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EXHIBIT 10.66    
    

 
 

UTSTARCOM, INC.
  2001 DIRECTOR OPTION PLAN
  
  (Amended February 2, 2006)    
    

        1.     Purposes
of the Plan.    The purposes of this 2001 Director Option Plan are to attract and retain the best available personnel for
service as Outside Directors (as defined herein) of the Company, to provide additional incentive to the Outside Directors of the Company to serve as Directors, and to encourage their continued service
on the Board. 

        All
options granted hereunder shall be nonstatutory stock options. 

        2.     Definitions.    As
used herein, the following definitions shall apply: 

        (a)   "Board"
means the Board of Directors of the Company. 

        (b)   "Code"
means the Internal Revenue Code of 1986, as amended. 

        (c)   "Common
Stock" means the common stock of the Company. 

        (d)   "Company"
means UTStarcom, Inc., a Delaware corporation. 

        (e)   "Director"
means a member of the Board. 

        (f)    "Disability"
means total and permanent disability as defined in section 22(e)(3) of the Code. 

        (g)   "Employee"
means any person, including officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. The
payment of a Director's fee by the Company shall not be sufficient in and of itself to constitute employment by the Company. 

        (h)   "Exchange
Act" means the Securities Exchange Act of 1934, as amended. 

        (i)    "Fair
Market Value" means, as of any date, the value of Common Stock determined as follows: 

        (i)    If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system
for the last market trading day prior to the time of determination as reported in The Wall Street Journal or such other source as the Board deems reliable; 

        (ii)   If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be
the mean between the high bid and low asked prices for the Common Stock for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source
as the Board deems reliable; or 

        (iii)  In
the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Board. 

        (j)    "Inside
Director" means a Director who is an Employee. 

        (k)   "Option"
means a stock option granted pursuant to the Plan. 

        (l)    "Optioned
Stock" means the Common Stock subject to an Option. 

        (m)  "Optionee"
means a Director who holds an Option. 

        (n)   "Outside
Director" means a Director who is not an Employee. 

 

        (o)   "Parent"
means a parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code. 

        (p)   "Plan"
means this 2001 Director Option Plan. 

        (q)   "Share"
means a share of the Common Stock, as adjusted in accordance with Section 10 of the Plan. 

        (r)   "Subsidiary"
means a subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Internal Revenue
Code of 1986. 

        3.     Stock
Subject to the Plan.    Subject to the provisions of Section 10 of the Plan, the maximum aggregate number of Shares
which may be optioned and sold under the Plan is 1,200,000 Shares (the "Pool"). The Shares may be authorized, but unissued, or reacquired Common Stock. 

        If
an Option expires or becomes unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto shall become available for future grant or sale
under the Plan (unless the Plan has terminated). Shares that have actually been issued under the Plan shall not be returned to the Plan and shall not become available for future distribution under the
Plan. 

        4.     Administration
and Grants of Options under the Plan. 

        (a)   Procedure
for Grants.    All grants of Options to Outside Directors under this Plan shall be automatic and nondiscretionary and
shall be made strictly in accordance with the following provisions: 

        (i)    No
person shall have any discretion to select which Outside Directors shall be granted Options or to determine the number of Shares to be covered by Options. 

        (ii)   Each
Outside Director shall be automatically granted an Option to purchase eighty thousand (80,000) Shares (the "First Option") on the date
on which the later of the following events occurs: (A) the effective date of this Plan, as determined in accordance with Section 6 hereof, or (B) the date on which such person
first becomes an Outside Director, whether through election by the stockholders of the Company or appointment by the Board to fill a vacancy (the "Anniversary Date");
provided, however, that an Inside Director who ceases to be an Inside Director but who remains a Director shall not receive a First Option. 

        (iii)  At
such time as each Outside Director's First Option is fully vested, each Outside Director shall be automatically granted an Option to purchase twenty thousand
(20,000) Shares (a "Subsequent Option") on the Anniversary Date of each year provided he or she is then an Outside Director. In the event an Outside Director does not
receive a First Option due to previously being an Inside Director, such Outside Director shall receive a Subsequent Option at the Company's first annual meeting of the stockholders following such
conversion from an Inside Director to an Outside Director and at each subsequent annual stockholder meeting thereafter, provided such Outside Director is serving as an Outside Director on each such
date. 

        (iv)  Notwithstanding
the provisions of subsections (ii) and (iii) hereof, any exercise of an Option granted before the Company has obtained stockholder
approval of the Plan in accordance with Section 16 hereof shall be conditioned upon obtaining such stockholder approval of the Plan in accordance with Section 16 hereof. 

        (v)   The
terms of a First Option granted hereunder shall be as follows: 

        (A)  the
term of the First Option shall be ten (10) years. 

        (B)  the
First Option shall be exercisable only while the Outside Director remains a Director of the Company, except as set forth in Sections 8 and 10 hereof. 

2

 

        (C)  the
exercise price per Share shall be one hundred percent (100%) of the Fair Market Value per Share on the date of grant of the First Option. 

        (D)  subject
to Section 10 hereof, the First Option shall become exercisable as to twenty-five percent (25%) of the Shares subject to the First Option on
each anniversary of its date of grant, provided that the Optionee continues to serve as a Director on such dates. 

        (vi)  The
terms of a Subsequent Option granted hereunder shall be as follows: 

        (A)  the
term of the Subsequent Option shall be ten (10) years. 

        (B)  the
Subsequent Option shall be exercisable only while the Outside Director remains a Director of the Company, except as set forth in Sections 8 and 10 hereof. 

        (C)  the
exercise price per Share shall be one hundred percent (100%) of the Fair Market Value per Share on the date of grant of the Subsequent Option. 

        (D)  subject
to Section 10 hereof, the Subsequent Option shall become exercisable as to one hundred percent (100%) of the Shares subject to the Subsequent Option on
the anniversary of its date of grant, provided that the Optionee continues to serve as a Director on such date. 

        (vii) In
the event that any Option granted under the Plan would cause the number of Shares subject to outstanding Options plus the number of Shares previously purchased
under Options to exceed the Pool, then the remaining Shares available for Option grant shall be granted under Options to the Outside Directors on a pro rata basis. No further grants shall be made
until such time, if any, as additional Shares become available for grant under the Plan through action of the Board or the stockholders to increase the number of Shares which may be issued under the
Plan or through cancellation or expiration of Options previously granted hereunder. 

        5.     Eligibility.    Options
may be granted only to Outside Directors. All Options shall be automatically granted in accordance with the
terms set forth in Section 4 hereof. 

        The
Plan shall not confer upon any Optionee any right with respect to continuation of service as a Director or nomination to serve as a Director, nor shall it interfere in any way with
any rights which
the Director or the Company may have to terminate the Director's relationship with the Company at any time. 

        6.     Term
of Plan.    The Plan shall become effective upon the later to occur of its adoption by the Board or its approval by the
stockholders of the Company as described in Section 16 of the Plan. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 11 of the Plan. 

        7.     Form
of Consideration.    The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method
of payment, shall consist of (i) cash, (ii) check, (iii) other Shares, provided Shares acquired from the Company, (x) have been owned by the Optionee for more than six
(6) months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be
exercised, (iv) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan, or (v) any combination of the foregoing
methods of payment. 

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        8.     Exercise
of Option. 

        (a)   Procedure
for Exercise; Rights as a Stockholder.    Any Option granted hereunder shall be exercisable at such times as are set
forth in Section 4 hereof; provided, however, that no Options shall be exercisable until stockholder approval of the Plan in accordance with Section 16 hereof has been obtained. 

        An
Option may not be exercised for a fraction of a Share. 

        An
Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise
the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may consist of any consideration and method of payment allowable
under Section 7 of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the
Option. A share certificate for the number of Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option. No adjustment shall be made for a dividend or
other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan. 

        Exercise
of an Option in any manner shall result in a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option, by
the number of Shares as to which the Option is exercised. 

        (b)   Termination
of Continuous Status as a Director.    Subject to Section 10 hereof, in the event an Optionee's status as a
Director terminates (other than upon the Optionee's death or Disability), the Optionee may exercise his or her Option, but only within three (3) months following the date of such termination,
and only to the extent that the Optionee was entitled to exercise it on the date of such termination (but in no event later than the expiration of its ten (10) year term). To the extent that
the Optionee was not vested as to his or her entire Option on the date of such termination, the shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination,
the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 

        (c)   Disability
of Optionee.    In the event Optionee's status as a Director terminates as a result of Disability, the Optionee may
exercise his or her Option, but only within twelve (12) months following the date of such termination, and only to the extent that the Optionee was entitled to exercise it on the date of such
termination (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not vested as to his or her entire Option on the date of termination, the
shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option
shall terminate, and the Shares covered by such Option shall revert to the Plan. 

        (d)   Death
of Optionee.    In the event of an Optionee's death, the Optionee's estate or a person who acquired the right to exercise
the Option by bequest or inheritance may exercise the Option, but only within twelve (12) months following the date of death, and only to the extent that the Optionee was entitled to exercise
it on the date of death (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not vested as to his or her entire an Option on the date of
death, the shares covered by the unvested portion of the Option shall revert to the Plan. To the extent that the Optionee's estate or a person who acquired the right to exercise such Option does not
exercise such Option (to the extent otherwise so 

4

 

entitled)
within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 

        9.     Non-Transferability
of Options.    Unless the Board determines otherwise, any Option granted under the Plan may not be
sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee,
only by the Optionee. With the approval of the Board, an Optionee may, in a manner specified by the Board, (a) transfer an Option to an Optionee's spouse or former spouse pursuant to a
court-approved domestic relations order which relates to the provision of child support, alimony payments or marital property rights, and (b) transfer an Option by bona fide gift and not for
any consideration, to (i) a member or members of the Optionee's immediate family, (ii) a trust established for the exclusive benefit of the Optionee and/or member(s) of the Optionee's
immediate family, (iii) a partnership, limited liability company of other entity whose only partners or members are the Optionee and/or member(s) of the Optionee's immediate family, or
(iv) a foundation in which the Optionee is an/or member(s) of the Optionee's immediate family control the management of the foundation's assets. For purposes of this Section 9,
"immediate family" shall mean the Optionee's spouse, former spouse, children, grandchildren, parents, grandparents, siblings, nieces, nephews, parents-in-law,
sons-in-law, daughters-in-law, brothers-in-law, sisters-in-law, including adoptive or step relationships
and any person sharing the employee's household (other than as a tenant or employee). 

        10.   Adjustments
Upon Changes in Capitalization, Dissolution, Merger or Asset Sale. 

        (a)   Changes
in Capitalization.    Subject to any required action by the stockholders of the Company, the number of Shares covered by
each outstanding Option, the number of Shares which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Option, as well as the price per Share covered by each such outstanding Option, and the number of Shares issuable pursuant to the automatic grant provisions of
Section 4 hereof shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company; provided, however, that conversion of
any convertible securities of the Company shall not be deemed to have been effected without receipt of consideration. Except as expressly provided herein, no issuance by the Company of shares of stock
of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an
Option. 

        (b)   Dissolution
or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, to the extent that an
Option has not been previously exercised, it shall terminate immediately prior to the consummation of such proposed action. 

        (c)   Merger
or Asset Sale.    In the event of a merger of the Company with or into another corporation or the sale of substantially all
of the assets of the Company, outstanding Options may be assumed or equivalent options may be substituted by the successor corporation or a Parent or Subsidiary thereof (the Successor Corporation). If
an Option is assumed or substituted for, the Option or equivalent option shall continue to be exercisable as provided in Section 4 hereof for so long as the Optionee serves as a Director or a
director of the Successor Corporation. Following such assumption or substitution, if the Optionee's status as a Director or director of the Successor Corporation, as applicable, is terminated other
than upon a voluntary resignation by the Optionee, the Option or option shall become fully exercisable, including as to Shares for which it would not otherwise be exercisable. Thereafter, the Option
or option shall remain exercisable in accordance with Sections 8(b) through (d) above. 

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        If
the Successor Corporation does not assume an outstanding Option or substitute for it an equivalent option, the Option shall become fully vested and exercisable, including as to Shares
for which it would not otherwise be exercisable. In such event the Board shall notify the Optionee that the Option shall be fully exercisable for a period of thirty (30) days from the date of
such notice, and upon the expiration of such period the Option shall terminate. 

        For
the purposes of this Section 10(c), an Option shall be considered assumed if, following the merger or sale of assets, the Option confers the right to purchase or receive, for
each Share of Optioned Stock subject to the Option immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or
sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares). If such consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Board may,
with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each Share of Optioned Stock subject to the Option, to be solely common
stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 

        11.   Amendment
and Termination of the Plan. 

        (a)   Amendment
and Termination.    The Board may at any time amend, alter, suspend, or discontinue the Plan, but no amendment,
alteration, suspension, or discontinuation shall be made which would impair the rights of any Optionee under any grant theretofore made, without his or her consent. In addition, to the extent
necessary and desirable to comply with any applicable law, regulation or stock exchange rule, the Company shall obtain stockholder approval of any Plan amendment in such a manner and to such a degree
as required. In addition, no such amendment shall be made without the approval of the
Company's stockholders to the extent such approval is required by law or agreement or if such amendment would: 

        (i)    expand
the classes of persons to whom grants may be made under Section 4 or 5 of the Plan; 

        (ii)   increase
the number of Shares authorized for grant under Section 3 of the Plan; 

        (iii)  increase
the number of Shares which may be granted to any one participant under Section 4 of the Plan, except as provided in Section 10(a) of the Plan; 

        (iv)  allow
the creation of additional types of awards; 

        (v)   permit
decreasing the exercise price on any outstanding Option; 

        (vi)  permit
acceleration of the exercisability of any Option, except as provided in Section 10 of the Plan; or 

        (vii) change
any of the provisions of this Section 11. 

        (b)   Effect
of Amendment or Termination.    Any such amendment or termination of the Plan shall not affect Options already granted and
such Options shall remain in full force and effect as if the Plan had not been amended or terminated. 

        12.   Time
of Granting Options.    The date of grant of an Option shall, for all purposes, be the date determined in accordance with
Section 4 hereof. 

        13.   Conditions
Upon Issuance of Shares.    Shares shall not be issued pursuant to the exercise of an Option unless the exercise of
such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act 

6

 

of
1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, state securities laws, and the requirements of any stock exchange upon which the Shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect to such compliance. 

        As
a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or distribute such Shares, if, in the opinion of counsel for the Company, such a representation is required by any of the
aforementioned relevant provisions of law. 

        Inability
of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

        14.   Reservation
of Shares.    The Company, during the term of this Plan, will at all times reserve and keep available such number of
Shares as shall be sufficient to satisfy the requirements of the Plan. 

        15.   Option
Agreement.    Options shall be evidenced by written option agreements in such form as the Board shall approve. 

        16.   Stockholder
Approval.    The Plan shall be subject to approval by the stockholders of the Company within twelve (12) months
after the date the Plan is adopted. Such stockholder approval shall be obtained in the degree and manner required under applicable state and federal law and any stock exchange rules. 

7

FIRST OPTION 

 
 

UTSTARCOM, INC.
  
  DIRECTOR OPTION AGREEMENT    
    

        UTStarcom, Inc., (the "Company"), has granted
to                        (the "Optionee"), an option to purchase a total of eighty thousand (80,000) shares of the
Company's Common Stock (the "Optioned Stock"), at the price determined as provided herein, and in all respects subject to the terms, definitions and provisions of the Company's 2001 Director Option
Plan (the "Plan") adopted by the Company which is incorporated herein by reference. The terms defined in the Plan shall have the same defined meanings herein. 

        1.     Nature
of the Option.    This Option is a nonstatutory option and is not intended to qualify for any special tax benefits to the
Optionee. 

        2.     Exercise
Price.    The exercise price is $            for each share of Common Stock. 

        3.     Exercise
of Option.    This Option shall be exercisable during its term in accordance with the provisions of Section 8 and
Section 10 of the Plan as follows: 

        (i)    Right
to Exercise. 

        (a)   This
Option shall become exercisable in installments cumulatively with respect to twenty-five percent (25%) of the Optioned Stock one year after the date of
grant, and as to an additional twenty-five percent (25%) of the Optioned Stock on each subsequent anniversary of the date of grant, so that one hundred percent (100%) of the Optioned Stock
shall be exercisable four (4) years after the date of grant; provided, however, that in no event shall any Option be exercisable prior to the date the stockholders of the Company approve the
Plan. 

        (b)   This
Option may not be exercised for a fraction of a share. 

        (c)   In
the event of Optionee's death, disability or other termination of service as a Director, the exercisability of the Option is governed by Section 8 and
Section 10 of the Plan. 

        (ii)   Method
of Exercise.    This Option shall be exercisable by written notice which shall state the election to exercise the Option
and the number of Shares in respect of which the Option is being exercised. Such written notice, in the form attached hereto as Exhibit A, shall be signed by the Optionee and shall be delivered
in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the exercise price. 

        4.     Method
of Payment.    Payment of the exercise price shall be by any of the following, or a combination thereof, at the election of
the Optionee: 

        (i)    cash;

        (ii)   check;
or 

        (iii)  surrender
of other Shares, provided Shares acquired from the Company (x) have been owned by the Optionee for more than six (6) months on the date of
surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; or 

        (iv)  consideration
received by the Company under a cashless exercise program implemented by the Company in connection with the Plan. 

        5.     Restrictions
on Exercise.    This Option may not be exercised if the issuance of such Shares upon such exercise or the method of
payment of consideration for such shares would constitute a violation of any applicable federal or state securities or other law or regulations, or if such issuance would not comply with the
requirements of any stock exchange upon which the Shares may then be 

 

listed.
As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation. 

        6.     Non-Transferability
of Option.    This Option may not be transferred in any manner otherwise than by will or by the
laws of descent or distribution and may be exercised during the lifetime of Optionee only by the Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee. 

        7.     Term
of Option.    This Option may not be exercised more than ten (10) years from the date of grant of this Option, and may
be exercised during such period only in accordance with the Plan and the terms of this Option. 

        8.     Taxation
Upon Exercise of Option.    Optionee understands that, upon exercise of this Option, he or she will recognize income for
tax purposes in an amount equal to the excess of the then Fair Market Value of the Shares purchased over the exercise price paid for such Shares. Since the Optionee is subject to Section 16(b)
of the Securities Exchange Act of 1934, as amended, under certain limited circumstances the measurement and timing of such income (and the commencement of any capital gain holding period) may be
deferred, and the Optionee is advised to contact a tax advisor concerning the application of Section 83 in general and the availability a Section 83(b) election in particular in
connection with the exercise of the Option. Upon a resale of such Shares by the Optionee, any difference between the sale price and the Fair Market Value of the Shares on the date of exercise of the
Option, to the extent not included in income as described above, will be treated as capital gain or loss. 

	DATE OF GRANT:	 	    
	 	 	 	 
	

 	
 	

 	
 	

UTSTARCOM, INC.

a Delaware corporation
	

 	
 	

 	
 	

By:	
 	

    

        Optionee
acknowledges receipt of a copy of the Plan, a copy of which is attached hereto, and represents that he or she is familiar with the terms and provisions thereof, and hereby
accepts this Option subject to all of the terms and provisions thereof. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any
questions arising under the Plan. 

	Dated:	 	    
	 	 
	

 	
 	

 	
 	

    
 Optionee

2

FIRST OPTION 

 
 

EXHIBIT A
  
  DIRECTOR OPTION EXERCISE NOTICE    
    

UTStarcom, Inc.

1275 Harbor Bay Parkway, Suite 100

Alameda, CA 94502 

Attention:    Corporate
Secretary 

        1.     Exercise
of Option.    The undersigned ("Optionee") hereby elects to exercise Optionee's option to purchase
             shares of the Common Stock (the "Shares") of UTStarcom, Inc. (the "Company") under and pursuant to the Company's 2001 Director Option Plan and the Director Option
Agreement dated                         (the "Agreement"). 

        2.     Representations
of Optionee.    Optionee acknowledges that Optionee has received, read and understood the Agreement. 

        3.     Federal
Restrictions on Transfer.    Optionee understands that the Shares must be held indefinitely unless they are registered
under the Securities Act of 1933, as amended (the "1933 Act"), or unless an exemption from such registration is available, and that the certificate(s) representing the Shares may bear a legend to that
effect. Optionee understands that the Company is under no obligation to register the Shares and that an exemption may not be available or may not permit Optionee to transfer Shares in the amounts or
at the times proposed by Optionee. 

        4.     Tax
Consequences.    Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee's purchase or
disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultant(s) Optionee deems advisable in connection with the purchase or disposition of the Shares and that
Optionee is not relying on the Company for any tax advice. 

        5.     Delivery
of Payment.    Optionee herewith delivers to the Company the aggregate purchase price for the Shares that Optionee has
elected to purchase and has made provision for the payment of any federal or state withholding taxes required to be paid or withheld by the Company. 

        6.     Entire
Agreement.    The Agreement is incorporated herein by reference. This Exercise Notice and the Agreement constitute the
entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof. This Exercise Notice and
the Agreement are governed by Delaware law except for that body of law pertaining to conflict of laws. 

	Submitted by:	 	Accepted by:
	

OPTIONEE:	
 	

UTSTARCOM, INC.
	

By:	

    
	
 	

By:	

    

	

 	

 	
 	

Its:	

    

	

Address:	
 	

 	

 
	

    	

 	
 	

 	

 
	

Dated:	

    
	
 	

Dated:	

    

SUBSEQUENT OPTION 

 
 

UTSTARCOM, INC.
  
  DIRECTOR OPTION AGREEMENT    
    

        UTStarcom, Inc., (the "Company"), has granted
to                        (the "Optionee"), an option to purchase a total of twenty thousand (20,000) shares of the
Company's Common Stock (the "Optioned Stock"), at the price determined as provided herein, and in all respects subject to the terms, definitions and provisions of the Company's 2001 Director Option
Plan (the "Plan") adopted by the Company which is incorporated herein by reference. The terms defined in the Plan shall have the same defined meanings herein. 

        1.     Nature
of the Option.    This Option is a nonstatutory option and is not intended to qualify for any special tax benefits to the
Optionee. 

        2.     Exercise
Price.    The exercise price is $            for each share of Common Stock. 

        3.     Exercise
of Option.    This Option shall be exercisable during its term in accordance with the provisions of Section 8 and
Section 10 of the Plan as follows: 

        (i)    Right
to Exercise. 

        (a)   This
Option shall become exercisable with respect to one hundred percent (100%) of the Optioned Stock one year after the date of grant; provided, however, that in no
event shall any Option be exercisable prior to the date the stockholders of the Company approve the Plan. 

        (b)   This
Option may not be exercised for a fraction of a share. 

        (c)   In
the event of Optionee's death, disability or other termination of service as a Director, the exercisability of the Option is governed by Section 8 and
Section 10 of the Plan. 

        (ii)   Method
of Exercise.    This Option shall be exercisable by written notice which shall state the election to exercise the Option
and the number of Shares in respect of which the Option is being exercised. Such written notice, in the form attached hereto as Exhibit A, shall be signed by the Optionee and shall be delivered
in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the exercise price. 

        4.     Method
of Payment.    Payment of the exercise price shall be by any of the following, or a combination thereof, at the election of
the Optionee: 

        (i)    cash;

        (ii)   check;
or 

        (iii)  surrender
of other Shares, provided Shares acquired from the Company (x) have been owned by the Optionee for more than six (6) months on the date of
surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; or 

        (iv)  consideration
received by the Company under a cashless exercise program implemented by the Company in connection with the Plan. 

        5.     Restrictions
on Exercise.    This Option may not be exercised if the issuance of such Shares upon such exercise or the method of
payment of consideration for such shares would constitute a violation of any applicable federal or state securities or other law or regulations, or if such issuance would not comply with the
requirements of any stock exchange upon which the Shares may then be listed. As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to
the Company as may be required by any applicable law or regulation. 

 

        6.     Non-Transferability
of Option.    This Option may not be transferred in any manner otherwise than by will or by the
laws of descent or distribution and may be exercised during the lifetime of Optionee only by the Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee. 

        7.     Term
of Option.    This Option may not be exercised more than ten (10) years from the date of grant of this Option, and may
be exercised during such period only in accordance with the Plan and the terms of this Option. 

        8.     Taxation
Upon Exercise of Option.    Optionee understands that, upon exercise of this Option, he or she will recognize income for
tax purposes in an amount equal to the excess of the then Fair Market Value of the Shares purchased over the exercise price paid for such Shares. Since the Optionee is subject to Section 16(b)
of the Securities Exchange Act of 1934, as amended, under certain limited circumstances the measurement and timing of such income (and the commencement of any capital gain holding period) may be
deferred, and the Optionee is advised to contact a tax advisor concerning the application of Section 83 in general and the availability a Section 83(b) election in particular in
connection with the exercise of the Option. Upon a resale of such Shares by the Optionee, any difference between the sale price and the Fair Market Value of the Shares on the date of exercise of the
Option, to the extent not included in income as described above, will be treated as capital gain or loss. 

	DATE OF GRANT:	 	    
	 	 	 	 
	

 	
 	

 	
 	

UTSTARCOM, INC.

a Delaware corporation
	

 	
 	

 	
 	

By:	
 	

    

        Optionee
acknowledges receipt of a copy of the Plan, a copy of which is attached hereto, and represents that he or she is familiar with the terms and provisions thereof, and hereby
accepts this Option subject to all of the terms and provisions thereof. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any
questions arising under the Plan. 

	Dated:	 	    
	 	 
	

 	
 	

 	
 	

    
 Optionee

2

SUBSEQUENT OPTION 

 
 

EXHIBIT A
  
  DIRECTOR OPTION EXERCISE NOTICE    
    

UTStarcom, Inc.

1275 Harbor Bay Parkway, Suite 100

Alameda, CA 94502 

Attention:    Corporate
Secretary 

        1.     Exercise
of Option.    The undersigned ("Optionee") hereby elects to exercise Optionee's option to purchase            shares
of the Common Stock (the "Shares") of UTStarcom, Inc. (the "Company") under and pursuant to the Company's 2001 Director Option Plan and the Director Option Agreement
dated                        (the
"Agreement"). 

        2.     Representations
of Optionee.    Optionee acknowledges that Optionee has received, read and understood the Agreement. 

        3.     Federal
Restrictions on Transfer.    Optionee understands that the Shares must be held indefinitely unless they are registered
under the Securities Act of 1933, as amended (the "1933 Act"), or unless an exemption from such registration is available, and that the certificate(s) representing the Shares may bear a legend to that
effect. Optionee understands that the Company is under no obligation to register the Shares and that an exemption may not be available or may not permit Optionee to transfer Shares in the amounts or
at the times proposed by Optionee. 

        4.     Tax
Consequences.    Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee's purchase or
disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultant(s) Optionee deems advisable in connection with the purchase or disposition of the Shares and that
Optionee is not relying on the Company for any tax advice. 

        5.     Delivery
of Payment.    Optionee herewith delivers to the Company the aggregate purchase price for the Shares that Optionee has
elected to purchase and has made provision for the payment of any federal or state withholding taxes required to be paid or withheld by the Company. 

        6.     Entire
Agreement.    The Agreement is incorporated herein by reference. This Exercise Notice and the Agreement constitute the
entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof. This Exercise Notice and
the Agreement are governed by Delaware law except for that body of law pertaining to conflict of laws. 

	Submitted by:	 	Accepted by:
	

OPTIONEE:	
 	

UTSTARCOM, INC.
	

By:	

    
	
 	

By:	

    

	

 	

 	
 	

Its:	

    

	

Address:	
 	

 	

 
	

    	

 	
 	

 	

 
	

Dated:	

    
	
 	

Dated:	

    

QuickLinks

EXHIBIT 10.66

UTSTARCOM, INC. 2001 DIRECTOR OPTION PLAN (Amended February 2, 2006)

UTSTARCOM, INC. DIRECTOR OPTION AGREEMENT

EXHIBIT A DIRECTOR OPTION EXERCISE NOTICE

UTSTARCOM, INC. DIRECTOR OPTION AGREEMENT

EXHIBIT A DIRECTOR OPTION EXERCISE NOTICEExhibit 10.8

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (this “Agreement”)
is made and entered into as of this 19th day of January, 2006 by and between
TENNESSEE COMMERCE BANK (the “Employer” or “Bank”), and ARTHUR F. HELF (the “Employee”
or “Executive”).

 

1.             Employment. The Employer employs the
Employee and the Employee accepts employment upon the terms and conditions of
this Agreement. For the purposes of this Agreement, the following terms shall
have the meanings indicated:

 

(a)  Change in Control. A “Change in
Control” shall be deemed to have occurred if:

 

(i)            any
one person or entity, or more than one person or entity acting as a group,
acquires ownership of stock of either the Corporation or the Bank constituting
more than 50% of the total voting power of either the Corporation or the Bank;

 

(ii)           a
merger or consolidation where the holders of the voting stock of either the
Corporation or the Bank immediately prior to the effective date of such merger
or consolidation own less than 50% of the voting stock of either entity
surviving such merger or consolidation; or

 

(iii)          any
one person or entity or more than one person or entity acting as a group,
acquires assets from either the Corporation or the Bank that have a total fair
market value greater than 50% of the total fair market value of all of either
the Corporation’s or the Bank’s assets respectively immediately before the
acquisition or acquisitions; provided, however, that transfers of assets which
otherwise would satisfy the requirements of this subsection (iii) will not be
treated as an acquisition of such assets if the assets are transferred to:

 

(A)
any entity, 50% or more of the total value or voting power of which is owned,
directly or indirectly by either the Corporation or the Bank;

 

(B)
any person or entity, or more than one person or entity acting as a group, that
owns, directly or indirectly, 50% or more of the total value or voting power of
all of the outstanding stock of either the Corporation or the Bank; or

 

(C)
any entity, as least 50% of the total value or voting power of which is owned,
directly or indirectly, by a person who owns, directly or indirectly, 50% or
more of the total value or voting power of all the outstanding capital stock of
either the Corporation or the Bank.

 

 

Notwithstanding the foregoing, a Change in
Control shall not be deemed to have occurred solely as a result of any
transaction or reorganization undertaken for the primary purpose of
implementing a change in jurisdiction or charter of the Bank. For purposes of
this Agreement, an “affiliate” of, or a person(s) “affiliated with” a specified
person(s), is a person that, directly or indirectly, through one or more
intermediaries, controls, or is controlled by, or is under common control with,
the person(s) specified.

 

(b) Confidential Information. Confidential
Information shall mean any and all information the Employee acquires or to
which the Employee has access during the Term that has not been disclosed
publicly by the Employer and is not a matter of common knowledge in the fields
of work of the Employer. The Confidential Information shall include, but not be
limited to, trade secrets, technical data, mailing lists, the names of
suppliers and customers, and the arrangements made from time to time with
suppliers and customers.

 

(c)           Corporation. The Corporation is Tennessee Commerce Bancorp,
Inc., the bank holding company for the Bank.

 

(d)           Good Cause. “Good Cause” shall be deemed to have occurred if
either party has breached this Agreement and the non-breaching party gives
notice in writing, delivered to the breaching party and providing ten (10)
calendar days, from the date of delivery of the notice, within which the
breaching party has the opportunity to cure, if possible, the breach. In
addition, Good Cause for termination shall exist if Employee engages in any of
the following conduct while an employee of the Employer:  (1) willful and knowing dishonesty in
communication of any kind on any material subject for any purpose either to the
Employer or to any person or entity for or on behalf of the Employer; (2) use
of more than an insubstantial and quantitatively small amount of time during
normal business hours of the Employer for activities not calculated and
reasonably designed to produce profit for the Employer; (3) theft,
embezzlement, false entries on records, misapplication of funds or property,
misappropriation of any asset, any conduct resulting in conversion of any kind,
or any actual or constructive fraud; (4) at any time during or after employment
at the Employer, imparting Confidential Information, whether proprietary or
non-proprietary, to any person other than (i) an authorized employee of the
Employer; or (ii) as required by law, or (iii) as part of a privileged
communication to an attorney; (5) gross neglect of duty, including, but not
limited to, failure or refusal to attend to the duties of employment at the
Employer; (6) participating in any conduct involving moral turpitude or which
results in public disgrace including, but not limited to, conduct for which
there is probable cause to believe that, if criminally prosecuted, such conduct
would be adjudged felonious; (7) counseling, advising, assisting, procuring or
aiding any employee of the Employer in any above-recited conflict of interest;
(8) knowing, believing or having reason to know or believe that an employee of
the Employer has, is, or is about to engage in any above-recited conflict of
interest and not revealing said knowledge or belief and the reason for it to
the Employer; (9) receiving, during the term of this Agreement, compensation,
income, anything of value, or a future interest in or future entitlement to
compensation, income or a thing of value, from any person or entity who or
which is engaged in the same or substantially the same business as the Employer
in the same product, service or geographical market, except stock dividends
and/or capital gains from passive investments in financial institutions by
Employee made in the ordinary course of business and as part of Employee’s
investment portfolio. However, cause shall not be deemed to exist merely
because of a difference of opinion between Employee and the Employer, or any
employees, directors or officers of either, as to philosophy of management or
other personal beliefs.

 

2

 

(e)           Total Disability. The phrase “Total Disability” means the
inability of Employee to perform his normal required services hereunder by
reason of Employee’s mental or physical illness or incapacity, which illness or
incapacity is expected to be permanent and continuous during the remainder of
Employee’s life, as so determined by a licensed physician selected by Employee
and reasonably satisfactory to the Employer’s Board of Directors.

 

2.             Term. The term (“Term”) of this
Agreement shall begin on the date of the Agreement (Effective Date) and end on
the second anniversary of such date (the Employment Period). The Employment
Period shall be a constant rolling period of two years, commencing on the
Effective Date, with the result that, for each day after the Effective Date the
Executive’s term of employment shall be two years. The Termination Date may be
modified upon:

 

(a)           Mutual Agreement. The mutual written agreement of the
Employer and the Employee.

 

(b)           Resignation. The effective date of the Employee’s
resignation.

 

(c)           Death or Disability. The death or total disability of the
Employee.

 

(d)           Termination. The Employer’s termination of the Employee’s
employment, upon written notice to the Employee, for Good Cause, as further
defined above, certified by a vote of the Board of Directors exclusive of the
Employee.

 

(e)           Breach. The breach by the Employee of any provision of this
Agreement.

 

3.             Compensation.

 

(a)           Base Salary. As compensation for the
services to be rendered by Employee during the period of his employment
hereunder, and upon the condition that Employee shall fully and faithfully keep
and perform all of the terms and conditions hereof, Employer shall pay Employee
a salary of $190,000 per year, less income tax withholdings and other normal
employee deductions, plus any additional amounts designated as Base Salary
increases by the Board of Directors of the Employer, which amount is payable in
equal installments (no less frequent than monthly) in accordance with the
payroll practices from time to time adopted by the Employer.

 

(b)           Additional Compensation. During the Term of this
Agreement, Employee shall participate in an incentive program providing an
earning potential equivalent of up to 100% of the salary.

 

3

 

(c)           Benefits. The Bank shall provide the
Employee with medical, dental, vision and disability insurance (collectively, “Health
Insurance”), as well as a term life insurance policy (“Life Insurance”) with a
death benefit equal to $300,000. The Bank will provide the Employee with
automobile benefits commensurate with his position and at least comparable to
other employees of the Employer.

 

This Agreement
shall not be deemed abrogated or terminated if the Board of Directors or
stockholders of Employer shall determine to increase the compensation of
Employee for any period of time.

 

4.             Duties. The Employee is engaged as Chairman
of the Board and Chief Executive Officer of the Employer and the Corporation
with such duties to be established by the Board of Directors and/or as
specified in the Bylaws of the Employer.

 

5.             Working Facilities. The Employee shall have a
private office, stenographic help, and such other facilities and services as
are suitable to his position and appropriate for the performance of his duties.

 

6.             Disclosure of Information. The Employee acknowledges that
the Confidential Information is a valuable, special, and unique asset of the
Employer’s business. The Employee will not, during or after the term of his
employment, disclose any Confidential Information to any person, firm,
corporation, association, or other entity for any reason or purpose whatsoever.
In the event of a breach or threatened breach by the Employee of the provisions
of this paragraph, the Employer shall be entitled to an injunction restraining
the Employee from disclosing, in whole or in part, the Confidential
Information, or from rendering any services to any person, firm, corporation,
association, or other entity to whom such Confidential Information, in whole or
in part, has been disclosed or is threatened to be disclosed. Nothing herein
shall be construed as prohibiting the Employer from pursuing any other remedies
available to the Employer for such breach or threatened breach, including the
recovery of damages from the Employee.

 

7.             Expenses. The Employee may incur
reasonable expenses for promoting the Employer’s business, including expenses
for entertainment, travel, and similar items. The Employer will reimburse the
Employee for all such expenses upon the Employee’s periodic presentation of an
itemized account of such expenditures.

 

8.             Vacations. The Employee shall be entitled
each year to a vacation of five (5) weeks, during which time his compensation
shall be paid in full. A portion of such vacation shall be taken over a two
week consecutive period.

 

9.             Force Majeure and Disability. If Employer is unable to conduct
its business, or a substantial portion thereof, by virtue of governmental
regulation or order, or by strike, war, fire, earthquake, hurricane, or similar
acts of God, or other calamity (declared or undeclared), or because of other
similar or dissimilar cause beyond control of Employer (all of which events are
hereinafter sometimes referred to as “Force Majeure”), or in the event Employee
suffers a Total Disability, Employer shall, in the event the Force Majeure
and/or Total Disability continue for at least eight aggregate weeks during any
four-month period, have the right to suspend the operation of this Agreement
for the duration of said Force Majeure and/or Total Disability (except for any
benefits payable to Employee under such benefit plans generally available to
all executive employees), and Employer shall, at its option, have the right to
add a period equal to such suspension to the Term hereof. If the Term shall
expire prior to the end of the Termination Date because of the Employee’s Total
Disability, the Employer shall continue to pay the amounts specified in Section
3 during the Term of this Agreement, provided however, that any such continued
payments shall be reduced, dollar-for-dollar, by the amount of any payments
made to the Employee pursuant to the Employer-sponsored disability plan,
program or arrangement or pursuant to disability insurance provided by the
Employer to the Employee. If the Employer’s Board of Directors determines that
the Employee, after suffering Total Disability, is unable to manage his or her
affairs, the Employer shall pay the amounts due under this Section 9 as
the Employee’s duly appointed guardian, conservator, or other legal
representative, instead of the Employee.

 

4

 

10.          Termination With Cause. With Good Cause, the Employer
may terminate this Agreement at any time upon written notice to the Employee. In
such event, the Employee, if requested by the Employer, shall continue to
render his services, and shall be paid his regular compensation up to the date
of termination, but no other payments or benefits shall be paid or vested to
him.

 

11.          Change
in Control Payment. In the event that a Change in Control occurs during the term hereof, irrespective of
whether or not the Employee’s employment is terminated by the Bank or the
Corporation or any successor to the Bank or the Corporation, the Bank shall (i)
pay the Employee an amount equal to (w) the product of 2.99 times the sum of
the Employee’s expected Base Salary and Additional Compensation for the
calendar year during which the Change in Control occurs (which
expected Base Salary and Additional Compensation shall be in no event less than
that earned by the Employee during the preceding calendar year), plus (x) provide
continued health and life insurance benefits, at the level maintained by the
Bank for the Employee, for the remaining term of the Agreement, and (ii) grant
the Employee the right to purchase the employer-owned or leased automobile used
by the employee as of the effective date of the Change in Control at the lower
of (y) the Trade-In Value (as that term is defined in the current Kelley Blue
Book) or (z) the book value as shown on the leasing Employer’s books. Any
payments to be made by the Bank to the Employee pursuant to clause (i) of this
Subsection 11 shall be paid in the Bank’s discretion either in a lump sum or in
equal installments over a twenty-four (24) month period beginning on the
effective date of the Change in Control. If it is determined by the Bank’s
independent auditors that any monetary or other benefit received or deemed
received by the Employee in the event of a Change in Control is or will become
subject to any excise tax under Section 4999 of the Code or any similar tax
under any United States federal, state, or local law, the Bank shall pay to the
Employee, within 30 business days, an amount equal to the estimated excise tax
but not to exceed $100,000.00.

 

12.          Death During
Employment. If
the Term shall expire prior to the end of the Termination Date because of the
Employee’s death, the Employer shall thereafter make payments equal to 75% of
the amount specified in Section 3(a), (b), and (c), during the Term. The
payments described in this Section 12 shall be made to the Employee’s
spouse if the Employee is married at the time of the Employee’s death, but if
the Employee is not married at the time of the Employee’s death or if the
Employee is married at the time of the Employee’s death and the Employee’s
spouse dies before all the payments are made under this Section 12, the
remaining payments shall be made to the Employee’s estate.

 

5

 

13.          Competition During and After Term. Employee agrees that during the
Term hereof, and for a period of one (1) year after the expiration of the Term,
he will not, either separately, jointly, or in association with others,
directly or indirectly, as an agent, employee, owner, partner, stockholder, or
otherwise, allow his name to be used by, or establish, engage in, or become
interested in any business, trade or occupation similar to the business being
conducted by Employer, in any county in any of the States of the United States
in which Employer’s business is presently being conducted, as long as Employer,
or any person, firm, or corporation deriving title to the goodwill of, or
shares from it, carries on a like business therein. Notwithstanding the
preceding sentence, Employee shall be allowed to engage in or be interested in
the businesses and activities enumerated in Schedule 1 annexed hereto, if any,
provided that his interest or involvement therein does not otherwise violate
any other term or provision of this Agreement other than the preceding sentence
of this Section. Employer and Employee acknowledge that during the Term of
Employee’s employment, Employee will acquire special knowledge and/or skill
that he can effectively utilize in competition with Employer. Furthermore,
although not a term or condition of this Agreement, Employer and Employee
acknowledge that, as of the date hereof, it is reasonably contemplated that
Employee’s services will be utilized by Employer in executive, managerial,
and/or supervisory capacities throughout the areas in which Employer conducts
its business, and in the general operation of Employer’s business wherever it
is being conducted, throughout the United States.

 

Employee
agrees that the remedy at law for any breach by him of the covenants contained
herein will be inadequate, and that in the event of a violation of the
covenants contained herein, in addition to any and all legal and equitable
remedies which may be available, the said covenants may be enforced by an
injunction in a suit in equity, without the necessity of proving actual damage,
and that a temporary injunction may be granted immediately upon the
commencement of any such suit, and without notice. The parties hereto intend
that the covenants contained in this Section shall be deemed to be a series of
separate covenants, one for each county of each state where Employer does
business. If, in any judicial proceeding, a court shall refuse to enforce any
or all of the separate covenants deemed included in such action, then such
unenforceable covenants shall be deemed eliminated from the provisions hereof
for the purposes of such proceeding to the extent necessary to permit the
remaining separate covenants to be enforced in such proceeding. Furthermore, if
in any judicial proceeding a court shall refuse to enforce any covenant by
reason of the duration or extent thereof, such covenant shall be construed to
have only the maximum duration or extent permitted by law.

 

14.          Intellectual Property. The Employee also shall
disclose fully and only to the Employer all ideas, methods, plans,
developments, improvements, or patentable inventions, that relate directly or
indirectly to the business of the Employer, that are known, made, or discovered
by the Employee at any time during the Term. Nothing in this Section, however,
shall be construed as requiring any communication to the Employer of the idea,
method, plan, development, improvement, or invention if protected by any lawful
prohibition against the communication. All disclosures are to be made promptly
after conception or discovery of the idea, method, plan, development,
improvement, or invention. Any idea, method, plan, development, improvement, or
invention that the Employee is obligated to disclose to the Employer under this
Section shall be the property of the Employer. The Employee shall (a) provide
any and all assistance to the Employer in making any patent applications or
other applications for obtaining exclusive rights in, and (b) do all other
things reasonably necessary to vest in the Employer or its assigns, the ideas,
methods, plans, development, improvements, or inventions. Nothing herein shall
be construed as prohibiting the Employer from pursuing any other remedies
available to the Employer for such breach or threatened breach, including the
recovery of damages from the Employee.

 

6

 

15.          Notices. Any notice required or desired to be given under this
Agreement shall be deemed given if in writing sent by certified mail to his
residence, in the case of the Employee, or to its principal office, in the case
of the Employer.

 

16.          Waiver of Breach. The waiver by the Employer of a
breach of any provision of this Agreement by the Employee shall not operate or
be construed as a waiver of any subsequent breach by the Employee. No waiver
shall be valid unless in writing and signed by an authorized officer of the
Employer.

 

17.          Assignment. The Employee acknowledges that the services to be rendered
by him are unique and personal. Accordingly, the Employee may not assign any of
his rights or delegate any of his duties or obligations under this Agreement. The
rights and obligations of the Employer under this Agreement shall inure to the
benefit of and shall be binding upon the successors and assigns of the
Employer.

 

18.          Compliance with Other Agreements. The Employee represents and
warrants that the execution of this Agreement and the performance of the
Employee’s obligations under this Agreement will not conflict with, result in
the breach of any provision of, cause the termination of, or constitute a
default under any Agreement to which the Employee is a party or by which the
Employee is or may be bound.

 

19.          Litigation Expense. In the event of a default
under this Agreement, the defaulting party shall reimburse the nondefaulting
party for all costs and expenses reasonably incurred by the nondefaulting party
in connection with the default, including without limitation attorney’s fees. Additionally,
in the event a suit or action if filed to enforce this agreement or with
respect to this Agreement, the prevailing party or parties shall be reimbursed
by the other party for all costs and expenses incurred in connection with the
suit or action, including without limitation reasonable attorney’s fees at the
trial level and on appeal.

 

20.          Severability. In the event any section, subsection, provision, or clause
of this Agreement or any combination thereof is found to be unenforceable at
law, in equity, or under any presently existing other after enacted
legislation, regulation, or order of the United Sates, any state or subdivision
thereof or any municipality, those finding shall not in any way affect the
other sections, subsections, provision, or clauses of this Agreement, which
shall continue in full force and effect, and the unenforceable provision shall
be interpreted in a manner that imposed the maximum restriction or obligation
permitted by applicable law.

 

7

 

21.          Entire Agreement. This Agreement contains the
entire understanding of the parties. It may not be changed orally but only by
an agreement in writing signed by the party against whom enforcement of any
waiver, change, modification, extension, or discharge is sought.

 

22.          Governing Law. This Agreement shall be construed and enforced in accordance
with the laws of the State of Tennessee.

 

IN
WITNESS WHEREOF, the parties hereto have executed this
Agreement on

 

January 19, 2006.

 

	
   

  	
  EMPLOYER:

  
	
   

  	
   

  
	
   

  	
  TENNESSEE COMMERCE BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael R. Sapp

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Arthur F. Helf

  	
   

  
	
   

  	
  Arthur F. Helf

  

 

8

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