any Covered Employee or
without providing any advance notice of any such amendment, in order to ensure
the Plan complies with Section 409A of the Code and any regulations and
other guidance issued thereunder.

11.2         Distributions.  In the event that the Administrator
determines that Section 409A of the Code, or its regulations and other
guidance issued thereunder, would require the delay in the payment of any
Severance Benefits to a Covered Employee who would be considered a “Specified
Employee” (as defined below), the Administrator will, irrespective of any
election to the contrary or any other term of the Plan, delay the payment of
Severance Benefits until the date which is at least six (6) months after
the date of the Covered Employee’s Involuntary Termination. For the purposes of
this Section 11.2, the term “Specified Employee” means any Covered
Employee who would be considered a “Specified Employee” as that term is defined
in Section 409A(a)(2)(B)(i) of the Code.

12.           Claims Procedure.  Any
employee or other person who believes he or she is entitled to any payment under
the Plan may submit a claim in writing to the Administrator.  If the claim is denied (in full or in part),
the claimant will be provided a written notice explaining the specific reasons
for the denial and referring to the provisions of the Plan on which the denial
is based.  The notice will also describe
any additional information needed to support the claim and the Plan’s 

 6
 

procedures for
appealing the denial.  The denial notice
will be provided within 90 days after the claim is received.  If special circumstances require an extension
of time (up to 90 days), written notice of the extension will be given
within the initial 90-day period. 
This notice of extension will indicate the special circumstances
requiring the extension of time and the date by which the Administrator expects
to render its decision on the claim.

13.           Appeal Procedure.  If
the claimant’s claim is denied, the claimant (or his or her authorized
representative) may apply in writing to the Administrator for a review of the
decision denying the claim.  Review must
be requested within 60 days following the date the claimant received the
written notice of their claim denial or else the claimant loses the right to
review.  The claimant (or representative)
then has the right to review and obtain copies of all documents and other
information relevant to the claim, upon request and at no charge, and to submit
issues and comments in writing.  The
Administrator will provide written notice of his or her decision on review
within 60 days after it receives a review request.  If additional time (up to 60 days) is
needed to review the request, the claimant (or representative) will be given
written notice of the reason for the delay. 
This notice of extension will indicate the special circumstances requiring
the extension of time and the date by which the Administrator expects to render
its decision.  If the claim is denied (in
full or in part), the claimant will be provided a written notice explaining the
specific reasons for the denial and referring to the provisions of the Plan on
which the denial is based.  The notice
shall also include a statement that the claimant will be provided, upon request
and free of charge, reasonable access to, and copies of, all documents and
other information relevant to the claim and a statement regarding the claimant’s
right to bring an action under Section 502(a) of ERISA.

14.           Source of Payments. 
All Severance Benefits will be paid in cash from the general funds of
the Company; no separate fund will be established under the Plan; and the Plan
will have no assets, No right of any person to receive any payment under the
Plan will be any greater than the right of any other general unsecured creditor
of the Company.

15.           Inalienability.  In no
event may any current or former employee of the Company or any of its
subsidiaries or affiliates sell, transfer, anticipate, assign or otherwise
dispose of any right or interest under the Plan.  At no time will any such right or interest be
subject to the claims of creditors nor liable to attachment, execution or other
legal process.

16.           No Enlargement of Employment Rights.  Neither the establishment or maintenance of
the Plan, any amendment of the Plan, nor the making of any benefit payment
hereunder, will be construed to confer upon any individual any right to be
continued as an employee of the Company. 
The Company expressly reserves the right to discharge any of its
employees at any time, with or without cause.

17.           Applicable Law.  The
provisions of the Plan will be construed, administered and enforced in
accordance with ERISA and, to the extent applicable, the laws of the State of
California.

18.           Severability.  If any
provision of the Plan is held invalid or unenforceable, its invalidity or
unenforceability will not affect any other provision of the Plan, and the Plan
will be construed and enforced as if such provision had not been included.

 7
 

19.           Headings.  Headings in
this Plan document are for purposes of reference only and will not limit or
otherwise affect the meaning hereof.

20.           Indemnification.  The
Company hereby agrees to indemnify and hold harmless the officers and employees
of the Company, and the members of its boards of directors, from all losses,
claims, costs or other liabilities arising from their acts or omissions in
connection with the administration, amendment or termination of the Plan, to
the maximum extent permitted by applicable law. 
This indemnity will cover all such liabilities, including judgments,
settlements and costs of defense.  The
Company will provide this indemnity from its own funds to the extent that
insurance does not cover such liabilities. 
This indemnity is in addition to and not in lieu of any other indemnity
provided to such person by the Company.

21.           Additional Information.

 

	
  Plan Name:

  	
   

  	
  UTStarcom, Inc. Involuntary Termination Severance
  Pay Plan

  
	
   

  	
   

  	
   

  
	
  Plan Sponsor:

  	
   

  	
  UTStarcom, Inc.

  1275 Harbor Bay Parkway

  Alameda, CA 94502

  
	
   

  	
   

  	
   

  
	
  Identification Numbers:

  	
   

  	
  EIN2: 5-1782500

  PLAN: [__________]

  
	
   

  	
   

  	
   

  
	
  Plan Year:

  	
   

  	
  Calendar year

  
	
   

  	
   

  	
   

  
	
  Plan Administrator:

  	
   

  	
  UTStarcom, Inc.

  Attention: Vice President, Human
  Resources

  1275 Harbor Bay Parkway

  Alameda, CA 94502

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (510)864-8800

  
	
   

  	
   

  	
   

  
	
  Agent for Service of Legal Process:

  	
   

  	
  UTStarcom, Inc.

  Attention: General Counsel

  1275 Harbor Bay Parkway

  Alameda, CA 94502

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (510) 864-8800

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Service of process may also be made upon the Plan
  Administrator.

  
	
   

  	
   

  	
   

  
	
  Type of Plan:

  	
   

  	
  Bonus Plan/Severance Plan/Employee Welfare Benefit
  Plan

  
	
   

  	
   

  	
   

  
	
  Plan Costs

  	
   

  	
  The cost of the Plan is paid by the Employer.

  

 

 8
 

22.           Statement of ERISA Rights.

As a Covered Employee under the Plan, you have certain
rights and protections under ERISA:

(a)           You may examine (without charge) all
Plan documents, including any amendments and copies of all documents filed with
the U.S. Department of Labor, such as the Plan’s annual report (IRS Form
5500).  These documents are available for
your review in the Company’s Human Resources Department.

(b)           You may obtain copies of all Plan
documents and other Plan information upon written request to the Plan Administrator.  A reasonable charge may be made for such
copies.

In addition to creating rights for Covered Employees,
ERISA imposes duties upon the people who are responsible for the operation of
the Plan..  The people who operate the
Plan (called “fiduciaries”) have a duty to do so prudently and in the interests
of you and the other Covered Employees. 
No one, including the Company or any other person, may fire you or
otherwise discriminate against you in any way to prevent you from obtaining a
benefit under the Plan or exercising your rights under ERISA.  If your claim for a severance benefit is
denied, in whole or in part, you must receive a written explanation of the
reason for the denial.  You have the
right to have the denial of your claim reviewed.  (The claim review procedure is explained in
Sections 12 and 13 above.)

Under ERISA, there are steps you can take to enforce
the above rights.  For instance, if you
request materials and do not receive them within 30 days, you may file
suit in a federal court.  In such a case,
the court may require the Plan Administrator to provide the materials and to
pay you up to $110 a day until you receive the materials, unless the
materials were not sent because of reasons beyond the control of the Plan
Administrator, If you have a claim which is denied or ignored, in whole or in
part, you may file suit in a state or federal court.  If it should happen that you are
discriminated against for asserting your rights, you may seek assistance from
the U.S. Department of Labor, or you may file suit in a federal court.

In any case, the court will decide who will pay court
costs and legal fees.  If you are
successful, the court may order the person you have sued to pay these costs and
fees.  If you lose, the court may order
you to pay these costs and fees, for example, if it finds that your claim is
frivolous.

If you have any questions regarding the Plan, please
contact the Plan Administrator.  If you
have any questions about this statement or about your rights under ERISA, you
may contact the nearest area office of the Employee Benefits Security
Administration (formerly the Pension and Welfare Benefits Administration), U.S.
Department of Labor, listed in your telephone directory, or the Division of
Technical Assistance and Inquiries, Employee Benefits Security Administration,
U.S. Department of Labor, 200 Constitution Avenue, N.W. Washington, D.C.
20210.  You may also obtain certain
publications about your rights and responsibilities under ERISA by calling the
publications hotline of the Employee Benefits Security Administration.

 9
 

23.           Execution.

In Witness
Whereof, the Company, by its
duly authorized officer, has executed this Plan on the date indicated below.

	
  

  	
   

  	
  UTStarcom, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Francis Barton

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Executive VP, CFO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
  July 28, 2006

  
								

 

 10

ACKNOWLEDGMENT OF
RECEIPT OF

EXECUTIVE INVOLUNTARY TERMINATION SEVERANCE PAY PLAN

I acknowledge that I have received and read the
Company’s Executive Involuntary Termination Severance
Pay Plan.

	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DateEXHIBIT 10.14

UTSTARCOM,
INC.

AMENDED AND RESTATED CHANGE OF CONTROL/INVOLUNTARY
TERMINATION

SEVERANCE AGREEMENT

This Amended and Restated Change of
Control/Involuntary Termination Severance Agreement (the “Agreement”) is made
and entered into effective as of August 21, 2006 (the “Effective Date”), by and
between William X. Huang (the “Employee”) and UTStarcom, Inc., a Delaware
corporation (the “Company”).  Certain
capitalized terms used in this Agreement are defined in Section 1 below.

R E C I T A L S

A.            The
Company and Employee previously entered into a Change of Control/Involuntary
Termination Severance Agreement which provided the Employee with severance
benefits upon the Employee’s termination of employment under certain
circumstances (the “Original Agreement”).

B.            The
Board of Directors of the Company (the “Board”) believes that it is in the best
interests of the Company and its shareholders to provide the Employee with
further incentives to continue his employment.

C.            In
order to provide the Employee with enhanced financial security and sufficient
encouragement to remain with the Company, the Board wishes to augment certain
terms of the Original Agreement, which is hereby amended and restated in its
entirety as follows.

AGREEMENT

In consideration of
the mutual covenants herein contained and the continued employment of Employee
by the Company, the parties agree as follows:

1.             Definition of Terms.  The following terms referred to in this
Agreement shall have the following meanings:

(a)           Cause.  “Cause” shall mean (i) any act of
personal dishonesty taken by the Employee in connection with his
responsibilities as an employee which is intended to result in substantial
personal enrichment of the Employee, (ii) Employee’s conviction of a
felony which the Board reasonably believes has had or will have a material
detrimental effect on the Company’s reputation or business, (iii) a
willful act by the Employee which constitutes misconduct and is injurious to
the Company, and (iv) continued willful violations by the Employee of the
Employee’s obligations to the Company after there has been delivered to the
Employee a written demand for performance from the Company which describes the
basis for the Company’s belief that the Employee has not substantially
performed his duties.

(b)           Change
of Control.  “Change of Control”
shall mean the occurrence of any of the following events:

(i)    the
approval by shareholders of the Company of a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) more than fifty
percent (50%) of the total voting power represented by the voting securities of
the Company or such surviving entity outstanding immediately after such merger
or consolidation;

(ii)   the
approval by the shareholders of the Company of a plan of complete liquidation
of the Company or an agreement for the sale or disposition by the Company of
all or substantially all of the Company’s assets;

(iii)  any
“person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) becoming the “beneficial owner”
(as defined in Rule 13d-3 under said Act), directly or indirectly, of
securities of the Company representing 50% or more of the total voting power
represented by the Company’s then outstanding voting securities; or

(iv)  a
change in the composition of the Board, as a result of which fewer than a
majority of the directors are Incumbent Directors.  “Incumbent Directors” shall mean directors
who either (A) are directors of the Company as of the date hereof, or
(B) are elected, or nominated for election, to the Board with the
affirmative votes of at least a majority of those directors whose election or
nomination was not in connection with any transactions described in
subsections (i), (ii), or (iii) or in connection with an actual or
threatened proxy contest relating to the election of directors of the Company.

(c)           Change
in Control Involuntary Termination.  “Change
in Control Involuntary Termination” shall mean (i) without the Employee’s
express written consent, a significant reduction of the Employee’s duties,
position or responsibilities relative to the Employee’s duties, position or
responsibilities in effect immediately prior to such reduction, or the removal
of the Employee from such position, duties and responsibilities, unless the
Employee is provided with comparable duties, position and responsibilities;
provided, however, that a reduction in duties, position or responsibilities
solely by virtue of the Company being acquired and made part of a larger entity
shall not constitute a “Change in Control Involuntary Termination;”
(ii) without the Employee’s express written consent, a substantial
reduction, without good business reasons, of the facilities and perquisites
(including office space and location) available to the Employee immediately
prior to such reduction; (iii) a reduction by the Company of the Employee’s
base salary as in effect immediately prior to such reduction; (iv) a
material reduction by the Company in the kind or level of employee benefits to
which the Employee is entitled immediately prior to such reduction with the
result that the Employee’s overall benefits package is significantly reduced;
(v) without the Employee’s express written consent, the relocation of the
Employee to a facility or a location more than fifty (50) miles from his
current location; (vi) any purported termination of the Employee by the
Company which is not effected for Cause or for which the grounds relied upon
are not valid; or 

 2
 

(vii) the failure of the Company to obtain the assumption of this
Agreement by any successors contemplated in Section 7 below.

(d)           Regular
Involuntary Termination.  “Regular
Involuntary Termination” shall mean any termination (other than a termination
for Cause) of the Employee by the Company which is not within eighteen
(18) months after a Change in Control.

(e)           Termination
Date.  “Termination Date” shall mean
the effective date of any notice of termination delivered by one party to the
other hereunder.

2.             Term of Agreement.  This Agreement will have a term of three (3) years
commencing on the Effective Date. 
Following the expiration of the three-year term, the Employee and the
Company may, but are not obligated to, enter into a new agreement.  If Employee’s employment continues following
the expiration of the three-year term, and the Company and Employee do not
enter into a new agreement, Employee’s then current benefits arrangements shall
continue in accordance with the terms of this Agreement until the Parties agree
otherwise.

3.             At-Will Employment.  The Company and the Employee acknowledge that
subject to the provisions of this Agreement, the Employee’s employment is and
shall continue to be at-will, as defined under applicable law.  If the Employee’s employment terminates for
any reason, the Employee shall not be entitled to any payments, benefits,
damages, awards or compensation other than as provided by this Agreement, or as
may otherwise be established under the Company’s then existing employee benefit
plans or policies at the time of termination.

4.             Severance Benefits.

(a)           Termination
Following A Change of Control.  If
the Employee’s employment with the Company terminates as a result of a Change
in Control Involuntary Termination at any time within eighteen (18) months
after a Change of Control, Employee shall be entitled to the following
severance benefits:

(i)    twenty-four
(24) months of Employee’s base salary as in effect as of the date of such
termination, less applicable withholding, payable in a lump sum within thirty
(30) days of the Involuntary Termination;

(ii)   one
hundred percent (100%) of Employee’s bonus for the year in which the
termination occurs;

(iii)  all
equity awards, including without limitation stock option grants, restricted
stock and stock purchase rights, granted by the Company to the Employee prior
to the Change of Control shall become fully vested or released from the Company’s
repurchase right (if any shares of stock purchased by or granted to the
Employee prior to the Change of Control remain subject to such repurchase
right) and exercisable as of the date of the termination to the extent such
equity awards are outstanding and unexercisable or unreleased at the time of
such termination. The period over which the Employee shall be permitted to
exercise his or her vested equity awards (including awards that vest as a
result of the Agreement) shall be as follows: (a) with respect to equity
compensation awards outstanding as of June 20, 2006, such awards shall
remain exercisable 

 3
 

until the latest of (i) the fifteenth (15th) day of the third month
following the date at which any such equity award would have otherwise
terminated, (ii) December 31 of the year during which any such equity
award would have otherwise terminated, or (iii) such longer period of time
(not to exceed twelve (12) months from the date of termination) that would
be permissible under Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) and any temporary, proposed or final Treasury Regulations
and guidance promulgated thereunder so that the extension of the
post-termination exercise period would not be considered a modification (as
determined under Section 409A of the Code) of such equity awards; and
(b) with respect to equity awards granted to the Employee after
June 20, 2006, such awards shall remain exercisable for twelve
(12) months from the date of termination; and

(iv)  the
same level of health (i.e., medical, vision and dental) coverage and benefits
as in effect for the Employee on the day immediately preceding the day of the
Employee’s termination of employment; provided, however, that (A) the
Employee constitutes a qualified beneficiary, as defined in
Section 4980B(g)(1) of the Internal Revenue Code of 1986, as amended; and
(B) Employee elects continuation coverage pursuant to the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), within the
time period prescribed pursuant to COBRA. The Company shall continue to provide
Employee with health coverage until the earlier of (A) the date Employee
is no longer eligible to receive continuation coverage pursuant to COBRA, or
(B) twelve (12) months from the termination date.

(b)           Termination
Apart from a Change of Control.  If
the Employee’s employment with the Company terminates as a result of a Regular
Involuntary Termination during the term of this Agreement, then the Employee
shall be entitled to the following severance benefits:

(i)    twelve
(12) months of Employee’s base salary as in effect as of the date of such
termination, less applicable withholding, payable in a lump sum within thirty
(30) days of the Regular Involuntary Termination;

(ii)   one
hundred percent (100%) of Employee’s bonus for the year in which the Regular
Involuntary Termination occurs;

(iii)  all
equity awards, including without limitation stock option grants, restricted
stock and stock purchase rights, granted by the Company to the Employee shall
become fully vested or released from the Company’s repurchase right (if any
shares of stock purchased by or granted to the Employee remain subject to such
repurchase right) and exercisable as of the date of the termination to the
extent such equity awards are outstanding and unexercisable or unreleased at
the time of such termination.  The period
over which the Employee shall be permitted to exercise his or her vested equity
awards (including awards that vest as a result of the Agreement) shall be as
follows: (a) with respect to equity compensation awards outstanding as of
June 20, 2006, such awards shall remain exercisable until the latest of
(i) the fifteenth (15th) day of the third month following the date at
which any such equity award would have otherwise terminated,
(ii) December 31 of the year during which any such equity award would
have otherwise terminated, or (iii) such longer period of time (not to exceed
twelve (12) months from the date of termination) that would be permissible
under Section 409A of the Code and any temporary, proposed or final
Treasury Regulations and guidance promulgated thereunder so that the extension
of the post-

 4
 

termination exercise period would not be considered a modification (as
determined under Section 409A of the Code) of such equity awards; and
(b) with respect to equity awards granted to the Employee after
June 20, 2006, such awards shall remain exercisable for twelve (12) months
from the date of termination; and

(iv)  the
same level of health (i.e., medical, vision and dental) coverage and benefits
as in effect for the Employee on the day immediately preceding the day of the
Employee’s termination of employment; provided, however, that (A) the
Employee constitutes a qualified beneficiary, as defined in
Section 4980B(g)(1) of the Internal Revenue Code of 1986, as amended; and
(B) Employee elects continuation coverage pursuant to the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), within the
time period prescribed pursuant to COBRA. The Company shall continue to provide
Employee with health coverage until the earlier of (A) the date Employee
is no longer eligible to receive continuation coverage pursuant to COBRA, or
(B) twelve (12) months from the termination date.

(c)           Termination
Apart from a Change of Control or Regular Involuntary Termination.  For avoidance of doubt, if the Employee’s
employment with the Company terminates as a result of Cause, then the Employee
shall not be entitled to receive severance or other benefits hereunder, but may
be eligible for those benefits (if any) as may then be established under the
Company’s then existing severance and benefits plans and policies at the time
of such termination.

(d)           Accrued
Wages and Vacation; Expenses. 
Without regard to the reason for, or the timing of, Employee’s
termination of employment: (i) the Company shall pay the Employee any
unpaid base salary due for periods prior to the Termination Date; (ii) the
Company shall pay the Employee all of the Employee’s accrued and unused
vacation through the Termination Date; and (iii) following submission of
proper expense reports by the Employee, the Company shall reimburse the
Employee for all expenses reasonably and necessarily incurred by the Employee
in connection with the business of the Company prior to the Termination Date.
These payments shall be made promptly upon termination and within the period of
time mandated by law.

5.             Section 409A.  Notwithstanding anything to the contrary in
this Agreement, if the Company reasonably determines that Section 409A of
the Code will result in the imposition of additional tax to an earlier payment
of any severance or other benefits otherwise due to the Employee pursuant to Section 4
of this Agreement or otherwise on or within the six (6) month period
following the Employee’s termination, the severance benefits will accrue during
such six (6) month period and will become payable in a lump sum payment on
the date six (6) months and one (1) day following the Employee’s date
of termination. All subsequent payments, if any, will be payable as provided in
this Agreement.  In addition,
notwithstanding anything to the contrary in this Agreement, this Agreement will
be deemed amended to the extent necessary to avoid imposition of any additional
tax or income recognition prior to actual payment to the Employee under Code
Section 409A and any temporary, proposed or final Treasury Regulations and
guidance promulgated thereunder and the parties agree to cooperate with each
other and to take reasonably necessary steps in this regard.

6.             Limitation on Payments.  In the event that the severance and other
benefits provided for in this Agreement or otherwise payable to the Employee
(i) constitute “parachute payments” 

 5
 

within the meaning of
Section 280G of the Code, and (ii) would be subject to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”), then Employee’s
benefits under this Agreement shall be either

(a)           delivered
in full, or

(b)           delivered
as to such lesser extent which would result in no portion of such benefits
being subject to the Excise Tax,

whichever of the
foregoing amounts, taking into account the applicable federal, state and local
income taxes and the Excise Tax, results in the receipt by Employee on an
after-tax basis, of the greatest amount of benefits, notwithstanding that all
or some portion of such benefits may be taxable under Section 4999 of the
Code.

Unless the Company
and the Employee otherwise agree in writing, any determination required under
this Section shall be made in writing by the Company’s independent public
accountants (the “Accountants”), whose determination shall be conclusive and
binding upon the Employee and the Company for all purposes.  For purposes of making the calculations
required by this Section, the Accountants may make reasonable assumptions and
approximations concerning applicable taxes and may rely on reasonable, good
faith interpretations concerning the application of Section 280G and 4999
of the Code.  The Company and the
Employee shall furnish to the Accountants such information and documents as the
Accountants may reasonably request in order to make a determination under this
Section.  The Company shall bear all
costs the Accountants may reasonably incur in connection with any calculations
contemplated by this Section.

7.             Successors.

(a)           Company’s
Successors.  Any successor to the
Company (whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) to all or substantially all of the
Company’s business and/or assets shall assume the Company’s obligations under
this Agreement and agree expressly to perform the Company’s obligations under
this Agreement in the same manner and to the same extent as the Company would
be required to perform such obligations in the absence of a succession.  For all purposes under this Agreement, the
term “Company” shall include any successor to the Company’s business and/or
assets which executes and delivers the assumption agreement described in this
subsection (a) or which becomes bound by the terms of this Agreement by
operation of law.

(b)           Employee’s
Successors.  Without the written
consent of the Company, Employee shall not assign or transfer this Agreement or
any right or obligation under this Agreement to any other person or
entity.  Notwithstanding the foregoing,
the terms of this Agreement and all rights of Employee hereunder shall inure to
the benefit of, and be enforceable by, Employee’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

 6
 

8.             Notices.

(a)           General.  Notices and all other communications
contemplated by this Agreement shall be in writing and shall be deemed to have
been duly given when personally delivered or when mailed by U.S. registered or
certified mail, return receipt requested and postage prepaid.  In the case of the Employee, mailed notices
shall be addressed to him at the home address which he most recently
communicated to the Company in writing. 
In the case of the Company, mailed notices shall be addressed to its
corporate headquarters, and all notices shall be directed to the attention of
its Secretary.

(b)           Notice
of Termination.  Any termination by
the Company for Cause or by the Employee as a result of a voluntary resignation
or an Involuntary Termination shall be communicated by a notice of termination
to the other party hereto given in accordance with this Section.  Such notice shall indicate the specific
termination provision in this Agreement relied upon, shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination under the provision so indicated, and shall specify the Termination
Date (which shall be not more than thirty (30) days after the giving of
such notice).  The failure by the
Employee to include in the notice any fact or circumstance which contributes to
a showing of Involuntary Termination shall not waive any right of the Employee
hereunder or preclude the Employee from asserting such fact or circumstance in
enforcing his rights hereunder.

9.             Arbitration.

(a)           Any
dispute or controversy arising out of, relating to, or in connection with this
Agreement, or the interpretation, validity, construction, performance, breach,
or termination thereof, shall be settled by binding arbitration to be held in
Santa Clara County, California, in accordance with the National Rules for the
Resolution of Employment Disputes then in effect of the American Arbitration
Association (the “Rules”).  The
arbitrator may grant injunctions or other relief in such dispute or
controversy.  The decision of the
arbitrator shall be final, conclusive and binding on the parties to the
arbitration.  Judgment may be entered on
the arbitrator’s decision in any court having jurisdiction.

(b)           The
arbitrator(s) shall apply California law to the merits of any dispute or claim,
without reference to conflicts of law rules. 
The arbitration proceedings shall be governed by federal arbitration law
and by the Rules, without reference to state arbitration law.  Employee hereby consents to the personal
jurisdiction of the state and federal courts located in California for any
action or proceeding arising from or relating to this Agreement or relating to
any arbitration in which the parties are participants.

(c)           Employee
understands that nothing in this Section modifies Employee’s at-will
employment status.  Either Employee or
the Company can terminate the employment relationship at any time, with or
without Cause.

(d)           EMPLOYEE
HAS READ AND UNDERSTANDS THIS SECTION, WHICH DISCUSSES ARBITRATION.  EMPLOYEE UNDERSTANDS THAT SUBMITTING ANY
CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS 

 7
 

AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE,
BREACH OR TERMINATION THEREOF TO BINDING ARBITRATION, CONSTITUTES A WAIVER OF
EMPLOYEE’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES
RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT
NOT LIMITED TO, THE FOLLOWING CLAIMS:

(i)    ANY
AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH
EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING,
BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL
DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL
INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION.

(ii)   ANY
AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR MUNICIPAL STATUTE,
INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE
CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE
AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, THE
CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, AND LABOR CODE SECTION 201, et seq;

(iii)  ANY
AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS RELATING TO
EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.

10.           Miscellaneous Provisions.

(a)           No
Duty to Mitigate.  The Employee shall
not be required to mitigate the amount of any payment contemplated by this
Agreement, nor shall any such payment be reduced by any earnings that the
Employee may receive from any other source.

(b)           Waiver.  No provision of this Agreement may be
modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by the Employee and by an authorized officer of
the Company (other than the Employee). 
No waiver by either party of any breach of, or of compliance with, any
condition or provision of this Agreement by the other party shall be considered
a waiver of any other condition or provision or of the same condition or
provision at another time.

(c)           Integration.  This Agreement and any outstanding stock
option agreements and restricted stock purchase agreements referenced herein
represent the entire agreement and understanding between the parties as to the
subject matter herein and supersede all prior or contemporaneous agreements,
whether written or oral, with respect to this Agreement and any stock option
agreement or restricted stock purchase agreement.

 8
 

(d)           Choice
of Law.  The validity,
interpretation, construction and performance of this Agreement shall be
governed by the internal substantive laws, but not the conflicts of law rules,
of the State of California.

(e)           Severability.  The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

(f)            Employment
Taxes.  All payments made pursuant to
this Agreement shall be subject to withholding of applicable income and
employment taxes.

(g)           Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

 

 9

IN WITNESS WHEREOF, each of the parties has executed
this Agreement, in the case of the Company by its duly authorized officer, as
of the day and year first above written.

	
  COMPANY:

  	
  UTSTARCOM, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Green

  
	
   

  	
  Title:

  	
  VP, HR

  
	
   

  	
   

  	
   

  
	
  EMPLOYEE:

  	
  /s/ William X. Huang

  
	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
  William X. Huang

  
	
   

  	
  Printed Name

  

 

SIGNATURE PAGE TO AMENDED AND
RESTATED CHANGE OF

CONTROL/INVOLUNTARY TERMINATION SEVERANCE AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}]]