Document:

Exhibit
10.4

 

February 1, 2010

 

Jack Lu

 

(Delivery by email)

 

Dear Jack:

 

On behalf of UTStarcom, Inc.
(“UTStarcom” and together with its subsidiaries, the “Company”), we are pleased
to offer you the position of Chief Executive Officer
of UTStarcom effective on the later of June 30, 2010 or three months
following the closing of the sale of common stock by UTStarcom to Beijing
E-Town International Investment and Development Co., Ltd., Ram Max Group
Limited and Shah Capital Management for an aggregate consideration of
approximately $48.5 million in cash (the “Investment”).  You will commence employment on the date the
Investment closes (your “Start Date”) and will serve as UTStarcom’s Senior Vice President and Chief Operating Officer until you
become the Chief Executive Officer.

 

The key elements of your
employment terms are as follows:

 

Location:  You
will primarily perform your services in Beijing, China,
though you will be expected to travel as necessary to perform your duties.

 

At-Will Employment:  You and UTStarcom agree that your employment
with the Company will be “at-will” employment and may be terminated at any time
with or without cause or notice.  You
understand and agree that neither your job performance nor promotions,
commendations, bonuses or the like from the Company will give rise to or in any
way serve as the basis for modification, amendment, or extension, by
implication or otherwise, of your employment term with the Company.  However, as described in this offer letter,
you may be entitled to severance benefits depending on the circumstances of
Executive’s termination of employment with the Company pursuant to the
Severance Agreement (as defined below).

 

Base Salary:  Your
starting annual base salary will be RMB
2,726,653 (pre-tax),
with a 12 month pay schedule per year. Your base salary will be reviewed on an
annual basis.  Such reviews will not automatically result in an adjustment
to your base salary.  Once you have
become the Chief Executive Officer, your annual base salary will be increased
to RMB 3,067,485 (pre-tax).  The decision to
make any subsequent adjustment to
your base salary will be in the full discretion of the Compensation Committee
of the Board of Directors of UTStarcom (the “Compensation Committee”).

 

Signing Bonus:  You will
receive a one-time bonus of US$20,000.00,
less applicable tax withholding, payable upon the first payroll period
following your Start Date.

 

Annual Performance Bonus: 
On an annual basis, you will be eligible for a performance target bonus
of 80% of your base salary (the “Annual Bonus”) based upon achievement of
Company and individual performance objectives determined by the Compensation
Committee.  Once you 

 

 

 

become the Chief Executive Officer, your target Annual
Bonus will increase to 100% of your base salary.

 

Equity Award: 
At its next meeting after your Start Date at which equity grants are considered
for approval, that you be granted an award of 300,000
shares of restricted UTStarcom common stock (the “Initial Restricted Stock Award”),
which will vest over a four (4) year period. One quarter of the shares
will vest on the first anniversary of the date of grant, and then one-quarter
of the shares will vest annually thereafter, subject to your continuing to
provide services to the Company through each applicable vesting date.  In all other respects, the Initial Restricted
Stock Award will be subject to the terms and conditions of UTStarcom’s 2006
Equity Incentive Plan (the “Plan”) and form of agreement approved by the
Compensation Committee for restricted stock grants under the Plan.

 

After you become the Chief Executive Officer, we
will recommend to the Compensation Committee in January 2011 that you be
granted additional equity awards covering 1,000,000 shares of UTStarcom common
stock in January 2011, subject to you continuing to provide services to
the Company through that time.  The
additional equity awards would be granted pursuant to the Plan and subject to
the form of applicable award agreements adopted by UTStarcom for use under the
Plan as follows:

 

·                  300,000
shares of Restricted Stock.  One quarter
of the shares would vest on the first anniversary of the date of grant, and
then one-quarter of the shares would vest annually thereafter, subject to your
continuing to provide services to the Company through each applicable vesting
date.

 

·                  300,000
Restricted Stock Units (RSU’s).  One
quarter of the RSU’s would vest on the first anniversary of the date of grant,
and then one-quarter of the RSU’s would vest annually thereafter, subject to
your continuing to provide services to the Company through each applicable
vesting date.

 

·                  400,000
Stock Options.  One quarter of the shares
subject to the option would vest on the first anniversary of the date of grant,
and then 1/36 of the remaining shares subject to the option would vest monthly
thereafter, subject to your continuing to provide services to the Company
through each applicable vesting date.

 

The decision to make any equity grant, as well
as the terms of any such award, will be in the full discretion of the
Compensation Committee.

 

Involuntary Termination
Agreement:  Upon commencing your employment
hereunder, you and the Company will execute the Involuntary Termination
Severance Agreement attached hereto as Exhibit A (the “Severance Agreement”).  The terms of the Severance Agreement will be
inclusive of, and satisfy all the Company’s severance obligations after the
termination of your contract of employment, including, without limitation, any
severance to which you may be entitled pursuant to applicable law.

 

Financial
Planning benefit:  The Company will cover up to RMB 34,100 per year of costs incurred by you in obtaining
comprehensive financial planning and investment management 

 

 

services to assist you in
understanding your financial picture and estate planning and insurance
needs.  Covered services include retirement planning, education funding,
portfolio risk management, concentrated stock and employee stock option
management, 10b5-1 design, income and asset protection, estate planning and
philanthropic gifting.  While we have made special arrangements for these
services to be provided by Merrill Lynch, you can use any provider of your
choice.  This is considered a taxable
benefit.

 

Car and Driver: 
You will be provided a car and driver in Beijing through the Company’s
car fleet.

 

Other Benefits:  During the term of your employment, you will be
entitled to participate in the employee benefit plans currently and hereafter
maintained by the Company of general applicability to other senior executives
of the Company.  The Company reserves the
right to cancel or change the benefit plans and programs it offers to its
employees at any time.

 

Taxes: 
You will be responsible for the payment of the individual income taxes and the Company will
deduct all taxes as is required by applicable law.

 

Confidentiality Agreement: You will be required to execute
UTStarcom’s Employment, Confidential Information and Invention Assignment
Agreement attached hereto as Exhibit B (the “Confidentiality Agreement”).

 

Non-Competition: You agree that during the course of your
employment, and for a period of twelve (12) months immediately following the
termination of your employment with the Company (“Restricted Period”)  for whatever
reason (whether you
resign voluntarily or are terminated by the Company involuntarily), you will
not, without the prior written consent of the Company, whether paid or not: (i) serve
as a partner, principal, licensor, licensee, employee, consultant, officer,
director, manager, agent, affiliate, representative, advisor, promoter,
associate, investor, or otherwise for, (ii) directly or indirectly, own,
purchase, organize or take preparatory steps for the organization of, or (iii) build,
design, finance, acquire, lease, operate, manage, control, invest in, work or
consult for or otherwise join, participate in or affiliate yourself with (a) any
business that is a competitor of the Company at the time of your termination or
was a competitor of the Company during the course of your employment or (b) any
business that competes for any of the same customers of the Company that you
had direct interaction with during the course of your employment with the
Company (“Competitive Business”).  During the Restricted Period, the Company
will pay you an amount equal to 30% of your base salary as in effect on the
date of your termination in accordance with the Company’s normal payroll
practices.

 

The foregoing covenant
shall cover your activities in every part of the Territory.  “Territory”
means (i) the province in China where you are employed by the Company; (ii) all
states of the United States of America from which the Company derived revenue
at any time during the three-year period prior to the date of the termination
of your relationship with the Company, and (iii) all other province,
state, city or other political subdivision of each country from which the
Company derived revenue at any time during the three-year period prior to the
date of the termination of your relationship with the Company.  Notwithstanding the foregoing, you may still
acquire an ownership interest, directly or indirectly, of not more than 1% of
the outstanding securities of any corporation that is a Competitive Business
and which is listed on any recognized securities exchange or traded in the over
the counter market in the United States; provided, that such 

 

 

investment is completely
passive and you are not involved in the management or operations of such
corporation.  Should you obtain other
employment, whether or not competitive with the business of the Company, within
twelve (12) months immediately following the termination of your relationship
with the Company, you agree to provide written notification to the Company as
to the name and address of your new employer, the position you expect to hold,
and a general description of your duties and responsibilities,
at least three (3) business days prior to starting such employment.

 

You
acknowledge that you will derive significant value from the Company’s agreement
to provide you with the Confidential Information (as defined in the
Confidentiality Agreement) to enable you to perform your duties for the Company
successfully and that but for your commitments, the Company would not have
disclosed such Confidential Information to you. 
You further acknowledge that your fulfillment of the obligations
contained in this offer letter, including, but not limited to, your obligation
neither to disclose nor to use the Company’s Confidential Information other
than for the Company’s exclusive benefit and your obligations not to compete
and not to solicit contained herein and in the Confidentiality Agreement
provide no more protection than is reasonable and necessary to protect the
Company’s Confidential Information, and to preserve the value and goodwill of
the Company.  You also acknowledge that the time, geographic and scope
limitations of your obligations under these covenants not to compete and not to
solicit are fair and reasonable in all respects, especially in light of the
Company’s need to protect its Confidential Information and the international
scope and nature of the Company’s business, and that you will not be precluded
from gainful employment if you are obligated not to compete with the Company or
solicit its customers, employees or others during the period and within the
Territory as described above.  These covenants not to compete and not to
solicit will be construed as a series of separate covenants, one for each
country, province, state, city or other political subdivision in which the Company
currently engages in its business or, during the term of your employment,
becomes engaged in its business.  Except
for geographic coverage, each such separate covenant will be deemed identical
in terms to the covenant contained in this section and the Confidentiality
Agreement.  If, in any judicial
proceeding, a court refuses to enforce any of such separate covenants (or any
part thereof), then such unenforceable covenant (or such part) shall be
eliminated from this offer letter and/or the Confidentiality Agreement to the
extent necessary to permit the remaining separate covenants (or portions
thereof) to be enforced.  In the event
that the provisions of the covenant not to compete or not to solicit are deemed
to exceed the time, geographic or scope limitations permitted by applicable
law, then such provisions shall be reformed to the maximum time, geographic or
scope limitations, as the case may be, permitted by applicable law.

 

Governing
Law:  This offer letter will be governed by the
laws of Hong Kong, with the exception of its conflict of laws provisions.

 

Miscellaneous: This offer is contingent upon the
signing the Severance Agreement and Confidentiality Agreement.  The foregoing terms supersede any prior
discussions, oral or written, which we have had relating to your employment and
the other matters discussed in this letter.

 

 

We ask that you indicate
your consent and approval of the provisions of your offer letter by signing the
acknowledgment below.

 

We are pleased that you
have chosen to become part of the UTStarcom team, and wish you the very best as
you begin your employment with UTStarcom.

 

If you have any
questions, please feel free to contact me at 1-510-864-8800.

 

Yours
Sincerely,

 

 

Peter
Blackmore

Chief
Executive Officer and President

 

 

	
  /s/ PETER BLACKMORE

  	
   

  

 

I accept
the terms and conditions of this offer letter, and I understand that it
replaces those of any earlier offers of employment (if any), including without
limitation, prior versions of this offer letter.

 

	
  Signed:

  	
  /s/ JACK LU

  	
   

  
	
   

  	
   

  
	
  Print Name:  Jack LuExhibit
10.5

 

UTSTARCOM,
INC.

 

INVOLUNTARY
TERMINATION SEVERANCE AGREEMENT

 

This Involuntary Termination Severance Agreement (the “Agreement”) is
made and entered into effective as of February 1, 2010 (the “Effective Date”),
by and between Jack Lu (the “Employee”) and UTStarcom, Inc., a Delaware
corporation (the “Company”).  Certain
capitalized terms used in this Agreement are defined in Section 1 below.

 

RECITALS

 

A.                                    The Company
desires to retain the services of the Employee, and the Employee desires to be
employed by the Company, on the terms and subject to the conditions set forth
in this Agreement and the offer letter dated February 1, 2010 (the “Offer
Letter”).

 

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
enhanced financial security and sufficient encouragement to remain with the
Company.

 

AGREEMENT

 

In consideration of the mutual covenants herein contained and the 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)                                 Good Reason. “Good Reason” shall mean, without
the Employee’s express written consent, (i) 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 the sole occurrence of
the Company being acquired and made part of a larger entity shall not
constitute a “Good Reason;” (ii) a reduction by the Company of the
Employee’s base salary as in effect immediately prior to such reduction; (iii) a
material reduction by the Company in the kind or level of employee compensation
or 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; (iv) the relocation of the Employee to a facility
or a location where such relocation increases the distance the Employee must
travel to work by more than thirty (30) miles from the Employee’s commute prior
to the relocation; (v) 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 (vi) the
failure of the Company to obtain the assumption of this Agreement by any
successors contemplated in Section 8 below.  For purposes of clarification, if the
Employee does not become CEO within the time period set forth in the Offer
Letter, then that will be considered a significant reduction of the Employee’s
duties, position or responsibilities under clause (i), unless prior to that
time the Employee’s employment with the Company is terminated for Cause or he
resigns without Good Reason.

 

(c)                                  Involuntary Termination. “Involuntary
Termination” shall mean any termination (other than a termination for Cause) of
the Employee by the Company.

 

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

 

2.                                      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, unless otherwise required by
applicable laws and regulations.

 

3.                                      Severance Benefits.  If
the Employee’s employment with the Company terminates as a result of a Good
Reason or an Involuntary Termination during the term of this Agreement, then
the Employee shall be entitled to the following severance benefits:

 

(a)                                 an amount equal to 70% of twelve (12) months of the Employee’s
base salary as in effect as of the Termination Date, less applicable
withholding, payable in a lump sum within thirty (30) days of the
Termination Date;

 

(b)                                 an amount equal to one hundred percent (100%) of Employee’s full annual
performance target bonus for the year in which the termination occurs, payable
in a lump sum within thirty (30) days of the Termination Date;

 

(c)                                  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 Employee’s equity
awards shall be exercisable until the earliest of (a) twelve (12) months
from the Termination Date, (b) the latest date the equity award could have
expired by its original terms under any circumstances, (c) the tenth (10th) anniversary of the original date of grant
of the equity award, or (d) the date provided for under the equity plan
under which the award was granted;

 

(d)                                 all Employee’s outstanding restricted cash awards, if any, shall become
fully vested, payable in a lump sum within thirty (30) days of the Termination
Date; and

 

(e)                                  an amount equal to twelve (12) months of health insurance premiums at
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, payable within thirty (30) days of
the date of termination.

 

 

It is the intent of the parties that the terms of
this Agreement will be inclusive of, and satisfy all the Company’s (and its
affiliates’) severance obligations after the termination of the Employee’s
employment with the Company, including, without limitation, any severance to
which the Employee may be entitled pursuant to applicable law.  In this respect, any amounts due and owing
hereunder will first be used to offset any amounts that the Company (or its
affiliates) may otherwise owe to the Employee under applicable laws in
connection with his termination.

 

4.                                      Other Terminations. For
avoidance of doubt, if the Employee’s employment with the Company terminates as
a result of Cause or the Employee resigns without Good Reason, then the
Employee shall not be entitled to receive severance or other benefits
hereunder, except those benefits required to be provided by law.

 

5.                                      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.

 

6.                                      Release and Non-Disparagement Agreement. As a
condition to receiving severance or other benefits under this Agreement,
Employee will be required to sign a waiver and release of all claims arising
out of his Involuntary Termination or separation for Good Reason and an
agreement not to disparage the Company, its directors, or its executive
officers, in a reasonable form satisfactory to the Company; provided, however,
Employee will not be required to waive or release any rights related to the
Company’s indemnification obligations or that arise under the Company’s D&O
insurance coverage.

 

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.

 

 

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 Company may, in its
discretion, pay Employee in lieu of 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)                                 Arbitration.  In
consideration of Employee’s employment with the Company, its promise to arbitrate
all employment-related disputes, and Employee’s receipt of the compensation,
pay raises, and other benefits paid to Employee by the Company, at present and
in the future, Employee agrees that any and all controversies, claims, or
disputes with anyone (including the Company and any employee, officer,
director, shareholder, or benefit plan of the Company, in their capacity as
such or otherwise), arising out of, relating to, or resulting from Employee’s
employment with the Company or the termination of Employee’s employment with
the Company, including any breach of this Agreement, shall be subject to
binding arbitration under the arbitration rules set forth in applicable
law of Hong Kong.  Disputes that Employee
agree to arbitrate, and thereby agree to waive any right to a trial by jury,
include any statutory claims under local, state, or federal law, including, but
not limited to, claims under Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act of 1990, the Age Discrimination in Employment
Act of 1967, the Older Workers Benefit Protection Act, the Sarbanes-Oxley Act,
the Worker Adjustment and Retraining Notification Act, the California Fair
Employment and Housing Act, the Family and Medical Leave Act, the California
Family Rights Act, the California Labor Code, claims of harassment,
discrimination, and wrongful termination, and any statutory or common law
claims, as well as all such statutes and decrees under the laws of Hong
Kong.  Employee further understands that
this Agreement to arbitrate also applies to any disputes that the Company may
have with Employee.

 

(b)                                 Procedure.  Employee
agrees that any arbitration will be administered by Judicial Arbitration &
Mediation Services, Inc. (“JAMS”), pursuant to its employment arbitration rules &
procedures (the “JAMS rules”).  Employee
agrees that the arbitrator shall have the power to decide any motions brought
by any party to the arbitration, including motions for summary judgment and/or
adjudication, and motions to dismiss and demurrers, prior to any arbitration
hearing.  Employee agrees that the
arbitrator shall issue a written decision on the merits.  Employee also agrees that the arbitrator
shall have the power to award any remedies available under applicable law, and
that the arbitrator shall award attorneys’ fees and costs to the prevailing
party, except as prohibited by law.  Employee agrees that the decree or award
rendered by the 

 

 

arbitrator
may be entered as a final and binding judgment in any court having jurisdiction
thereof.  Employee understands that the
Company will pay for any administrative or hearing fees charged by the
arbitrator or JAMS except that Employee shall pay any initial filing fees
associated with any arbitration that Employee initiates, but only so much of the
filing fees as Employee would have instead paid had Employee filed a complaint
in a court of law.  Employee agrees that
the arbitrator shall administer and conduct any arbitration in accordance with
Hong Kong procedural and substantive law, without reference to rules of
conflict of law.  To the extent that the
JAMS rules conflict with Hong Kong law, Hong Kong law shall take
precedence.  Employee agree that any
arbitration under this Agreement shall be conducted in Hong Kong.

 

(c)                                  Remedy.  Except as
provided by applicable law and this Agreement, arbitration shall be the sole,
exclusive, and final remedy for any dispute between Employee and the
Company.  Accordingly, except as provided
by applicable law and this Agreement, neither Employee nor the Company will be
permitted to pursue court action regarding claims that are subject to
arbitration.

 

(d)                                 Administrative Relief.  Employee understands that this Agreement does
not prohibit Employee from pursuing an administrative claim with a local,
state, or federal administrative body or government agency that is authorized
to enforce or administer laws related to employment, including, but not limited
to, the Department of Fair Employment and Housing, the Equal Employment
Opportunity Commission, the National Labor Relations Board, or the Workers’
Compensation Board.  This Agreement does,
however, preclude Employee from pursuing court action regarding any such claim,
except as permitted by law.

 

(e)                                  Voluntary Nature of Agreement.  Employee
acknowledges and agrees that Employee is executing this Agreement voluntarily
and without any duress or undue influence by the Company or anyone else.  Employee further acknowledges and agrees that
Employee has carefully read this Agreement and has asked any questions needed
to understand the terms, consequences, and binding effect of this Agreement and
fully understand it, including that Employee is waiving Employee’s right to a jury trial.  Finally, Employee agrees that he has been
provided an opportunity to seek the advice of an attorney of Employee’s choice
before signing this Agreement.

 

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, together with
the Offer Letter between Employee and the Company and any outstanding
restricted cash agreements and equity award 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,
any restricted cash agreement and equity award agreements.

 

(d)                                 Choice of Law. The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of Hong Kong, with the exception of its conflict of laws
provisions.

 

(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, employment and other taxes required to be withheld by the Company (or
any of its affiliates) pursuant to applicable laws.

 

(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.

 

(h)                                 No Representations. The
Employee represents that he has had the opportunity to consult with his
attorneys and tax advisors, and has carefully read and understands the scope,
effect and potential tax consequences of the provisions of this Agreement. The
Employee represents that he is not relying on the Company for any tax advice.

 

[Remainder of Page Intentionally Left Blank]

 

 

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/
  PETER BLACKMORE

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

	
  EMPLOYEE:

  	
  /s/
  JACK LU

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Jack
  Lu

  
	
   

  	
  Printed
  Name

  

 

SIGNATURE
PAGE TO

INVOLUNTARY
TERMINATION SEVERANCE AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]