Document:

EXHIBIT
10.1

Form Compensation
Agreement

The Compensation
Package in this memorandum has been submitted to and approved by the
Compensation Committee of the Board of Directors of Evolving Systems, Inc.  This Compensation Plan (the “Plan”) is
effective during calendar year 2007, and is provided to you to give you
information regarding compensation offered to you as [Insert Title].  This Plan supersedes all
prior Compensation plans or other compensation agreements, oral or written, you
have with the Company, other than stock options previously granted to you, the
Management Change in Control Agreement, as amended, and the Indemnification
Agreement which shall continue in full force and effect.  Your Plan includes a base salary paid in
accordance with the normal payroll practices of Evolving Systems, as well as
eligibility for quarterly and annual incentive compensation.

This Plan is not a
contract of employment and shall not be construed to guarantee employment for
any particular period of time.  All
Evolving Systems’ employees are employed at will.  You, or Evolving Systems, may terminate the
employment relationship at any time, with or without notice, for any reason or
no reason.  The Plan may be changed or
discontinued by the Company at any time with or without prior notice.

 

I.  Compensation

	
  Annual Base Salary

  	
  [Insert Amount]

  
	
  Potential Incentive Compensation

  	
  [Insert applicable percentage] of Base Salary,
  paid as described below

  

 

Incentive
Compensation

Incentive
Compensation will be paid in five (5) equal payments, based upon attainment of
defined Company quarterly and annual revenue results (“Incentive Targets”)
established by the Board of Directors. In the event the Company exceeds the
Incentive Targets established by the Board of Directors, Incentive Compensation
in excess of 100% of your potential quarterly or annual percentage will be paid
up to 150% of your quarterly or annual Potential Incentive Compensation. Incentive Compensation will only be paid if following payment the Company
is also in compliance with its banking covenants at the end of the applicable
quarter, or, in the case of the annual Incentive Compensation payment, on
December 31, 2007.

In the event your
employment terminates prior to the end of any calendar quarter, for reasons
other than Cause (as described below), the Quarterly Incentive Compensation
that would have been paid to you at the end of the calendar quarter will be
pro-rated to the date of termination of your employment.  There will be no pro-ration for the Annual
Incentive Compensation; you must be employed by the Company on December 31,
2007, to be eligible for the Annual Incentive Compensation amount.

II.            Severance

1)            In the event your
employment is terminated by the Company other than for (a) Cause; (b)
Disability; or (c) death, you will be paid severance compensation in an amount
equal to [insert applicable amount: (3)(6)(9)
months] of your then current Base Salary.

2)              “Cause” and “Disability”
for purposes of the severance provisions described in this Section II shall
mean:

(a) “Cause”  shall
mean:

(i)                                     Willful
action or failure to act by you that in the reasonable opinion of the Board of
Directors materially injures the reputation, business or business relationships
of the Company or any of its officers, directors or executives and such action
or failure is not remedied or reasonable steps to effect such remedy are not
commenced within ten (10) days following receipt of written notice;

(ii)                            Your
failure to perform your duties or to follow the reasonable directions of the
Board of Directors of the Company within ten (10) business days after receipt
by you of written notice of such failure;

(iii)                               Any
act involving moral turpitude or a crime, other than a vehicle offense
(excepting vehicular manslaughter), which could reflect in some material
fashion unfavorably upon the business or business relationships of the Company
or any of its officers, directors or executives.

 

(b)           “Disability”
shall mean a physical or mental impairment that substantially limits a major
life activity, other than on a temporary basis, which prevents you from
performing the essential functions of your job for any period, and for which no
reasonable accommodation can be made. As an officer of the Company, you are
considered a “key employee” under the Family and Medical Leave Act (“FMLA”).  As such, you will be provided a reasonable
opportunity to return to work from any FMLA leave.  However, the possibility exists that
restoration to employment may be denied following FMLA leave if the Company, in
its sole discretion, determines that your position is critical and must be
filled.

3)            In exchange for the
severance payment described in this Section II, the Company will require that
you execute a Separation Agreement, in which you release all claims against the
Company arising out of your employment or termination of your employment.  In addition, the Separation Agreement will
provide that during the period of time during which you receive severance payments
you will refrain from (a) soliciting Evolving Systems’ employees to leave the
employ of the Company;  (b) interfering
with the relationship of the Company with any such employees, including, but
not limited to, hiring such employees; (c) targeting or soliciting customers of
the Company to purchase products or services in competition with the Company’s
products or services or to terminate a relationship with the Company and (d)
competing directly or indirectly with the Company as is described in the
Management Change in Control Agreement.

4)              Severance payments
will be paid in equal installments, in the Company’s normal payroll cycle, over
the applicable severance period. Under no circumstances will the Company be
obligated to pay any amounts to you under this Section II if your employment has
been terminated by the Company for Cause, Disability or death.

5)              The severance
provisions of this 2007 Compensation Plan are not intended to apply in the
event of a Change in Control, as defined in the Management Change in Control
Agreement.  Accordingly, if severance
described in this Plan is paid, and the Management Change in Control Agreement
is subsequently triggered, payments made under this Plan shall be credited
against, and shall NOT be in addition to, amounts paid under the Change In
Control Agreement.

III.           Benefits

You will receive
benefits in accordance with the Company’s standard benefits plan and policies,
with the following modifications:

1.             Paid Time Off:  Your Paid Time Off (PTO) will be set at one
level above the “standard” rates for employees, as follows:

	
  Years of Service

  	
   

  	
  Hours Accrued per Pay Period

  	
   

  	
  Annual # of Days of PTO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0-2

  	
   

  	
  6.16

  	
   

  	
  20

  	
   

  
	
  3-5

  	
   

  	
  7.69

  	
   

  	
  25

  	
   

  
	
  6+

  	
   

  	
  9.23

  	
   

  	
  30

  	
   

  

 

You will be
expected to record your PTO in accordance with standard Company policy and all
other provisions of the Company’s PTO policy will apply.

(Note:  PTO for officers residing in the UK is based
upon UK standard rates)

2.             Life Insurance Benefits:  In addition to the standard life insurance
benefits payable to employees of the Company, the Company will provide life
insurance to you in the amount of $300,000,

 

subject to your
insurability.  The Company pays the
premium, but the premium attributable to insurance over $50,000 is taxable to
you.

3.             Disability Benefits:  The Company will provide
you with short term and long term disability insurance coverage per the Company’s
general plan for all employees.  The
general plan for employees pays benefits at the rate of 66 2/3% of your base
pay, with a base pay cap of $8,501 per month (resulting in total monthly
benefit payable to you under the Company plan of $5,667).  This benefit, if payable, terminates at age
65.  In addition, the Company will make
available to you, at your expense, additional long term disability coverage
that will pay the lesser of the difference between 66 2/3% of your monthly base
salary and the benefit provided under the general Company plan or $6,000 per
month. (For example, if your monthly base salary is $15,000, the additional
long-term disability policy will provide $4,334, the difference between the
general Company plan benefit ($5,667) and 66 2/3% of your base salary.)  This additional benefit is payable until age
65, or, in some cases has a 5 year payout.  
If you have any questions about the disability benefits, please see the
HR Director.

4.             Travel. Upgrades
to first class domestic travel/business class international travel will be made
available to you in accordance with the Company’s standard travel
policies.  This benefit does NOT imply
that you are authorized to buy first class tickets.

5.             Miscellaneous Benefits.    The Company will provide you with a cell
phone and cell phone service and reimburse you for the cost (basic service) of
a second phone line to your home.  You
will also be provided with a laptop computer and a second docking station to be
used in your home.

6.             Modify Agreement to Comply with
Internal Revenue Code Section 409A.  The
Company reserves the right to modify this Agreement at any time in order to
comply with Internal Revenue Code Section 409A.

IV.           SEC Filing Requirements.

You will be
considered an “Executive Officer” for purposes of the SEC rules relating to
trading of stock and reporting your stock trading.  You are required to pre-clear your trading in
Company stock with the Company’s General Counsel prior to buying or selling
Company stock.  You are expected to
familiarize yourself with the Insider trading regulations and to comply with
those regulations, in particular, to abide by Company trading-blackout rules
and to advise the Company’s General Counsel in advance of all stock trades so
that appropriate SEC forms can be timely filed.

·                                         Acknowledgment

I have received
and read my 2007 Compensation Plan.  I
understand the details of the Plan and how it applies to me.  I acknowledge that the Plan represents
Confidential and Proprietary Information of Evolving Systems.  I understand that the Plan may
be changed or discontinued by the Company at any time with or without notice,
and that no representations or promises, either express or implied, have been
made to me about my continued employment, about my compensation or about the
Plan other than what is written here or in any Management Change in Control
Agreement that may be executed.  I understand the responsibilities of my
position and the critical nature of the performance of this position on the
success of Evolving Systems.  I
understand that I am employed on an at-will basis, and that this Plan does not
alter or modify the at-will nature of my employment.  I understand that I can resign my position at
any time, or Evolving Systems can terminate my employment at any time, with or
without prior written notice. I agree that the compensation I receive under the
Plan is fair and adequate compensation for my services.

 

 

	
  

  	
   

  	
   

  	
   

  
	
  [Name of
  Executive Officer]

  	
   

  	
  DateExhibit
10.1

UTSTARCOM, INC.

STOCK
OPTION AMENDMENT ELECTION FORM

This election may
be necessary to protect you from penalty taxes that may be imposed upon you
under Section 409A of the Internal Revenue Code (“Section 409A”).  Under Section 409A, if you hold stock options
to purchase shares of common stock of UTStarcom, Inc. (“UTStarcom”)
that vest after December 31, 2004 that were granted with an exercise price less
than the fair market value of UTStarcom’s common stock on the date of grant (“discount options”), the portion of the discount options that
vest after December 31, 2004 would not comply with Section 409A.  As such, unless the discount options are
corrected, your gain with respect to the affected portion of your discount option
would be includible in your taxable income prior to exercise, and will be
subject to regular state and federal taxes plus a 20% federal penalty tax and
interest charges.  However, under special
transition rules designed by the IRS to protect taxpayers from such adverse tax
consequences, you are permitted to make an irrevocable election to avoid the
impact of Section 409A.  The purpose of
this election is to provide you with an opportunity to amend your discount
stock options in a manner that would avoid the adverse tax consequences of
Section 409A described herein.  The
details of this election are summarized in this election form.  Please note, however, that in making any
election hereunder you are not admitting, as of the date of the election, that
you currently hold any options that would be considered discount options.  Instead, this election is intended to be
protective in nature to the extent UTStarcom’s internal stock option review
determines that you have been granted discount options.  To take advantage of this election, you must
complete the applicable section(s) of this election form and fax or
hand-deliver it to UTStarcom to the person set forth below.

SECTION I.                               Discount
Stock Options

Please
select one of the alternatives below and complete the required information.

o                                    I
hereby elect to increase the exercise price of all my discount stock options to
an exercise price not less than the fair market value of the underlying common
stock on the date of grant if the result of the Company’s stock option review
to be completed no later than December 31, 2007 results in a determination that
I hold discount options.  If UTStarcom’s
stock option review results in a determination that I do not hold discount
options, no adjustments will be made to my options and they will continue to be
governed with their terms and conditions without giving effect to this
election.  I understand that if I make this election that I will not be permitted to
exercise any of my outstanding stock options until the completion of UTStarcom’s
stock option review.

o                                    I
do not wish to make an election at this time and understand that if UTStarcom’s
stock option review results in a determination that I hold discount options
that UTStarcom will be required to treat such discount stock options as “deferred
compensation” under Section 409A and that UTStarcom will be required report and
withhold, to the extent applicable, income prior to my exercise of such
discount stock options and that I will be subject to the appropriate additional
tax and interest charges imposed by Section 409A.

IMPORTANT
TAX LAW DEADLINE(S): 
IRS guidance requires that to the extent you want
your election to protect your options from Section 409A tax penalties, it must
be submitted or delivered to UTStarcom stock administration by December 31,
2006.

Please return your
completed form to:

Russell Boltwood

VP/General Counsel

UTStarcom, Inc.

1275 Harbor Bay Parkway

Alameda, CA 94502
USA

Fax: (510) 338-4395

Tel: (510) 749-1530

e-mail:
Russell@utstar.com

 

SECTION
II.         Representations
Regarding the  Terms and Conditions of this Election and Amendment of Discount
Stock Options

Voluntary
Participation.  The
election made by me in this form is entirely voluntary.  I understand that UTStarcom is not making,
nor has it made, any recommendations on whether I should make an election.  I acknowledge that I understand that the
deadlines described in this form are IRS-imposed deadlines that impact the tax
treatment of my discount stock options and not UTStarcom-imposed deadlines on
the use of the elections described in this form.

Irrevocable
Election.  I
acknowledge that, once I make an election pursuant to this procedure, I may not
subsequently change my mind with respect to any portion of this election.

Amendment
to Stock Option.  I
acknowledge that my election selected above will serve as an amendment to my discount
stock options to the extent required to increase the exercise price to that
applicable new exercise price as determined pursuant to UTStarcom’s stock
option review.  By my execution of this
election, I have agreed to be bound by all the terms and conditions of this
election as described in this election form. 
Other than as amended by the terms and conditions of this election, my discount
stock options will remain subject to all of the terms and conditions of the
1997 Stock Plan, the Amended 2001 Director Option Plan, the 2003 Non-Statutory
Stock Option Plan, and stock option agreement(s) memorializing my discount
stock options.

No Guarantee of Vesting or Continued Status
as a Service Provider. 
I acknowledge and agree that my election hereunder does not alter the
vesting schedule of my discount stock options. 
I also acknowledge and agree that my election hereunder does not
constitute an express or implied promise of continued status as an employee,
director or consult for UTStarcom or any of its subsidiary companies for the
applicable discount option vesting period, and that any election I may make
shall not interfere with my right or UTStarcom’s right to terminate my service
at any time, with or without cause.

Tax and
Financial Consultation. 
I acknowledge and represent that I have consulted with such tax and
legal advisors and consultants, if any, as I deem advisable in connection with
this election.  I acknowledge that the
information provided to me about the IRS regulations by UTStarcom is based on UTStarcom’s
current reasoned interpretation of complicated proposed regulations and other
IRS guidance based on advice of various tax and legal experts, and that I am
not relying on UTStarcom in, and I am solely responsible for, making any
election hereunder and that I am not relying upon UTStarcom for any such tax or
legal advice.

Administration.  I
understand and acknowledge and agree that UTStarcom will determine, in its sole
and absolute discretion, all questions as to the form of elections and the
validity, eligibility and time of receipt of any election.  I acknowledge and agree that UTStarcom’s
determination of these matters will be final and binding on all parties.

Execution
and Agreement to Terms and Conditions.  Before
signing this election form, I have received, read and understand this election
form.  By submitting this election to UTStarcom,
I agree that my discount stock options will be amended, to the extent
necessary, to reflect this election, and that my discount stock options are
governed by the terms and conditions of this election, the Plan and my stock
option agreement(s).

I ACKNOWLEDGE AND
AGREE THAT UTSTARCOM IS NOT MAKING ANY RECOMMENDATION TO ME REGARDING WHETHER
OR WHEN TO TAKE ANY ACTION IN RESPONSE TO SECTION 409A.  THE TIMING OF ANY ELECTION THAT I MAKE WILL
AFFECT WHETHER THE ELECTION MITIGATES MY SECTION 409A LIABILITY.  THESE ARE IRS TIMING RULES, NOT UTSTARCOM-IMPOSED
LIMITATIONS.  I WILL HAVE TO DECIDE
WHETHER AND HOW TO IMPLEMENT THESE POTENTIAL ACTIONS BASED ON MY PERSONAL TAX
AND FINANCIAL POSITION AND OTHER FACTORS.

	
  Signed:

  	
   

  	
   

  	
   

  	
  Date: December      , 2006

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name (printed):

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